scholarly journals EU income stabilization tool: potential impacts, financial sustainability and farmer’s risk aversion

2021 ◽  
Vol 9 (1) ◽  
Author(s):  
Simone Severini ◽  
Cinzia Zinnanti ◽  
Valeria Borsellino ◽  
Emanuele Schimmenti

AbstractThe Income Stabilization Tool, a risk management scheme introduced within the Common Agricultural Policy (CAP) 2014–2020, could help European Union farmers manage the income risks they face. This study assesses the potential impact of implementing this tool through the maximum level of contribution to the fund which determines an indifference to participate in the fund and its financial sustainability. The study relies on an expected utility approach and assesses the variability of loss ratios over time using a sample of Italian hazelnut farms as a case study. The participation depends on the level of farmers' contributions and their degree of risk aversion. However, the CAP public support makes the scheme financially sustainable.

Author(s):  
Vincenzo Giaccio ◽  
Luigi Mastronardi ◽  
Davide Marino ◽  
Agostino Giannelli ◽  
Alfonso Scardera

This paper investigates how and to what extent European and national policies, through the analysis of financial support derived from the Common Agricultural Policy (CAP) (First and Second Pillar) and national and local subsidies, have financed Italian agritourism. For this purpose, the authors have proposed a comparative analysis between Italian agritourism and farms without tourism activities, by stressing the distribution of public financial supports concerning the 2007-2013 programming period of the European Union (EU) for Rural Development. The empirical analysis is based on the Italian Farm Accountancy Data Network (FADN) dataset. The data were stratified by altimetry zone and farm size. Descriptive statistics and the Analysis of Variance (ANOVA) for each group were used. The main results show how the Second Pillar has mainly supported small and medium-sized farms with tourism activities and located in disadvantaged areas. This study could be useful to policymakers regarding evaluation of the mission for diversification in agriculture, represented here by the carrying out of tourist activities on farms and the contribution for the retention of small-scale farms in marginal areas.


2020 ◽  
Vol 60 (2) ◽  
pp. 7-20
Author(s):  
Katarzyna Kocur-Bera

Instruments promoting rural development have been implemented by many countries. Areabased payments for farmers allocated under the Common Agricultural Policy constitute one of such instruments in the European Union. The support system for rural areas, including the size of the declared reference parcels, is monitored as part of the cross-compliance mechanism. Parcels with unfavorable landuse patterns are more difficult to farm. According to estimates, more than 30% of agricultural farms in Poland fall into this category. This study proposes a universal algorithm for controlling the information submitted by farmers in payment applications. More than 76,000 applications were analyzed, and farms with the defective spatial structure of land were randomly selected. The results show that most errors occur in the case of land parcels situated the farthest from a farm holding (declared in the application), but the analysis revealed no strong correlation in this respect.


2018 ◽  
Vol 10 (8) ◽  
pp. 2938 ◽  
Author(s):  
Vincenzo Giaccio ◽  
Luigi Mastronardi ◽  
Davide Marino ◽  
Agostino Giannelli ◽  
Alfonso Scardera

This paper investigates how and to what extent European and national policies have financed Italian agritourism. It analyses financial support derived from the Common Agricultural Policy (CAP) (First and Second Pillar) and national and local subsidies. For this purpose, the authors have proposed a comparative analysis between Italian agritourism and farms without tourism activities, by stressing the distribution of public financial supports concerning the 2007–2013 programming period of the European Union (EU) for Rural Development. The empirical analysis is based on the Italian Farm Accountancy Data Network (FADN) dataset. The data were stratified by altimetry zone and farm size. Descriptive statistics and the Analysis of Variance (ANOVA) for each group were used. The main results show how the Second Pillar has mainly supported small and medium-sized farms with tourism activities and located in disadvantaged areas. This study could be useful to policymakers regarding the evaluation of the mission for diversification in agriculture, represented here by the carrying out of tourist activities on farms and the contribution for the retention of small-scale farms in marginal areas.


1997 ◽  
Vol 51 (1) ◽  
pp. 135-165 ◽  
Author(s):  
Lee Ann Patterson

Since the beginning of the General Agreement on Tariffs and Trade (GATT) Uruguay Round the European Community (EC) has twice attempted to reform the Common Agricultural Policy (CAP), resulting in the February 1988 stabilizers reform package and the May 1992 MacSharry reform package. Curiously, these two attempts at reform resulted in vastly different outcomes. The 1988 reform was incremental in nature and functioned mainly as a stopgap measure. The 1992 reform, however, called for a shift from nontransparent consumer subsidies to transparent taxpayer subsidies. This shift represented a fundamental change in the philosophy underlying the CAP and laid the groundwork for an agreement in the Uruguay Round. This article examines the conditions under which this important policy shift occurred. It employs an interpretative case study method that demonstrates the empirical value of Robert Putnam's two-level game model when it is expanded to consider the simultaneous interaction of negotiations at three levels: the domestic level, the EC level, and the international level. The study concludes that the power and heterogeneity of interest groups at various levels of the game matter, that the real and perceived costs of no agreement affect the degree of substantive reform, and, finally, that a three-level interactive strategy is important in achieving an acceptable agreement at each level of the game.


Land ◽  
2021 ◽  
Vol 10 (1) ◽  
pp. 59
Author(s):  
Syed Amir Manzoor ◽  
Geoffrey Griffiths ◽  
David Christian Rose ◽  
Martin Lukac

Changes in agricultural policy may have a rapid impact, even on landscapes which have taken millennia to form. Here we explore the potential impact of the UK leaving the EU as a catalyst for profound changes in the pastoral landscapes of Wales. Impending change of the trading regime governing agricultural produce, concurrent with public pressure to use agricultural subsidies for environmental goals, may lead to unforeseen consequences for the Welsh natural environment. We employ a combination of change demand modelling and a ‘story and simulation approach’ to project the effect of five hypothetical plausible scenarios on land use and land use change in Wales by 2030. We show that the most extreme trade scenario would result in a significant expansion of broadleaf woodland across much of Wales. By contrast, the ‘green futures’ scenario introduced to supersede the Common Agricultural Policy, results in significant expansion of woodland but not at the level seen with the more extreme trade scenarios.


2008 ◽  
Vol 15 (4) ◽  
pp. 351 ◽  
Author(s):  
J. HELIN ◽  
M. LAUKKANEN ◽  
K. KOIKKALAINEN

Designing efficient agri-environmental policies for agricultural nutrient load reductions calls for information on the costs of emission reduction measures. This study develops an empirical framework for estimating abatement costs for nutrient loading from agricultural land. Nitrogen abatement costs and the phosphorus load reductions associated with nitrogen abatement are derived for crop farming in south-western Finland. The model is used to evaluate the effect of the Common Agricultural Policy reform currently underway on nutrient abatement costs. Results indicate that an efficiently designed policy aimed at a 50% reduction in agricultural nitrogen load would cost € 48 to € 35 million, or € 3756 to € 2752 per farm.;


2013 ◽  
Vol 13 (1) ◽  
pp. 39-60 ◽  
Author(s):  
David Ramiro Troitino ◽  
Archil Chochia

Abstract The article deals with the problematic of the Common Agricultural Policy (CAP) as the crucial political question related with the European Integration. The authors describes and analysis the role of the CAP within the EU policies, its development form the very beginning of the integration its internal structure, rules of organisation, working system and financial aspects. The close concern is given to the question of the long-term sustainability of CAP and the reform for the next financial period (2014-2020). Th e special part is devoted to the influence of the CAP on the enlargement process with the special impetus to the association of Georgia to the EU.


2021 ◽  
Vol 13 (15) ◽  
pp. 8221
Author(s):  
Carmelo Picone ◽  
Roberto Henke ◽  
Myriam Ruberto ◽  
Emilio Calligaris ◽  
Raffaella Zucaro

The aim of this work is to evaluate the sustainability of water management for agriculture in a specific territory through the creation of a synthetic index resulting from the aggregation of multiple indices (environmental, economic, and social). The resulting synthetic index can be used to set sustainability standards and to guide the choices mandated by the Common Agricultural Policy 2023–2027. In this work we intend to show how the Multiple Criteria Decision Analysis (MCDA) method facilitates a complex process such as establishing a degree of sustainability in a certain area and, therefore, provides support to national or regional policies and communities. The integration of MCDA and GIS increases the efficiency of the support activity. A case study is presented evaluating the level of sustainability in the Irrigation and Reclamation Consortium of Piacenza and Emilia Centrale, in the Emilia Romagna region.


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