Volatility in farm income represents a major challenge for farm management and for the design of public policies. This paper measures the extent to which risk management tools, especially direct payments and crop insurance, can significantly reduce crop income volatility in France and in Italy. We use an original dataset of 9,555 farms for the period 2003-2007 drawn up from the Farm Accountancy Data Network (FADN) and three different econometric models to explain the volatility of crop income. The results are contrasted between the specialization of the farms and the two countries. Italian farms use management tools (European payments, crop insurance and inputs) to improve their income and reduce its volatility. French farms use the same tools to raise incomes and their volatility and tend to substitute European payments with production. These results question the efficiency of structural policies aimed at stabilizing farmers’ incomes.

Geoffroy ENJOLRAS, Fabian CAPITANIO, Magali AUBERT, Felice ADINOLFI (2014). Direct payments, crop insurance and the volatility of farm income. Some evidence in France and in Italy. NEW MEDIT, 1, 31-40.

Direct payments, crop insurance and the volatility of farm income. Some evidence in France and in Italy

ADINOLFI, FELICE
2014

Abstract

Volatility in farm income represents a major challenge for farm management and for the design of public policies. This paper measures the extent to which risk management tools, especially direct payments and crop insurance, can significantly reduce crop income volatility in France and in Italy. We use an original dataset of 9,555 farms for the period 2003-2007 drawn up from the Farm Accountancy Data Network (FADN) and three different econometric models to explain the volatility of crop income. The results are contrasted between the specialization of the farms and the two countries. Italian farms use management tools (European payments, crop insurance and inputs) to improve their income and reduce its volatility. French farms use the same tools to raise incomes and their volatility and tend to substitute European payments with production. These results question the efficiency of structural policies aimed at stabilizing farmers’ incomes.
2014
Geoffroy ENJOLRAS, Fabian CAPITANIO, Magali AUBERT, Felice ADINOLFI (2014). Direct payments, crop insurance and the volatility of farm income. Some evidence in France and in Italy. NEW MEDIT, 1, 31-40.
Geoffroy ENJOLRAS; Fabian CAPITANIO; Magali AUBERT; Felice ADINOLFI
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/399050
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