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

Abstract The 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 cont...

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Autores principales:	Simone Severini, Cinzia Zinnanti, Valeria Borsellino, Emanuele Schimmenti
Formato:	article
Lenguaje:	EN
Publicado:	SpringerOpen 2021
Materias:	Expected utility Gross margin Mutual Fund Risk management Nutrition. Foods and food supply TX341-641 Agricultural industries HD9000-9495
Acceso en línea:	https://doaj.org/article/fea5ff3d45e44324a68734970924642d
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spelling	oai:doaj.org-article:fea5ff3d45e44324a68734970924642d2021-11-14T12:15:18ZEU income stabilization tool: potential impacts, financial sustainability and farmer’s risk aversion10.1186/s40100-021-00205-42193-7532https://doaj.org/article/fea5ff3d45e44324a68734970924642d2021-11-01T00:00:00Zhttps://doi.org/10.1186/s40100-021-00205-4https://doaj.org/toc/2193-7532Abstract The 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.Simone SeveriniCinzia ZinnantiValeria BorsellinoEmanuele SchimmentiSpringerOpenarticleExpected utilityGross marginMutual FundRisk managementNutrition. Foods and food supplyTX341-641Agricultural industriesHD9000-9495ENAgricultural and Food Economics, Vol 9, Iss 1, Pp 1-21 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	Expected utility Gross margin Mutual Fund Risk management Nutrition. Foods and food supply TX341-641 Agricultural industries HD9000-9495
spellingShingle	Expected utility Gross margin Mutual Fund Risk management Nutrition. Foods and food supply TX341-641 Agricultural industries HD9000-9495 Simone Severini Cinzia Zinnanti Valeria Borsellino Emanuele Schimmenti EU income stabilization tool: potential impacts, financial sustainability and farmer’s risk aversion
description	Abstract The 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.
format	article
author	Simone Severini Cinzia Zinnanti Valeria Borsellino Emanuele Schimmenti
author_facet	Simone Severini Cinzia Zinnanti Valeria Borsellino Emanuele Schimmenti
author_sort	Simone Severini
title	EU income stabilization tool: potential impacts, financial sustainability and farmer’s risk aversion
title_short	EU income stabilization tool: potential impacts, financial sustainability and farmer’s risk aversion
title_full	EU income stabilization tool: potential impacts, financial sustainability and farmer’s risk aversion
title_fullStr	EU income stabilization tool: potential impacts, financial sustainability and farmer’s risk aversion
title_full_unstemmed	EU income stabilization tool: potential impacts, financial sustainability and farmer’s risk aversion
title_sort	eu income stabilization tool: potential impacts, financial sustainability and farmer’s risk aversion
publisher	SpringerOpen
publishDate	2021
url	https://doaj.org/article/fea5ff3d45e44324a68734970924642d
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EU income stabilization tool: potential impacts, financial sustainability and farmer’s risk aversion

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