Access the full text.
Sign up today, get DeepDyve free for 14 days.
Simon Jetté-Nantel, D. Freshwater, A. Katchova, M. Beaulieu (2011)
Farm income variability and off‐farm diversification among Canadian farm operatorsAgricultural Finance Review, 71
Y. Mey, F. Winsen, E. Wauters, M. Vancauteren, L. Lauwers, S. Passel (2014)
Farm-level evidence on risk balancing behavior in the EU-15Agricultural Finance Review, 74
P. Barry, C. Escalante, Sharon Bard (2001)
Economic risk and the structural characteristics of farm businessesAgricultural Finance Review, 61
R. Finger, N. Lehmann (2012)
The influence of direct payments on farmers’ hail insurance decisionsAgricultural Economics, 43
N. Benni, Robert Finger (2013)
Gross revenue risk in Swiss dairy farming.Journal of dairy science, 96 2
Kenneth Poon, A. Weersink (2011)
Factors Affecting Variability in Farm and Off-farm IncomeAgricultural Finance Review, 71
A. Mishra, H. El-Osta (2001)
A temporal comparison of sources of variability in farm household incomeAgricultural Finance Review, 61
OECD (2009)
10.1787/9789264075313-en
J. Chavas (2011)
Agricultural policy in an uncertain worldEuropean Review of Agricultural Economics, 38
Teresa Serra, B. Goodwin, K. Hyvonen (2005)
Replacement of Agricultural Price Supports by Area Payments in the European Union and the Effects on Pesticide UsePolitical Economy - Development: Domestic Development Strategies eJournal
S. Severini, A. Tantari, G. Tommaso (2016)
The instability of farm income. Empirical evidences on aggregation bias and heterogeneity among farm groups, 5
N. Benni, R. Finger, S. Mann (2012)
Effects of agricultural policy reforms and farm characteristics on income risk in Swiss agricultureAgricultural Finance Review, 72
A. Mishra, H. El-Osta, M. Morehart, J. Johnson, J. Hopkins (2002)
Income, Wealth, and the Economic Well-Being of Farm Households.Agricultural Economics Reports
N. Benni, R. Finger, M. Meuwissen (2016)
Potential effects of the income stabilisation tool (IST) in Swiss agricultureEuropean Review of Agricultural Economics, 43
C. Gardebroek, M. Chavez, A. Lansink (2010)
Analysing Production Technology and Risk in Organic and Conventional Dutch Arable Farming using Panel DataJournal of Agricultural Economics, 61
R. Finger (2012)
Effects of crop acreage and aggregation level on price‐yield correlationsAgricultural Finance Review, 72
B. Barnett, Keith Coble (2009)
Are Our Agricultural Risk Management Tools Adequate for a New EraChoices. The Magazine of Food, Farm, and Resources Issues, 24
C. Cafiero, F. Capitanio, A. Cioffi, A. Coppola (2007)
Risk and Crisis Management in the Reformed European Agricultural PolicyCanadian Journal of Agricultural Economics-revue Canadienne D Agroeconomie, 55
W. Kruskal, W. Wallis (1952)
Use of Ranks in One-Criterion Variance AnalysisJournal of the American Statistical Association, 47
G. Moschini, D. Hennessy (2001)
Chapter 2 Uncertainty, risk aversion, and risk management for agricultural producersHandbook of Agricultural Economics, 1
R. Finger (2010)
Revisiting the Evaluation of Robust Regression Techniques for Crop Yield Data DetrendingPolitical Economy - Development: Domestic Development Strategies eJournal
Dong Huang, R. Cabral, F. Torre (2018)
Robust RegressionQuantile Regression
S. Severini, A. Tantari, G. Tommaso (2016)
Do CAP direct payments stabilise farm income? Empirical evidences from a constant sample of Italian farmsAgricultural and Food Economics, 4
R. Finger (2013)
Investigating the performance of different estimation techniques for crop yield data analysis in crop insurance applicationsAgricultural Economics, 44
C. Gardebroek (2006)
Comparing risk attitudes of organic and non-organic farmers with a Bayesian random coefficient modelEuropean Review of Agricultural Economics, 33
A. Mishra, C. Sandretto (2002)
Stability of Farm Income and the Role of Nonfarm Income in U.S. AgricultureApplied Economic Perspectives and Policy, 24
OECD (2014)
10.1787/agr_pol-2014-en
PurposeThe purpose of this paper is to assess how direct payments (DPs) of the Common Agricultural Policy affect income and revenue variability faced by Italian farmers.Design/methodology/approachBalanced farm-level panel data are used to construct coefficients of variation over the period 2003-2012. Nonlinear robust regression techniques are used to measure the effect of DP, farm size, fixity in resources, labor intensity, farm production orientation, and specialization on the variability of farm income (FI) and farm revenue. This is done on the overall sample as well as on subsamples of farms located in different regions and belonging to different types of farming.FindingsDPs have mixed effects on the variability of FI. While a negative and significant relationship is found on the whole national sample, this is not generally the case when models are run on the considered subsamples. On the contrary, DPs have always significant variability increasing effects on revenue. This suggests that DPs reduce the degree of risk that farmers face allowing them to engage in riskier activities. Thus, DPs are less effective than expected in terms of income stabilization because these distort farmers’ risk management behavior. Because of this, DPs could constrain the development of markets for risk management instruments and reduce the effectiveness of policies supporting the use of these instruments.Originality/valueThe analysis is inspired by El Benni et al. (2012) but uses a different approach, applies it to a different country, and yields different results. Volatility measures are calculated over more years, and the paper accounts for differences in farm production orientation and is not based on an unbalanced panel of farms. Because of these differences, the authors obtained different results regarding the correlation between DP and income and, even more, revenue variability. Finally, comparing the results of models referring to FI and farm revenue improves the author’s understanding of the impact of DP on farmers’ risk management behavior and allows interesting policy considerations.
Agricultural Finance Review – Emerald Publishing
Published: Jul 3, 2017
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.