Evaluation of risk management tools for stabilising farm income under CAP 2014-2020

Abstract

[EN] Guaranteeing farm income stability is an objective of the European Union’s and the Spanish agricultural policies. In this paper, CAP direct payments, diversification, crop insurance and an Income Stabilisation Tool (IST) were compared considering (i) their effect on farm income and income stability, (ii) the expected farmers’ willingness for adoption, and (iii) the efficiency of public expenditure invested in supporting them. Main conclusions point at direct payments and crop diversification as the most effective measures in decreasing income variability. Nevertheless, using crop insurance or an IST has potential for both improving farm resilience to income variability and limiting public expenditure

[ES] Garantizar la estabilidad de la renta agraria es uno de los objetivos de las políticas agrarias española y comunitaria. Se comparan los pagos directos, la diversificación, los seguros agrarios y un Instrumento de Estabilización de Rentas (IER) respecto a (i) su efecto en la renta agraria y su estabilidad, (ii) la predisposición de los productores a adoptarlos y (iii) la eficiencia del gasto público. Los pagos directos y la diversificación son las medidas más eficaces para estabilizar la renta. El seguro y el IER mejoran la estabilidad de la renta con una alta eficiencia del gasto público.