Theme

Farm-level risk profiles throughout the European Union are likely to change. On the one hand, agricultural policy is changing -- with uncertain consequences for farms. This induces the need for proper farm-level risk management. On the other hand, agricultural policy may play a role in organising new forms of risk management. This seminar aims at discussing and analysing:

(1)     the potential consequences of policy changes for risks and uncertainties with respect to farm production, revenue and income; and

(2)     the opportunities for efficient (policy) instruments for risk management and income stabilisation, both with respect to crisis risk and normal business risk.

Background

Policy changes, such as more direct subsidies, the ending or changing nature of production quota and the further liberalisation of commodity prices, are likely to influence farmers’ income and revenue risks. The total effect on income fluctuation is however rather uncertain and will likely depend on issues such as farm size, farm type and location. For farmers and policy makers to adequately address these issues more insight is needed into the expected impact of policy changes on income fluctuation and production risks.

At the same time, there are a number of developments and instruments in the public, private and public-private risk management arena that might provide economically efficient solutions for the changed levels of risk and income fluctuation. This seminar intends to address the various causes of income fluctuation and possible instruments for income stabilisation.