Analysis of indemnification of income risk at sector level: the case of Slovenia

7th ERAZ Selected Papers (part of ERAZ conference collection)

“…According to the European Commission proposition (EC, 2011) the income is defined as the sum of revenues the farmer receives, including any form of public support, deducting input costs. However, the authors have used different income categories for IST assessment, for example Net farm income (Hausheer Schnider, 2011;El Benni et al, 2016), profit margin (Liesivaara et al, 2012), farm net value added (Pigeon et al, 2012), gross margin (Zgajnar, 2017). In the paper we decided to identify the farms that could have receive the indemnification based of the Gross farm income calculation (Figure 1).…”

“…The 23% of the EU-25 farmers in 2006 had an estimated loss greater than 30% with a required compensation of $11.2 billion (€9.7 billion per year as an average for the last decade, EU-15 and variations from €8.5 to 11.4 billion). The ex-ante research on the IST focusses on actuarial evaluations of a potential income compensation, governmental costs, impacts on optimal farm programmes, and identification of potential beneficiary groups of farms (Zgajnar, 2017;Pigeon et al, 2012;Liesivaara et al, 2012;Mary et al, 2013;El Benni & Finger, 2014). The authors El Benni et al ( 2016) noted, that in the ISTs ex-ante analyses two basic approaches are employed.…”

“…Kimura & Anton, 2011;Pigeon et al, 2012). Zgajnar (2017) added that the third approach is the analysis of data series with the regression-based econometric models (Pigeon et al, 2014;El Benni et al, 2016).…”