The Income Stabilization Tool: Assessing the Hypothesis of a National Mutual Fund in Italy

Capitanio, Fabian; Adinolfi, Felice; Pasquale, Jorgelina Di

doi:10.3844/ajassp.2016.357.363

Cited by 10 publications

(9 citation statements)

References 6 publications

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“…The income stabilization tool (IST) (art. 39), which was proposed in the post-2013 reform, is a measure introduced in the Rural Development Regulation to handle income risks (Severini et al, 2018;Castañeda-Vera and Garrido, 2017;Capitanio et al, 2016). It is a mutual fund that covers farmers from income reductions.…”

Section: Discussionmentioning

confidence: 99%

Price volatility and risk management: The case of rice in the EU

Banterle¹,

Vandone²

2019

Economia Agro-Alimentare

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The paper aims at analysing rice-price volatility over the last ten years, and at identifying strengths and weaknesses of financial-risk management tools other than derivatives. In particular, it focuses on innovative insurance products, like revenue insurance products, and on their potential use in agriculture. Focus will be on EU Mediterranean countries, specifically on Italy, that is the main rice producer in this area. In Europe, the Common Agricultural Policy (CAP) provides risk management tools. For example, the income stabilization tool is a measure to manage income risks.

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Section: Discussionmentioning

confidence: 99%

Price volatility and risk management: The case of rice in the EU

Banterle¹,

Vandone²

2019

Economia Agro-Alimentare

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“…Lack of good experience examples (Janowicz-Lomott, 2014). The measures are new, it is difficult to make accurate predictions about the number of farms taking part (Fabian, 2016). Regionally organized mutual funds have a possibility that many or all farmers incur losses at the same time (Landini, 2015).…”

Section: Table Benefits and Weaknesses Of Mutual Funds Implementationmentioning

confidence: 99%

“…Mutual funds can insure those risks, which are not insured by companies (Clipici, 2015;Fabian, 2016). Possibility to apply EU funds (Janowicz-Lomott, 2014).…”

Section: Table Benefits and Weaknesses Of Mutual Funds Implementationmentioning

confidence: 99%

“…Such funds may adopt flexible regimes of premium collection, which are better tailored to cash flows of their clients (Melyukhina, 2011). IST will significantly reduce income inequality (Finger, 2014). Flexibility in terms of insurance coverage and premium assessment (Assefa, 2012 FMSE, created in 2012, is the only official French mutual fund, which is compulsory for all farms involved in agricultural activity.…”

Section: Table Benefits and Weaknesses Of Mutual Funds Implementationmentioning

confidence: 99%

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The Readiness of Farmers to Create Mutual Funds for Agricultural Risk Management in Lithuania

Kuliešis¹,

Pareigienė²,

Ribašauskienė³

et al. 2017

Management Theory and Studies

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The agriculture could be characterized as the economic activity which production and economic results are unpredictable and unstable because of climate change, market volatility. Vast and growing risk of farming induces to look after the ways to manage it. European Union, aiming to reduce risks in agricultural activities, proposes to create mutual funds as new measures for farmers not only to protect the production, but the income losses too. Lithuania intends to implement these measures, therefore it is very important not only to analyse the experience of other countries but also to know the opinion of Lithuanian farmers' community. The aim of the research is to examine the attitudes of Lithuanian farmers due to participation in creation of mutual funds. Using the method of force field the semi structured questionnaire was developed, it was sent to 46 leaders of farmer's organizations affiliated to The Chamber of Agriculture of the Republic of Lithuania, 22 replies were received. The research results confirmed farmers' attitudes, that the risk management tools, associated with creation of mutual funds are necessary and relevant in Lithuanian case, but their current level of awareness impels uncertainty and unpreparedness.

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“…IST efficiency has mostly been researched in Italy and Switzerland Fabian et al (2016). showed that IST protects farmers from income variability.…”

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confidence: 99%

Income Stabilization Tool in Viticulture – Risk Management Innovation: the case of the Istria County

Čop¹,

Čehić²,

Njavro³

2020

JCEA

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To cope with different types of risks, farmers can implement on-farm strategies and risk-sharing strategies. Risk management tools within EU Common Agricultural Policy are subsidized crop insurance, mutual funds (MF), and income stabilization tool (IST). While subsidized crop insurance is widely applied, IST and MF are not so common. Price volatility and climate change risk significantly influence farm income. Mediterranean area is especially exposed to climate change, so Istria County as part of Mediterranean is chosen for research. IST could protect against income variability, but more research and discussions are needed prior to its commercial scale implementation. Qualitative research on the small sample was applied with the goal to explore attributes that could impact the selection of IST. Paper provides an overview of IST and previous experience of IST on the EU level, on the basis of semi structured interviews, explains the perception of climate risks and IST on wine cases in Istria. The results show that all selected cases were familiar with subsidized crop insurance; however, they were not familiar with IST. After being introduced to the IST, wine producers were ready to consider its application. Lack of experiences in business linkages could be a constraint in the development of IST and challenge for policymakers.

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The Income Stabilization Tool: Assessing the Hypothesis of a National Mutual Fund in Italy

Cited by 10 publications

References 6 publications

Price volatility and risk management: The case of rice in the EU

Price volatility and risk management: The case of rice in the EU

The Readiness of Farmers to Create Mutual Funds for Agricultural Risk Management in Lithuania

Income Stabilization Tool in Viticulture – Risk Management Innovation: the case of the Istria County

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