Naslov
Farmers’ acceptance of income stabilization tool scheme: A discrete choice experiment

Autori
Čop, Tajana ; Njavro, Mario ; Cerroni, Simone

Vrsta, podvrsta i kategorija rada
Sažeci sa skupova, sažetak, znanstveni

Izvornik
Book of Abstracts of the 183rd EAAE seminar – Experimental and Behavioural Economics Research in Agri-Food and the Environment / Cerjak, Marija - Zagreb : Croatian Society of Agricultural Economists, 2022, 64-64

ISBN
978-953-48919-3-3

Skup
183rd EAAE seminar Experimental and Behavioural Economics Research in Agri-Food and the Environment

Mjesto i datum
Zagreb, Hrvatska, 08.09.2022. - 09.09.2022

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
income stabilization tool ; discrete choice experiment ; risk preferences ; subjective beliefs ; grape growers ; wine producers

Sažetak
Farmers are exposed to different risks. Besides extreme weather events, increasingly important becomes income risks. Income risks represent changes in farm income due to production, market, and financial risks. To cope with mentioned, European Commission, through Common Agricultural Policy (CAP), introduced a risk management toolkit (RMT). RMT consists of three measures, subsidized agricultural insurance, mutual funds (MF), and income stabilization tool (IST). In all EU member states, subsidized insurance is applied, while MF and IST, for now, are applied only in Italy. The income stabilization tool (IST) is the latest action proposed by the EU to manage agricultural risks. The main limitations of the application of IST are the lack of national legislation for establishing IST, the lack of clear guidelines, and the lack of practical examples from the EU. The IST aims to stabilize farm income by compensating income losses due to various risks: production, price, market, and financial. Previous literature stated that IST is also known as whole-farm insurance. This paper investigates farmers' acceptability of the IST scheme in Croatia, where farmers’ demand for standard risk management tools, such as private insurance and mutual funds, is low. The primary method used in the paper is a discrete choice experiment (DCE). Additionally, the paper explores behavioral drivers (risk preferences, probability weighting, and subjective beliefs about future farm income) and their impact on farmers’ acceptability of the IST, a new tool. The main findings will discuss farmers’ preferences over IST. Additionally, research will discuss how subjective beliefs and risk preferences impact the IST choice. The main findings can help policy makers design the framework for implementing IST among member states and introduce a new risk management tool among EU farmers.

Izvorni jezik
Engleski

Znanstvena područja
Poljoprivreda (agronomija), Ekonomija

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