SABIIA - Sistema Aberto e Integrado de Informação em Agricultura (Sabiia)

The mid-term review of Common Agricultural Policy increases the complexity of the decision-making process of farmers. The subsidies are substituted for a single decoupled income payment. The farmers decide what crops and livestock will produce based on climate, soils conditions and agricultural market signals and not based on subsidies granted to each one of the crop and livestock activities. The area-yield crop insurance program might have an important role on increasing production and facing natural catastrophes. This paper studies the introduction of the area-yield crop insurance program to reduce the risk originating from the variability of farmers' income and to compare this alternative with other agricultural policy alternatives in the context of...

Analysing Farmers' Decision-Making Process Face to the Mid-Term Review of the Common Agricultural Policy in the Alentejo region of Portugal

Palavras-chave: Cumulative Propospect Theory; Mid-Term Review of the Common Agricultural Policy; Discrete Sequential Stochastic Programming Model; Area-Yield Crop Insurance program; Risk and Uncertainty.

Ano: 2006

URL: http://purl.umn.edu/21411

This paper describes an experiment that was carried out in order to examine the decision making process of farmers in the Alentejo dryland region of Portugal. Cumulative Prospect Theory allows modeling the Alentejo dryland farmers' decision process, because when they decide what crops and livestock activities will produce the different results are appraised relatively to the initial wealth, which permits its appraisal in terms of gains and of losses. An inquiry is developed to study the Alentejo dryland farmers' preferences, which intend to determine risk preferences through a set of games. A discrete sequential stochastic programming model is developed to examine farmers' decision-making process face to the mid-term review of the Common Agricultural...

CUMULATIVE PROSPECT THEORY: A STUDY OF THE FARMERS' DECISION BEHAVIOR IN THE ALENTEJO DRYLAND REGION OF PORTUGAL

Palavras-chave: Cumulative Prospect Theory; Discrete Sequential Stochastic Programming; Farm Management; C65; D81.

Ano: 2005

URL: http://purl.umn.edu/19266

The mid-term review of the Common Agricultural Policy will change the way the European Union supports its farm sector. The new Common Agricultural Policy will be geared towards consumers, and taxpayers, while giving farmers the freedom to produce what the market wants. In the future, the majority of the subsidies will be paid independentlty from the volume of production. To avoid abandonment of production, Member States may choose to maintain a limited link between subsidy and production under well conditions and within clear limits. These new "single farm payment" will be linked to the respect of environmental, food safety and animal welfare standards. Severing the link between subsidies and production will make farmers more competitive and market...

THE ROLE OF AREA-YIELD CROP INSURANCE IN FARMERS' ADJUSTMENT AGAINST RISK IN A DRYLAND REGION OF PORTUGAL

Palavras-chave: Farm Management.

Ano: 2004

URL: http://purl.umn.edu/20245

This research develops a mathematical programming model to maximize the expected utility of the farmers' wealth-producing cereals in the Alentejo dryland region of Portugal, and it is used to determine the premium rate that crop farmers are willing to pay for reducing the variability of their incomes, and the Portuguese government subsidy of the premium rate in the case where the farmer is not willing to pay the totality of this.