Investigators at European Commission Report Findings in Risk Management (Public Spending for Agricultural Risk Management: Land Use, Regional Welfare and Intra-subsidy Substitution): Risk Management

2024 APR 24 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Data detailed on Risk Management have been presented. According to news reporting out of Brussels, Belgium, by NewsRx editors, research stated, “This paper analyses the factors influencing public expenditure on the EU’s Risk Management Toolkit comparing six types of regional-level spatial autoregressive models, and finding that there is a predominance of socioeconomic factors over risk and agro-ecological factors in the allocation of budget. Higher expenditure occurs in more affluent regions and in areas with clusters of relatively high welfare.”

Our news journalists obtained a quote from the research from European Commission, “Conversely, regions with high agricultural value added and a greater presence of permanent crops spend less on the Risk Management Toolkit, indicating a trade-off with private risk management products (e.g. insurance) and on-farm practices. A higher intensity of CAP subsidies tends to reduce expenditure on the Risk Management Toolkit, indicating that the income stabilization capacity of direct payments might be an alternative to risk management and indicating a substitution between policies. Moreover, a strong spatial dependence of the regional expenditures indicates a key role of the higher-level institutional environment and political economy processes in the allocation of budget.”

According to the news editors, the research concluded: “The paper concludes deriving policy implications for the new CAP reform which is characterized by higher flexibility in deciding what policy instruments to implement at the territorial level.”

This research has been peer-reviewed.

For more information on this research see: Public Spending for Agricultural Risk Management: Land Use, Regional Welfare and Intra-subsidy Substitution. Food Policy, 2024;123. Food Policy can be contacted at: Elsevier Sci Ltd, The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, Oxon, England. (Elsevier - www.elsevier.com; Food Policy - http://www.journals.elsevier.com/food-policy/)

Our news journalists report that additional information may be obtained by contacting Mauro Vigani, European Commission, Dg Agr & Rural Dev, Brussels, Belgium. Additional authors for this research include Robert Berry and Amr Khafagy.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.foodpol.2024.102603. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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