Research Article Open Access

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

Capitanio Fabian1, Felice Adinolfi2 and Jorgelina Di Pasquale2
  • 1 University of Naples, “Federico II”, Italy
  • 2 Department of Veterinary Medical Science, University of Bologna, Italy

Abstract

With the gradual phasing out of guarantees provided by the CAP to European farmers in terms of the stabilization of markets, the issue of risk management tools has gradually acquired an ever-higher profile that has resulted in a series of innovations that initially enlivened the 2009 Health Check followed by the proposed Commission regulation for rural development policy 2014-2020. In particular, the latter introduces a new measure, called the Income Stabilization Tool (IST), aimed at supporting income risk management for agricultural enterprises through the use of mutual funds. The aim of this work is twofold; to emphasize the need of new regulation aimed to foster the implementation of the IST and to assess the public cost associated by estimates the farmer demand for the tool.

American Journal of Applied Sciences
Volume 13 No. 4, 2016, 357-363

DOI: https://doi.org/10.3844/ajassp.2016.357.363

Submitted On: 1 October 2015 Published On: 26 April 2016

How to Cite: Fabian, C., Adinolfi, F. & Pasquale, J. D. (2016). The Income Stabilization Tool: Assessing the Hypothesis of a National Mutual Fund in Italy. American Journal of Applied Sciences, 13(4), 357-363. https://doi.org/10.3844/ajassp.2016.357.363

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Keywords

  • Risk Management
  • Income Stabilization Tool
  • Common Agricultural Policy