This chapter reviews whole farm-modelling approaches that attempt to capture: (i) the stochastic nature of the outcomes of farm decision making; (ii) farmers' attitudes to risk; and (iii) ways that risk-averse farmers can manage variability. As an example, a utility efficient programming (UEP),...

The existing approaches to estimating the efficiency of subsidies on agricultural production are considered. The basic output regression equations have been enhanced by including more factors (subsidies, production profitability and quality of enterprise management) in addition to the primary ones...

This chapter considers livestock disease eradication programmes, the incidence of costs related to these programmes, and resulting farm-level incentives and responses. The focus is largely on bovine tuberculosis in cattle herds in Michigan (USA) but information and lessons from the experiences in...

This chapter compares two ways of financing the programmes to combat foot and mouth disease in the EU and uses a simulation model to determine the welfare and production implications of the two systems. The two systems analysed are: (1) a purely tax-financed system, where all costs for preventive...

The first section of this chapter discusses insurance as a risk management issue. The insurability conditions for livestock disease insurance are then discussed, namely: losses should be determinable and measurable; losses should be accidental and unintentional; there should be sufficient...

This book discusses a proposed bond scheme as part of theCommon Agricultural Policy reform in the EU. It presents a major survey of farmers conducted in Germany, Portugal and the UK to determine their likely reactions to the introduction of a bond scheme or similar partially decoupled payments such ...

This chapter discusses how a bond scheme might be implemented as part of the Common Agricultural Policy reform in the EU, addressing some concerns expressed by stakeholders. Topics covered include: determining payment levels, base entitlements and payment profiles; market capitalization of bonds;...

This chapter discusses a postal survey of farmers conducted in the UK, Germany and Portugal (n=∼4500 in each country; response rate=40.2, 36.8, and 33.4%, respectively) aimed at determining their reactions to a proposed bond scheme as part of the Common Agricultural Policy reform in the EU. It...

This chapter reviews the debate on direct payments within the context of Common Agricultural Policy (CAP) reform, and its relation to EU expansion and World Trade Organization negotiations. Topics covered include the process of CAP reform, the context and pressures for CAP reform, and prospects for ...

This chapter reviews proposals for decoupled payments to facilitate Common Agricultural Policy reform, highlighted in the literature from the 1960s, 1970s, and 1980s. The issues emerging from a bond scheme proposed in a 1990 report for the Land Use and Food Policy Inter-Group of the European...