Comparative Analysis of Risk Management Tools supported by the 2014 Farm Bill and the CAP 2014-2020
2014
Cordier, Jean
The 2014 Farm Bill includes risk management tools as an integralcomponent of national agricultural policy whereas the CAP 2014-2020seems to include them as an afterthought. While EU principles aresound, policies remain in limbo. They suffer from a double dichotomy:two CAP pillars and two administrative levels for implementation.Ten recommendations are proposed for transforming the current state oflimbo for EU agricultural risk management policy into a coherent CAPlinked to world markets. They cover (1) EU coordination between publicsafety nets and private risk management tools, (2) flexible funding withimproved reserve funds and precautionary savings, and (3) field tests totake full advantage of the creativity of private-public partnerships and tocreate an experience curve.
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