In order to stimulate investments, agricultural policies frequently use price floors, which guarantee a price above a certain limit. In some cases, however, a price floor does not have the desired effects. In this study, we experimentally analyse differences in the investment be-haviour with...

The German sugar market is governed by the European Union’s common market organization (CMO). In 2006, the CMO was subject to its first major reform. Among others, the administered price for sugar was reduced by 36%. We use a data set with monthly prices for sugar and sugar containing products...

Government subsidies have fuelled proposals for new ethanol projects that plan to use Australian grains as their feedstock. Additional ethanol production will intensify competition for grain in the Australian market, particularly during drought periods. This is likely to affect Australia’s...

In this paper we assess the effects of the dramatic rise in agricultural commodity prices during 2007-2008 on income dynamics and poverty among rural households in Bangladesh. We use data from a nationally representative longitudinal survey of rural households in Bangladesh collected in four...

Motivated by recent EC proposals to “strengthen risk management tools” in the CAP in relation to farmers’ increased exposure to market price risk, this paper draws attention to a potential negative consequence of such a change in the CAP – an associated increase in cheating behaviour by...

More than two centuries ago in his Essay on the Principle of Population, Thomas Malthus famously issued his dire prediction that mankind was doomed to survival at a subsistence level. His concept of population growth expanding to absorb the available food supply has been roundly contradicted by...