The economic sustainability of farm households is frequently dependent on the availability of off-farm employment. This paper uses farm-level data to examine the impact of the Common Agricultural Policy (CAP) direct payment scheme, farm household characteristics and agricultural market...

Common Agricultural Policy uses a large share of its budget to support and stabilise the income of EU farmers by means of direct payments (DP). This paper assesses how much and how DP reduce the variability of farm income over time. The analysis is developed on a constant sample of 2402 Italian...