This research evaluates whether the introduction of countercyclical payments creates an incentive for program crop producers to hedge the expected government payment using futures and/or options. Results indicate that some level of countercyclical payment hedging is optimal for risk-averse...

This paper analyses the impacts of the 2003 CAP reform on the production of Italian olive oil controlling for the regional differences in olive oil production as well as for the differences between years. Italian olive oil production time series data from the Farm Accountancy Data Network for...

This article evaluates the effectiveness of ex-post targeting of the direct payment program for mountain agriculture in Japan. A regression analysis explaining the entry into the program shows that the farm profitability and the production cost were significant positive and negative factor,...

Since 2000, ‘The System of Direct Payment of Subsidies to Farmers in Hilly and Mountainous Areas’ is in operation in Japan. The objective of this paper is to evaluate and survey Japan’s policy for less favoured areas. This system has two characteristics: ‘coverage subsidies for...

The relationship between multifunctionality and the roles of rural communities has not been discussed fully although the connection between the two is an essential issue in the rural policy arena. Pursuing this issue, this paper considers that multifunctional hamlet activities are generated as...

Likely policy changes leading towards further liberalisation of the Common Agricultural Policy would certainly influence farmers’ income and revenue risks. Thus, a question arises both for farmers and for policy makers about possible effects and necessary adjustments that should be made to...