Impact of off-farm income and paid taxes on the composition and volatility of incomes and wealth of dairy farmers in the Netherlands

Iseki, Michio; Kizuka, Y.; Mori, Shigekatsu; Kohmura, Kunihiro; Kiritani, M.

doi:10.7896/j.2046

Cited by 5 publications

(4 citation statements)

References 13 publications

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“…At the EU level, the implementation of labour-saving technologies has supported the expansion of herd sizes with declines in the total number of dairy farms as part of structural change (Frick and Sauer, 2021). An increase in income risk on dairy farms is documented in several European countries (Duden and Offermann, 2020;Trestini and Chinchio, 2018;Vrolijk and Poppe, 2020). The price and income variability is increased due to EU policy reforms, increasing global production and an increase in dairy market volatility globally.…”

Section: Background Of Irish Dairy Sectormentioning

confidence: 99%

Farm Investment and Adoption of Fixed Milk Price Contracts on Irish Dairy Farms

Pardeshi,

Loughrey,

O'Connor

2024

GER J AGR ECON

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After the milk quota removal in 2015, the Irish dairy industry has expanded dramatically. Various economic, social and environmental considerations are part of farmer’s choice to invest and to expand. This study evaluates selected factors contributing to recent dairy farmer’s investment decisions and examines the relationship between the adoption of Fixed Milk Price Contracts as a risk management tool and farm investments. This research applies the two-stage residual inclusion approach to address this research question using Teagasc NFS data from 2016 to 2021. This approach is applied to control for potential endogeneity including risk aversion. The results point to the economic relevance of the FMC adoption towards farm investment decisions although the magnitude of the association is limited. Subsidies play an important role in the investment decision although they are a small proportion in the overall specialised dairy farm income and provide a relatively stable source of income in Ireland. We finally conclude that, there is scope to improve the design of these FMCs in terms of protecting farmers from drastic margin volatility and to increase the adoption rate

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Section: Background Of Irish Dairy Sectormentioning

confidence: 99%

Farm Investment and Adoption of Fixed Milk Price Contracts on Irish Dairy Farms

Pardeshi,

Loughrey,

O'Connor

2024

GER J AGR ECON

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“…The risk reduction associated with income will improve farmers' well-being and competitiveness and their ability to expand their activities through innovation and relevant investment decisions (Novickytė, 2018). For instance, Vrolijk and Poppe (2020) study how fluctuations in farm incomes are offset or amplified by fluctuations in other elements affecting the well-being of farmers, such as off-farm income, the payment of taxes, and the wealth effects of an increase in land and quota values.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Simulating risk management strategies for specialized farming systems: the potential impact of the EU income stabilization tool

Zinnanti

Coletta²,

Torrigiani³

et al. 2022

AFR

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PurposeThis study assesses the potential impact of the European Income Stabilization Tool (IST – a whole farm income risk management [RM] tool) within a farm cooperative specializing in vineyards and operating in a small area of production. The authors assess the conditions under which IST could improve the well-being of the associated farmers and, at the same time, improve financial sustainability. Financial aspects are of particular relevance since the characteristics of the cooperative cause the management of the tool to become potentially risky.Design/methodology/approachThe analysis relies on a balanced panel dataset to report the production and economic characteristics of individual associated farms. This is the basis for simulating the implementation of the IST as described in the current European regulation. The expected utility approach is then used to assess the potential impact on farmers' well-being under different levels of risk aversion and premiums. The analysis of the IST annual cash flow allows for an accurate assessment of its financial sustainability.FindingsThe results suggest that the IST can improve farmers' well-being under plausible levels of risk aversion and premiums, making most farmers willing to support its implementation. Furthermore, the tool could be financially sustainable even if implemented in a specialized and geographically concentrated group of farms. In addition, the results suggest that the use of strategies such as the IST could help cope with negative annual balances by treating the financial sustainability of the fund.Originality/valueThe analysis adds to previous research on the IST by accounting for farmers' risk aversion. Furthermore, it is the first analysis that simulates the implementation of this tool in a sector-specific and concentrated group of farms. The results provide useful evidence for those subjects planning to implement the IST in small and specialized farming systems.

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“…Agriculture in the European Union (EU) has long been heavily influenced by the strategy and instruments of the EU's Common Agricultural Policy. Farmers see subsidies and support as useful and stabilizing elements, but subject to certain rules (Vrolijk & Poppe, 2020). The rules are the result of a political consensus.…”

Section: Introductionmentioning

confidence: 99%

Shaping Farm Workers' Political Trust: The Moderating Role of Misinformation Exposure

Berg,

Spicka

2023

CEBR

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Political trust is an important indicator for evaluating relations between politicians and stakeholders. In agriculture, political trust has not been researched in depth, although agriculture is highly regulated by policies related to access to resources. This paper addresses this knowledge gap by answering the question of the role of institutionalized and non-institutionalized social communication in shaping farm workers' political trust. The multiple regression on a sample of 1,016 farm workers from the Europe-wide 2020 European Social Survey yields new insights. A key finding is the moderating effect of the opinion that online communication channels expose people to misinformation on the relationship between farm workers' trust in politics as a dependent variable and frequency of social contacts, time spent monitoring politics and current affairs, and membership in professional associations. In addition, political trust was found to increase as farm workers' interest in politics and monitoring news about politics and current affairs increased. While political trust is positively associated with farm workers' institutionalized participation in professional associations, it is negatively associated with non-institutionalized networking. Confirmation bias associated with farm workers' networking is particularly risky. Another important finding is lower political trust among households with a subjectively worse financial situation. Implications for Central European audience: Government, formal networks (professional associations), and informal networks (social networks) provide verified and trustworthy information. At the same time, farmers themselves should have sufficient information literacy to critically assess the credibility of the information. The farm worker's education plays an important role and is significantly related to most of the main effects. The study's conclusions also include suggestions for follow-up research.

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Impact of off-farm income and paid taxes on the composition and volatility of incomes and wealth of dairy farmers in the Netherlands

Cited by 5 publications

References 13 publications

Farm Investment and Adoption of Fixed Milk Price Contracts on Irish Dairy Farms

Farm Investment and Adoption of Fixed Milk Price Contracts on Irish Dairy Farms

Simulating risk management strategies for specialized farming systems: the potential impact of the EU income stabilization tool

Shaping Farm Workers' Political Trust: The Moderating Role of Misinformation Exposure

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