The Role of area-yield crop insurance program face to the Mid-term Review of Common Agricultural Policy



Table 4.3- Model Results with the Area-Yield Crop Insurance Program

Description

Farm

Farm

Farm

Farm

Farm

Farm

Farm

Farm

Farm

1

2

3

4

5

6

7

8

9

Crop Activities

Barley

154.8

43.8

19.8

66.6

82.3

67.8

99.7

Oats

Sunflower

99.3

2.6

67.5

Oats/Vicia

123.3

64.6

44.1

2.7

150.7

Pastures

754.4

442.0

113.9

270.0

120.0

758.1

Set-aside________

68.2

107.0

2.2

233.4

395.0

200.0

260.0

43.4

382.8

Total area_______

1200.0

660.0

180.0

570.0

600.0

200.0

260.0

1020.0

550.0

Livestock Activities

Beef cattle

400

150

82

450

Sheep__________

182

_____87

Farm Income

State of Nature 1

28 273

36 371

6 228

27 367

15 405

9 926

17 319

25 520

4 562

State of Nature 2

61 867

42 216

12 661

28 132

16 480

9 926

17 319

61 423

10 353

State of Nature 3

74 408

47 448

15 568

29 889

18 714

9 926

17 319

72 888

15 007

State of Nature 4

91 548

53 294

18 339

35 019

25 072

9 926

17 319

84 600

25 701

State of Nature 5

101 837

55 240

19 631

35 277

25 427

9 926

17 319

89 370

31 963

Indemnities

State of Nature 1

14 332

4 094

1 527

5 126

6 340

0

0

5 222

10 958

State of Nature 2

11 918

4 032

1 527

5 126

6 340

______0

______0

5 222

9 317

Notes: Crop activities in hectares, livestock activities in animal units and monetary values in Euros.
Source: Model Results for the Area-Yield Crop Insurance with Full Decoupling Payments

This model also analyzed other agricultural alternatives associated with the decrease of
the premium rate, assuming that the Portuguese government contribution would increase.
Model results show that crop production increases, while forage production and set-aside
area decrease.

Table 4.4 - Objective Function Values for Alternatives Agricultural Policies

Description

Farm

1

Farm

2

Farm

3

Farm

4

Farm

5

Farm

6

Farm

7

Farm

8

Farm

9

Full Decoupling

5.2916

5.6272

6.5627

4.2536

3.3402

4.8515

5.5393

5.7417

4.9544

Partial Decoupling

5.2916

5.6272

6.5584

3.7267

2.9452

4.8515

5.5393

5.7417

4.9544

Insurance Program

5.3333

5.6289

6.5736

4.2669

3.3810

4.8515

5.5393

5.7577

5.1393

Source: Model Results.

This paper ends with the analysis of the values of the objective function obtained for each
one of the studied agricultural policies. The analysis of the table 4.4 displays that the

21



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