Andrea Boháčiková – Slovak University of Agriculture in Nitra, Tr. A. Hlinku 2, 94976 Nitra, Slovakia

Tatiana Bencová – Slovak University of Agriculture in Nitra, Tr. A. Hlinku 2, 94976 Nitra, Slovakia

Zuzana Kapustová – Slovak University of Agriculture in Nitra, Tr. A. Hlinku 2, 94976 Nitra, Slovakia

 DOI: https://doi.org/10.31410/ERAZ.S.P.2020.33

6th International Conference – ERAZ 2020 – KNOWLEDGE BASED SUSTAINABLE DEVELOPMENT,  Online/virtual, May 21, 2020, SELECTED PAPERS

Published by: Association of Economists and Managers of the Balkans – Belgrade, Serbia
Conference partners: Faculty of Economics and Business, Mediterranean University, Montenegro; University of National and World Economy – Sofia, Bulgaria; Faculty of Commercial and Business Studies – Celje, Slovenia; Faculty of Applied Management, Economics and Finance – Belgrade, Serbia

ISBN 978-86-80194-34-9, ISSN 2683-5568, DOI: https://doi.org/10.31410/ERAZ.S.P.2020

Abstract

Managing income risk in agriculture is one of the important issues for farmers and policy
makers nowadays. There exist a set of instruments and mechanisms for farmers to face the income
volatility, including the individual or public support. Under II Pillar, the Common Agricultural Policy
(CAP) offers the support for less favoured farms in the way of insurance, mutual fund, and Income
stabilisation tool. The Income Stabilisation Tool (IST) represents the compensation to farmers for a
“severe drop” in income, if the farm experienced an income loss of more than 30% compared to the
3-years average or the Olympic average of the preceding five-year income realizations. However, none
of the EU countries has been currently using the tool operationally. The main objective of the paper is
to investigate the potential effect of the Income Stabilisation Tool on mitigation of income risk in Slovak
agriculture. The results of the paper show the existing possibility to improve financial situation and
reduce the income inequality of particular Slovak farms in the future.

Key words

Income risk, income stabilisation, CAP, Slovak agriculture.

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