Farm income risk in Slovenia

What is it about?

Risk traditionally plays a considerable role in agricultural production because natural forces are beyond the control of farmers The paper address questions about how to measure and understand the drivers of farm income risk, including which determinants make farm income more or less risky, and are thus more sustainable in the long-term

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Why is it important?

We find a slight increase in gross farm income over time, but this is associated with volatility during the analysed period. Gross farm income was dominated initially by market income, but the most recent shift in income trends involved moving from a prevalence of market income to agricultural support, and the proportion of off-farm income decreased. Our estimations show that subsidies have asymmetric impacts: they reduce farm income risk for non-LFA farms but increase risk for LFA farms,