Evaluation of the EU proposed Farm Income Stabilisation Tool

rural development pillar 2 of the Common Agricultural Policy. One of them consists in providing co-financing support to mutual funds compensating farmers who experience a severe drop in their income. This paper analyses this income stabilisation tool for a region in Belgium. Relying on FADN, this analysis focuses on estimating the probability that such fund would need to intervene and, in that case, the expected amount of each farm income compensation. Particular attention is paid to additional requirements that could be imposed to the income stabilisation tool.