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Table 4 Income stabilising effect of direct payments

From: Do CAP direct payments stabilise farm income? Empirical evidences from a constant sample of Italian farms

   Sample size number Importance of DP: Coefficient of variation of Difference between
PSEa DP/FI FI MI DP CV(MI) and CV(FI)
Mean Median Var.b
Types of farming (TF): TF        
 Specialist field crops 1 443 19.9 % 49.4 % 0.608 1.287 0.304 −52.8 % ***
 Specialist horticulture 2 276 0.8 % 2.0 % 0.604 0.612 1.823 −1.3 %
 Specialist permanent crops 3 689 7.7 % 19.7 % 0.646 0.774 0.699 −16.5 % ***
 Specialist grazing livestock 4 467 15.1 % 35.5 % 0.567 0.861 0.361 −34.2 % ***
 Specialist granivore 5 82 5.7 % 13.2 % 0.715 0.900 0.352 −20.6 % ***
 Mixed cropping 6 147 12.2 % 31.9 % 0.690 0.952 0.474 −27.5 % ***
 Mixed livestock and Mixed crops-livestock 7 87 16.2 % 44.0 % 0.583 1.207 0.281 −51.7 % ***
Economic size (ESU):
 Small (Classes 1, 2, 3)   603 12.5 % 33.3 % 0.690 1.046 0.422 −34.1 % ***
 Medium (Classes 4, 5, 6)   1484 11.2 % 26.9 % 0.592 0.819 0.445 −27.7 % ***
 Large (Classes 7, 8)   104 8.2 % 20.4 % 0.612 0.790 0.412 −22.5 % **
PSE level:
 No DP 0 247 0.0 % 0.0 % 0.599 0.599 0.000 0.0 %
 Low 1st 538 2.0 % 5.6 % 0.665 0.687 1.068 −3.2 %
 Low-Medium 2nd 523 8.0 % 22.1 % 0.615 0.756 0.444 −18.6 % ***
 Medium-High 3rd 500 16.3 % 44.0 % 0.632 1.107 0.334 −43.0 % ***
 High 4th 383 30.4 % 66.7 % 0.546 1.506 0.296 −63.8 % ***
Total sub-sample   2191 11.4 % 28.4 % 0.615 0.871 0.438 −29.4 % ***
  1. Variability of farm income (FI), market income (MI = FI–DP) and direct payments (DP). Median of the coefficients of variation (CV) of FI, MI and DP. Difference between variability of MI and of FI. Whole sub-sample and considered groups
  2. aPSE = DP/(REV + DP). bCalculated as: (CV(MI) − CV(FI))/CV(FI). Significant difference at 1 % (***), 5 % (**).
  3. Source: Own elaborations on the sub-sample of farms with MI greater than zero. Years 2003–2012