Direct payments and Risk Premia: How fared Irish Cereal Producers Under the MacSharry Reforms?

The 1992 EU Common Agricultural Policy (CAP) MacSharry reforms reduced intervention prices for cereals and simultaneously introduced direct payments to producers. This paper estimating Irish cereal producers risk attitudes and associated premiums, comapares the level of the direct apyment with producers risk permia in order to soe whether the introduction of the reforms was implicitly welfare enhancing for the 1993-1998 time period