A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
  Editorial July 2017 Newsletter :
« Futures markets and income insurances are not substitutes for public regulations (sequel) »

Momagri Editorial Board

This month our Newsletter is an extension of last month’s : a large part of it is devoted to the analysis of private economic risk management tools’ limits as well as some key issues around international trade and global food security.

In the second round of our three articles series that started last month, Jacques Carles and Frédéric Courleux dedicated this paper to the evolution of the revenue insurance policy in the United States. Stepping up since 1996, revenue insurances were entirely embeded in the logic dominating at the time when the decoupling of direct payments was implemented. If those payments were finally dropped in 2014, revenue insurances are now the aim of Donald Trump’s main budget cuts. The issue at stake here was the insurers’ margins and the very little indemnities farmers receive when agricultural prices stay low. One conclusion that must be drawned for Europe’s agriculture, we must stop pretending to believe that agricultural markets are efficient ! (Article 1)

Next, we offer you the last article of this series. Dedicated to the development of futures markets in the dairy sector, this paper reminds us of the necessary conditions for a proper functioning of futures markets and analyzes the futures contracts of the Leipzig stock exchange, the only ones in Europe to quote butter, milk powder and whey. Once again, an insightful comparison with the United States shows that we shouldn’t attempt to put the cart before the horse but truly think about the articulation between public policies and private risk management tools. Because, in the end, private risk management tools are not substitutes for public regulations ! (Article 2)

After those two articles, both technical and dense, we offer you the summary of a very useful report from the Chatham House think tank dedicated to food security in terms of logistics and geopolitics. The report identifies 14 international trade chokeholds that greatly influence worldwide exchanges. Based in particular on relevant comparisons with the energy sector, this study concludes to the lack of interest most countries and the international community have for that subject, with the noticeable exception of China. In a nutshell, a useful approach that shows the interest of crossing methods. (Article 3)

Finally, the last article we offer is from the american think tank IATP and sheds a welcome light upon the dumping phenomenon. By setting itself aside from the much too common view that suppressing subsidies and agricultural policies would be enough for international prices to come back to their equilibrium level, the authors consider that discussions at the WTO should take greater account of oligopolistic concentration of international trade and the current worldwide overproduction trend. (Article 4)

The following articles have been also published on our website:

Merkel’s stance on agricultural policy, Alan Matthews, CAP Reform
Reform of the Common Agricultural Policy: Local and regional leaders call for a fair, sustainable and inclusive CAP, European Committee of the Regions
Wine, a « success story » for the CAP according to Phil Hogan
Etats Généraux de l'Alimentation, De la « poudre de perlimpinpin ? », A. Carpon, Terre-net Média (only in French)

  1. « Futures markets and income insurances are not substitutes for public regulations (2/3) »
Jacques Carles and Frédéric Courleux

« The United States are frequently cited as an example for the expansion of insurance in the agricultural sector, and in particular for turnover or income insurance... »


  2. « Futures markets and income insurances are not substitutes for public regulations (3/3) »
Jacques Carles and Frédéric Courleux

« The European dairy sector has been faced with repeated crises for the past decade. The functioning of the various markets interfacing... »


  3. « Food security under the test of international trade chokepoints »
Chatham House

« The highly influential British think tank Chatham House––the Royal Institute of International Affairs––recently published a quite innovative paper on food security... »


  4. « Counting the Costs of Agricultural Dumping... »
Sophia Murphy and Karen Hansen-Kuhn Institute (IATP)

« By using the definition of dumping as having products exported at a price lower than production costs... »


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Paris, 16 June 2019