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.
momagri
  Editorial  
  Editorial June 2017 Newsletter:
Futures markets and income insurances are not substitutes for public regulations


Momagri Editorial Board

Our Newsletter for the month of June has an iconoclastic feel, not because it goes against legacies on principle but because it intends to feed the search for more lasting and viable solutions to the successive crises that go through our agriculture and our world :

You will therefore be able to read the first chapter of a triad dedicated to the limits of private economic risk management tools in agriculture. In this article, Jacques Carles and Frédéric Courleux show the fundamental limit of these instruments, namely that they are of no help during long periods of low prices. Then follows a discussion on the two ways to represent the functioning of agricultural markets’ : the first way considers that markets are efficient and that prices converge towards production costs thanks to the “invisible hand” ; the second way draws the conclusion of a structural instability in agricultural markets and shows that prices draw cycles of “brief spikes and large valleys”. Since private risk management tools are best suited to exploit a regular volatility around production costs, the authors conclude that these instruments can’t be substitutes to public regulations (Article 1).

Iconoclastic also applies to the reflexion paper of the European Commission on “Harnessing globalization” published last may the 10th. Putting an end to a naïve Europe, outlining a third path between free trade and protectionism, reconstructing the cooperation and multilateralism between countries, are principles that we can only commend and that we look forward to see being applied to agricultural issues. Let’s share Yves Petit’s optimism, a public law professor at the University de Lorraine, in an article that he recently dedicated to these different initiatives by the EU’s executive (Article 2).

Iconoclastic still, China who, step by step, is reopening history by participating in the shaking of Washington’s consensus. In an article by Françoise Nicolas, director of the Centre Asie de l’Institut Français des Relations Internationales (IFRI) we understand how, with small but steady steps, China is reformatting the international economic order in monetary terms. It is proof, if proof was needed, that agriculture and food aren’t the only subjects in which China is defying the established dogmas (Article 3).

Finally, we are relaying an open letter signed by several agricultural issues specialists, including Gerard Choplin, who reacted to a recent article by Commissioner Phil Hogan on the effects of the CAP on third countries. Criticizing the myth of a “non-distorting” character of decoupled payments, they remind us that these payments allow European producers to survive with prices under production costs, while at the same time the same WTO rules are a spanner in the works of the necessary construction of stabilizing agricultural policies in Africa. How long will the European Union be able to hide? Because the victims of decoupling do not lie only on the other side of the Medditeranean sea (Article 4).

The following articles have been also published on our website www.momagri.org :



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

« In a series of three articles, we are proposing additional insights on what is known as private risk management tools-futures markets and insurance against economic risks... »

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  2. « Moving towards a new European Union? »
Yves Petit, Professor of Public Law, Université de Lorraine (in French)

« Refondation ! Tel est le maître mot du vocabulaire européen depuis le perfide référendum britannique du 23 juin 2016... »

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  3. « China and world economic order, a muffled yet assumed challenge »
Françoise Nicolas, Director of the Asia Center, IFRI (in French)

« Longtemps restée membre passif des organisations multilatérales de coopération économique, la Chine a récemment changé de posture... »

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  4. « Dear European Commissioner Phil Hogan... »
Collective open letter (in French)

« Le 2 juin, vous avez publié sur votre blog un article intitulé ‘Défaire les mythes selon lesquels la Politique Agricole Commune (PAC) nuirait aux agriculteurs des pays en développement’... »

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Paris, 27 July 2017