Would multi-peril grassland insurance improve French suckler cow farm sustainability?
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The French government and private companies are currently working on a scheme to insure grassland production. Objectives of this study are first to analyse how grassland yield insurance would substitute to self insurance in suckler cow farms and with which effects on profit distribution, second to test effects of public supports. To meet these objectives, simulations have been performed thanks to a bio-economic model applied to French suckler cow farms. Market insurance is found to decrease profit variability in spite of simultaneous reduction of self insurance. Public supports increase expected utility. Subsidies on insurance would increase animal stocking rate.