Abstract:

The Regulation on support for rural development (Regulation (EU) No 1305/2013 of the European Parliament, art. 35 and 39), as a part of Common Agricultural Policy 2014–2020, introduced a new tool, income stabilisation tool (IST) the aim of which is to compensate loss in incomes of the farmers. IST is aimed at creating a certain level of security for farmers by protecting them with one contract against the negative effects of unfavourable tendencies in total income of farms, irrespectively of their source. Additionally, in the situation when countries competing with Europe on agricultural markets (mainly Canada and USA) implement income stabilisation tools, application of this solution in the EU countries is a must.