At the same time, price volatility has also become a major policy issue since the recent price spikes. Recent work in this area (OECD, 2011) has demonstrated that to focus policy on a single source of risk is not an efficient risk management approach. Rather than pursuing the reduction of farming risk or the stabilisation of farmers’ income, policies should focus on assisting farmers to manage risk. Risk management policies are more efficient if they are restricted to catastrophic risks for which markets tools are likely to fail. However, a risk layering approach would contribute to more effective policies as risks have different characteristics that require differentiated responses.