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Helping European Agriculture to Adjust — A Proactive Approach to Agricultural Policy

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  • David Blandford
  • Berkeley Hill

Abstract

Helping European Agriculture to Adjust ‐ A Proactive Approach to Agricultural Policy In the European Union the next five to ten years are likely to witness continued pressures for agricultural policy reform. If cost‐effective ways of dealing with adjustment issues can be identified, reform may be less difficult to achieve. This article looks at the economic, equity and political arguments for providing adjustment assistance to farmers. Compensation for changes in policy has a role to play, but if poorly designed can inhibit structural change. A review of how farmers have reacted to policy reform in a number of OECD countries concludes that their ability to adapt is often under‐estimated, but that two characteristics are particularly important in facilitating change. The first is effectively functioning factor markets, particularly the market for land, and the second is the quality of human capital. These characteristics should be the primary focus of public policy to facilitate adjustment. The policies we propose would satisfy the Green Box requirements of the WTO that payments to farmers be minimally production and trade distorting. By establishing the conditions under which adapting to change is made easier, agricultural policy becomes sustainable, since adjustment is a process that is not limited to any single round of policy reform. Aider l'agriculture européenne à s'adapter: une approche proactive pour la politique agricole. L'Union européenne, dans les cinq ou dix prochaines années, va probablement devoir faire face à des pressions continues pour réformer la politique agricole. Politiquement, ces réformes seront d'autant plus faciles à mettre en œuvre qu'elles auront un rapport efficacité/coût plus grand. Cet article examine les arguments que l'on peut avoir pour proposer aux agriculteurs une aide à la flexibilité, tels qu'on peut les baser sur la politique, l'équité, et l'économie. Les indemniser des pertes qu'ils encourent du fait des changements de politique est probablement justifié, mais des mesures mal conçues dans ce sens peuvent inhiber le changement structurel. Une revue des façons dont les agriculteurs de divers pays de l'OCDE ont historiquement réagi aux réformes conduit à la conclusion que si leur capacité d'adaptation est souvent sous estimée, deux choses sont particulièrement importantes pour faciliter le changement: La première est d'avoir des marchés de facteurs en état de fonctionner, en particulier le marché foncier; la seconde est la qualité du capital humain. Ces deux choses devraient par conséquent être au premier rang des objectifs des politiques publiques destinées à favoriser l'adaptation. Les mesures que nous préconisons devraient satisfaire aux critères de la « boite verte » de l'OMC, qui exigent que les mesures de soutien soient le moins possible distortives pour la production et les échanges. En créant les conditions qui permettront les adaptations aux changements, on aura une politique agricole durable, car l'aptitude au changement n'est spécifique d'aucune réforme particulière. Der Europäischen Landwirtschaft bei der Anpassung unterstützen ‐ ein Ansatz für die Agrapolitik, der Eigeninitiative erfordert In den kommenden fünf bis zehn Jahren wird sich der Druck auf die Reform der Agrarpolitik in der Europäischen Union wahrscheinlich weiter erhöhen. Wenn kosteneffektive Wege zum Umgang mit anpassungsrelevanten Fragen aufgezeigt werden könnten, ließe sich die Reform möglicherweise einfacher durchführen. In diesem Beitrag werden die Argumente in Bezug auf Wirtschaft, Fairness und Politik für das Angebot einer Anpassungshilfe an die Landwirte untersucht. Ausgleichszahlungen auf Grund von Änderungen in der Politik spielen sicherlich eine Rolle; werden diese jedoch schlecht ausgestaltet, könnte sich der Strukturwandel verzögern. Eine Untersuchung zu dem Thema, wie Landwirte auf Politikreformen in verschiedenen OECD‐Ländern reagieren, kommt zu dem Schluss, dass die Anpassungsfähigkeit der Landwirte oftmals unterschätzt wird und dass zwei Merkmalen ganz besondere Bedeutung bei der Umsetzung von Veränderungen zukommt. Zum einen handelt es sich um das effektive Funktionieren von Faktormärkten, insbesondere des Bodenmarkts, und zum anderen um die Qualität des Humankapitals. Diese Merkmale sollten im zentralen Blickpunkt der öffentlichen Politik stehen, um die Anpassung zu ermöglichen. Die von uns vorgeschlagenen Politikmaßnahmen würden in die Green Box der WTO fallen, welche vorsehen, da die Zahlungen an Landwirte nur minimal produktions‐und handelsverzerrend wirken. Indem Bedingungen geschaffen werden, welche die Anpassung an die Veränderungen erleichtern, wird die Agrarpolitik nachhaltig, da es sich bei der Anpassung um einen Vorgang handelt, welcher nicht auf eine einzige Runde der Politikreform begrenzt ist.

Suggested Citation

  • David Blandford & Berkeley Hill, 2006. "Helping European Agriculture to Adjust — A Proactive Approach to Agricultural Policy," EuroChoices, The Agricultural Economics Society, vol. 5(3), pages 28-33, December.
  • Handle: RePEc:bla:eurcho:v:5:y:2006:i:3:p:28-33
    DOI: 10.1111/j.1746-692X.2006.00041.x
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    1. David R. Harvey, 2003. "Agri‐environmental Relationships and Multi‐functionality: Further Considerations," The World Economy, Wiley Blackwell, vol. 26(5), pages 705-725, May.
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    1. Elkes, Andrea & Halmai, Peter & Papp, Gergely & Udovecz, Gabor & Vasary, Viktoria, 2009. "A vision of the future of the Common Agricultural Policy," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 110, pages 1-22, July.

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