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Impacts of Decoupled Agricultural Support on Farm Structure, Biodiversity and Landscape Mosaic: Some EU Results

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Author Info

  • Mark Brady
  • Konrad Kellermann
  • Christoph Sahrbacher
  • Ladislav Jelinek

Abstract

The decoupling of direct payments from production represents a substantial reform of the Common Agricultural Policy (CAP). Farmers are no longer required to produce commodities to be entitled to support but only to keep land in Good Environmental and Agricultural Condition. If output declines as a result, there is concern that landscape services produced jointly with commodities will also decline. The aim of this paper is to assess the long-term effects of the 2003 reform on farm structure, landscape mosaic and biodiversity for a sample of EU regions. Impacts are quantified using a spatial agent-based modelling approach by simulating agricultural development with links to indicators of landscape value. Our results demonstrate that eliminating the link between support payments and production has possible negative consequences for the landscape, but only under particular circumstances. It is shown that these effects could be offset by strengthening (Pillar II) agri-environmental schemes. Further the single payment scheme results in higher land rental prices which reduces its ability to achieve its goal of providing income security for farmers. Implications of these results for the direction of continued CAP reform are discussed. Copyright (c) 2009 The Authors. Journal compilation (c) 2009 The Agricultural Economics Society.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Agricultural Economics.

Volume (Year): 60 (2009)
Issue (Month): 3 ()
Pages: 563-585

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Handle: RePEc:bla:jageco:v:60:y:2009:i:3:p:563-585

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0021-857X

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Citations

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Cited by:
  1. Matthews, Alan, 2013. "Greening agricultural payments in the EU’s Common Agricultural Policy," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 1, April.
  2. Jaraite, Jurate & Kažukauskas, Andrius, 2011. "The effect of mandatory agro-environmental policy on farm environmental performance," CERE Working Papers 2011:13, CERE - the Center for Environmental and Resource Economics.
  3. Sahrbacher, Christoph, 2011. "Regional structural change in European agriculture: Effects of decoupling and EU accession," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 60, number 60.
  4. Sauer, Johannes & Walsh, John & Zilberman, David, 2012. "Producer Behaviour and Agri-Environmental Policies: A Directional Distance based Matching Approach," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124877, Agricultural and Applied Economics Association.
  5. Schonhart, Martin & Schauppenlehner, Thomas & Schmid, Erwin, 2010. "Integrated land use modelling of agri-environmental measures to maintain biodiversity at landscape level," 120th Seminar, September 2-4, 2010, Chania, Crete 109401, European Association of Agricultural Economists.
  6. Bartolini, Fabio & Viaggi, Davide, 2011. "Factors Affecting the Impact of CAP Scenarios on Farm Structure: An Analysis Based on Stated Intentions," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114244, European Association of Agricultural Economists.
  7. Viaggi, Davide & Bartolini, Fabio & Raggi, Meri & Sardonini, Laura, 2010. "The role of the Common Agricultural Policy in the spatial location of agricultural activities," 116th Seminar, October 27-30, 2010, Parma, Italy 95242, European Association of Agricultural Economists.
  8. Roeder, Norbert & Lederbogen, Dirk & Trautner, Juergen & Bergamini, Ariel & Stofer, Silvia & Scheidegger, Christoph, 2010. "The impact of changing agricultural policies on jointly used rough pastures in the Bavarian Pre-Alps: An economic and ecological scenario approach," Ecological Economics, Elsevier, vol. 69(12), pages 2435-2447, October.
  9. Schönhart, Martin & Schauppenlehner, Thomas & Schmid, Erwin & Muhar, Andreas, 2011. "Integration of bio-physical and economic models to analyze management intensity and landscape structure effects at farm and landscape level," Agricultural Systems, Elsevier, vol. 104(2), pages 122-134, February.
  10. Elisa Gatto & Alba Marino & Guido Signorino, 2013. "Biodiversity and risk management in agriculture:what do we learn from CAP reforms? A farm-level analysis," ERSA conference papers ersa13p805, European Regional Science Association.
  11. Lefebvre, Marianne & Espinosa, Maria & Gomez-y-Paloma, Sergio & Piorr, Annette & Zasada, Ingo, 2013. "Agricultural landscapes as multi-scale public good and the role of the Common Agricultural Policy," 2013 Second Congress, June 6-7, 2013, Parma, Italy 150237, Italian Association of Agricultural and Applied Economics (AIEAA).
  12. Sauer, Johannes & Walsh, John & Zilberman, David, 2012. "Behavioural Change through Agri-Environmental Policies ? – A Distance Function based Matching Approach," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134783, Agricultural Economics Society.
  13. Pia Nilsson & Sara Johansson, 2013. "Location determinants of agricultural land prices," Jahrbuch für Regionalwissenschaft, Springer, vol. 33(1), pages 1-21, February.
  14. Sauer, Johannes & Walsh, John & Zilberman, David, 2013. "Agri-Environmental Policy Effects at Producer Level - Identification and Measurement," 53rd Annual Conference, Berlin, Germany, September 25-27, 2013 156099, German Association of Agricultural Economists (GEWISOLA).
  15. Elsholz, Rudiger & Harsche, Johannes, 2011. "Price Changes, Policy Impacts and Instability in Farmers’ Revenues," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114342, European Association of Agricultural Economists.

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