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Which factors affect the distribution of direct payments among farmers in the EU Member States?

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  • S. Severini
  • A. Tantari

Abstract

This paper analyses the distribution of direct payments (DPs) between farmers within the EU Member States (MS). The paper tries to identify some of the factors that can explain the differences between MS in terms of recent distribution and the evolution over time of the distribution of DPs, comparing results of different regression models. The analysis has confirmed that the concentration of direct payments is very heterogeneous across EU Member States and that it reaches very high values in some of them. This is even truer when, as in this paper, non-beneficiary farms are accounted for in the analysis of the DP distribution. The results support the idea that a large part of the concentration of the DP support is generated by the way land is distributed among farms. The results do not support the hypothesis that the models of implementation of the Single Payment Scheme can explain the observed differences among Member States in terms of DP concentration. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • S. Severini & A. Tantari, 2015. "Which factors affect the distribution of direct payments among farmers in the EU Member States?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(1), pages 25-48, February.
    • Handle: RePEc:kap:empiri:v:42:y:2015:i:1:p:25-48
    DOI: 10.1007/s10663-013-9243-x
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    1. Schmid, Erwin & Hofreither, Markus F. & Sinabell, Franz, 2006. "Impacts of CAP Instruments on the Distribution of Farm Incomes - Results for Austria," Discussion Papers DP-13-2006, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    2. Rasche, R H, et al, 1980. "Functional Forms for Estimating the Lorenz Curve: Comment," Econometrica, Econometric Society, vol. 48(4), pages 1061-1062, May.
    3. von Witzke, Harald & Noleppa, Steffen, 2007. "Agricultural and Trade Policy Reform and Inequality: The Distributive Effects of Direct Payments to German Farmers under the EU's New Common Agricultural Policy," Working Paper Series 10289, Humboldt University Berlin, Department of Agricultural Economics.
    4. Mishra, Ashok & El-Osta, Hisham & Gillespie, Jeffrey M., 2009. "Effect of agricultural policy on regional income inequality among farm households," Journal of Policy Modeling, Elsevier, vol. 31(3), pages 325-340, May.
    5. Franz Sinabell & Erwin Schmid & Markus Hofreither, 2013. "Exploring the distribution of direct payments of the Common Agricultural Policy," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 40(2), pages 325-341, May.
    6. El Benni, Nadja & Finger, Robert, 2013. "The effect of agricultural policy reforms on income inequality in Swiss agriculture - An analysis for valley, hill and mountain regions," Journal of Policy Modeling, Elsevier, vol. 35(4), pages 638-651.
    7. Catherine Moreddu, 2011. "Distribution of Support and Income in Agriculture," OECD Food, Agriculture and Fisheries Papers 46, OECD Publishing.
    8. Mary Keeney, 2000. "The Distributional Impact of Direct Payments on Irish Farm Incomes," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 252-265, May.
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    Cited by:

    1. Stefano Ciliberti & Luca Palazzoni & Sofia Maria Lilli & Angelo Frascarelli, 2022. "Direct Payments to Provide Environmental Public Goods and Enhance Farm Incomes: Do Allocation Criteria Matter?," Review of Economics and Institutions, Università di Perugia, vol. 13(1-2).
    2. Adrian Sadłowski, 2021. "Average Levels of Direct Support for Farmers in Poland at the Regional Level," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 421-430.
    3. Skarżyńska, Aldona & Grochowska, Renata, 2021. "Determinants of Farm Income Diversification Among the European Union Countries," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 319700, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    4. Maria Marino & Benedetto Rocchi & Simone Severini, 2021. "Conditional Income Disparity between Farm and Non‐farm Households in the European Union: A Longitudinal Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 589-606, June.
    5. O'Neill,Stephen & Loughrey, Jason & Hynes, Stephen & O'Donoghue, Cathal & Hanrahan, Kevin, 2017. "The Redistributive Impact of EU Farm Payment Reforms in the UK and Ireland," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261107, European Association of Agricultural Economists.

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    More about this item

    Keywords

    Common agricultural policy; Concentration of direct payments; Single payment scheme; CAP reform; Q12; Q18; Q28; D30;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • D30 - Microeconomics - - Distribution - - - General

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