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The Distribution of CAP Payments - Redistributional Injustice or Spatially Adapted policy?

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  • Bergmann, Holger
  • Noack, Eva Maria
  • Thomson, Kenneth J.
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    Abstract

    This paper analyses the distributional equality of individual Scottish Government-administered payments in 2008 under CAP Pillars One (single farm payments) and Two (rural development measures) and in total, in terms of economic, social and spatial factors. The analysis shows that 94% of all payments were paid to claimants in core rural areas (94%) while only a few (5%) claimants resided in urban areas or outside of Scotland (1%). However, in both Pillars, claims made by urban residents were often higher than those made by rural dwellers. The Ordinary Least Squares spatial analysis shows that the level of payments was extremely dependent on the geographical location and natural conditions. Spatial factors describing the economic situation in the area of the claimant were significantly related to the level of the CAP amounts paid. Overall, the level of amounts paid was positively related to the natural, economic and social structures of the area of residence. The discussion tackles the question of whether the current system of farm income support by decoupled payments should be developed into a poverty payment system.

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    Bibliographic Info

    Paper provided by Agricultural Economics Society in its series 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK with number 108958.

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    Date of creation: Apr 2011
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    Handle: RePEc:ags:aesc11:108958

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    Related research

    Keywords: Pillar One; Common Agricultural Policy; Gini-Coefficient; Rural-Urban distribution; distributional justice; Land Economics/Use; Q15; R14; R11;

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    1. Acosta, Pablo & Calderon, Cesar & Fajnzylber, Pablo & Lopez, Humberto, 2008. "What is the Impact of International Remittances on Poverty and Inequality in Latin America?," World Development, Elsevier, vol. 36(1), pages 89-114, January.
    2. Brown, Colin G, 1990. "Distributional Aspects of CAP Price Support," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 17(3), pages 289-301.
    3. Hubbard, Carmen & Podruzsik, Szilard & Hubbard, Lionel J., 2007. "Structural Change and Distribution of Support in Hungarian Agriculture following EU Accession: A Preliminary FADN Analysis," 104th Seminar, September 5-8, 2007, Budapest, Hungary 8523, European Association of Agricultural Economists.
    4. Eli Feinerman & Marinus H.C. Komen, 2003. "Agri-environmental Instruments for an Integrated Rural Policy: An Economic Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(1), pages 1-20.
    5. Paul Allanson, 2003. "CAP Reform and the Distribution of Farm Income in Scotland {Revised}," Dundee Discussion Papers in Economics 147, Economic Studies, University of Dundee.
    6. Dietrich Vollrath, 2007. "Land Distribution and International Agricultural Productivity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(1), pages 202-216.
    7. Gunnar Breustedt & Hendrik Habermann, 2011. "The Incidence of EU Per‐Hectare Payments on Farmland Rental Rates: A Spatial Econometric Analysis of German Farm‐Level Data," Journal of Agricultural Economics, Wiley Blackwell, vol. 62(1), pages 225-243, 02.
    8. Paul Allanson, 2006. "The Redistributive Effects of Agricultural Policy on Scottish Farm Incomes," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(1), pages 117-128, 03.
    9. 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.
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