IDEAS home Printed from https://ideas.repec.org/p/ags/aesc11/108958.html
   My bibliography  Save this paper

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

Author

Listed:
  • Bergmann, Holger
  • Noack, Eva Maria
  • Thomson, Kenneth J.

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.

Suggested Citation

  • Bergmann, Holger & Noack, Eva Maria & Thomson, Kenneth J., 2011. "The Distribution of CAP Payments - Redistributional Injustice or Spatially Adapted policy?," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108958, Agricultural Economics Society.
  • Handle: RePEc:ags:aesc11:108958
    DOI: 10.22004/ag.econ.108958
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/108958/files/68Bergmann_Noack_Thomson.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.108958?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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, March.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. Schmid, Erwin & Sinabell, Franz & Hofreither, Markus F., 2006. "Direct payments of the CAP – distribution across farm holdings in the EU and effects on farm household incomes in Austria," Discussion Papers DP-19-2006, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    7. Roman Keeney, 2009. "Transfer Efficiency and Distributional Impacts of U.S. Farm Support: Evidence from a Macro-Micro Simulation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1289-1295.
    8. Olli Kangas, 2000. "Distributive Justice and Social Policy," LIS Working papers 221, LIS Cross-National Data Center in Luxembourg.
    9. 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, February.
    10. 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.
    11. 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.
    12. Dax, Thomas, 2005. "The On-Going CAP-Reform - Incentive for a Shift Towards Rural Development Activities?," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24691, European Association of Agricultural Economists.
    13. 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, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nitta, Atomu & Yamamoto, Yasutaka & Kondo, Katsunobu & Sawauchi, Daisuke, 2020. "Direct payments to Japanese farmers: Do they reduce rice income inequality? Lessons for other Asian countries," Journal of Policy Modeling, Elsevier, vol. 42(5), pages 968-981.
    2. A. Palestini & G. Pignataro, 2013. "A multi-factor inequality approach to a transfer scheme: the case of Common Agricultural Policy," Working Papers wp891, Dipartimento Scienze Economiche, Universita' di Bologna.
    3. Deppermann, Andre & Offermann, Frank & Grethe, Harald, 2016. "Redistributive effects of CAP liberalisation: From the sectoral level to the single farm," Journal of Policy Modeling, Elsevier, vol. 38(1), pages 26-43.
    4. Latruffe, Laure & Mann, Stefan, 2009. "Another look at the distribution of direct payments: The link with part-time farming," Working Papers 210395, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    5. Severini, Simone & Tantari, A., 2012. "How direct payments and their reform have affected farm income inequality in Italy?," 2012 First Congress, June 4-5, 2012, Trento, Italy 124099, Italian Association of Agricultural and Applied Economics (AIEAA).
    6. Ciliberti, Stefano & Frascarelli, Angelo, 2018. "Does the basic payment efficiently enhance farm incomes? Evidences from Italy," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 271957, European Association of Agricultural Economists.
    7. Schmid, Erwin & Sinabell, Franz & Hofreither, Markus F., 2006. "Direct payments of the CAP – distribution across farm holdings in the EU and effects on farm household incomes in Austria," Discussion Papers DP-19-2006, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    8. Laurent Piet & M Benoit & V Chatellier & K. Hervé Dakpo & N Delame & Yann Desjeux & P Dupraz & M Gillot & Philippe Jeanneaux & C Laroche-Dupraz & A Ridier & E Samson & P Veysset & P Avril & C Beaudoui, 2020. "Hétérogénéité, déterminants et trajectoires du revenu des agriculteurs français," Working Papers hal-02877320, HAL.
    9. 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.
    10. Berkeley Hill, 2008. "Some Economics of Public Statistics," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(3), pages 387-420, September.
    11. Paul Allanson, 2005. "The Impact of Farm Income Support on Absolute Inequality," Dundee Discussion Papers in Economics 178, Economic Studies, University of Dundee.
    12. Paul Allanson & Benedetto Rocchi, 2006. "An analysis of the redistributive effects of agricultural policy in Tuscany with comparative results for Scotland," Dundee Discussion Papers in Economics 193, Economic Studies, University of Dundee.
    13. Ciliberti, Stefano & Frascarelli, Angelo, 2015. "The role of CAP in enhancing farm incomes: the redistributive effect of direct payments in Italy," 147th Seminar, October 7-8, 2015, Sofia, Bulgaria 212244, European Association of Agricultural Economists.
    14. 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.
    15. Andreas Wagener & Juliane Zenker, 2021. "Decoupled but Not Neutral: The Effects of Counter‐Cyclical Cash Transfers on Investment and Incomes in Rural Thailand†," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1637-1660, October.
    16. Gabriela Trnková & Z. Malá, 2012. "Analysis of distribution impact of subsidies within the Common Agricultural Policy on field production businesses in the Czech Republic," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(7), pages 415-424.
    17. Deppermann, Andre & Grethe, Harald & Offermann, Frank, 2011. "Distributional Effects of the CAP on Western German Farm Incomes and Regional Farm Income Disparity," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114442, European Association of Agricultural Economists.
    18. Severini, Simone & Tantari, Antonella, 2013. "The effect of the EU farm payments policy and its recent reform on farm income inequality," Journal of Policy Modeling, Elsevier, vol. 35(2), pages 212-227.
    19. Allanson, Paul & Rocchi, Benedetto, 2008. "A comparative analysis of the redistributive effects of agricultural policy in Tuscany and Scotland," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 86(1).
    20. Schmid, Erwin & Sinabell, Franz & Hofreither, Markus F., 2006. "Distributional effects of CAP instruments on farm household incomes in Austria," 2006 Annual meeting, July 23-26, Long Beach, CA 21467, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    Keywords

    Land Economics/Use;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aesc11:108958. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aesukea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.