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The Effect Of The New Single Farm Payment In Irrigated Agriculture: The Case Of Spain

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  • Gracia, Azucena
  • de Magistris, Tiziana
  • Casado, Jose Maria

Abstract

The aim of the paper is to provide an econometric, dynamic, multi-product and partial equilibrium model for the Spanish agriculture able to analyse the effects of the SFP and subsequent reforms in both the irrigated and non-irrigated cultivation. In the case of the EU Mediterranean countries, irrigated agriculture is very relevant because farmers in irrigated land get higher productivity and returns. However, irrigation is also the source of a number of environmental concerns, such as over-abstraction of water from subterranean aquifers, irrigation driven erosion, soil salinisation, etc.. The new decoupling direct payments from production will reduce many of the incentives to intensive production. The developed model is called Spanish Econometric Simulation of Agricultural Policies (SESAP) and it is estimated using Eurotat data from 1983 to 2004 and solved using the GAMS software for the period 2005 to 2020. Simulation results indicate that irrigated area harvested for arable crops, less environmental friendly, is expected to decrease more than non-irrigated.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 107th Seminar, January 30-February 1, 2008, Sevilla, Spain with number 6590.

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Date of creation: 2008
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Handle: RePEc:ags:eaa107:6590

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Related research

Keywords: CAP reform; partial equilibrium model; policy modelling; irrigated Agriculture; simulation; Agricultural and Food Policy; Land Economics/Use; Research Methods/ Statistical Methods;

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  13. Gelan, Ayele & Schwarz, Gerald, 2006. "A Policy Impact Evaluation Model For Scotland: Decoupling Single Farm Payments," MPRA Paper 1491, University Library of Munich, Germany.
  14. Alexandre Gohin & Laure Latruffe, 2006. "The Luxembourg Common Agricultural Policy Reform and the European Food Industries: What's at Stake?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(1), pages 175-194, 03.
  15. Tongeren, Frank van & Meijl, Hans van & Surry, Yves, 2001. "Global models applied to agricultural and trade policies: a review and assessment," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 26(2), November.
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