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Impact Of The Cap Reform On The Spanish Agricultural Sector

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  • Judez, Lucinio
  • de Andres, Rosario
  • Ibanez, M.
  • De Miguel, J.M.
  • Miguel, J.L.
  • Urzainqui, Elvira
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    Abstract

    This paper analyses the impact of the 2003 CAP reform on Spanish agricultural sector in the context of the recent CAP Health Check and high food prices, using PROMAPA, a positive mathematical programming model for representative farms. The analysis compares the model results for base year 2002 to the findings for a scenario with the CAP reform measures in place, taking into account recent modifications. The effect of adopting a full decoupling scheme instead of the present partial decoupling is also studied. Brief descriptions are given of the PROMAPA model, the representative farm considered and the assumptions about both price variations and the policy measures simulated. The findings showed that the farming area for cereals grew substantially after abolition of the compulsory set-aside and that the impact of transition to full decoupling was scant, except in the sheep and rearing cattle sub-sectors, where it considerably steepened the already sizeable decline in livestock numbers induced by the partial decoupling scheme.

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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 109th Seminar, November 20-21, 2008, Viterbo, Italy with number 44830.

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    Date of creation: 13 Nov 2008
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    Handle: RePEc:ags:eaa109:44830

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    Related research

    Keywords: CAP reform; CAP Health Check; Decoupling; Spanish agricultural sector.; Agricultural and Food Policy; Q10; Q12; Q18;

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    1. Thomas Heckelei & Hendrik Wolff, 2003. "Estimation of constrained optimisation models for agricultural supply analysis based on generalised maximum entropy," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 30(1), pages 27-50, March.
    2. Buysse, Jeroen & Van Huylenbroeck, Guido, 2005. "Impact of Alternative Implementations of the Agenda 2000 Mid Term Review," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24589, European Association of Agricultural Economists.
    3. Judez, L. & Chaya, C. & Martinez, S. & Gonzalez, A. A., 2001. "Effects of the measures envisaged in "Agenda 2000" on arable crop producers and beef and veal producers: an application of Positive Mathematical Programming to representative farms of a Span," Agricultural Systems, Elsevier, vol. 67(2), pages 121-138, February.
    4. Ottmar R�hm & Stephan Dabbert, 2003. "Integrating Agri-Environmental Programs into Regional Production Models: An Extension of Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 254-265.
    5. Quirino Paris & Richard E. Howitt, 1998. "An Analysis of Ill-Posed Production Problems Using Maximum Entropy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 124-138.
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