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Assessing the effect of the CAP on farm innovation adoption. An analysis in two French regions

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  • Bartolini, Fabio
  • Latruffe, Laure
  • Viaggi, Davide

Abstract

Literature on innovation adoption mechanism has emphasised the positive effect of Single Farm Payments (SFP) and Rural Development Payments on adoption of new technologies. In this context, the expected process of CAP reforming after 2013 is likely to strengthen the role of innovation in the European Union (EU). The objective of this paper is to identify the determinants of the adoption of future innovation, in particular in connection to past innovation, and to assess the role of agricultural policy in the promotion of innovation adoption. The analysis is applied to two regions (Centre and Midi-Pyrénées) in France. Two separate Count models are developed in order to explain famers’ stated intention concerning different intensities of innovation adoption under two different policy scenarios. Preliminary results highlight that the CAP strongly affects the decision to innovate and the innovation intensity, even if there is no statistical significance for the variable connected to the amount of payments or the level of payment per hectare.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 122nd Seminar, February 17-18, 2011, Ancona, Italy with number 99594.

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Date of creation: 10 Feb 2011
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Handle: RePEc:ags:eaa122:99594

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Keywords: innovation; sequences of innovation; CAP; zero inflated Poisson model; Agricultural and Food Policy; Q12; Q18;

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  1. Karantininis, Kostas & Sauer, Johannes & Furtan, William Hartley, 2010. "Innovation and integration in the agri-food industry," Food Policy, Elsevier, vol. 35(2), pages 112-120, April.
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Cited by:
  1. Bachev, Hrabrin, 2011. "Effects of EU CAP implementation on Bulgarian farms," MPRA Paper 35510, University Library of Munich, Germany.
  2. Bartolini, Fabio & Andreoli, Maria & Brunori, Gianluca, 2013. "Explaining the determinants of on-farm diversification: The case Study of Tuscany Region," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149903, Italian Association of Agricultural and Applied Economics (AIEAA).
  3. Floridi, Matteo & Bartolini, Fabio & Peerlings, Jack & Polman, Nico & Viaggi, Davide, 2013. "Modelling the adoption of automatic milking systems in Noord-Holland," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 1, April.

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