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The October 2011 Legislative Proposals for CAP Reform: A French Point of View

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  • Chatellier, Vincent
  • Guyomard, Herve
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    Abstract

    This paper proposes an assessment of the October 2011 legislative proposals for CAP reform. The assessment is essentially qualitative, illustrated by static simulations of income effects for French professional farms. It uses the French case to highlight the diverging opinions between stakeholders on these proposals and argue why they are a step in the right direction but a too timid step as crucial issues are not adequately addressed. Furthermore several key parameters of the reform remain unknown. We first summarise the main elements of the proposals presented by the European Commission. We then highlight the main points that are subject to debate on the basis of French stakeholder reactions (public authorities, farmers’ unions, food companies and non-governmental organisations).We finally propose an assessment of these proposals focusing more specifically on the following points: the redistribution of direct payments between countries and categories of farms; the flat rate model for allocating decoupled payments; the removal of production quotas and the implementation of new tools of market regulation; and the allocation of funds specifically dedicated to innovation and knowledge transfer.

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    File URL: http://purl.umn.edu/126988
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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 126th Seminar, June 27-29, 2012, Capri, Italy with number 126988.

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    Date of creation: Jun 2012
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    Handle: RePEc:ags:eaa126:126988

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    Related research

    Keywords: CAP; Direct payments; French agriculture; Agricultural and Food Policy; Q18;

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    1. Vincent Chatellier, 2011. "Price volatility, market regulation and risk management: challenges for the future of the CAP," Working Papers SMART - LERECO 11-04, INRA UMR SMART.
    2. Vincent Chatellier & Hervé Guyomard, 2010. "Le bilan de santé de la PAC et le rééquilibrage des soutiens à l’agriculture française," Working Papers SMART - LERECO 10-10, INRA UMR SMART.
    3. Vincent Chatellier & Hervé Guyomard, 2008. "Le bilan de santé de la PAC, le découplage et l’élevage en zones difficiles," INRA Sciences Sociales, INRA Department of Economics.
    4. Baptiste Lelyon & Vincent Chatellier & Karine Daniel, 2011. "Decoupling and prices: determinant of dairy farmers’ choices?," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 92(1), pages 47-68.
    5. Frédéric Courleux & Hervé Guyomard & Fabrice Levert & Laurent Piet, 2008. "How the EU Single Farm Payment should be modelled: lump-sum transfers, area payments or… what else?," Working Papers SMART - LERECO 08-01, INRA UMR SMART.
    6. Erjavec, Emil & Chantreuil, Frédéric & Hanrahan, Kevin & Donnellan, Trevor & Salputra, Guna & Kozar, Maja & van Leeuwen, Myrna, 2011. "Policy assessment of an EU wide flat area CAP payments system," Economic Modelling, Elsevier, vol. 28(4), pages 1550-1558, July.
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