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Common Agricultural Policy Impacts on Farm Revenues

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Author Info
Elsholz, R.
Harsche, J.
Abstract

The aim of this paper is twofold. Firstly, we investigate the regional distribution of support of EU’s Common Agricultural Policy (CAP). Also, we employ structural data of the regions to calculate average farm revenues and to show how support and revenues have developed over time. We analyse the stabilisation effect generated by these transfers. This is investigated for the market price support, the first pillar payments and one agri-environmental program. Secondly, several parameters affecting level of support, development of support and instability of support are analysed, such as natural conditions for farming and regional economic structure. New contributions to the literature are the use of community data and the inclusion of a second-pillar program. The results show that there is an overall stabilisation effect of the EU’s CAP but this effect is not equal for all regions. Furthermore, our findings indicate that favourable natural conditions increase the level of support per farm.

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Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44409.

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Date of creation: 2008
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Handle: RePEc:ags:eaae08:44409

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Keywords: Common Agricultural Policy; regional support; rural development; Agricultural and Food Policy; Agricultural Finance;

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  1. Paul Allanson, 2006. "The Redistributive Effects of Agricultural Policy on Scottish Farm Incomes," Journal of Agricultural Economics, Blackwell Publishing, vol. 57(1), pages 117-128, 03. [Downloadable!] (restricted)
  2. Cuddy, John D A & Della Valle, P A, 1978. "Measuring the Instability of Time Series Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 40(1), pages 79-85, February.
  3. Sven Anders & Johannes Harsche & Roland Herrmann & Klaus Salhofer, 2004. "Regional Income Effects of Producer Support under the CAP," Discussion Papers 012004, Technische Universität München, Environmental Economics and Agricultural Policy Group.
  4. Paul Allanson, 2007. "Classical Horizontal Inequities in the Provision of Agricultural Income Support," Review of Agricultural Economics, American Agricultural Economics Association, vol. 29(4), pages 656-671, December. [Downloadable!] (restricted)
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