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Factors Affecting the Impact of CAP Scenarios on Farm Structure: An Analysis Based on Stated Intentions

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  • Bartolini, Fabio
  • Viaggi, Davide

Abstract

Several authors have emphasised the effect of agricultural policy (such as SFP) as a driver of structural change. This paper aims to identify the determinants of the change in the use of productive factors under different policy scenarios. The analysis is performed ex ante, assessing the effect of CAP abolishment (as compared to the current CAP) on the use of productive factors, based on stated intentions by farmers. The results highlight the role of farm size, intensity and education in determining different patterns of reaction to policy changes. Also differences are identified among the three main component of structural change, land, capital and labour, with the latter being the less dependent upon the CAP.

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File URL: http://purl.umn.edu/114244
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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114244.

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Date of creation: 2011
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Handle: RePEc:ags:eaae11:114244

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Keywords: structural changes; CAP; stated intentions; multinomial logit; Agricultural and Food Policy; Farm Management;

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  1. David H. Harrington, 2005. "Agricultural Structural Adjustments to U.S. Policies: Discussion Paper," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1198-1199.
  2. Pavel Ciaian & d’Artis Kancs & Johan Swinnen, 2010. "EU Land Markets and the Common Agricultural Policy," EERI Research Paper Series EERI_RP_2010_47, Economics and Econometrics Research Institute (EERI), Brussels.
  3. Viaggi, Davide & Raggi, Meri & Gomez y Paloma, Sergio, 2010. "An integer programming dynamic farm-household model to evaluate the impact of agricultural policy reforms on farm investment behaviour," European Journal of Operational Research, Elsevier, vol. 207(2), pages 1130-1139, December.
  4. Mary Clare Ahearn & Jet Yee & Penni Korb, 2005. "Effects of Differing Farm Policies on Farm Structure and Dynamics," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1182-1189.
  5. Mark Brady & Konrad Kellermann & Christoph Sahrbacher & Ladislav Jelinek, 2009. "Impacts of Decoupled Agricultural Support on Farm Structure, Biodiversity and Landscape Mosaic: Some EU Results," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(3), pages 563-585.
  6. Mishra, Ashok K. & Raggi, Meri & Viaggi, Davide, 2010. "Determinants of farm exit: A comparison between Europe and United States," 114th Seminar, April 15-16, 2010, Berlin, Germany 61075, European Association of Agricultural Economists.
  7. Viaggi, Davide & Raggi, Meri & Gomez y Paloma, Sergio, 2011. "Farm-household investment behaviour and the CAP decoupling: Methodological issues in assessing policy impacts," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 127-145, January.
  8. Barry K. Goodwin & Ashok K. Mishra, 2005. "Another Look at Decoupling: Additional Evidence on the Production Effects of Direct Payments," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1200-1210.
  9. Happe, Kathrin & Balmann, Alfons & Kellermann, Konrad & Sahrbacher, Christoph, 2008. "Does structure matter? The impact of switching the agricultural policy regime on farm structures," Journal of Economic Behavior & Organization, Elsevier, vol. 67(2), pages 431-444, August.
  10. Laure Latruffe & Chantal Le Mou�l, 2009. "Capitalization Of Government Support In Agricultural Land Prices: What Do We Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 23(4), pages 659-691, 09.
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