IDEAS home Printed from https://ideas.repec.org/p/ags/iaae06/25731.html
   My bibliography  Save this paper

Destabilising Farmers' Revenues by Shifting to Direct Payments? The Case of EU's Common Agricultural Policy

Author

Listed:
  • Hansen, Heiko

Abstract

This paper quantifies the effects of EU's Common Agricultural Policy (CAP) on the instability of domestic farmers' revenues during the period 1986 to 2004. Comparing explicitly the situations with and without policy shows that CAP transfers have lowered the variability of revenues for major commodities through time. The decomposition of agricultural support allows to reveal the impacts of single instruments on instability and indicates that arable area and beef headage payments, introduced in the 1990s, tend to stabilise domestic farmers' revenues. With market price support, however, farmers' revenues are more stable.

Suggested Citation

  • Hansen, Heiko, 2006. "Destabilising Farmers' Revenues by Shifting to Direct Payments? The Case of EU's Common Agricultural Policy," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25731, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25731
    DOI: 10.22004/ag.econ.25731
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/25731/files/pp060599.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.25731?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Stanley R. Thompson & Roland Herrmann & Wolfgang Gohout, 2000. "Agricultural Market Liberalization and Instability of Domestic Agricultural Markets: The Case of the CAP," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 718-726.
    3. ROSEMARY FENNELLy, 1985. "A Reconsideration of the Objectives of the Common Agricultural Policy," Journal of Common Market Studies, Wiley Blackwell, vol. 23(3), pages 257-276, March.
    4. Love, Bruce & Boyd, Milton S. & Loyds, R. M. A. & Gibson, Ron, 1997. "Testing the effectiveness of government transfers for agricultural revenue stabilization: the case of the Western Canadian grain sector," Food Policy, Elsevier, vol. 22(2), pages 175-184, April.
    5. Francesco Aiello, 1999. "The Stabilisation of LDCs' Export Earnings. The impact of the EU STABEX programme," International Review of Applied Economics, Taylor & Francis Journals, vol. 13(1), pages 71-85.
    6. Anderson, Kym & Tyers, Rodney, 1984. "European Community Grain and Meat Policies: Effects on International Prices, Trade and Welfare," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 11(4), pages 367-394.
    7. Koester, Ulrich, 1982. "Policy options for the grain economy of the European Community: implications for developing countries," Research reports 35, International Food Policy Research Institute (IFPRI).
    8. Herrmann, Roland & Schmitz, Peter Michael, 1984. "Stabilizing Producers' Revenue by Fixing Agricultural Prices within the EC?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 11(4), pages 395-414.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sven Anders & Harsche, Johannes & Roland Herrmann & Klaus Salhofer, 2004. "Regional income effects of producer support under the CAP," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 73, pages 103-121.
    2. Aiello, Francesco, 2002. "Financial stabilization systems, economic growth of developing countries and EU’s STABEX," MPRA Paper 38099, University Library of Munich, Germany.
    3. Elsholz, Rudiger & Hansen, Heiko, 2008. "The Effect of EU's Common Agricultural Policy at the Regional Level: Distribution, Development and Revenue Stabilisation," 108th Seminar, February 8-9, 2008, Warsaw, Poland 48106, European Association of Agricultural Economists.
    4. Elsholz, Rudiger & Harsche, Johannes, 2008. "Common Agricultural Policy Impacts on Farm Revenues," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44409, European Association of Agricultural Economists.
    5. Liapis, Peter S., 1989. "Estimation and Evaluation of Economic Community Wheat Export Subsidies," Staff Reports 278253, United States Department of Agriculture, Economic Research Service.
    6. Thompson, Stanley R. & Gohout, Wolfgang, 2000. "Cap Reform, Wheat Price Instability And Producer Welfare," 2000 Annual meeting, July 30-August 2, Tampa, FL 21780, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Elsholz, Rudiger & Harsche, Johannes, 2011. "Price Changes, Policy Impacts and Instability in Farmers’ Revenues," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114342, European Association of Agricultural Economists.
    8. Thompson, Stanley R. & Schmitz, P. Michael, 2001. "The Real Rate Of Protection: The Stabilizing Effect Of Price Policies And Direct Payments," 2001 Annual meeting, August 5-8, Chicago, IL 20503, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Herrmann, R. & Thompson, S.R., 2000. "Agrarmarktliberalisierung, Instabilitäten der heimischen Agrarpreise und die Wettbewerbsfähigkeit der Land- und Ernährungswirtschaft," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 36.
    10. Grams, Michael, 2005. "Reform der EU-Milchmarktpolitik bei instabilen Weltmärkten," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 54(03), pages 1-10.
    11. Rudiger Elsholz & Johannes Harsche, 2014. "Determinants of regional disparities in farm income: markets or policy?," Economia agro-alimentare, FrancoAngeli Editore, vol. 16(1), pages 13-36.
    12. Mahama, Ramatu, 1985. "A stochastic simulation of the impact of price insulation policies on world wheat market stability," ISU General Staff Papers 198501010800008868, Iowa State University, Department of Economics.
    13. Herrmann, Roland & Moeser, Anke, 2005. "Psychological Prices and Price Rigidity in Grocery Retailing: Analysis of German Scanner Data," 2005 Annual meeting, July 24-27, Providence, RI 19471, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Weiss, Christoph R. & Thiele, Holger D., 2002. "Diversifikation und Wachstum landwirtschaftlicher Unternehmen," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 51(03), pages 1-8.
    15. Carambas, Maria Cristina D.M., 2005. "Analysis of Marketing Margins in Eco-Labeled Products," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24600, European Association of Agricultural Economists.
    16. Gollin, Douglas, 2006. "Impacts of International Research on Intertemporal Yield Stability in Wheat and Maize: An Economic Assessment," Impact Studies 7657, CIMMYT: International Maize and Wheat Improvement Center.
    17. Kumar, Ranjit & Alam, Khurshid & Krishna, Vijesh V. & Srinivas, K., 2012. "Value Chain Analysis of Maize Seed Delivery System in Public and Private Sectors in Bihar," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 25(Conferenc).
    18. Sckokai, Paolo, 2001. "The Common Agricultural Policy In Econometric Models," Working Papers 14800, National Institute of Agricultural Economics, Italy - INEA, Osservatorio Sulle Politiche Agricole dell'UE.
    19. Barry Smit & Mark Skinner, 2002. "Adaptation options in agriculture to climate change: a typology," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 7(1), pages 85-114, March.
    20. Jansson, Torbjörn & Heckelei, Thomas & Gocht, Alexander & Basnet, Shyam Kumar & Zhang, Yinan & Neuenfeldt, Sebastian, 2014. "Analysing impacts of changing price variability with estimated farm risk-programming models," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182665, European Association of Agricultural Economists.

    More about this item

    Keywords

    Agricultural and Food Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae06:25731. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.