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The Economic Effects of Common Agricultural Policy Trends on Montado Ecosystem in Southern Portugal

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  • Rui Fragoso

    ()
    (Universidade de Evora, Departamento de Gestão, CEFAGE-UE)

  • Carlos Marques

    ()
    (Universidade de Evora, Departamento de Gestão, CEFAGE-UE)

  • Maria Raquel Lucas

    ()
    (Universidade de Evora, Departamento de Gestão, CEFAGE-UE)

  • Maria Belém Martins

    ()
    (Universidade do Algarve, Faculdade de Ciências e Tecnologia, CEFAGE-UE)

  • Raúl Fernandes Jorge

    ()
    (Universidade Técnica de Lisboa, Instituto Superior de Agronomia)

Abstract

The decoupling of CAP payments leads production decisions and resources allocation to be dependent only on market prices and competitive advantages. The objective of this paper is to assess the effects of CAP trends on the montado ecosystem in southern Portugal in terms of land, labour and capital allocation and farm income. A positive mathematical supply model disaggregated by the main montado agro-forestry production system in the Alentejo region is developed. The results show that decoupling payments of CAP have important economic effects and the foreseen increases in prices do not compensate the loss of the Agenda 2000 area payments.

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Bibliographic Info

Paper provided by University of Evora, CEFAGE-UE (Portugal) in its series CEFAGE-UE Working Papers with number 2009_12.

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Length: 21 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:cfe:wpcefa:2009_12

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  1. Hisham El-Osta & Ashok Mishra & Mary Ahearn, 2004. "Labor Supply by Farm Operators Under “Decoupled” Farm Program Payments," Review of Economics of the Household, Springer, vol. 2(4), pages 367-385, 08.
  2. Paolo Sckokai & Daniele Moro, 2006. "Modeling the Reforms of the Common Agricultural Policy for Arable Crops under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 43-56.
  3. Horner, G.L. & Corman, J. & Howitt, R.E. & Carter, C.A. & MacGregor, R.J., 1992. "The Canadian Regional Agriculture Model Structure, Operation and Development," Papers 1-92, Gouvernement du Canada - Agriculture Canada.
  4. David S. Bullock & Klaus Salhofer & Jukka Kola, 1999. "The Normative Analysis of Agricultural Policy: A General Framework and Review," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 512-535.
  5. Fragoso, Rui Manuel de Sousa & Carvalho, Maria Leonor da Silva & Henriques, Pedro Damiao de Sousa, 2008. "Positive Mathematical Programming: a Comparison of Different Specification Rules," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44242, European Association of Agricultural Economists.
  6. Courleux, F. & Guyomard, Herve & Piet, Laurent, 2008. "Mapping the Decoupling : Transfer Efficiency of the Single Farm Payment Scheme," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44185, European Association of Agricultural Economists.
  7. Quirino Paris & Richard E. Howitt, 1998. "An Analysis of Ill-Posed Production Problems Using Maximum Entropy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 124-138.
  8. Ottmar R�hm & Stephan Dabbert, 2003. "Integrating Agri-Environmental Programs into Regional Production Models: An Extension of Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 254-265.
  9. Katranidis, Stelios D. & Kotakou, Christina A., 2008. "Are CAP Decoupling Policies Really Production Neutral?," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44184, European Association of Agricultural Economists.
  10. Ooms, Daan L. & Hall, Alastair R., 2005. "On- and Off-Farm Labour Supply of Dutch Dairy Farmers: Estimation and Policy Simulations," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24506, European Association of Agricultural Economists.
  11. Douarin, Elodie, 2008. "Do decoupled payments really encourage farmers to work more off farm? A micro-level analysis of incentives and preferences," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44024, European Association of Agricultural Economists.
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