IDEAS home Printed from https://ideas.repec.org/p/hal/journl/halshs-00844542.html
   My bibliography  Save this paper

Economic and environmental impact of the CAP mid-term review on arable crop farming in South-western France

Author

Listed:
  • Charilaos Kephaliacos

    (LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - UT2J - Université Toulouse - Jean Jaurès - UT - Université de Toulouse - Institut d'Études Politiques [IEP] - Toulouse - ENSFEA - École Nationale Supérieure de Formation de l'Enseignement Agricole de Toulouse-Auzeville)

  • Françoise Carpy-Goulard

    (LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - UT2J - Université Toulouse - Jean Jaurès - UT - Université de Toulouse - Institut d'Études Politiques [IEP] - Toulouse - ENSFEA - École Nationale Supérieure de Formation de l'Enseignement Agricole de Toulouse-Auzeville, Agence de l'Eau Adour-Garonne)

  • Aude Ridier

    (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST)

  • Claire Mosnier

Abstract

The issue addressed in this paper is whether implementation of the CAP MTR, (involving decoupled payments reduced by "modulations" and subject to cross-compliance measures) can be effective in improving the environmental impact of arable farming. The focus is on two French cross-compliance measures (compulsory buffer strips along rivers and crop diversity). A farm-level bio-economic model incorporating yield uncertainty is built and adjusted to represent two typical arable farms in the Southwest of France. The model also combines agro-environmental indicators. The results indicate that a simple decoupling of direct payments, without cross-compliance measures, has no impact on allocations between different crops. If cross-compliance measures are imposed, a small reduction in the cultivated area of irrigated crops is observed. The penalty levied (1% of the total subsidy paid) when farmers do not comply with the "buffer strips" requirement is sufficient for both farm-types. Decoupling and modulation result in a fall in the total gross margin of around 3%, principally because of the 5% modulation rate, while the "buffer strips" requirement leads to a further decrease of around 1%. Moreover, this requirement improves the environmental indicators at the farm level.

Suggested Citation

  • Charilaos Kephaliacos & Françoise Carpy-Goulard & Aude Ridier & Claire Mosnier, 2009. "Economic and environmental impact of the CAP mid-term review on arable crop farming in South-western France," Post-Print halshs-00844542, HAL.
    • Handle: RePEc:hal:journl:halshs-00844542
    DOI: 10.1016/j.ecolecon.2008.10.001
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Matthews, K.B. & Wright, I.A. & Buchan, K. & Davies, D.A. & Schwarz, G., 2006. "Assessing the options for upland livestock systems under CAP reform: Developing and applying a livestock systems model within whole-farm systems analysis," Agricultural Systems, Elsevier, vol. 90(1-3), pages 32-61, October.
    2. Petr Havlík & Patrick Veysset & Jean-Marie Boisson & Michel Lherm & Florence Jacquet, 2005. "Joint production under uncertainty and multifunctionality of agriculture: policy considerations and applied analysis," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(4), pages 489-515, December.
    3. Alexandre Gohin, 2006. "Assessing CAP reform: sensitivity of modelling decoupled policies," Post-Print hal-01931639, HAL.
    4. Aude Ridier & Florence Jacquet, 2002. "Decoupling Direct Payments and the Dynamics of Decisions under Price Risk in Cattle Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(3), pages 549-565, November.
    5. Bockstaller, C. & Girardin, P., 2003. "How to validate environmental indicators," Agricultural Systems, Elsevier, vol. 76(2), pages 639-653, May.
    6. Petr Havlík & Patrick Veysset & Jean-Marie Boisson & Michel M. Lherm & Florence F. Jacquet, 2005. "Joint production under uncertainty and multifunctionality of agriculture : policy considerations and applied analysis [[Production jointe sous incertitude et multifonctionnalité : considérations po," Post-Print hal-02680361, HAL.
    7. 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.
    8. Falconer, Katherine & Hodge, Ian, 2001. "Pesticide taxation and multi-objective policy-making: farm modelling to evaluate profit/environment trade-offs," Ecological Economics, Elsevier, vol. 36(2), pages 263-279, February.
    9. de Koeijer, T. J. & Renkema, J. A. & van Mensvoort, J. J. M., 1995. "Environmental-economic analysis of mixed crop-livestock farming," Agricultural Systems, Elsevier, vol. 48(4), pages 515-530.
    10. Alexandre Gohin, 2006. "Assessing CAP Reform: Sensitivity of Modelling Decoupled Policies," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(3), pages 415-440, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jacquet, Florence & Butault, Jean-Pierre & Guichard, Laurence, 2011. "An economic analysis of the possibility of reducing pesticides in French field crops," Ecological Economics, Elsevier, vol. 70(9), pages 1638-1648, July.
    2. Stefano Gaudino & Pytrik Reidsma & Argyris Kanellopoulos & Dario Sacco & Martin K. Van Ittersum, 2018. "Integrated Assessment of the EU’s Greening Reform and Feed Self-Sufficiency Scenarios on Dairy Farms in Piemonte, Italy," Agriculture, MDPI, vol. 8(9), pages 1-27, September.
    3. Jaraite, Jurate & Kažukauskas, Andrius, 2011. "The effect of mandatory agro-environmental policy on farm environmental performance," CERE Working Papers 2011:13, CERE - the Center for Environmental and Resource Economics.
    4. Ricome, Aymeric & Chaib, Karim & Ridier, Aude & Kephaliacos, Charilaos & Carpy-Goulard, Francoise, 2012. "The role of cash crop marketing contracts in the adoption of low-input practices in the presence of risk and income supports," 126th Seminar, June 27-29, 2012, Capri, Italy 126222, European Association of Agricultural Economists.
    5. Selbonne, S. & Guindé, L. & Belmadani, A. & Bonine, C. & L. Causeret, F. & Duval, M. & Sierra, J. & Blazy, J.M., 2022. "Designing scenarios for upscaling climate-smart agriculture on a small tropical island," Agricultural Systems, Elsevier, vol. 199(C).
    6. Sauer, J. & Walsh, J. & Zilberman, D., 2014. "Agri-Environmental Policy Effects at Producer Level – Identification and Measurement," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 49, March.
    7. 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.
    8. Chopin, Pierre & Doré, Thierry & Guindé, Loïc & Blazy, Jean-Marc, 2015. "MOSAICA: A multi-scale bioeconomic model for the design and ex ante assessment of cropping system mosaics," Agricultural Systems, Elsevier, vol. 140(C), pages 26-39.
    9. Mosnier, Claire & Boukhriss, Sanae & Minviel, Jean-Joseph, 2023. "Does pig production improves cattle farm sustainability in the French massif central? A hierarchical constrained directional benefit-of-the-doubt approach," Agricultural Systems, Elsevier, vol. 210(C).
    10. Kleftodimos, Georgios & Gallai, Nicola & Rozakis, Stelios & Képhaliacos, Charilaos, 2021. "A farm-level ecological-economic approach of the inclusion of pollination services in arable crop farms," Land Use Policy, Elsevier, vol. 107(C).
    11. Petsakos, Athanasios & Jayet, Pierre-Alain, 2010. "Evaluating the efficiency of a N-input tax under different policy scenarios at different scales," 120th Seminar, September 2-4, 2010, Chania, Crete 109397, European Association of Agricultural Economists.
    12. Esther Boere & G. Cornelis van Kooten, 2015. "Reforming the Common Agricultural Policy: Decoupling Agricultural Payments from Production and Promoting the Environment," Working Papers 2015-01, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    13. Mosnier, Claire & Duclos, Anne & Agabriel, Jacques & Gac, Armelle, 2017. "Orfee: A bio-economic model to simulate integrated and intensive management of mixed crop-livestock farms and their greenhouse gas emissions," Agricultural Systems, Elsevier, vol. 157(C), pages 202-215.
    14. Sauer, Johannes & Walsh, John & Zilberman, David, 2012. "Behavioural Change through Agri-Environmental Policies ? – A Distance Function based Matching Approach," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134783, Agricultural Economics Society.
    15. Aude Ridier & Charilaos Kephaliacos & Francoise Carpy-Goulard, 2011. "Private transaction costs and environmental cross compliance in a crop region of Southwestern France," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 9(1/2), pages 68-79.
    16. Homolka, Jaroslav & Svecova, Michaela, 2012. "Analysis of financial support influences on management of agricultural enterprises," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 4(1), pages 1-8, March.
    17. Schönhart, Martin & Schmid, Erwin & Schneider, Uwe A., 2009. "CropRota – A Model to Generate Optimal Crop Rotations from Observed Land Use," Discussion Papers DP-45-2009, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    18. Mosnier, C. & Agabriel, J. & Lherm, M. & Reynaud, A., 2009. "A dynamic bio-economic model to simulate optimal adjustments of suckler cow farm management to production and market shocks in France," Agricultural Systems, Elsevier, vol. 102(1-3), pages 77-88, October.
    19. Sauer, Johannes & Walsh, John & Zilberman, David, 2012. "Producer Behaviour and Agri-Environmental Policies: A Directional Distance based Matching Approach," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124877, Agricultural and Applied Economics Association.

    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. Jacquet, Florence & Butault, Jean-Pierre & Guichard, Laurence, 2011. "An economic analysis of the possibility of reducing pesticides in French field crops," Ecological Economics, Elsevier, vol. 70(9), pages 1638-1648, July.
    2. Mosnier, C. & Agabriel, J. & Lherm, M. & Reynaud, A., 2009. "A dynamic bio-economic model to simulate optimal adjustments of suckler cow farm management to production and market shocks in France," Agricultural Systems, Elsevier, vol. 102(1-3), pages 77-88, October.
    3. 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.
    4. Matthews, Alan & Salvatici, Luca & Scoppola, Margherita, 2017. "Trade Impacts of Agricultural Support in the EU," Commissioned Papers 252767, International Agricultural Trade Research Consortium.
    5. Devadoss, Stephen & Gibson, Mark J. & Luckstead, Jeff, 2016. "The Impact of Agricultural Subsidies on the Corn Market with Farm Heterogeneity and Endogenous Entry and Exit," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-20, September.
    6. Lelyon, Baptiste & Daniel, Karine & Chatellier, Vincent, 2008. "Decoupling and prices: determinant of dairy farmers’ choices? A model to analyse impacts of the 2003 CAP reform," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44250, European Association of Agricultural Economists.
    7. Bamière, Laure & David, Maia & Vermont, Bruno, 2013. "Agri-environmental policies for biodiversity when the spatial pattern of the reserve matters," Ecological Economics, Elsevier, vol. 85(C), pages 97-104.
    8. Kleftodimos, Georgios & Gallai, Nicola & Rozakis, Stelios & Képhaliacos, Charilaos, 2021. "A farm-level ecological-economic approach of the inclusion of pollination services in arable crop farms," Land Use Policy, Elsevier, vol. 107(C).
    9. Chen, You-hua & Chen, Mei-xia & Mishra, Ashok K., 2020. "Subsidies under uncertainty: Modeling of input- and output-oriented policies," Economic Modelling, Elsevier, vol. 85(C), pages 39-56.
    10. Kamel Elouhichi & Maria Espinosa Goded & Pavel Ciaian & Angel Perni Llorente & Bouda Vosough Ahmadi & Liesbeth Colen & Sergio Gomez Y Paloma, 2018. "The EU-Wide Individual Farm Model for Common Agricultural Policy Analysis (IFM-CAP v.1): Economic Impacts of CAP Greening," JRC Research Reports JRC108693, Joint Research Centre.
    11. Pierre Boulanger & Kirsten Boysen-Urban & George Philippidis, 2021. "European Union Agricultural Support ‘Coupling’ in Simulation Modelling: Measuring the Sustainability Impacts," Sustainability, MDPI, vol. 13(6), pages 1-17, March.
    12. Ricome, Aymeric & Chaib, Karim & Ridier, Aude & Kephaliacos, Charilaos & Carpy-Goulard, Francoise, 2016. "The Role of Marketing Contracts in the Adoption of Low-Input Production Practices in the Presence of Income Supports: An Application in Southwestern France," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-29.
    13. Boere, Esther & van Kooten, G. Cornelis, 2015. "Reforming the Common Agricultural Policy: Decoupling Agricultural Payments from Production and Promoting the Environment," Working Papers 201653, University of Victoria, Resource Economics and Policy.
    14. Bamière, Laure & Havlík, Petr & Jacquet, Florence & Lherm, Michel & Millet, Guy & Bretagnolle, Vincent, 2011. "Farming system modelling for agri-environmental policy design: The case of a spatially non-aggregated allocation of conservation measures," Ecological Economics, Elsevier, vol. 70(5), pages 891-899, March.
    15. Moro, Daniele & Sckokai, Paolo, 2013. "The impact of decoupled payments on farm choices: Conceptual and methodological challenges," Food Policy, Elsevier, vol. 41(C), pages 28-38.
    16. Veysset, P. & Lherm, M. & Bébin, D., 2010. "Energy consumption, greenhouse gas emissions and economic performance assessments in French Charolais suckler cattle farms: Model-based analysis and forecasts," Agricultural Systems, Elsevier, vol. 103(1), pages 41-50, January.
    17. Luciano Pilati & Vasco Boatto, 2013. "Bio-Economics Of Allocatable Pollination Services: Sequential Choices And Jointness In Sites," DEM Discussion Papers 2013/18, Department of Economics and Management.
    18. Röder, N. & Hennessy, T. & Stilmant, D., 2008. "Development of the utilization of pastrol land in the EU 25 after 2003," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 43, March.
    19. Luciano Pilati & Vasco Boatto, 2014. "Jointness in Sites: The Case of Migratory Beekeeping," DEM Discussion Papers 2014/10, Department of Economics and Management.
    20. Jean-Christophe Bureau & Sébastien Jean, 2013. "Trade liberalization in the bio-economy: coping with a new landscape," Agricultural Economics, International Association of Agricultural Economists, vol. 44(s1), pages 173-182, November.

    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:hal:journl:halshs-00844542. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.