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Cap Direct Payments As The Main Tool To Support The Eu Farmers: An Analysis Of Their Implementation Based On Spain Experience

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  • Liliana CIMPOIES

    (State Agrarian University of Moldova)

Abstract

Direct payments are the main tool of the EU Common Agricultural Policy (CAP) and the main objective is to support EU farmers incomes. They benefit from a particular attention during the new 2014-2020 reform. For the first time direct payments were introduced in 1992 after MacSharry reform and known as coupled payments (payments per hectare and animal head). In 2003 were introduced the decoupled payments focused at encouraging farmers and enhancing the competitiveness and sustainability of the EU agriculture. The aim of this paper is to analyze the application of direct payments as main support instrument to the EU farmers based on Spain experience. In Spain the new changes in the Single Payment Scheme (SPS) were first introduced in 2006, beginning with the regime of partial decoupling, until 2012, when the coupled payments disappeared, being integrated under the SPS or transformed into additional payment. In this analysis, secondary data provided by the Spanish Agrarian Guarantee Fund (FEGA), Ministry of Agriculture, Food and Environment of Spain (MAGRAMA) and Farm Accountancy Data Network (FADN. The analyzed data refers to the amount of allocated direct payments in Spain and EU countries, number of beneficiaries and its distribution on territorial aspect. So far, the distribution of direct payments in Spain, similar to other EU member states, is unequal, as a result of various factors, as the CAP development and diversity of production, the use of historical references to fix the decoupled payments per farm and others.

Suggested Citation

  • Liliana CIMPOIES, 2016. "Cap Direct Payments As The Main Tool To Support The Eu Farmers: An Analysis Of Their Implementation Based On Spain Experience," Economy and Sociology, The Journal Economy and Sociology, issue 1, pages 43-49.
    • Handle: RePEc:aat:journl:y:2016:i:1:p:43-49
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    References listed on IDEAS

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    1. Franz Sinabell & Erwin Schmid & Markus Hofreither, 2013. "Exploring the distribution of direct payments of the Common Agricultural Policy," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 40(2), pages 325-341, May.
    2. Xueqin Zhu & Alfons Oude Lansink, 2010. "Impact of CAP Subsidies on Technical Efficiency of Crop Farms in Germany, the Netherlands and Sweden," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(3), pages 545-564, September.
    3. Marian Rizov & Jan Pokrivcak & Pavel Ciaian, 2013. "CAP Subsidies and Productivity of the EU Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 537-557, September.
    4. Schmid, Erwin & Sinabell, Franz & Hofreither, Markus F., 2006. "Direct payments of the CAP – distribution across farm holdings in the EU and effects on farm household incomes in Austria," Discussion Papers DP-19-2006, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
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    Keywords

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    JEL classification:

    • H59 - Public Economics - - National Government Expenditures and Related Policies - - - Other
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q19 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Other

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