IDEAS home Printed from https://ideas.repec.org/a/ags/inrace/202430.html
   My bibliography  Save this article

Regional income effects of producer support under the CAP

Author

Listed:
  • Anders, Sven
  • Harsche, Johannes
  • Herrmann, Roland
  • Salhofer, Klaus

Abstract

The Common Agricultural Policy (CAP) of the European Union (EU) is characterized by a wide array of individual policy measures, which differ by the category of instruments, across commodities and over time. Consequently, the net impact of the policy mix on price incentives for producers and consumers had been intransparent for years. This study utilizes a regionalized concept of producer support estimates (PSEs) to elaborate the primary effects of the CAP on producers at a disaggregate level of NUTS III regions. 26 regions in the federal state of Hesse, Germany, in the years 1986-1999 are utilized as a case study. One important result is that a uniform CAP does affect the regions very differently. Recent reforms of the CAP have not reduced significantly the average level of agricultural support in the region studied. Statistically significant downward trends in absolute producer support due to price support were associated with significant upward trends due to direct payments. Interestingly, absolute and relative PSE measures due to the CAP and price support are fully uncorrelated with each other. If transfers under the CAP are targeted in terms of absolute support, e.g., this may induce an arbitrary interregional distribution of PSEs in relation to farm revenues.

Suggested Citation

  • Anders, Sven & Harsche, Johannes & Herrmann, Roland & Salhofer, Klaus, 2004. "Regional income effects of producer support under the CAP," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 73.
  • Handle: RePEc:ags:inrace:202430
    DOI: 10.22004/ag.econ.202430
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/202430/files/73-103-121.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.202430?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. George P. Zanias, 2002. "The Distribution of CAP Benefits among Member States and the Impact of a Partial Re‐nationalisation: A Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(1), pages 108-112, March.
    2. 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.
    3. Duggan, James E, 1979. "On Measuring the Instability of Time Series Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(3), pages 239-246, August.
    4. Brown, Colin G, 1990. "Distributional Aspects of CAP Price Support," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 17(3), pages 289-301.
    5. Yves Léon & Maurice Quinqu & . European Association of Agricultural Economists & . Università Degli Studi Di Ancona,cnr. Consiglio Nationale Delle Ricerche, 1995. "The regional impact of the common agricultural policy on French agriculture," Post-Print hal-01931692, HAL.
    6. 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.
    7. Colman, David, 1985. "Imperfect Transmission of Policy Prices," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 12(3), pages 171-186.
    8. Corden, W. M., 1971. "The substitution problem in the theory of effective protection," Journal of International Economics, Elsevier, vol. 1(1), pages 37-57, February.
    9. Doyle, Chris J & Mitchell, Morag & Topp, Kairsty, 1997. "Effectiveness of Farm Policies on Social and Economic Development in Rural Areas," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 24(3-4), pages 530-546.
    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. Harsche, Johannes, 2006. "Räumlich Differenzierte Stabilisierungswirkungen Der Europäischen Agrarpolitik In Unterschiedlich Konditionierten Erzeugerregionen In Hessen," 46th Annual Conference, Giessen, Germany, October 4-6, 2006 14949, German Association of Agricultural Economists (GEWISOLA).
    2. 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.
    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. Roberto Esposti, 2008. "Regional growth convergence and EU policies: Empirical evidence and measuring problems," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 9(1), pages 14-22, April.
    5. Hansen, H. & Harsche, J., 2006. "Die Förderung landwirtschaftlicher Erzeugnisse durch die Europäische Agrarpolitik Regionale Auswirkungen in Deutschland und Bestimmungsgründe," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 41, March.
    6. 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.
    7. Hansen, Heiko, 2005. "Effects of Agricultural Policy Measures on Gross Transfers to Farmers: Intertemporal and Interregional Evidence from the CAP," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24625, European Association of Agricultural Economists.
    8. Sven Anders & Johannes Harsche & Roland Herrmann & Klaus Salhofer & Ramona Teuber, 2007. "The Interregional and Intertemporal Allocation of EU Producer Support: Magnitude and Determinants," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 27(2), pages 171-193, August.
    9. Olper, Alessandro & Raimondi, Valentina & Cavicchioli, Daniele & Vigani, Mauro, 2011. "Does Common Agricultural Policy Reduce Farm Labour Migration? A Panel Data Analysis Across EU Regions," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114597, European Association of Agricultural Economists.
    10. Harsche, J., 2007. "Räumlich differenzierte Stabilisierungswirkungen der Europäischen Agrarpolitik in unterschiedlich konditionierten Erzeugerregionen in Hessen," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 42, March.
    11. Roberto Esposti, 2008. "Regional growth convergence and EU policies: Empirical evidence and measuring problems," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 9(01), pages 14-22, April.
    12. Harsche, Johannes, 2007. "DIE BEDEUTUNG DER LANDWIRTSCHAFT AUF DEM ARBEITSMARKT IM KONTEXT WIRTSCHAFTSRAUMLICHER DISPARITATEN-ERGEBNISSE EINER PANEL-ANALYSE (German)," 47th Annual Conference, Weihenstephan, Germany, September 26-28, 2007 7593, German Association of Agricultural Economists (GEWISOLA).
    13. Siudek, Tomasz & Zawojska, Aldona, 2011. "Relationship of Development and Fiscal Indicators with Agricultural Producer Support in the OECD Economies," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116009, European Association of Agricultural Economists.
    14. Olper, Alessandro & Raimondi, Valentina & Cavicchioli, Daniele & Vigani, Mauro, "undated". "Reallocation of Agricultural Labor and Farm Subsidies: Evidence From the EU Regions," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126645, International Association of Agricultural Economists.
    15. Harsche, J., 2008. "Die Bedeutung der Landwirtschaft auf dem Arbeitsmarkt im Kontext wirtschaftsräumlicher Disparitäten – Ergebnisse einer Panel-Analyse," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 43, March.
    16. Zawojska, Aldona, 2007. "The Distribution of Direct Payments of CAP to producers amongst EU Member States," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 1(16), pages 1-11, March.
    17. Elsholz, R., 2010. "Regionale Wohlfahrtseffekte der Gemeinsamen Europäischen Agrarpolitik," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 45, March.
    18. Esposti, Roberto, 2008. "Reforming The Cap: An Agenda For Regional Growth?," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44868, European Association of Agricultural Economists.
    19. Anders, Sven & Harsche, Johannes & Herrmann, Roland & Salhofer, Klaus, 2005. "Interregionale Einkommenstransfers in der Gemeinsamen Agrarpolitik," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 40, March.

    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. Aiello, Francesco, 2002. "Financial stabilization systems, economic growth of developing countries and EU’s STABEX," MPRA Paper 38099, University Library of Munich, Germany.
    2. Anders, Sven & Harsche, Johannes & Herrmann, Roland & Salhofer, Klaus, 2005. "Interregionale Einkommenstransfers in der Gemeinsamen Agrarpolitik," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 40, March.
    3. 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.
    4. 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.
    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. Anders, Sven M. & Harsche, Johannes & Herrmann, Roland, 2002. "The Regional Incidence of European Agricultural Policy: Measurement Concept and Empirical Evidence," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24900, European Association of Agricultural Economists.
    7. 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.
    8. Louis-Pascal Mahé, 2004. "Compte rendu d'ouvrage - Les apports de l’économie rurale des 20 dernières années à travers le Tome 2 du Handbook of Agricultural Economics," Post-Print hal-01201083, HAL.
    9. 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).
    10. Tangermann, S., 1976. "Weltmarktpreise und EG-Agrarpreispolitik," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 13.
    11. 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.
    12. Surry, Yves, 1988. "Cereal Prices In The European Community: A Policy Transmission Model," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270322, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. 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.
    14. Topp, C. F. E. & Mitchell, M., 2003. "Forecasting the environmental and socio-economic consequences of changes in the Common Agricultural Policy," Agricultural Systems, Elsevier, vol. 76(1), pages 227-252, April.
    15. 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).
    16. João Alberto De Negri & Celso Garrido & Vinicius Rodrigues Peçanha & Leonardo E. Stanley, 2010. "La inserción de América Latina en las cadenas globales de valor," Serie Red MERCOSUR, Red Mercosur, edition 1, volume 1, number 19 edited by Victor Prochnik (Coordinador), Spring.
    17. Marijke J. D. Bos & Gonzague Vannoorenberghe, 2018. "Total factor productivity spillovers from trade reforms in India," Canadian Journal of Economics, Canadian Economics Association, vol. 51(2), pages 549-606, May.
    18. Wenting Wang & Longbao Wei, 2021. "Impacts of agricultural price support policy on price variability and welfare: Evidence from China's soybean market," Agricultural Economics, International Association of Agricultural Economists, vol. 52(1), pages 3-17, January.
    19. Dupraz, Pierre & Latruffe, Laure, 2015. "Trends in family labour, hired labour and contract work on French field crop farms: The role of the Common Agricultural Policy," Food Policy, Elsevier, vol. 51(C), pages 104-118.
    20. Sharma, Purushottam & Gummagolmath, K.C., 2012. "Reforming Guar Industry in India: Issues and Strategies," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 25(1), June.

    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:inrace:202430. 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/inratfr.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.