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The impact of the 1999 CAP reforms on the efficiency of the COP sector in Spain

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  • Fatima Lambarraa
  • Spiro Stefanou
  • Teresa Serra
  • José M. Gil

Abstract

The cereal, oilseeds, and protein crop sector (COP) occupies a prominent position within the European Union's agricultural sector. Within Spain, the COP sector accounts for almost a third of total Agricultural Guidance and Guarantee Fund expenses, and half of the utilized agricultural area (UAA). The COP sector is not only relevant because of its physical and economic magnitude, but also because of the political attention it receives. The Common Agricultural Policy (CAP) reforms that occurred during the 1990s paid special attention to this sector. This article aims to determine the impacts of Agenda 2000 on a sample of Spanish COP farmers’ production decisions by using an output‐oriented stochastic distance function. The distance function allows for an assessment of the reform‐motivated changes on total output, input used, input composition, and crop mix. It also permits an assessment of the impacts of the reform on farms’ technical efficiency. Results show that the reform has shifted the production frontier inward and changed output composition in favor of voluntary set‐aside land. With respect to input composition, Agenda 2000 induced a decrease in land, fertilizers, pesticides, and other inputs in favor of labor. In addition, Agenda 2000 has had a negative impact on technical efficiency.

Suggested Citation

  • Fatima Lambarraa & Spiro Stefanou & Teresa Serra & José M. Gil, 2009. "The impact of the 1999 CAP reforms on the efficiency of the COP sector in Spain," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 355-364, May.
    • Handle: RePEc:bla:agecon:v:40:y:2009:i:3:p:355-364
    DOI: 10.1111/j.1574-0862.2009.00378.x
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    3. Minviel, Jean Joseph & Latruffe, Laure, 2014. "Meta-regression analysis of the impact of agricultural subsidies on farm technical efficiency," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182767, European Association of Agricultural Economists.
    4. Skevas, Theodoros & Lansink, Alfons Oude & Stefanou, Spiro E., 2012. "Measuring technical efficiency in the presence of pesticide spillovers and production uncertainty: The case of Dutch arable farms," European Journal of Operational Research, Elsevier, vol. 223(2), pages 550-559.
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    6. Lambarraa-Lehnhardt, Fatima & Rosati, Adolfo & Hasnain, Syeda Aleena & Turchetti, Luca, 2024. "Competitiveness and resilience dynamics in the Italian olive sector: An in-depth analysis," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344256, International Association of Agricultural Economists (IAAE).

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