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The impact of decoupled subsidies on productivity in agriculture: a cross-country analysis using microdata

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  • Andrius Kazukauskas
  • Carol Newman
  • Johannes Sauer

Abstract

The decoupling of direct payments from production introduced in the reform of the Common Agricultural Policy is expected to make production decisions more market-oriented and farmers more productive. However, ex-post analyses of the productivity of farms have yet to uncover any evidence of a positive impact of the decoupling policy on farm productivity. Using Irish, Danish, and Dutch farm-level data, we identify whether the decoupling policy has contributed to productivity growth in agriculture and farm product adjustment behavior. We find some evidence that the decoupling policy had significant positive effects on farm productivity and behavioral changes related to farm specialization.

Suggested Citation

  • Andrius Kazukauskas & Carol Newman & Johannes Sauer, 2014. "The impact of decoupled subsidies on productivity in agriculture: a cross-country analysis using microdata," Agricultural Economics, International Association of Agricultural Economists, vol. 45(3), pages 327-336, May.
  • Handle: RePEc:bla:agecon:v:45:y:2014:i:3:p:327-336
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    File URL: http://hdl.handle.net/10.1111/agec.12068
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    References listed on IDEAS

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    Cited by:

    1. Matthews, Alan & Salvatici, Luca & Scoppola, Margherita, 2017. "Trade Impacts of Agricultural Support in the EU," Commissioned Papers 252767, International Agricultural Trade Research Consortium.
    2. Biagia De Devitiis & Ornella Wanda Maietta, 2015. "Shadow Prices of Human Capital in Agriculture. Evidence from European FADN Regions," CSEF Working Papers 415, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    3. Marusca De Castris & Daniele Di Gennaro, 2018. "Does agricultural subsidies foster Italian southern farms? A Spatial Quantile Regression Approach," Papers 1803.05659, arXiv.org.
    4. Novotná, Martina & Volek, Tomáš, 2015. "Efficiency of Production Factors and Financial Performance of Agricultural Enterprises," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 0(Number 4), pages 1-9, December.
    5. Cillero, Maria Martinez & Breen, James & Thorne, Fiona & Wallace, Michael, 2017. "The effect of the implementation of the 2003 Mid-Term Review of the CAP on technical efficiency of beef production. A comparative analysis," 91st Annual Conference, April 24-26, 2017, Royal Dublin Society, Dublin, Ireland 258617, Agricultural Economics Society.
    6. Tleubayev, Alisher & Bobojonov, Ihtiyor & Götz, Linde & Hockmann, Heinrich & Glauben, Thomas, 2017. "Determinants of productivity and efficiency of wheat production in Kazakhstan: A stochastic frontier approach
      [Determinanten von Produktivität und Effizienz der Weizenproduktion in Kasachstan: Ein
      ," IAMO Discussion Papers 160, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    7. O’Toole, Conor & Hennessy, Thia, 2015. "Do decoupled payments affect investment financing constraints? Evidence from Irish agriculture," Food Policy, Elsevier, vol. 56(C), pages 67-75.
    8. Wagener, Andreas & Zenker, Juliane, 2018. "Decoupled but not neutral: The effects of stochastic transfers on investment and incomes in rural Thailand," TVSEP Working Papers wp-008, Leibniz Universitaet Hannover, Institute of Development and Agricultural Economics, Project TVSEP.
    9. Jitea, Ionel-Mugurel & Pocol, Christina Bianca, 2014. "The Impact of the Common Agricultural Policy on Romanian Farming Structures. Who are the Winners and who are the Losers?," 142nd Seminar, May 29-30, 2014, Budapest, Hungary 170799, European Association of Agricultural Economists.
    10. Garrone, M. & Olper, A. & Emmers, D. & Swinnen, J., 2018. "Jobs and Agricultural Policy : Impact of the Common Agricultural Policy on EU Agricultural Employment," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277489, International Association of Agricultural Economists.
    11. O'Callaghan, Daniel & Hennessy, Thia & Breen, James, 2016. "Factors Associated with Extension Programme Participation: The case of discussion groups for Irish cattle farmers," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236329, Agricultural Economics Society.
    12. Maria Garrone & Dorien Emmers & Alessandro Olper & Johan Swinnen, 2018. "Jobs and Agricultural Policy: Impact of the Common Agricultural Policy on EU Agricultural Employment," LICOS Discussion Papers 40418, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    13. Bonfiglio, Andrea & Henke, Roberto & Pierangeli, Fabio & D’Andrea, Maria Rosaria Pupo, 2018. "Direct payments and competitiveness. Assessing redistributive effects of internal convergence in Italy," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 271955, European Association of Agricultural Economists.
    14. Ciliberti, Stefano & Frascarelli, Angelo, 2015. "A critical assessment of the implementation of CAP 2014- 2020 direct payments in Italy," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 0(Issue 3), pages 1-17, December.

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