Regional impacts of abolishing direct payments: An integrated analysis in four European regions
The direct payment system of the Common Agricultural Policy (CAP) provides income transfers to European farmers. Recently, several countries including England and Sweden have advocated the elimination of direct payments after 2013. The extent to which an elimination of direct payments would affect the land use dynamics in Europe including impacts on structural change and the environment has not been addressed in the existing literature. In this paper, we combine participatory methods, to analyze regional preferences for functions and effects of agriculture, and farm-level modeling, to assess the impacts of such a policy change on farm structures and land use intensities in four European regions located in Germany, Denmark, Italy and Poland, each with different socio-economic and biophysical characteristics. In each region, the entire farm population consisting of different farm types with different production orientations and land management types was modeled under the presence and absence of direct payments using a combination of agent-based and bio-economic modeling. We found that the initial characteristics of the regions, such as the historical farm structure and regional site conditions, greatly influence the impact of direct support elimination and cause regionally different development trends. The results for the four regions were summarized in four specific storylines that emphasize how much the diversity of European regions matters for future policy decisions. An explicitly regional focus is, therefore, argued to be crucial to complement future policy analysis.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Uthes, Sandra & Sattler, Claudia & Zander, Peter & Piorr, Annette & Matzdorf, Bettina & Damgaard, Martin & Sahrbacher, Amanda & Schuler, Johannes & Kjeldsen, Chris & Heinrich, Uwe & Fischer, Holger, 2010. "Modeling a farm population to estimate on-farm compliance costs and environmental effects of a grassland extensification scheme at the regional scale," Agricultural Systems, Elsevier, vol. 103(5), pages 282-293, June.
- Thomas Glauben & Hendrik Tietje & Christoph Weiss, 2006. "Agriculture on the move: Exploring regional differences in farm exit rates in Western Germany," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 26(1), pages 103-118, March.
- Stefan Mann, 2005. "Farm Size Growth and Participation in Agri-environmental Schemes: A Configural Frequency Analysis of the Swiss Case," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(3), pages 373-384.
- Kachele, H. & Dabbert, S., 2002. "An economic approach for a better understanding of conflicts between farmers and nature conservationists--an application of the decision support system MODAM to the Lower Odra Valley National Park," Agricultural Systems, Elsevier, vol. 74(2), pages 241-255, November.
- Gunnar Breustedt & Thomas Glauben, 2007. "Driving Forces behind Exiting from Farming in Western Europe," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(1), pages 115-127, 02.
- Offermann, Frank & Nieberg, Hiltrud & Zander, Katrin, 2009. "Dependency of organic farms on direct payments in selected EU member states: Today and tomorrow," Food Policy, Elsevier, vol. 34(3), pages 273-279, June.
- Happe, Kathrin & Balmann, Alfons & Kellermann, Konrad & Sahrbacher, Christoph, 2008. "Does structure matter? The impact of switching the agricultural policy regime on farm structures," Journal of Economic Behavior & Organization, Elsevier, vol. 67(2), pages 431-444, August.
- Zander, P. & Kachele, H., 1999. "Modelling multiple objectives of land use for sustainable development," Agricultural Systems, Elsevier, vol. 59(3), pages 311-325, March.
- Onate, J.J. & Atance, I. & Bardaji, I. & Llusia, D., 2007. "Modelling the effects of alternative CAP policies for the Spanish high-nature value cereal-steppe farming systems," Agricultural Systems, Elsevier, vol. 94(2), pages 247-260, May.
- Beard, Nick & Swinbank, Alan, 2001. "Decoupled payments to facilitate CAP reform," Food Policy, Elsevier, vol. 26(2), pages 121-145, April.
- 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.
- Tranter, R.B. & Swinbank, A. & Wooldridge, M.J. & Costa, L. & Knapp, T. & Little, G.P.J. & Sottomayor, M.L., 2007. "Implications for food production, land use and rural development of the European Union's Single Farm Payment: Indications from a survey of farmers' intentions in Germany, Portugal and the UK," Food Policy, Elsevier, vol. 32(5-6), pages 656-671.
When requesting a correction, please mention this item's handle: RePEc:eee:agisys:v:104:y:2011:i:2:p:110-121. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If references are entirely missing, you can add them using this form.