IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i2p735-d721588.html
   My bibliography  Save this article

Redistribution and the Abolishment of Historical Entitlements in the CAP Strategic Plans: The Case of Greece

Author

Listed:
  • Dimitrios Kremmydas

    (Department of Agricultural Economics and Rural Development, Agricultural University of Athens, Iera Odos 75, 11855 Athens, Greece)

  • Konstantinos Tsiboukas

    (Department of Agricultural Economics and Rural Development, Agricultural University of Athens, Iera Odos 75, 11855 Athens, Greece)

Abstract

A key issue in CAP strategic planning in Greece is the treatment of historical entitlements. An unequal level of payments per hectare is difficult to justify in terms of the CAP’s rationale, and so the abolishment of these entitlements seems to be the most reasonable option. However, for historical reasons, this abolishment may result in a transfer of payments from smaller to larger farms and between different agricultural sub-sectors which could in turn lead to negative effects on the incomes of small farms and lead to farmers leaving the sector. We simulate the change to a flat rate payment in order to quantify these effects, then explore the possibility of employing the new obligatory redistribution measure, termed complementary income support, to mitigate any negative effects. We conclude that redistribution is, indeed, a powerful tool for fine-tuning decoupled payments if historical entitlements are to be abolished.

Suggested Citation

  • Dimitrios Kremmydas & Konstantinos Tsiboukas, 2022. "Redistribution and the Abolishment of Historical Entitlements in the CAP Strategic Plans: The Case of Greece," Sustainability, MDPI, vol. 14(2), pages 1-14, January.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:2:p:735-:d:721588
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/2/735/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/2/735/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Erjavec, Emil & Chantreuil, Frédéric & Hanrahan, Kevin & Donnellan, Trevor & Salputra, Guna & Kozar, Maja & van Leeuwen, Myrna, 2011. "Policy assessment of an EU wide flat area CAP payments system," Economic Modelling, Elsevier, vol. 28(4), pages 1550-1558, July.
    2. Benedetto Rocchi, 2009. "The CAP reform between targeting and equity: a structural policy analysis for Italy," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(2), pages 175-201, June.
    3. Severini, Simone & Valle, Stefano, 2005. "The Single Payment Scheme of the CAP: Entitlements Availability and Farmers Behavior," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24513, European Association of Agricultural Economists.
    4. Alexander Gocht & Wolfgang Britz & Pavel Ciaian & Sergio Gomez y Paloma, 2013. "Farm Type Effects of an EU-wide Direct Payment Harmonisation," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(1), pages 1-32, February.
    5. Marchand, Fleur L. & Buysse, Jeroen & Campens, V. & Claeys, Dakerlia & Fernagut, Bruno & Lauwers, Ludwig H. & Van der Straeten, Bart & Van Huylenbroeck, Guido, 2008. "Effects of a flat rate introduction: shifts in farm activity and impact on farmers' income," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6681, European Association of Agricultural Economists.
    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. Jana Lososová & Radek Zdeněk, 2023. "Simulation of the impacts of the proposed direct payment scheme - The case of the Czech Republic," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(1), pages 13-24.
    2. Andreea-Emanuela Drăgoi, 2022. "The Role of Common Agricultural Policy for Enhancing the Resilience of Rural Areas under the Current Global Challenges," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 10(2), pages 6-17, December.

    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. Stefano Ciliberti & Angelo Frascarelli, 2018. "The CAP 2013 reform of direct payments: redistributive effects and impacts on farm income concentration in Italy," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 6(1), pages 1-18, December.
    2. Alexander Gocht & Pavel Ciaian & Maria Bielza & Jean-Michel Terres & Norbert Röder & Mihaly Himics & Guna Salputra, 2016. "Economic and environmental impacts of CAP greening: CAPRI simulation results," JRC Research Reports JRC102519, Joint Research Centre.
    3. Rezbova, Helena & Tomsík, Karel, 2012. "Impact of Complementary National Direct Payments on Cattle Breeding Sector," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 4(4 Special), pages 1-11, December.
    4. Matthews, Alan & Salvatici, Luca & Scoppola, Margherita, 2017. "Trade Impacts of Agricultural Support in the EU," Commissioned Papers 252767, International Agricultural Trade Research Consortium.
    5. Alexander Gocht & Pavel Ciaian & Maria Bielza & Jean-Michel Terres & Norbert Röder & Mihaly Himics & Guna Salputra, 2017. "EU-wide Economic and Environmental Impacts of CAP Greening with High Spatial and Farm-type Detail," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 651-681, September.
    6. Britz, Wolfgang & Ciaian, Pavel & Gocht, Alexander & Kanellopoulos, Argyris & Kremmydas, Dimitrios & Müller, Marc & Petsakos, Athanasios & Reidsma, Pytrik, 2021. "A design for a generic and modular bio-economic farm model," Agricultural Systems, Elsevier, vol. 191(C).
    7. Pavel Ciaian & D'Artis Kancs & Johan Swinnen, 2014. "The Impact of the 2013 Reform of the Common Agricultural Policy on Land Capitalization in the European Union," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 36(4), pages 643-673.
    8. Pavel Ciaian & d'Artis Kancs & Maria Espinosa, 2018. "The Impact of the 2013 CAP Reform on the Decoupled Payments’ Capitalisation into Land Values," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(2), pages 306-337, June.
    9. Ciaian, Pavel & Espinosa, Maria & Louhichi, Kamel & Perni, Angel & Gomez y Paloma, Sergio, 2018. "Farm level impacts of abolishing the CAP direct payments: An assessment using the IFM-CAP model," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 272087, European Association of Agricultural Economists.
    10. Roel Jongeneel & Siemen Berkum & Hans Vrolijk, 2016. "Summary," EuroChoices, The Agricultural Economics Society, vol. 15(2), pages 26-33, August.
    11. Zuzana Hloušková & Michaela Lekešová & Anna Prajerová & Tomáš Doucha, 2022. "Assessing the Economic Viability of Agricultural Holdings with the Inclusion of Opportunity Costs," Sustainability, MDPI, vol. 14(22), pages 1-15, November.
    12. Petra Salamon & Martin Banse & Jesus Barreiro Hurle & Ondrej Chaloupka & Trevor Donnellan & Emil Erjavec & Thomas Fellmann & Kevin Hanrahan & Marlen Hass & Roel Jongeneel & Verena Laquai & Myrna van L, 2017. "Unveiling diversity in agricultural markets projections: from EU to Member States. A medium-term outlook with the AGMEMOD model," JRC Research Reports JRC109115, Joint Research Centre.
    13. Hennig Solveigh & Breustedt Gunnar, 2018. "The Incidence of Agricultural Subsidies on Rental Rates for Grassland," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 238(2), pages 125-156, April.
    14. Di Corato, Luca & Brady, Mark V., 2019. "Passive farming and land development: A real options approach," Land Use Policy, Elsevier, vol. 80(C), pages 32-46.
    15. Blanco, Maria & Ramos, Fabien & Van Doorslaer, Benjamin, 2014. "Economic impacts of climate change on agrifood markets: A bio-economic approach with a focus on the EU," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182826, European Association of Agricultural Economists.
    16. 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. 4(3), pages 1-17, December.
    17. Banse, Martin & Janzen, Niels & Junker, Franziska & Kreins, Peter & Offermann, Frank & Salamon, Petra & Weimar, Holger, 2016. "Modelling the Bioeconomy: Linkages between Agricultural, Wood and Energy Markets," Conference papers 332764, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    18. Lilli Aline Schroeder & Alexander Gocht & Wolfgang Britz, 2015. "The Impact of Pillar II Funding: Validation from a Modelling and Evaluation Perspective," Journal of Agricultural Economics, Wiley Blackwell, vol. 66(2), pages 415-441, June.
    19. Ciaian, Pavel & Espinosa, Maria & Louhichi, Kamel & Perni, Angel, 2020. "Farm Level Impacts of Trade Liberalisation and CAP Removal Across EU: An Assessment using the IFM-CAP Model," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 69(2), May.
    20. Martin Henseler & Ruth Delzeit & Marcel Adenäuer & Sarah Baum & Peter Kreins, 2020. "Nitrogen Tax and Set-Aside as Greenhouse Gas Abatement Policies Under Global Change Scenarios: A Case Study for Germany," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(2), pages 299-329, July.

    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:gam:jsusta:v:14:y:2022:i:2:p:735-:d:721588. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.