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Scenarios for Allocating Funds from CAP Pillar 1 in the Programming Period 2021–2027

Author

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  • Cecilia ALEXANDRI

    (Institute of Agricultural Economics, Romanian Academy, Bucharest)

Abstract

This paper presents the results of simulating the effects of current proposals referring to conditioning direct payments by the new restrictions on environment and climate, the implementation of eco-schemes respectively. At the same time, it attempts to capture the effects of the redistribution of direct payments on the support received by small, medium and large-sized farms. The paper considers that 30% of the ceiling for direct payments will be used for funding eco-schemes. Three scenarios are calculated corresponding to 5%, 10% and 20% redistribution funds. The main conclusion is that redistribution may represent a solution for narrowing the gaps between the incomes of small, medium and large farms. Having in view that Romania has not accepted the possibility of capping direct payments to large farms, a more consistent redistribution (e.g., 10%) would represent an option to reduce income gaps between farmers and to support incomes of small and medium-sized farms.

Suggested Citation

  • Cecilia ALEXANDRI, 2021. "Scenarios for Allocating Funds from CAP Pillar 1 in the Programming Period 2021–2027," Agricultural Economics and Rural Development, Institute of Agricultural Economics, vol. 18(1), pages 3-16.
    • Handle: RePEc:iag:reviea:v:18:y:2021:i:1:p:3-16
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    More about this item

    Keywords

    CAP; direct payments; redistribution;
    All these keywords.

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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