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Exploring the distribution of direct payments of the Common Agricultural Policy

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  • Franz Sinabell
  • Erwin Schmid
  • Markus Hofreither

Abstract

Direct payments are the most important expenditure of the Common Agricultural Policy (CAP). They are mostly spent on decoupled direct payments which are intended to be allocatively neutral. Increasing volumes of such transfers imply that distributive aspects of CAP expenditures become more important. This article looks at this issue by calculating various measures of concentration based on statistics on recipients of direct payments in EU27 in the period from 2000 to 2010. The findings are evaluated in the context of the objectives of the CAP and the reform proposals of the EU Commission from October 2011. It seems that country specific factors determine the concentration of direct payments and its change over time. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Franz Sinabell & Erwin Schmid & Markus Hofreither, 2013. "Exploring the distribution of direct payments of the Common Agricultural Policy," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 40(2), pages 325-341, May.
    • Handle: RePEc:kap:empiri:v:40:y:2013:i:2:p:325-341
    DOI: 10.1007/s10663-012-9194-7
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    Cited by:

    1. Franz Sinabell & Dagmar Henn, 2018. "Land- und Forstwirtschaft in Österreich. Fachliche Grundlagen für eine differenzierte Bewertung," WIFO Studies, WIFO, number 61986, April.
    2. Renata Grochowska & Aleksandra Pawłowska & Aldona Skarżyńska, 2021. "Searching for more balanced distribution of direct payments among agricultural farms in the CAP post-2020," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(5), pages 181-188.
    3. Sadłowski, Adrian & Beluhova-Uzunova, Rositsa & Popp, József & Atanasov, Dimo & Ivanova, Boryana & Shishkova, Mariyana & Hristov, Krum, 2022. "Direct Payments Distribution Between Farmers in Selected New EU Member States," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 14(4), December.
    4. N. N., 2014. "WIFO-Monatsberichte, Heft 3/2014," WIFO Monatsberichte (monthly reports), WIFO, vol. 87(3), March.
    5. Tomasz Grodzicki & Mateusz Jankiewicz, 2022. "The role of the common agricultural policy in contributing to jobs and growth in EU’s rural areas and the impact of employment on shaping rural development: Evidence from the Baltic States," PLOS ONE, Public Library of Science, vol. 17(2), pages 1-14, February.
    6. José-Luis Alfaro-Navarro & María-Encarnación Andrés-Martínez, 2021. "A longitudinal and cross-sectional analysis of the distribution of Common Agricultural Policy aids in European countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(9), pages 351-362.
    7. Loughrey, Jason & Donnellan, Trevor & Lennon, John, 2016. "The Inequality of Farmland Size in Western Europe," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236341, Agricultural Economics Society.
    8. Piet, Laurent, 2016. "Recent trends in the distribution of farm sizes in the EU," 149th Seminar, October 27-28, 2016, Rennes, France 245075, European Association of Agricultural Economists.
    9. Ciliberti, Stefano & Frascarelli, Angelo, 2015. "The role of CAP in enhancing farm incomes: the redistributive effect of direct payments in Italy," 147th Seminar, October 7-8, 2015, Sofia, Bulgaria 212244, European Association of Agricultural Economists.
    10. Ryszard Kata & Małgorzata Wosiek, 2020. "Inequality of Income in Agricultural Holdings in Poland in the Context of Sustainable Agricultural Development," Sustainability, MDPI, vol. 12(12), pages 1-16, June.
    11. Adrian Sadłowski, 2023. "Decomposition of variations of direct payments rates on the example of selected support instruments applied in Poland," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(2), pages 55-67.
    12. Miguel Viegas & Jan Wolf & Francisco Cordovil, 2023. "Assessment of inequality in the Common Agricultural Policy in Portugal," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-15, December.
    13. S. Severini & A. Tantari, 2015. "Which factors affect the distribution of direct payments among farmers in the EU Member States?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(1), pages 25-48, February.
    14. Markus F. Hofreither & Franz Sinabell, 2014. "Die Gemeinsame Agrarpolitik 2014 bis 2020," WIFO Monatsberichte (monthly reports), WIFO, vol. 87(3), pages 213-222, March.
    15. Artiom Volkov & Tomas Balezentis & Mangirdas Morkunas & Dalia Streimikiene, 2019. "In a Search for Equity: Do Direct Payments under the Common Agricultural Policy Induce Convergence in the European Union?," Sustainability, MDPI, vol. 11(12), pages 1-15, June.
    16. 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.
    17. Laurent Piet, 2019. "Concentration des exploitations agricoles et emplois," Post-Print hal-02492374, HAL.
    18. Piet, Laurent, 2017. "Concentration of the agricultural production in the EU: the two sides of a coin," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261439, European Association of Agricultural Economists.
    19. Loughrey, Jason James & Donnellan, Trevor, 2017. "Inequality and Concentration in Farmland Size: A Regional Analysis for Western Europe," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261112, European Association of Agricultural Economists.

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    More about this item

    Keywords

    Common agricultural policy; Distribution of transfers; Single farm payments; Direct payments; Q12; Q18; Q24; Q28;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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