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Did The 2004 Cap Reform Affect Production Practices Of Cereals? Insights From The Agricultural Input Suppliers

Listed author(s):
  • Theodoros MARKOPOULOS

    ()

    (Democritus University of Thrace, Department of Agricultural Development, Greece)

  • Christos KARELAKIS

    ()

    (Democritus University of Thrace, Department of Agricultural Development, Greece)

  • Konstantinos GALANOPOULOS

    ()

    (Democritus University of Thrace, Department of Agricultural Development, Greece)

  • Konstadinos MATTAS

    ()

    (Aristotle University of Thessaloniki, Department of Agricultural Economics, Greece)

The Mid-term review of the Common Agricultural Policy in 2003/2004 has strengthened the multifunctional role of agriculture by implementing “decoupling”, “modulation” and “cross-compliance” and created a number of significant changes in agricultural production in all EU member states. Specifically, the reform shifted emphasis away from commodity support towards environmental contracts, diversified production practices and rural development. In the case of cereals, a full decoupling was applied in subsidies and integration through rights in the Single Payment Scheme, except rice, which was one of the few crop cases in which part of the subsidy remained coupled, particular in countries with significant production like Greece. Within this context, the present study aims to analyze the impact that the reformed CAP measures had on agricultural production and more specifically variations in production diversification. The novelty of this study is that instead of focusing on the producers, it targeted the agricultural input stores, so as to get better insights of the CAP reform impacts on a larger scale of the regional economy. Accordingly, primary data were collected through personal interviews (structured questionnaire) from 209 owners of agricultural input stores in the region of Anatoliki Makedonia and Thraki and were analyzed through multivariate data analysis. The results identify important antecedents for the regional economy and the viability of agricultural input stores, which include factors of the reformed CAP, environmental issues, financial measures and CAP effects on cereal production and marketing.

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Article provided by University of Pitesti in its journal Scientific Bulletin - Economic Sciences.

Volume (Year): 14 (2015)
Issue (Month): 2 ()
Pages: 71-83

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Handle: RePEc:pts:journl:y:2015:i:2:p:71-83
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  1. Conforti, Piero & de Filippis, Fabrizio & Salvatici, Luca, 2002. "The Mid-Term Review Of The Common Agricultural Policy: Assessing The Effects Of The Commission Proposals," Working Papers 14802, National Institute of Agricultural Economics, Italy – INEA, Osservatorio Sulle Politiche Agricole dell'UE.
  2. Lobley, Matt & Butler, Allan, 2010. "The impact of CAP reform on farmers' plans for the future: Some evidence from South West England," Food Policy, Elsevier, vol. 35(4), pages 341-348, August.
  3. Bhaskar, Arathi & Beghin, John C., 2009. "How Coupled Are Decoupled Farm Payments? A Review of the Evidence," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(1), April.
  4. Howley, Peter & Breen, James P. & Donoghue, Cathal O. & Hennessy, Thia, 2012. "Does the single farm payment affect farmers’ behaviour? A macro and micro analysis," International Journal of Agricultural Management, Institute of Agricultural Management;International Farm Management Association, vol. 2(1), October.
  5. Gracia, Azucena & de Magistris, Tiziana & Casado, Jose Maria, 2008. "The Effect Of The New Single Farm Payment In Irrigated Agriculture: The Case Of Spain," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6590, European Association of Agricultural Economists.
  6. Silke Huettel & Anne Margarian, 2009. "Structural change in the West German agricultural sector," Agricultural Economics, International Association of Agricultural Economists, vol. 40(s1), pages 759-772, November.
  7. Crescimanno, Maria & De Stefano, V. & Galati, Antonino, 2008. "Possible Future Scenarios For Sicilian Cereal Cropping In The Light Of Current Trends In Agricultural Policy Of The European Union," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44804, European Association of Agricultural Economists.
  8. Laure Latruffe & Aurélia Dupuy & Yann Desjeux, 2012. "What would farmers’ strategies be in a no-CAP situation? An illustration from France," Working Papers SMART - LERECO 12-02, INRA UMR SMART-LERECO.
  9. Britz, Wolfgang & Heckelei, Thomas & Perez Dominguez, Ignacio, 2006. "Effects of decoupling on land use: an EU wide, regionally differentiated analysis," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 55(5/6).
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