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Cap Payments after 2013 and Rural Public Goods

Author

Listed:
  • Jean-Christophe Bureau
  • Louis-Pascal Mahé

Abstract

The aim of this paper is to reconsider the objectives of European farm policy taking a long-term view to assessing the instruments currently in place and advancing some suggestions for the design of the future Cap due in 2013. The proposed guidelines for reforms include defining targeting instruments on clear objectives, guaranteeing social return for public money and replacing assistance with incentives. Measures are suggested to make EU agriculture more competitive by adapting instruments and regulations to that purpose. It is proposed to amend the current complex payment schemes, which could be simplified with a set of payments based on “contracts for services” only, including potentially three basic levels of services (basic husbandry of the countryside preserving farming landscapes; territorial services; environmentally sensitive measures). Regarding market management, it is proposed to reform but maintain public intervention to guarantee a floor price (or “safety net”) restricted to exceptional circumstances. Sharing financial responsibility between the EU and the Member States according to the principle of subsidiarity would imply some co-financing of the first pillar.

Suggested Citation

  • Jean-Christophe Bureau & Louis-Pascal Mahé, 2009. "Cap Payments after 2013 and Rural Public Goods," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, December.
  • Handle: RePEc:rar:journl:0122
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    References listed on IDEAS

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    1. Pavel Ciaian & Johan F.M. Swinnen, 2007. "Credit Market Imperfections and the Distribution of Policy Rents: The Common Agricultural Policy in the New EU Member States," LICOS Discussion Papers 18307, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    2. Kilian, Stefan & Salhofer, Klaus, 2008. "Single Payments of the CAP: Where Do the Rents Go?," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 9(2), June.
    3. Duvivier, Romain & Gaspart, Frederic & Frahan, Bruno Henry de, 2005. "A Panel Data Analysis of the Determinants of Farmland Price: An Application to the Effects of the 1992 Cap Reform in Belgium," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24577, European Association of Agricultural Economists.
    4. Bureau, Jean-Christophe & Jean, S Bastien & Matthews, Alan, 2006. "The consequences of agricultural trade liberalization for developing countries: distinguishing between genuine benefits and false hopes," World Trade Review, Cambridge University Press, vol. 5(02), pages 225-249, July.
    5. Jack Peerlings, 2004. "Wildlife and landscape services production in Dutch dairy farming; jointness and transaction costs," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 31(4), pages 427-449, December.
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    Citations

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    Cited by:

    1. Fabrizio De Filippis & Roberto Henke, 2010. "Cap Between First and Second Pillars: Looking into EU Spending on Agriculture," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 3, September.

    More about this item

    Keywords

    Common agricultural policy; European union; Agriculture;

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

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