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Impacts of CAP reforms on farm structures and performance disparities: An agent-based approach

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  • Sahrbacher, Amanda

Abstract

The objective of this work is to investigate how Common Agricultural Policy's (CAP) direct payments influence the development of farm structures and therefore performance and income disparities between farms. In this study the focus is put on the comparison of impacts of changes in direct payments distribution on the agricultural sector considering 1) the decoupling model, i.e. either a regional area payment, a historic payment or a hybrid payment system from 2005; 2) the level and design of modulation, i.e. cuts in Pillar I payments relative or not to farm size and; 3) yearly cuts in Pillar I payments for all farms from 2013 parallel to increases in Pillar II payments. Outcomes of policy changes are analysed regarding their impact on farm structures, land use, land markets and agricultural production. Distributive effects of direct payments and agricultural incomes among farms are compared. The analyses performed in this study provide a panorama of impacts of CAP reforms on the agricultural sector.

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  • Sahrbacher, Amanda, 2012. "Impacts of CAP reforms on farm structures and performance disparities: An agent-based approach," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 65, number 65.
    • Handle: RePEc:zbw:iamost:65
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    2. Ali Ferjani & Albert Zimmermann, 2013. "Modelling structural-change-related shifts in labour input in the agent-based sector model SWISSland," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 6(1), pages 177-200.
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    4. Jitea, Ionel-Mugurel & Pocol, Cristina Bianca, 2014. "The Common Agricultural Policy and productivity gains in Romanian agriculture: is there any evidence of convergence to the Western European realities?," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 116(3), pages 1-3, December.

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