A method for evaluating the extent to which farm subsidies can be de-coupled before profitable arable land is abandoned in the European Union
This paper evaluates concerns over the "abandonment of production" in the context of the recent CAP reform as it applies to the arable sector. The particular focus of the evaluation is on the extent to which the proposed "single farm payment" can be de-coupled from production and yet avoid the abandonment of land on which production is expected to be profitable. An analytical framework is developed which indicates the most important non-policy factors are the profitability of the land, the variability of yield and the grower's degree of risk aversion. The conclusion of a numerical analysis using this framework is that 85% de-coupling is unlikely to lead to abandonment of land in any arable region of the EU, and that 95% de-coupling is also unlikely to lead to abandonment in the majority of arable areas.
|Date of creation:||Feb 2004|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 0409 032 338
Web page: http://www.aares.info/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bardsley, Peter & Harris, Michael, 1987.
"An Approach To The Econometric Estimation Of Attitudes To Risk In Agriculture,"
Australian Journal of Agricultural Economics,
Australian Agricultural and Resource Economics Society, vol. 31(02), August.
- Peter Bardsley & M. Harris, 1987. "An Approach To The Econometric Estimation Of Attitudes To Risk In Agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 31(2), pages 112-126, 08.
- P. B. R. Hazell & M. Jaramillo & A. Williamson, 1990. "The Relationship Between World Price Instability And The Prices Farmers Receive In Developing Countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(2), pages 227-241.
- Rob Fraser, 2003. "An Evaluation of the Compensation Required by European Union Cereal Growers to Accept the Removal of Price Support," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(3), pages 431-445.
When requesting a correction, please mention this item's handle: RePEc:ags:aare04:58448. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.