An Impact Assessment Of The Future Cap Reform On The Italian Tomato Sector
The Health Check (HC) document traces the path for a new revision of the CAP. The communication content can be summarised in the following points: decoupling at regional and not at historical level, a more intensive modulation mechanism differentiated according to the total volume of subsidy received by the farm and a new implementation of the art. 69. The aim of this paper is to assess the effect of the HC on the farms producing fruits and vegetables in Italy, with a particular emphasis on the processed tomato production. The model based on the PMP approach simulates the regionalisation mechanism and the new modulation per brackets. The analysis carried out on a FADN sample of farms located in Emilia-Romagna region highlights as the HC new measures affect the farm economic performances but not the input allocation choice. The flat rate doesn’t produce perturbation in the relative convenience of the crops maintaining unchanged the degree of substitution among activities. Only when the CAP mechanism moves from a coupling scenario to a total decoupling one and in the case of a variation in price levels the modifications inside the production plan are evident.
|Date of creation:||13 Nov 2008|
|Contact details of provider:|| Web page: http://www.eaae.org|
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- Quirino Paris & Richard E. Howitt, 1998. "An Analysis of Ill-Posed Production Problems Using Maximum Entropy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 124-138.
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