The Effects Of The Cap Reform Process On Italian Olive Tree Farming

The decoupling process of direct payments is affecting the Italian olive oil sector’s economic structure and competitiveness. The implementation of the SPS regional model, as proposed by European Commission with the Health check proposals, might further affect this sector and treat the survival of the olive-growing farms in marginal areas. This work aims to analyse the effects of the ongoing CAP reform process on olive growers’ behaviour and economic performance in southern Italy. In particular, the object area is the Apulia region that is one of the most important in Italy. To analyse the economic impact of CAP reform on olive growers, we adopt a simulation scheme of the farm economic balance based on the definition and characterization of Representative Olive-growing Farms (ROFs) that are able to represent regional olive sector. The analysis shows a general income reduction for the olive-growing farms, which is higher in the so-called “complete approximation of entitlements” scenario and for the medium-size holdings.