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Assessing European Farmers’ Intentions In The Light Of The 2003 Cap Reform

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  • Genius, Margarita
  • Karagiannis, Giannis
  • Tzouvelekas, Vangelis

Abstract

The effects of the 2003 CAP reform on the farmers’ decisions on whether to abandon their farming activity, how much to produce and what to produce are analyzed in the present paper. To this effect data collected for Hungarian, Dutch and Greek farmers on their perceptions about the reform and its effects, and on their production intentions is analyzed using discrete choice models under 3 alternative scenarios for the future produce prices. The discrete choice model applied in the present paper is sequential since farmers are confronted with a sequence of choices. In the first stage, the choice is between abandoning farming or continuing, then those farmers who have chosen to continue are presented with two additional choices related to their level of production and crop mix. Some of the results of the analysis point out that the evolution of future prices, level of information about Cap reform, farm size play an important role in the decision to abandon or continue. In the case of Hungary and Greece, younger farmers are less likely to abandon, more likely to increase production and change crop mix than their older counterparts, emphasizing the importance of aids to the young.

Suggested Citation

  • Genius, Margarita & Karagiannis, Giannis & Tzouvelekas, Vangelis, 2008. "Assessing European Farmers’ Intentions In The Light Of The 2003 Cap Reform," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44849, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa109:44849
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    File URL: http://purl.umn.edu/44849
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    Cited by:

    1. Genius, Margarita, 2013. "Production and Off-Farm Employment Decisions of Greek and Hungarian Farmers in the Light of the Last CAP Refrom," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 14(2), June.
    2. Viaggi, Davide & Raggi, Meri & Gomez y Paloma, Sergio, 2011. "Farm-household investment behaviour and the CAP decoupling: Methodological issues in assessing policy impacts," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 127-145, January.
    3. Ashok K. Mishra & J. Mathew Fannin & Hyunjeong Joo, 2014. "Off-Farm Work, Intensity of Government Payments, and Farm Exits: Evidence from a National Survey in the United States," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(2), pages 283-306, June.
    4. Laure Latruffe & Aurélia Dupuy & Yann Desjeux, 2012. "What would farmers’ strategies be in a no-CAP situation? An illustration from France," Working Papers SMART - LERECO 12-02, INRA UMR SMART-LERECO.

    More about this item

    Keywords

    CAP; Farmers choices; MTR assesment; Agricultural and Food Policy; Political Economy; Q10; Q18;

    JEL classification:

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

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