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Delivering public goods in agriculture: the cost of green payments for Italian farms

Author

Listed:
  • Cardillo, Concetta
  • Cimino, Orlando
  • Henke, Roberto
  • Vanni, Francesco

Abstract

The recent CAP reform proposes a green component of the first pillar of the CAP that remunerates farmers for the provision of environmental public goods, by conditioning the 30% of direct payments to specific requirements. The paper focuses on two of the greening obligations of the reform proposal: the diversification of crops and the establishment of the ecological focus areas. The paper, through FADN data, aims at quantifying the impact of these measures on the gross margin (GM) of farms specialized in arable crops in Italy. The results show different impacts of the green payments on arable crops in Italy according to the characteristics of farms, their location and their economic and physical size, showing data the greening is an “horizontal measure” that does not take into adequate account the specific conditions where farmers operate and the different costs of providing public goods through agriculture.

Suggested Citation

  • Cardillo, Concetta & Cimino, Orlando & Henke, Roberto & Vanni, Francesco, 2012. "Delivering public goods in agriculture: the cost of green payments for Italian farms," 126th Seminar, June 27-29, 2012, Capri, Italy 126139, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa126:126139
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    File URL: http://ageconsearch.umn.edu/record/126139/files/Cardillo_Cimino_Henke_Vanni.pdf
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    Cited by:

    1. Francesco Diotallevi & Emanuele Blasi & Silvio Franco, 2015. "Greening as compensation to production of environmental public goods: how do common rules have an influence at local level? The case of durum wheat in Italy," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 3(1), pages 1-14, December.
    2. Marconi, V. & Raggi, M. & Viaggi, D. & Lefebvre, M. & Gomez y Paloma, Sergio, 2015. "The impact of the 2013 Common Agricultural Policy reform on farmer's investment decisions: an ex-ante evaluation," 2015 Conference, August 9-14, 2015, Milan, Italy 212225, International Association of Agricultural Economists.

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    Keywords

    Agricultural and Food Policy; Environmental Economics and Policy;

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