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Farm level impacts of abolishing the CAP direct payments: An assessment using the IFM-CAP model

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  • Ciaian, Pavel
  • Espinosa, Maria
  • Louhichi, Kamel
  • Perni, Angel
  • Gomez y Paloma, Sergio

Abstract

This paper assesses the impacts of abolishing the direct payments of the CAP using the model IFM-CAP (Individual Farm Model for CAP Analysis). IFM-CAP simulates the behaviour of each individual farmer in the EU-FADN (Farm Accountancy Data Network). Simulation results show that some farm-types experience an increase in income due to the price and yields changes (specialist granivores and other fieldcrops), while farms that are more dependent on CAP subsides are negatively affected (e.g. specialist cattle, specialist COP and smallest economic size farms). As much as 64 % of farms loose more than EUR 100 per hectare of income if direct payments are eliminated.

Suggested Citation

  • Ciaian, Pavel & Espinosa, Maria & Louhichi, Kamel & Perni, Angel & Gomez y Paloma, Sergio, 2018. "Farm level impacts of abolishing the CAP direct payments: An assessment using the IFM-CAP model," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 272087, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa162:272087
    DOI: 10.22004/ag.econ.272087
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