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The Single Payment Scheme of the CAP: Entitlements Availability and Farmers Behavior

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  • Severini, Simone
  • Valle, Stefano

Abstract

The way entitlements are originally allocated among farmers and some conditions required to get the payments could affect farmer's willingness to trade land and entitlements. This paper - using a qualitative approach and some results of a farm based simulation analysis - explores how entitlements availability and other farm specific parameters affect land and entitlement shadow prices and farmers attitude to trade land and entitlement. The conditions under which this occurs, the role of taxing the exchange of entitlements and of both modulation and conditionality on exchange of entitlements are also studied.

Suggested Citation

  • Severini, Simone & Valle, Stefano, 2005. "The Single Payment Scheme of the CAP: Entitlements Availability and Farmers Behavior," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24513, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae05:24513
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    File URL: http://purl.umn.edu/24513
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    References listed on IDEAS

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    1. Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers Archive 1488, Iowa State University, Department of Economics.
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    More about this item

    Keywords

    Common Agricultural Policy; single payment scheme; farmer behavior; Agricultural and Food Policy; Institutional and Behavioral Economics; Q12; Q18;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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