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The impact of the CAP reforms on the efficiency of the COP sector in Spain

  • Lambarraa, Fatima
  • Stefanou, Spiro E.
  • Serra, Teresa
  • Gil, Jose Maria

The arable crop sector (COP) occupies a prominent position within the European Union’s agricultural sector. Within Spain, the COP sector accounts for almost a third of total Agricultural Guidance and Guarantee Fund expenses, and a half of the utilised agricultural area. The COP sector is not only relevant because of its physical and economic magnitude, but also because of the political attention it receives. The Common Agricultural Policy reforms that occurred during the 1990s paid special attention to this sector. This paper aims at determining the impacts of Agenda 2000 on a sample of Spanish COP farmers’ production decisions by using an output-oriented stochastic distance function. The distance function allows assessing the reform-motivated changes on total output, input used, input composition and crop mix. It also permits to assess the impacts of the reform on farms’ technical efficiency. Results show that the reform has shifted outwards the production frontier and changed output composition in favour of voluntary set aside land. With respect to input composition, Agenda 2000 has induced a decrease in land, fertilizers and other inputs in favour of labour. In addition, Agenda 2000 had a negative impact on technical efficiency.

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File URL: http://purl.umn.edu/44408
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Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44408.

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Date of creation: 2008
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Handle: RePEc:ags:eaae08:44408
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  1. Shawna Grosskopf & Kathy J. Hayes & Lori L. Taylor & William L. Weber, 1997. "Budget-Constrained Frontier Measures Of Fiscal Equality And Efficiency In Schooling," The Review of Economics and Statistics, MIT Press, vol. 79(1), pages 116-124, February.
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  5. repec:rpp:wpaper:9605 is not listed on IDEAS
  6. Teresa Serra & David Zilberman & Barry K. Goodwin & Keijo Hyvonen, 2005. "Replacement of Agricultural Price Supports by Area Payments in the European Union and the Effects on Pesticide Use," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(4), pages 870-884.
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  8. Sckokai, Paolo & Moro, Daniele, 2002. "Modelling The Cap Arable Crop Regime Under Uncertainty," 2002 Annual meeting, July 28-31, Long Beach, CA 19860, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  9. Paolo Sckokai & Daniele Moro, 2006. "Modeling the Reforms of the Common Agricultural Policy for Arable Crops under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 43-56.
  10. Tim Coelli & Sergio Perelman, 2000. "Technical efficiency of European railways: a distance function approach," Applied Economics, Taylor & Francis Journals, vol. 32(15), pages 1967-1976.
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