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Resilience of European farms under different CAP scenarios

  • Polman, Nico B.P.
  • Peerlings, Jack H.M.
  • Slangen, Louis H.G.
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    The upcoming reform of the Common Agricultural Policy will put pressure on agricultural incomes and will cause more price volatility and income risk for farms in the EU. This raises the question if and how farms will survive these disturbances. Farms are able to survive only if they respond appropriately to disturbances. This resilience of farms is explained in this research by analysing the number of strategies that farmers indicate that they will use in a situation where the current CAP will continue and in a situation where it will disappear. The outcomes show that under both scenarios large more specialised farms with young farm heads are most resilient, and small more diversified farms headed by old farmers are least resilient. Results also show that farms that indicate to exit are the ones that are most dependent on CAP support, have old farm heads, and are part-time and diversified farms.

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    File URL: http://purl.umn.edu/114758
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    Paper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114758.

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    Date of creation: 2011
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    Handle: RePEc:ags:eaae11:114758
    Contact details of provider: Web page: http://www.eaae.org
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    1. Kimhi, Ayal & Bollman, Ray, 1999. "Family farm dynamics in Canada and Israel: the case of farm exits," Agricultural Economics, Blackwell, vol. 21(1), pages 69-79, August.
    2. Charles Perrings, 1998. "Resilience in the Dynamics of Economy-Environment Systems," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 11(3), pages 503-520, April.
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