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Structural Implications of First Hectare Payments and Young Farmer Support within the EU CAP Reform 2013: The German Case

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  • Balmann, Alfons
  • Sahrbacher, Christoph

Abstract

Within the reformed CAP, Germany decided to support small and young farmers by higher hectare payments. Because of heterogeneous farm structures with smaller farms in the south and large in the east, this causes regional redistributions. Agent-based simulations show that these policies create incentives for small farms to continue production but cannot provide perspectives. As small farms compete usually with other smaller farms additional support fulminates in small farm dominated regions in higher land prices and a structural conservation. Moreover, large farms are not harmed by reduced payments as they mainly compete with other large farms which are equally affected.

Suggested Citation

  • Balmann, Alfons & Sahrbacher, Christoph, 2014. "Structural Implications of First Hectare Payments and Young Farmer Support within the EU CAP Reform 2013: The German Case," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 183066, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae14:183066
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    File URL: http://ageconsearch.umn.edu/record/183066/files/Balmann-Structural_implications_of_first_hectare_payments_and_young_farmer_support-589_a.pdf
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. More on capping direct payments
      by Alan Matthews in CAP Reform.eu on 2018-08-28 11:07:02

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    Cited by:

    1. Balmann, Alfons & Valentinov, Vladislav, 2016. "Towards a Theory of Structural Change in Agriculture: Just Economics?," 149th Seminar, October 27-28, 2016, Rennes, France 246420, European Association of Agricultural Economists.

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    Keywords

    Agricultural and Food Policy;

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