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Single Farm Payment in the European Union and its Implications on New Zealand Dairy and Beef Trade

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  • Kogler, Klaus
  • Saunders, Caroline M.

Abstract

The 2003 reform of the European Union's Common Agricultural Policy (CAP) replaced the coupled direct support schemes by a Single Farm Payment (SFP), which will be mainly delivered to farmers irrespective of what they produce (hence 'decoupled' from production). The level of decoupling differs among the Member States. This paper assesses the implementation of the SFP across Member States and how far it has been decoupled. The expected changes in the European Union's and New Zealand's trade in dairy products and beef resulting from the 2003 reform of the CAP are simulated, using a partial equilibrium trade model (Lincoln Trade and Environment Model; LTEM).

Suggested Citation

  • Kogler, Klaus & Saunders, Caroline M., 2006. "Single Farm Payment in the European Union and its Implications on New Zealand Dairy and Beef Trade," 2006 Conference, August 24-25, 2006, Nelson, New Zealand 31953, New Zealand Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:nzasin:31953
    DOI: 10.22004/ag.econ.31953
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    References listed on IDEAS

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    3. Halmai, Peter & Elekes, Andrea, 2005. "Declining "Common" Agricultural Policy? CAP Reform of 2003 and Its National Implementation in the Member States," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24480, European Association of Agricultural Economists.
    4. Roningen, Vernon & Dixit, Praveen & Sullivan, John & Hart, Tracey, 1991. "Overview of the Static World Policy Simulation (SWOPSIM) Modeling Framework," Staff Reports 278390, United States Department of Agriculture, Economic Research Service.
    5. Breen, James P. & Hennessy, Thia C. & Thorne, Fiona S., 2005. "The effect of decoupling on the decision to produce: An Irish case study," Food Policy, Elsevier, vol. 30(2), pages 129-144, April.
    6. Roningen, Vernon & Sullivan, John & Dixit, Praveen, 1991. "Documentation of the Static World Policy Simulation (SWOPSIM) Modeling Framework," Staff Reports 278599, United States Department of Agriculture, Economic Research Service.
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