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CAP Subsidies and the Productivity of EU Farms

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  • Rizov, Marian
  • Pokrivcak, Jan
  • Ciaian, Pavel

Abstract

This paper investigates the impact of subsidies from the common agricultural policy on the total factor productivity of farms in the EU. We employ a structural, semi-parametric estimation algorithm, directly incorporating the effect of subsidies into a model of unobserved productivity. We empirically study the effects using samples from the Farm Accountancy Data Network for EU-15 countries. Our main findings are clear: subsidies had a negative impact on farm productivity in the period before the decoupling reform was implemented; after decoupling the effect of subsidies on productivity was more nuanced, as in several countries it turned positive.

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  • Rizov, Marian & Pokrivcak, Jan & Ciaian, Pavel, 2013. "CAP Subsidies and the Productivity of EU Farms," Factor Markets Working Papers 148, Centre for European Policy Studies.
  • Handle: RePEc:eps:fmwppr:148
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    2. Jean Joseph Minviel & Kristof De Witte, 2016. "The influence of public subsidies on farm technical efficiency: A robust conditional nonparametric approach," Working Papers SMART - LERECO 16-10, INRA UMR SMART-LERECO.
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    4. Minviel, Jean Joseph & De Witte, Kristof, 2017. "The influence of public subsidies on farm technical efficiency: A robust conditional nonparametric approach," European Journal of Operational Research, Elsevier, vol. 259(3), pages 1112-1120.
    5. Frick, Fabian & Sauer, Johannes, 2016. "Deregulation and Productivity – Empirical Evidence on Dairy Production," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 236032, Agricultural and Applied Economics Association.
    6. Rastislav Kotulic & Mariana Dubravská, 2015. "Impact Of Management Tendencies Of The Common Agricultural Policy On The European Union Budget," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 11(2), pages 62-70, June.
    7. McCormack, Michele Ann & O'Donoghue, Cathal, 2014. "Policy incentives as behavioural drivers of beef enterprises in Ireland: where are the kinks?," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182733, European Association of Agricultural Economists.
    8. Hasan DUDU & Zuzana Smeets Kristkova, 2017. "Impact of CAP Pillar II Payments on Agricultural Productivity," JRC Working Papers JRC106591, Joint Research Centre (Seville site).
    9. Tleubayev, Alisher & Bobojonov, Ihtiyor & Götz, Linde & Hockmann, Heinrich & Glauben, Thomas, 2017. "Determinants of productivity and efficiency of wheat production in Kazakhstan: A stochastic frontier approach
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    10. Arovuori, Kyösti & Yrjölä, Tapani, 2015. "The impact of the CAP and its reforms on the productivity growth in agriculture," 147th Seminar, October 7-8, 2015, Sofia, Bulgaria 212241, European Association of Agricultural Economists.
    11. Petrick, Martin & Kloss, Mathias, 2013. "Synthesis Report on the Impact of Capital Use," Factor Markets Working Papers 169, Centre for European Policy Studies.
    12. Ciliberti, Stefano & Frascarelli, Angelo, 2015. "The role of CAP in enhancing farm incomes: the redistributive effect of direct payments in Italy," 147th Seminar, October 7-8, 2015, Sofia, Bulgaria 212244, European Association of Agricultural Economists.
    13. Vigani, Mauro & Kathage, Jonas, 2016. "The impact of risk management practices on wheat productivity in France and Hungary," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236352, Agricultural Economics Society.
    14. Mauro Vigani & Manuel Gomez-Barbero & Emilio Rodríguez-Cerezo, 2015. "The determinants of wheat yields: the role of sustainable innovation, policies and risks in France and Hungary," JRC Working Papers JRC95950, Joint Research Centre (Seville site).
    15. Matthews, Alan & Salvatici, Luca & Scoppola, Margherita, 2017. "Trade Impacts of Agricultural Support in the EU," Commissioned Papers 252767, International Agricultural Trade Research Consortium.
    16. Elena Pagliarino & Monica Cariola & Sara Pavone & Alessandro Manello, "undated". "The impact of Rural Development Program on the economic performances of agro-food industry: the results of a counterfactual analysis in Piedmont, Italy," CERIS Working Paper 201422, Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY -NOW- Research Institute on Sustainable Economic Growth - Moncalieri (TO) ITALY.
    17. Kravcakova Vozarova Ivana & Kotulic Rastislav, 2015. "Theoretical Background Of Financial Management In The Context Of Cap Subsidies In V4 Countries," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 12(1), pages 77-86, DEcember.
    18. Minviel, Jean Joseph & Latruffe, Laure, 2014. "Meta-regression analysis of the impact of agricultural subsidies on farm technical efficiency," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182767, European Association of Agricultural Economists.
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    21. Sara Pavone & Elena Ragazzi & Lisa Sella, 2015. "Sostenere le imprese agro-industriali in Piemonte: un’analisi controfattuale," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2015(3 Suppl.), pages 129-143.
    22. Ciliberti, Stefano & Frascarelli, Angelo, 0. "A critical assessment of the implementation of CAP 2014- 2020 direct payments in Italy," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 3.
    23. Czyżewski, Bazyli & Poczta-Wajda, Agnieszka, 2016. "Effects of Policy and Market on Relative Income Deprivation of Agricultural Labour," 160th Seminar, December 1-2, 2016, Warsaw, Poland 249759, European Association of Agricultural Economists.

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