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What would farmers’ strategies be in a no-CAP situation? An illustration from France

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  • Laure Latruffe
  • Aurélia Dupuy
  • Yann Desjeux

Abstract

This article investigates how French farmers could react if the Common Agricultural Policy (CAP) were fully suppressed, based on a survey of intentions of 295 farmers carried out in 2009. The farmers surveyed were beneficiaries of CAP subsidies in 2008, and were therefore mostly specialised in field cropping and grazing livestock. Respondents had to indicate their ten-year strategy in two CAP scenarios: firstly in a “CAP continuation scenario”, and secondly in a “No CAP scenario” where the CAP is fully removed from 2014 onwards. Although for the majority of respondents there would be no change in their intentions if the CAP were suppressed, about 19 percent would intend to stop their farming activity and would prefer to close their farm, while they would maintain the farm if the CAP were continued. A disappearance of the CAP would imply that off-farm employment would be more frequently sought after by farm households. Hired labour would not be the first choice to replace household labour on the farms but instead farmers would resort to outsourcing, which is a more flexible labour force. The results show the crucial role of the CAP in French farmers’ existence and highlight the importance of the CAP for the rural labour market.

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  • Laure Latruffe & Aurélia Dupuy & Yann Desjeux, 2012. "What would farmers’ strategies be in a no-CAP situation? An illustration from France," Working Papers SMART 12-02, INRAE UMR SMART.
    • Handle: RePEc:rae:wpaper:201202
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    File URL: http://www6.rennes.inra.fr/smart/Media/Working-papers/WP12-02
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    References listed on IDEAS

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    Cited by:

    1. Lososova, J. & Zdenek, R., 2014. "Key Factors Affecting the Profitability of Farms in the Czech Republic," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 6(1), pages 1-16, March.
    2. Demirdogen, Alper & Olhan, Emine, 2018. "The Timing Impact of Agricultural Support Policies on Farmers’ Stated Intentions in Turkey," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 271960, European Association of Agricultural Economists.
    3. Si Mokrane Siad & Andrea Gioia & Gerrit Hoogenboom & Vito Iacobellis & Antonio Novelli & Eufemia Tarantino & Pandi Zdruli, 2017. "Durum Wheat Cover Analysis in the Scope of Policy and Market Price Changes: A Case Study in Southern Italy," Agriculture, MDPI, vol. 7(2), pages 1-20, February.
    4. Ciaian, Pavel & Espinosa, Maria & Louhichi, Kamel & Perni, Angel & Gomez y Paloma, Sergio, 2018. "Farm level impacts of abolishing the CAP direct payments: An assessment using the IFM-CAP model," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 272087, European Association of Agricultural Economists.
    5. Dupraz, Pierre & Latruffe, Laure, 2015. "Trends in family labour, hired labour and contract work on French field crop farms: The role of the Common Agricultural Policy," Food Policy, Elsevier, vol. 51(C), pages 104-118.
    6. Barnes, Andrew Peter & Toma, Luiza & Mathews, Keith & Sutherland, Lee-Ann & Thomson, Steven, 2014. "Intensify, diversify, opt-out: testing farmer stated intentions to past and future CAP reform scenarios," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 169724, Agricultural Economics Society.
    7. Vázquez, Ibán & Sineiro, Francisco & García, Ana Isabel, 2014. "Trayectorias de crecimiento de las explotaciones agrarias en la Cornisa Cantábrica," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 14(02), pages 1-32, December.
    8. Theodoros MARKOPOULOS & Christos KARELAKIS & Konstantinos GALANOPOULOS & Konstadinos MATTAS, 2015. "Did The 2004 Cap Reform Affect Production Practices Of Cereals? Insights From The Agricultural Input Suppliers," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 14(2), pages 71-83.

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    More about this item

    Keywords

    farmers’ strategies; agricultural policy; intentions survey; France;
    All these keywords.

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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