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Organic Farming and the New CAP - Results for the Austrian Agricultural Sector

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  • Schmid, Erwin
  • Sinabell, Franz

Abstract

In 2003, the Common Agricultural Policy (CAP) has been reformed and decoupling direct payments from farm output is one of its core elements. We estimate the likely responses in organic product supply due to the reform at regional and sectoral levels. In addition, we analyse how the new programme for rural development, to be implemented in 2007, might affect organic farming. Our results show that organic farming will become more attractive after the 2003 CAP reform in Austria. Our results support the view that interactions among agri-environmental measures affect farmers' choice to maintain, abandon or adopt organic farming practices.

Suggested Citation

  • Schmid, Erwin & Sinabell, Franz, 2005. "Organic Farming and the New CAP - Results for the Austrian Agricultural Sector," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24671, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae05:24671
    DOI: 10.22004/ag.econ.24671
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    References listed on IDEAS

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    1. S.J. Dima & A.N. Odero, 1997. "Organic Farming for Sustainable Agricultural Production. A Brief Theoretical Review and Preliminary Empirical Evidence," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 10(2), pages 177-188, September.
    2. Ottmar Röhm & Stephan Dabbert, 2003. "Integrating Agri-Environmental Programs into Regional Production Models: An Extension of Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 254-265.
    3. Richard E. Howitt, 1995. "Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 329-342.
    4. Schmid, Erwin & Sinabell, Franz, 2005. "Evaluation Of Decoupling Scenarios in a Rural Development Context: Results for Austria," 89th Seminar, February 2-5, 2005, Parma, Italy 239278, European Association of Agricultural Economists.
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