Assessing the impact of future CAP reforms on the demand of production factors
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The CAP reform process has been a central issue for agricultural economics research in recent
years, and is gaining further attention in view of the post-2013 perspectives.
The objective of this paper is to assess ex-ante the effect of different post-2013 CAP and market
scenarios on the demand of productions factors. The paper is based on the use of farm
household dynamic programming models maximising the net present value with a time horizon
until 2030. A representative model has been implemented for 18 different farming systems in 8
EU countries. Changes in marginal values of selected resource constraints (land, labour and
capital) are used to assess the potential effect of different scenarios on farm-household demand
of production factors.
Results highlight that both policy and market conditions change strongly the demand of
productive factors.