Greek cotton farmers' supply response to partial decoupling of subsidies
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A mathematical programming model based on a countrywide sample of farms is used to assess
the impacts of the new C.A.P on the supply of the cotton sector in Greece. Results show a decrease in cotton cultivated area along with the introduction of a new production system called "semi-abandonment cotton". Farm income is practically unchanged, largely due to the decoupled payments. When these payments are not
considered, farm income turns negative in some cases, thus leading towards abandonment of activities.