Factors Affecting the Impact of CAP Scenarios on Farm Structure: An Analysis Based on Stated Intentions
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Several authors have emphasised the effect of agricultural policy (such as SFP) as a
driver of structural change. This paper aims to identify the determinants of the change in
the use of productive factors under different policy scenarios. The analysis is performed
ex ante, assessing the effect of CAP abolishment (as compared to the current CAP) on the
use of productive factors, based on stated intentions by farmers. The results highlight the
role of farm size, intensity and education in determining different patterns of reaction to
policy changes. Also differences are identified among the three main component of
structural change, land, capital and labour, with the latter being the less dependent upon
the CAP.