Reforming the Common Agricultural Policy: Decoupling Agricultural Payments from Production and Promoting the Environment
No hay miniatura disponible
Fecha
Autores
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
In this paper, we analyze the potential impact on producers’ land-use decisions in moving
from support payments based on entitlements to a single farm payment (SFP). Further, we
then consider a single farm payment with a greening component as part of the 2013 CAP
reform. Using data for representative crop farms of different sizes in the Netherlands, we
develop a farm-level crop allocation model that is calibrated using positive mathematical
programming. We use a two-step calibration method to determine a nonlinear cost function
and farm-specific risk aversion coefficients. Not unexpectedly, we find that the 2013 CAP
reforms will cause farmers to shift away from crops previously eligible for payments, with
the initial shift under the SFP enhanced by the move towards SFP combined with green
payment.