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Aides directes et disparités de revenus agricoles

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  • Bazin, Gilles

Abstract

The Common Agricultural Policy is based on the principle of uniform agricultural prices, as stated in Ecus, throughout the Community. Whenever monetary realignments occur, the guaranteed prices are upset by diverging domestic trends. To smooth out these differences, since 1969, the currency parities used in setting farm prices (the so-called "green" rates of exchange) have been dissociated from the official exchange rates. This "green ecu" regime used to the accompanied by a system of monetary compensatory amounts (MCAs). That feature of the regime has been discontinued, but the "switchover" mechanism is still in force, i.e., a system whereby farm price floors are maintained at the old level in countries whose currency is revalued. This mechanism is inflationary and costly for the community budget, and tends to boost farm income to levels that overcompensate for any potential losses.

Suggested Citation

  • Bazin, Gilles, 2025. "Aides directes et disparités de revenus agricoles," Économie rurale, French Society of Rural Economics (SFER Société Française d'Economie Rurale), vol. 220.
    • Handle: RePEc:ags:ersfer:351927
    DOI: 10.22004/ag.econ.351927
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