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Grundsätzliche Überlegungen zu einer Entkopplung der Direktzahlungen in der EU

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  • Breustedt, Gunnar

Abstract

This paper analyses theoretically the consequences of decoupling and argues for a wider discussion among agricultural economists and the public. Quantitative work on forecasting the consequences seems to be problematic in general. We ask, if the allocation of land will change that dramatically, in particular, we wonder whether setaside will increase that much as some research and statements argue if direct payments are abolished or decoupled from land use. Taking into account economies of scale that can be realised because of faster change in the farming structure, adapted behaviour of farmers due to dramatic changes in the subsidisation scheme, technological progress, and price changes of factors and products in farmers’ benefit we conclude that most quantitative forecasts probably overestimate the changes in land allocation. Social objectives that may be incorporated with agricultural land use are analysed as well as the efficiency of direct payments to achieve these objectives. Distributional effects of income are taken into consideration, too. We recommend that politicians should decide as soon as possible to abolish direct payments stepwise over some years. Farmers should be aware of an end for the direct payments and should keep high flexibility to adapt to the future as easy as possible. Therefore, they should avoid investments with a high portion of sunk costs and they should analyse their capital use, especially on marginal land. Further on, they should try to reduce costs by increasing the size of farms and acres.

Suggested Citation

  • Breustedt, Gunnar, 2003. "Grundsätzliche Überlegungen zu einer Entkopplung der Direktzahlungen in der EU," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 52(03), pages 1-8.
  • Handle: RePEc:ags:gjagec:98355
    DOI: 10.22004/ag.econ.98355
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    References listed on IDEAS

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    1. Kohne, Manfred, 2002. "Die Zukunft der Direktzahlungen an die Landwirtschaft," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 51(08), pages 1-1.
    2. Happe, Kathrin & Balmann, Alfons, 2002. "Struktur-, Effizienz- und Einkommenswirkungen von Direktzahlungen," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 51(08), pages 1-13.
    3. Gomann, Horst, 2002. "Auswirkungen einer Entkopplung von Ausgleichszahlungen auf den EU-Getreidemarkt," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 51(08), pages 1-7.
    4. Grosskopf, Werner, 2001. "Agrarpolitik und der Pfad der Tugend," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 50(08), pages 1-7.
    5. Lucas, Robert Jr, 1976. "Econometric policy evaluation: A critique," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 1(1), pages 19-46, January.
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    Agricultural and Food Policy;

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