IDEAS home Printed from https://ideas.repec.org/a/bla/jageco/v57y2006i3p415-440.html
   My bibliography  Save this article

Assessing CAP Reform: Sensitivity of Modelling Decoupled Policies

Author

Listed:
  • Alexandre Gohin

Abstract

The European Union reformed farm policy in June 2003 towards the decoupling of farm income support instruments. Available impact studies find that this reform reduces production incentives substantially for beef and to a lesser extent for arable crops. However, these studies assume that the previous reform, under Agenda 2000, already decoupled arable crop direct payments to a considerable extent, while beef premiums were linked more closely to production. Our main objective in this paper is to test the sensitivity of these results to this questionable modelling of Agenda 2000 direct payments, which neglects eligibility rules and land market imperfections. Our analysis reveals that the effects of the reform on both arable crop and beef production are always negative, however the Agenda 2000 direct payments are modelled. On the other hand, we show that, when the eligibility rules and land market imperfections are acknowledged, the production reducing effects may be much larger for arable crops than for beef. Policy implications of these results are noted.

Suggested Citation

  • Alexandre Gohin, 2006. "Assessing CAP Reform: Sensitivity of Modelling Decoupled Policies," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(3), pages 415-440, September.
    • Handle: RePEc:bla:jageco:v:57:y:2006:i:3:p:415-440
    DOI: 10.1111/j.1477-9552.2006.00058.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1477-9552.2006.00058.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1477-9552.2006.00058.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jacinto F. Fabiosa & John C. Beghin & Fengxia Dong & Amani Elobeid & Frank H. Fuller & Holger Matthey & Simla Tokgoz & Eric Wailes, 2005. "Impact of the European Enlargement and Common Agricultural Policy Reforms on Agricultural Markets: Much Ado about Nothing? The," Center for Agricultural and Rural Development (CARD) Publications 05-wp382, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    2. Frederic Chantreuil & Fabrice Levert & Kevin Hanrahan, 2005. "The Luxembourg agreement reform of the CAP : an analysis using the Ag-Memod composite model," Post-Print hal-01594021, HAL.
    3. Duvivier, Romain & Gaspart, Frederic & Frahan, Bruno Henry de, 2005. "A Panel Data Analysis of the Determinants of Farmland Price: An Application to the Effects of the 1992 Cap Reform in Belgium," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24577, European Association of Agricultural Economists.
    4. Ciaian, Pavel & Swinnen, Johan F.M., 2005. "Market Imperfections and Agricultural Policy Effects on Structural Change and Competitiveness in an Enlarged EU," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24463, European Association of Agricultural Economists.
    5. Balkhausen, Oliver & Banse, Martin & Grethe, Harald & Nolte, Stephan, 2005. "Modelling the Effects of Partial Decoupling on Crop and Fodder Area And Ruminant Supply in the EU: Current State and Outlook," 89th Seminar, February 2-5, 2005, Parma, Italy 231832, European Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gohin, Alexandre, 2006. "Assessing the 2003 CAP Reform: Sensitivity to the Decoupling of Agenda 2000 Direct Payments," Working Papers 18868, TRADEAG - Agricultural Trade Agreements.
    2. Breisinger, Clemens, 2006. "Roads - A way out of poverty? A two region, general equilibrium model for Vietnam," Conference papers 331478, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Alexandre Gohin, 2005. "Assessing the impacts of the 2003 CAP mid term review : how sensitive are they to the assumed production responsiveness to Agenda 2000 direct payments ?," Post-Print hal-01937085, HAL.
    4. Balkhausen, Oliver & Banse, Martin & Grethe, Harald & Nolte, Stephan, 2005. "Modellierung der Auswirkungen einer Entkopplung der Direktzahlungen in der EU auf die Flächenallokation und Wiederkäuerproduktion: Eine Analyse unterschiedlicher Modellergebnisse," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 54(08), pages 1-15.
    5. Ovidiu Stoica & Monica Damian, 2013. "Evaluation of the Common Agricultural Policy's Impact upon Inflation Rate in Central, Eastern and Southern Europe Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 3(1), pages 229-236.
    6. Kowalczyk, Cezary & Nowak, Magdalena & Źróbek, Sabina, 2019. "The concept of studying the impact of legal changes on the agricultural real estate market," Land Use Policy, Elsevier, vol. 86(C), pages 229-237.
    7. Jean-Christophe Bureau & Louis-Pascal Mahé, 2009. "Cap Payments after 2013 and Rural Public Goods," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, December.
    8. Eugenio Demartini & Anna Gaviglio & Marco Gelati & Daniele Cavicchioli, 2016. "The Effect of Biogas Production on Farmland Rental Prices: Empirical Evidences from Northern Italy," Energies, MDPI, vol. 9(11), pages 1-23, November.
    9. Cassoni, Adriana & Flores, Manuel, 2008. "Methodological shortcomings in estimating Armington elasticities," Conference papers 331813, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Dominguez, Ignacio Perez & Wieck, Christine, 2006. "Welfare distribution between EU Member States through different national decoupling options. Implications for Spain," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 6(11), pages 1-29.
    11. Natalia Brzezina & Birgit Kopainsky & Erik Mathijs, 2016. "Can Organic Farming Reduce Vulnerabilities and Enhance the Resilience of the European Food System? A Critical Assessment Using System Dynamics Structural Thinking Tools," Sustainability, MDPI, vol. 8(10), pages 1-32, September.
    12. Erjavec, Emil & van Leeuven, Myrna & Regoršek, Darja, 2007. "The Development of CEEC Agricultural Markets After EU Accession," 100th Seminar, June 21-23, 2007, Novi Sad, Serbia and Montenegro 162402, European Association of Agricultural Economists.
    13. Pavel Ciaian & d’Artis Kancs & Johan Swinnen, 2010. "EU Land Markets and the Common Agricultural Policy," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 53(3), pages 1-31.
    14. Peter Howley & Trevor Donnellan & Kevin Hanrahan, 2009. "CAP reform post 2013: Examining the equity dimensions of agricultural support," Working Papers 0902, Rural Economy and Development Programme,Teagasc.
    15. Rednak, Miroslav & Volk, Tina & Erjavec, Emil, 2007. "EAA-ABTA Model for Ex-Post and Ex-Ante Analysis of Economic Position of Slovenian Agriculture," 100th Seminar, June 21-23, 2007, Novi Sad, Serbia and Montenegro 162404, European Association of Agricultural Economists.
    16. Gracia, Azucena & de Magistris, Tiziana & Casado, Jose Maria, 2008. "The Effect Of The New Single Farm Payment In Irrigated Agriculture: The Case Of Spain," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6590, European Association of Agricultural Economists.
    17. Gelan, Ayele & Schwarz, Gerald, 2011. "Estimating the effects of single farm payments on multi-output agricultural production function," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(2).
    18. repec:lic:licosd:29311 is not listed on IDEAS
    19. Rachel Rose & Dimitrios Paparas, 2023. "Price Transmission: The Case of the UK Dairy Market," Commodities, MDPI, vol. 2(1), pages 1-21, March.
    20. Britz, Wolfgang & Heckelei, Thomas, 2008. "Recent Developments In Eu Policies – Challenges For Partial Equilibrium Models," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6315, European Association of Agricultural Economists.
    21. Plogmann, Jana & Mußhoff, Oliver & Odening, Martin & Ritter, Matthias, 2020. "What Moves the German Land Market? A Decomposition of the Land Rent-Price Ratio," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 69(01).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jageco:v:57:y:2006:i:3:p:415-440. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0021-857X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.