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Redistribution and the Abolishment of Historical Entitlements in the CAP Strategic Plans: The Case of Greece

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  • Dimitrios Kremmydas

    (Department of Agricultural Economics and Rural Development, Agricultural University of Athens, Iera Odos 75, 11855 Athens, Greece)

  • Konstantinos Tsiboukas

    (Department of Agricultural Economics and Rural Development, Agricultural University of Athens, Iera Odos 75, 11855 Athens, Greece)

Abstract

A key issue in CAP strategic planning in Greece is the treatment of historical entitlements. An unequal level of payments per hectare is difficult to justify in terms of the CAP’s rationale, and so the abolishment of these entitlements seems to be the most reasonable option. However, for historical reasons, this abolishment may result in a transfer of payments from smaller to larger farms and between different agricultural sub-sectors which could in turn lead to negative effects on the incomes of small farms and lead to farmers leaving the sector. We simulate the change to a flat rate payment in order to quantify these effects, then explore the possibility of employing the new obligatory redistribution measure, termed complementary income support, to mitigate any negative effects. We conclude that redistribution is, indeed, a powerful tool for fine-tuning decoupled payments if historical entitlements are to be abolished.

Suggested Citation

  • Dimitrios Kremmydas & Konstantinos Tsiboukas, 2022. "Redistribution and the Abolishment of Historical Entitlements in the CAP Strategic Plans: The Case of Greece," Sustainability, MDPI, vol. 14(2), pages 1-14, January.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:2:p:735-:d:721588
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    References listed on IDEAS

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    1. Benedetto Rocchi, 2009. "The CAP reform between targeting and equity: a structural policy analysis for Italy," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(2), pages 175-201, June.
    2. Erjavec, Emil & Chantreuil, Frédéric & Hanrahan, Kevin & Donnellan, Trevor & Salputra, Guna & Kozar, Maja & van Leeuwen, Myrna, 2011. "Policy assessment of an EU wide flat area CAP payments system," Economic Modelling, Elsevier, vol. 28(4), pages 1550-1558, July.
    3. Marchand, Fleur L. & Buysse, Jeroen & Campens, V. & Claeys, Dakerlia & Fernagut, Bruno & Lauwers, Ludwig H. & Van der Straeten, Bart & Van Huylenbroeck, Guido, 2008. "Effects of a flat rate introduction: shifts in farm activity and impact on farmers' income," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6681, European Association of Agricultural Economists.
    4. Severini, Simone & Valle, Stefano, 2005. "The Single Payment Scheme of the CAP: Entitlements Availability and Farmers Behavior," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24513, European Association of Agricultural Economists.
    5. Alexander Gocht & Wolfgang Britz & Pavel Ciaian & Sergio Gomez y Paloma, 2013. "Farm Type Effects of an EU-wide Direct Payment Harmonisation," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(1), pages 1-32, February.
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    Cited by:

    1. Jana Lososová & Radek Zdeněk, 2023. "Simulation of the impacts of the proposed direct payment scheme - The case of the Czech Republic," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(1), pages 13-24.
    2. Andreea-Emanuela Drăgoi, 2022. "The Role of Common Agricultural Policy for Enhancing the Resilience of Rural Areas under the Current Global Challenges," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 10(2), pages 6-17, December.

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