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Distributional effects of CAP instruments on farm household incomes in Austria

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  • Schmid, Erwin
  • Sinabell, Franz
  • Hofreither, Markus F.

Abstract

The Common Agricultural Policy (CAP) has evolved from an allocative towards a dis-tributive policy. Distributive policies aim at correcting market outcomes according to politi-cally determined objectives usually through transferring money from richer to poorer house-holds. We compare the distributional effects of CAP direct payments in EU Member States. In general, poorer households benefit more from social transfers than richer ones, whereas larger farms get more direct payments than smaller ones. Direct payments which are basically linked to the acreage of farms seem to be not an adequate tool to alleviate incomes of farm house-holds, a major objective of the CAP.

Suggested Citation

  • Schmid, Erwin & Sinabell, Franz & Hofreither, Markus F., 2006. "Distributional effects of CAP instruments on farm household incomes in Austria," 2006 Annual meeting, July 23-26, Long Beach, CA 21467, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:21467
    DOI: 10.22004/ag.econ.21467
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    References listed on IDEAS

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    1. Ciliberti, Stefano & Frascarelli, Angelo, 2015. "The role of CAP in enhancing farm incomes: the redistributive effect of direct payments in Italy," 147th Seminar, October 7-8, 2015, Sofia, Bulgaria 212244, European Association of Agricultural Economists.
    2. Deppermann, Andre & Grethe, Harald & Offermann, Frank, 2011. "Distributional Effects of the CAP on Western German Farm Incomes and Regional Farm Income Disparity," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114442, European Association of Agricultural Economists.
    3. Hofreither, Markus F., 2007. "The "Treaties of Rome" and the development of the Common Agricultural Policy," Discussion Papers DP-23-2007, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    4. Kaditi, Eleni A. & Nitsi, Elisavet I., 2011. "Vertical and horizontal decomposition of farm income in equality in Greece," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(1).
    5. Zawojska, Aldona, 2007. "The Distribution of Direct Payments of CAP to producers amongst EU Member States," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 1(16), pages 1-11, March.
    6. Stefano Ciliberti & Angelo Frascarelli, 2018. "The CAP 2013 reform of direct payments: redistributive effects and impacts on farm income concentration in Italy," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 6(1), pages 1-18, December.

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