IDEAS home Printed from https://ideas.repec.org/p/ags/aaea17/258071.html
   My bibliography  Save this paper

Impacts of the 2013 CAP reform on the EU farming sector: An assessment using a microeconomic farm model

Author

Listed:
  • Espinosa, Maria
  • Louhichi, Kamel
  • Perni, Angel
  • Ciaian, Pavel
  • Gomez y Paloma, Sergio

Abstract

This paper analyses the impact of the new direct payments (DPs) system introduced by the 2013 CAP reform on EU farming sector. We apply the EU-wide individual farm level model (IFM-CAP) which allows capturing farm specific implementation of DPs and assessing their distributional effects. Simulation results show that although the 2013 CAP reform succeeded to partially harmonize DPs between MS, relatively strong differences in DPs still remain in place. An important result of the 2013 CAP reform is also internal convergence of DPs within MS. The 2013 CAP reform reduced inequality of DPs as measured by the Gini coefficient from 0.581 to 0.561. The farm income decreases by around 1.3% at EU level due to the introduction of the new DPs. Around 60% of farms loose, whereas the remaining 40% of farms gain from the reform in EU-27. Small farms benefit, while large farms lose from the 2013 CAP reform.

Suggested Citation

  • Espinosa, Maria & Louhichi, Kamel & Perni, Angel & Ciaian, Pavel & Gomez y Paloma, Sergio, 2017. "Impacts of the 2013 CAP reform on the EU farming sector: An assessment using a microeconomic farm model," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258071, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea17:258071
    DOI: 10.22004/ag.econ.258071
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/258071/files/impacts_2013CAP_reform_AAEA_2017_11336.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.258071?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. Alexander Gocht & Pavel Ciaian & Maria Bielza & Jean-Michel Terres & Norbert Röder & Mihaly Himics & Guna Salputra, 2017. "EU-wide Economic and Environmental Impacts of CAP Greening with High Spatial and Farm-type Detail," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 651-681, September.
    2. Markowitz, Harry, 2014. "Mean–variance approximations to expected utility," European Journal of Operational Research, Elsevier, vol. 234(2), pages 346-355.
    3. Bruno Henry Frahan & Jeroen Buysse & Philippe Polomé & Bruno Fernagut & Olivier Harmignie & Ludwig Lauwers & Guido Huylenbroeck & Jef Meensel, 2007. "Positive Mathematical Programming for Agricultural and Environmental Policy Analysis: Review and Practice," International Series in Operations Research & Management Science, in: Andres Weintraub & Carlos Romero & Trond Bjørndal & Rafael Epstein & Jaime Miranda (ed.), Handbook Of Operations Research In Natural Resources, chapter 0, pages 129-154, Springer.
    4. Solazzo, Roberto & Pierangeli, Fabio, 2016. "How does greening affect farm behaviour? Trade-off between commitments and sanctions in the Northern Italy," Agricultural Systems, Elsevier, vol. 149(C), pages 88-98.
    5. Quirino Paris & Richard E. Howitt, 1998. "An Analysis of Ill-Posed Production Problems Using Maximum Entropy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 124-138.
    6. Maria Espinosa & Kamel Louhichi & Sergio Gomez y Paloma, 2017. "Does the post-2013 cap reduce the disparities in the distribution of decoupled payments across Europe? A farm-level assessment [La CAP post-2013 réduit-elle les disparités dans la répartition des p," Post-Print hal-02789915, HAL.
    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. Kamel Louhichi & Pavel Ciaian & Maria Espinosa & Angel Perni & Sergio Gomez y Paloma, 2018. "Economic impacts of CAP greening: application of an EU-wide individual farm model for CAP analysis (IFM-CAP)," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 45(2), pages 205-238.
    2. Ciaian, Pavel & Espinosa, Maria & Louhichi, Kamel & Perni, Angel & Gomez y Paloma, Sergio, 2018. "Farm level impacts of abolishing the CAP direct payments: An assessment using the IFM-CAP model," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 272087, European Association of Agricultural Economists.
    3. Takahiro Nakashima & Shoko Ishikawa, 2022. "Exploring Farmers’ Expectation toward Farm-Gate Price of Rice in Japan by Positive Mathematical Programming," Sustainability, MDPI, vol. 15(1), pages 1-16, December.
    4. Kamel Elouhichi & Maria Espinosa Goded & Pavel Ciaian & Angel Perni Llorente & Bouda Vosough Ahmadi & Liesbeth Colen & Sergio Gomez Y Paloma, 2018. "The EU-Wide Individual Farm Model for Common Agricultural Policy Analysis (IFM-CAP v.1): Economic Impacts of CAP Greening," JRC Research Reports JRC108693, Joint Research Centre.
    5. Robert M'barek & Jesus Barreiro-Hurle & Pierre Boulanger & Arnaldo Caivano & Pavel Ciaian & Hasan Dudu & Maria Espinosa Goded & Thomas Fellmann & Emanuele Ferrari & Sergio Gomez Y Paloma & Celso Gorri, 2017. "Scenar 2030 - Pathways for the European agriculture and food sector beyond 2020," JRC Research Reports JRC108449, Joint Research Centre.
    6. Kooten, G. Cornelis van, 2013. "Modeling Forest Trade in Logs and Lumber: Qualitative and Quantitative Analysis," Working Papers 149182, University of Victoria, Resource Economics and Policy.
    7. Davide Dell’Unto & Gabriele Dono & Raffaele Cortignani, 2023. "Impacts of Environmental Targets on the Livestock Sector: An Assessment Tool Applied to Italy," Agriculture, MDPI, vol. 13(4), pages 1-15, March.
    8. Danilo Bertoni & Daniele Cavicchioli & Franco Donzelli & Giovanni Ferrazzi & Dario G. Frisio & Roberto Pretolani & Elena Claire Ricci & Vera Ventura, 2018. "Recent Contributions of Agricultural Economics Research in the Field of Sustainable Development," Agriculture, MDPI, vol. 8(12), pages 1-20, December.
    9. Alexandre Sauquet, 2021. "Ex-post analysis of the crop diversification policy ofthe CAP Greening in France," Working Papers hal-03455548, HAL.
    10. Maria Espinosa & Kamel Louhichi & Angel Perni & Pavel Ciaian, 2020. "EU‐Wide Impacts of the 2013 CAP Direct Payments Reform: A Farm‐Level Analysis," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 695-715, December.
    11. Alexander Gocht & Pavel Ciaian & Maria Bielza & Jean-Michel Terres & Norbert Röder & Mihaly Himics & Guna Salputra, 2017. "EU-wide Economic and Environmental Impacts of CAP Greening with High Spatial and Farm-type Detail," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 651-681, September.
    12. Britz, Wolfgang & Ciaian, Pavel & Gocht, Alexander & Kanellopoulos, Argyris & Kremmydas, Dimitrios & Müller, Marc & Petsakos, Athanasios & Reidsma, Pytrik, 2021. "A design for a generic and modular bio-economic farm model," Agricultural Systems, Elsevier, vol. 191(C).
    13. Lisa Baldi & Filippo Arfini & Sara Calzolai & Michele Donati, 2023. "An Impact Assessment of GHG Taxation on Emilia-Romagna Dairy Farms through an Agent-Based Model Based on PMP," Land, MDPI, vol. 12(7), pages 1-24, July.
    14. Fragoso, R. & Marques, C. & Lucas, M.R. & Martins, M.B. & Jorge, R., 2011. "The economic effects of common agricultural policy on Mediterranean montado/dehesa ecosystem," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 311-327, March.
    15. Ciaian, Pavel & Espinosa, Maria & Louhichi, Kamel & Perni, Angel, 2020. "Farm Level Impacts of Trade Liberalisation and CAP Removal Across EU: An Assessment using the IFM-CAP Model," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 69(2), May.
    16. Pascal Tillie & Kamel Louhichi & Sergio Gomez-Y-Paloma, 2018. "La culture attelée dans le bassin cotonnier en Côte d'Ivoire. Analyse et modélisation des impacts d'un programme de relance de la culture attelée," JRC Research Reports JRC111027, Joint Research Centre.
    17. Ben Fradj, Nosra & Jayet, Pierre Alain & Rozakis, Stelios & Georganta, Eleni & Jędrejek, Anna, 2020. "Contribution of agricultural systems to the bioeconomy in Poland: Integration of willow in the context of a stylised CAP diversification," Land Use Policy, Elsevier, vol. 99(C).
    18. Judez, Lucinio & de Andres, Rosario & Ibanez, M. & De Miguel, J.M. & Miguel, J.L. & Urzainqui, Elvira, 2008. "Impact Of The Cap Reform On The Spanish Agricultural Sector," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44830, European Association of Agricultural Economists.
    19. Jouan, Julia & Ridier, Aude & Carof, Matthieu, 2020. "SYNERGY: A regional bio-economic model analyzing farm-to-farm exchanges and legume production to enhance agricultural sustainability," Ecological Economics, Elsevier, vol. 175(C).
    20. Stefano Ciliberti & Luca Palazzoni & Sofia Maria Lilli & Angelo Frascarelli, 2022. "Direct Payments to Provide Environmental Public Goods and Enhance Farm Incomes: Do Allocation Criteria Matter?," Review of Economics and Institutions, Università di Perugia, vol. 13(1-2).

    More about this item

    Keywords

    Agricultural and Food Policy; Agricultural Finance; Farm Management;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ags:aaea17:258071. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    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.