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Effects of Agricultural Policy Measures on Gross Transfers to Farmers: Intertemporal and Interregional Evidence from the CAP

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  • Hansen, Heiko

Abstract

This paper analyses the effects of the Common Agricultural Policy (CAP) on gross transfers over time and across regions. Depending on the type of instrumentation to support agriculture, the volatility of gross transfers differs. While assistance arising from market price supports, regarded as independent from the world market levels, fluctuates intertemporally, direct payments are constant. Empirical findings for the CAP show a reduction of the transfer volatility on grain markets. For beef and veal this effect is not significant, because price support is still large in these markets. If agricultural support is biased in favour of specific commodities, territorial heterogeneity leads to an uneven distribution. By applying a regionalised concept of producer support estimates (PSEs) for the German Federal States, results indicate significant interregional variation of CAP support.

Suggested Citation

  • Hansen, Heiko, 2005. "Effects of Agricultural Policy Measures on Gross Transfers to Farmers: Intertemporal and Interregional Evidence from the CAP," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24625, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae05:24625
    DOI: 10.22004/ag.econ.24625
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    References listed on IDEAS

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    1. Jongeneel, Roelof A., 2003. "'Effective prices' as a device to analyze the impact of the Agenda 2000 and Mid-Term Review policy reforms on dairy and beef: measurement and simulation results for Germany," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 52(07), pages 1-11.
    2. Anders, Sven & Harsche, Johannes & Herrmann, Roland & Salhofer, Klaus, 2004. "Regional income effects of producer support under the CAP," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 73.
    3. Cahill, Sean A., 1993. "Cap Reform: How Decoupled are the Compensatory Payments?," Working Papers 244085, Agriculture and Agri-Food Canada.
    4. Cahill, S.A., 1993. "Cap Reform: How Decoupled are the Compensatory Payments," Papers 11-93, Gouvernement du Canada - Agriculture Canada.
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    Keywords

    Agricultural and Food Policy;

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