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Calculating The ‘Greening’ Effect – A Case Study Approach To Estimate The Gross Margin Losses In Different Farm Types In Germany Due To The Reform Of The Cap

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  • Heinrich, Barbara

Abstract

The European Union’s Common Agricultural Policy is currently undergoing a reform process which inter alia aims to achieve a higher environmental standard in agricultural production by binding direct payments to practices beneficial for the climate and the environment (the so-called ‘greening’). Some experts as well as some farmers doubt the effectiveness of the proposed measures. I simulate how farms would respond to these measures using a case study farm modeling approach and data for different farm types in Germany. I find that the currently envisaged ‘greening’ measures can be expected to function in general due to the linkage to the direct payments, which provide a strong disincentive to forego participation. The individual economic outcome strongly depends on the current intensity of the farm in question and on the implementation details of the introduced measures. However, farms with very high gross margins per hectare will forego the support scheme.

Suggested Citation

  • Heinrich, Barbara, 2012. "Calculating The ‘Greening’ Effect – A Case Study Approach To Estimate The Gross Margin Losses In Different Farm Types In Germany Due To The Reform Of The Cap," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137155, German Association of Agricultural Economists (GEWISOLA).
    • Handle: RePEc:ags:gewi12:137155
    DOI: 10.22004/ag.econ.137155
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    Cited by:

    1. Gava, Oriana & Andreoli, Maria & Bartolini, Fabio & Brunori, Gianluca, 2015. "CAP post-2013: alternative greening designs in Tuscany (Italy)," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207359, Italian Association of Agricultural and Applied Economics (AIEAA).
    2. Louhichi, Kamel & Ciaian, Pavel & Espinosa, Maria & Colen, Liesbeth & Perni, Angel & Gomez y Paloma, Sergio, 2015. "EU-wide individual Farm Model for CAP Analysis (IFM-CAP): Application to Crop Diversification Policy," 2015 Conference, August 9-14, 2015, Milan, Italy 212155, International Association of Agricultural Economists.
    3. Louhichi, Kamel & Ciaian, Pavel & Espinosa, Maria & Colen, Liesbeth & Perni, Angel & Paloma, Sergio, 2015. "The Impact of Crop Diversification Measure: EU-wide Evidence Based on IFM-CAP Model," 2015 Conference, August 9-14, 2015, Milan, Italy 211542, International Association of Agricultural Economists.
    4. Amanda Sahrbacher & Jordan Hristov & Mark V. Brady, 2017. "A combined approach to assess the impacts of EcologicalFocus Areas on regional structural developmentand agricultural land use," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 98(3), pages 111-144.
    5. Schulte, Michael Clemens & Theuvsen, Ludwig & Wiese, Armin & Steinmann, Horst-Henning, 2016. "Die Ökonomische Bewertung Von Glyphosat Im Deutschen Ackerbau," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244761, German Association of Agricultural Economists (GEWISOLA).
    6. 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.
    7. Louhichi, Kamel & Ciaian, Pavel & Espinosa, Maria & Colen, Liesbeth & Perni, Angel & Gomez y Paloma, Sergio, 2015. "Farm-level economic impacts of EU-CAP greening measures," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205309, Agricultural and Applied Economics Association.
    8. Francesco Diotallevi & Emanuele Blasi & Silvio Franco, 2015. "Greening as compensation to production of environmental public goods: how do common rules have an influence at local level? The case of durum wheat in Italy," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 3(1), pages 1-14, December.
    9. 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.
    10. 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.

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    Keywords

    Agricultural and Food Policy; Environmental Economics and Policy;

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