Effects of New CAP Reform and Trends in Sustainable Olive Growing Systems in Southern Spain

This contribution analyzes the adoption of integrated and organic olive farming, and the likely impacts of the new CAP reform on diverse olive farming systems in Andalusia, Spain. We use statistical methods for the former and a Positive Mathematical Programming model calibrated with the neutral procedure for the latter. The PMP model compares the situation of the average olive farm in base year with its position in a simulated year using two policy scenarios. Results indicate that the new rules on green payment don’t incentive the adoption of sustainable systems, although they don’t prevent the development of these systems whose sustained growth seems to be largely independent from market circumstances and agricultural policies. An alternative policy advocating the implementation of green payment scheme in the olive sector would lead to a better redistribution of public support from less to more environmentally-friendly farming practices, contributing to enhance the CAP aids legitimacy.