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Impact assessment of agricultural and fiscal policy in Greece on business-oriented arable farms

Author

Listed:
  • Stamatis Mantziaris

    (Postgraduate Program MBA in Agribusiness, Agricultural University of Athens)

  • Stelios Rozakis

    (Environmental Engineering Department, Technical University of Crete)

Abstract

This paper examines the impacts of the national implementation of the CAP reform 2014-20 and the fiscal policy derived from the Third Memorandum on the crop-mix decisions and the viability of business oriented Greek arable farming. A mathematical programming model is specified maximizing farmers' utility subject to agronomic, institutional and resource constraints. According to CAP reform scenario, reduction for cotton and durum wheat and on the other hand increase mainly for set aside and secondary for alfalfa cultivation areas is observed. Similar crop-mix is cultivated for the combined scenario of CAP and fiscal reform. Although gross margin decreases in both scenarios, almost all farms remain viable because 64% of their gross revenue is derived from the market. Consequently, farms are not sensitive enough in reform concerning reduction of subsidies but the combination with tax measures decrease the levels of viability significantly.

Suggested Citation

  • Stamatis Mantziaris & Stelios Rozakis, 2016. "Impact assessment of agricultural and fiscal policy in Greece on business-oriented arable farms," Working Papers 2016-1, Agricultural University of Athens, Department Of Agricultural Economics.
    • Handle: RePEc:aua:wpaper:2016-1
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    References listed on IDEAS

    as
    1. Rozakis, Stelios, 2011. "Impacts of flatter rates and environmental top-ups in Greece: A novel mathematical modeling approach," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(2).
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    More about this item

    Keywords

    Utility function; mathematical programming; policy analysis; arable farming; Thessaly;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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