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Impact of decoupled payments and cross-compliance on decisions to withdraw land from production

Author

Listed:
  • Douadia Bougherara

    (Économie et Sociologie Rurales - INRA - Institut National de la Recherche Agronomique)

  • Laure Latruffe

    (Économie et Sociologie Rurales - INRA - Institut National de la Recherche Agronomique)

Abstract

The 2003 CAP reform introduces Single Farm Payments (SFPs) which are not fully linked to production but conditional on compliance with European directives related to environmental, food safety and animal welfare and maintaining the land in good environmental and agricultural condition (GAEC). This paper focuses on the effects of the reform on land allocation. Since it is now possible to receive SFPs for land outside production but maintained in GAEC, one concern is the possible land abandonment in some areas. We assess whether the CAP reform will give incentives to French landowners (operators and non operators) to withdraw some land from production and put it into GAEC, and what are the determinants behind the decisions. We identify some key variables in landowners' decisions to convert land to GAEC: perceived effect on revenues, environmental education and land acquisition as an investment. This suggests that economic variables but also non-economic variables may play a role in landowners' decisions.

Suggested Citation

  • Douadia Bougherara & Laure Latruffe, 2006. "Impact of decoupled payments and cross-compliance on decisions to withdraw land from production," Post-Print hal-01939946, HAL.
    • Handle: RePEc:hal:journl:hal-01939946
    Note: View the original document on HAL open archive server: https://hal.science/hal-01939946
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