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New perspectives on the distribution of farm incomes and the redistributive impact of CAP payments

Author

Listed:
  • Laurent Piet

    (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - INSTITUT AGRO Agrocampus Ouest - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

  • Yann Desjeux

    (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)

Abstract

We contribute to understanding the impact of potential drivers of farm income inequality and the redistributive impact of Common Agricultural Policy (CAP) payments. Our approach provides information at any quantile of the income distribution, in contrast to the widely used Gini coefficient. Income growth and inequality dynamics of French commercial farms between 2000 and 2017 are found to be explained by a change in both income levels and farm characteristics. Further, CAP payments are shown to participate in levelling off income inequalities, with Pillar 1 and 2 payments performing differently along the distribution. Our results may help inform on-going policy debates about fairness in the distribution of farm support and structural change implications for the future of European agriculture.

Suggested Citation

  • Laurent Piet & Yann Desjeux, 2021. "New perspectives on the distribution of farm incomes and the redistributive impact of CAP payments," Post-Print hal-03275141, HAL.
    • Handle: RePEc:hal:journl:hal-03275141
    DOI: 10.1093/erae/jbab005
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    Cited by:

    1. Robert Finger & Nadja El Benni, 2021. "Farm income in European agriculture: new perspectives on measurement and implications for policy evaluation," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(2), pages 253-265.
    2. Sadłowski, Adrian & Beluhova-Uzunova, Rositsa & Popp, József & Atanasov, Dimo & Ivanova, Boryana & Shishkova, Mariyana & Hristov, Krum, 2022. "Direct Payments Distribution Between Farmers in Selected New EU Member States," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 14(4), December.
    3. Sebastian Neuenfeldt & Alexander Gocht & Thomas Heckelei & Klaus Mittenzwei & Pavel Ciaian, 2021. "Using Aggregated Farm Location Information to Predict Regional Structural Change of Farm Specialisation, Size and Exit/Entry in Norway Agriculture," Agriculture, MDPI, vol. 11(7), pages 1-22, July.
    4. Kostov, Philip & Davidova, Sophia & Gjokaj, Ekrem, 2021. "Does Policy Support Really Help Farmers’ Incomes: The Case of Kosovo," 2021 Conference, August 17-31, 2021, Virtual 315278, International Association of Agricultural Economists.
    5. Ollier, Maxime & Jayet, Pierre-Alain & Humblot, Pierre, 2024. "An assessment of the distributional impacts of autonomous adaptation to climate change from European agriculture," Ecological Economics, Elsevier, vol. 222(C).
    6. José A. Gómez‐Limón & Sandra Sánchez‐Cañizares & Amalia Hidalgo‐Fernández & Ana M. Castillo‐Canalejo, 2023. "Profit and viability persistence: Evidence from the Spanish agricultural sector," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 1300-1332, October.
    7. Pia Nilsson & Sofia Wixe, 2022. "Assessing long-term effects of CAP investment support on indicators of farm performance," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(4), pages 760-795.
    8. Ollier, Maxime & De Cara, Stéphane, 2024. "Give and take: An analysis of the distributional consequences of emission tax-and-rebate schemes with an application to greenhouse gas emissions from European agriculture," Ecological Economics, Elsevier, vol. 219(C).

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