Table Of ContentDisaggregated Impacts of CAP Reforms
PROCEEDINGS OF AN OECD WORKSHOP
The Common Agricultural Policy (CAP) is an important policy for the European Union and accounts for about
40% of the EU budget. Ever since its inception in 1958, the CAP has been regularly reviewed and adjusted to Disaggregated Impacts
improve its performance and adapt to changing circumstances. At a time when the post-2013 future of the CAP
is being discussed and major challenges such as food security and climate change lay ahead, it is important to
of CAP Reforms
review the impact of past reforms and to draw lessons for the design of future policies.
While the studies in these proceedings often take account of national and international market effects of
agricultural policies, they tend to focus on the impact of policies on farms and at the regional and local levels. PROCEEDINGS OF AN OECD WORKSHOP
Today, the European Union is composed of very diverse regions that are affected very differently by any given
farm policy, depending on the structural characteristics of the farms’ and regions’ economies.
This report collects papers presented at the OECD Workshop on Disaggregated Impacts of CAP Reforms, held
in Paris in March 2010, which focused on recent reforms. In particular, it examined the implementation of the
single payment scheme since 2005 and the transfer of funds between different measures. Special attention
was also paid to reforms of the sugar and dairy sectors with respect to the quota system and the restructuring
of both these industries. The papers also look at the impact of the new direct payment system on land use,
production and income.
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Please cite this publication as: W
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Disaggregated Impacts
of CAP Reforms
PROCEEDINGS OF AN OECD WORKSHOP
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Please cite this publication as:
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FOREWORD –
Foreword
The OECD Workshop on the Disaggregated Impacts of CAP Reforms was held in
Paris on 10-11 March 2010. It was organised as part of a wider project to evaluate
25 years of reforms of the Common Agricultural Policy of the European Union. The
workshop focused on reforms since 2003 and their impact at the national, regional and
farm levels.
These proceedings contain the 16 papers presented at the workshop and are organised
as follows: agricultural markets and farm performance (Part 1); land markets and farm
structure (Part II); the dairy sector (Part III); the agro-food industry (Part IV); the
distribution of support and income (Part V); the environment (Part VI) and rural
development (Part VII). The workshop agenda is provided in the annex.
These proceedings also contain an overview which explains the context in which the
workshop took place, briefly presents the coverage of the different contributions included
in these proceedings, and outlines the main approaches, findings, and scope for further
work as identified in the closing session of the workshop.
Acknowledgements
Catherine Moreddu organised the workshop and supervised the preparation of the
proceedings. Michèle Patterson provided editorial assistance.
The OECD expresses its appreciation to all participants for contributing to the success
of the workshop. The Secretariat would like to thank in particular the authors of the
papers included in the proceedings for their efforts in writing and re-writing their
contributions and Ken Thomson for his excellent editing of this volume.
DISAGGREGATED IMPACTS OF CAP REFORMS © OECD 2011
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TABLE OF CONTENTS –
Table of contents
Abbreviations .............................................................................................................................................. 7
Overview ..................................................................................................................................................... 9
Part I. The Impact of Decoupling on Agricultural Markets and Farm Performance
Chapter 1. The impact of decoupling and modulation in the European Union:
a sectoral and farm level assessment ........................................................................................................ 15
Chapter 2. The economic impact of allowing partial decoupling under the 2003
Common Agricultural Policy reforms ...................................................................................................... 35
Part II. The Impact of the Single Payment Scheme on Land Markets and Farm Structure
Chapter 3. European Union land markets and the Common Agricultural Policy..................................... 55
Chapter 4. The impact of the Health Check on structural change and farm efficiency:
a comparative assessment of three European agricultural regions............................................................ 75
Part III. The Impact of Dairy Reform
Chapter 5. European Union dairy policy reform: impact and challenges ................................................. 93
Chapter 6. The impact of decoupling and price variation on dairy farmers’ strategy:
overview of theoretical and real effects .................................................................................................. 111
Part IV. The Impact of CAP Reform on the Agro-Food Industry
Chapter 7. Scenar 2020-II: Decomposition analysis to understand policy impacts on agricultural
primary production and related processing sectors ................................................................................. 135
Chapter 8. The impact of the European Union sugar reform on the beet processing sector .................. 151
Part V. The Impact of CAP Reform on the Distribution of Support and Income
Chapter 9. The impact of SPS implementation options on the distribution of support .......................... 161
Chapter 10. The CAP Health Check in France: A significant redistribution of payments? ................... 175
Chapter 11. Distribution of agricultural direct payments: the case of France ........................................ 195
DISAGGREGATED IMPACTS OF CAP REFORMS © OECD 2011
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– TABLE OF CONTENTS
Part VI. The Impact of CAP Reform on the Environment
Chapter 12. The impact of CAP reform on the environment: some regional results ............................. 215
Chapter 13. Environmental consequences in Austria of the 2003 CAP reform ..................................... 235
Part VII. The Impact of CAP Reform on Rural Development
Chapter 14. The impact of the CAP on regional employment: a multi-modelling
cross-country approach ........................................................................................................................... 251
Chapter 15. The impact of modulation as a policy instrument ............................................................... 265
Chapter 16. Spatial structure of agricultural production in France: the role of the
Common Agricultural Policy .................................................................................................................. 285
Annex ..................................................................................................................................................... 311
DISAGGREGATED IMPACTS OF CAP REFORMS © OECD 2011
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ABBREVIATIONS –
Abbreviations
ABM Agent-Based Model
ACP African, Caribbean and Pacific countries
AGMEMOD Agricultural Member State Modelling
AgriPoliS Agricultural Policy Simulator
ANOVA Analysis of variance
ASC Agricultural Structural Census
AWU Annual work unit
CAP Common Agricultural Policy
CAPRI Common Agricultural Policy Regionalised Impact Modelling System
CAPSIM Common Agricultural Policy Simulation
CMO Common Market Organisations
COP Cereals, Oilseeds and Protein crops
CPI Consumer Price Index
DG Directorate-General
DG-AGRI Directorate-General for Agriculture and Rural Development
DP Direct payments
DPSIR Driving force-Pressure-State-Impact-Response
DSR Driving force-State-Response
EAA Economic Accounts of Agriculture
EAFRD European Agricultural Fund for Rural Development
EBA Everything but Arms
EDIM European Dairy Industry Model
EC European Council
EEC European Economic Community
EPA Economic Partnership Agreements
ESIM European Simulation Model
ESU European Size Unit
EU European Union
EU2 Countries which joined the EU in 2007
EU10 Countries which joined the EU in 2004
EU12/EU10+2 Countries which joined the EU in 2004 and 2007
EU15 Countries which were member of the EU in 2003
EU25 Countries which were member of the EU between 2004 and 2006
EU27 Countries which were member of the EU from 2007
EUROSTAT Statistical Office of the European Communities
FADN Farm Accountancy Data Network
FAIR Act Federal Agricultural Improvement and Reform Act
FAO Food and Agriculture Organization
FAPRI Food and Agricultural Policy Research Institute
FEOGA Fonds Européen d'Orientation et de Garantie Agricole
(European Agricultural Guidance and Guarantee Fund)
DISAGGREGATED IMPACTS OF CAP REFORMS © OECD 2011
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-ABBREVIATIONS
FFI Family Farm Income
GAEC Good Agricultural and Environmental Conditions
GDP Gross Domestic Product
GFP Good Farming Practices
GVA Gross Value Added
Ha Hectares
IACS Integrated Administration and Control System
IDEMA The Impact of Decoupling and Modulation in the Enlarged Union: a sectoral and
farm level assessment
I-O Input-Output Analysis
Kg Kilogramme
LEADER Liaison Entre Actions de Développement de l'Économie Rurale
(Links between the rural economy and development actions)
LFA Less Favoured Area
LDP Loan Deficiency Payments
LP Linear Programming
MFN Most Favoured Nation
MLA Marketing Loss Assistance
MTR Mid-Term Review
NMS New member states
NUTS Nomenclature of territorial units for statistics
OECD Organisation for Economic Cooperation and Development
PASMA Positive Agricultural Sector Model Austria
PEM Policy Evaluation Model
PFC Production Flexibility Contract
PMP Positive Mathematical Programming
PSR Pressure-State-Response
RDP Rural development Programme
RED Renewable Energy Directive
SAPS Single Area Payment Scheme
SFP Single Farm Payment
SMP Skimmed Milk Powder
SMR Statutory Management Requirements
SPBM Special Premium for Bovine Male
SPS Single Payment Scheme
SWOT Strengths, Weaknesses, Opportunities, and Threats
TRQ Tariff Rate Quotas
TVC Total Variable Cost
UAA Utilized Agricultural Area
UEP Utility Efficient Programming
URAA Uruguay Round Agreement on Agriculture
WTO World Trade Organisation
DISAGGREGATED IMPACTS OF CAP REFORMS © OECD 2011
