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Facing decoupling: use of payments and investment reaction to decoupling in the EU

Author

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  • Viaggi, Davide
  • Raggi, Meri
  • Gomez y Paloma, Sergio

Abstract

The main objective of this paper is to evaluate ex-post the effects of the 2003 reform, in particular decoupling, of the Common Agricultural Policy (CAP) in the European Union (EU), with a specific focus on farm investment behaviour. In the past years a number of studies have addressed the issue of the impact of EU policy reforms. However, long-term effects of policy changes and related impacts on structural and investment behaviour received relatively little attention. This study is based on a survey of farm households in a number of EU Member States. In the majority of cases, farmers stated they were indifferent to decoupling. Where any change occurred, the impact of decoupling was highly differentiated. Numerous reactions are better explained by various individual household/farm characteristics, rather than by association with a specific agricultural system.

Suggested Citation

  • Viaggi, Davide & Raggi, Meri & Gomez y Paloma, Sergio, 2009. "Facing decoupling: use of payments and investment reaction to decoupling in the EU," 2009 Conference, August 16-22, 2009, Beijing, China 51724, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:51724
    DOI: 10.22004/ag.econ.51724
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    References listed on IDEAS

    as
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    2. Cornelis Gardebroek & Alfons G.J.M. Oude Lansink, 2004. "Farm‐specific Adjustment Costs in Dutch Pig Farming," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(1), pages 3-24, March.
    3. Ahituv, Avner & Kimhi, Ayal, 2002. "Off-farm work and capital accumulation decisions of farmers over the life-cycle: the role of heterogeneity and state dependence," Journal of Development Economics, Elsevier, vol. 68(2), pages 329-353, August.
    4. Andersson, Hans & Ramaswami, Bharat & Moss, Charles B. & Erickson, Kenneth W. & Hallahan, Charles B. & Nehring, Richard F., 2005. "Off-farm Income and Risky Investments: What Happens to Farm and Nonfarm Assets?," 2005 Annual meeting, July 24-27, Providence, RI 19480, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Paolo Sckokai & Daniele Moro, 2006. "Modeling the Reforms of the Common Agricultural Policy for Arable Crops under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 43-56.
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    Cited by:

    1. Vollaro, Michele, 2010. "The impact of the Single Farm Payments on the Expenditure on Fertilizers and crop protection inputs: a comparative study of the Italian agriculture," 120th Seminar, September 2-4, 2010, Chania, Crete 109428, European Association of Agricultural Economists.

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