A PMP Model for Assessing the Impacts of New CAP 2014-2020 on Olive Farming Systems in Andalusia Region, Spain

This contribution analyzes the likely impacts of the new CAP reform on different olive farming systems in Andalusia, Spain. It uses a Positive Mathematical Programming model calibrated with the neutral procedure. The model compares the situation of the average olive farm in the base year with its position in a simulated year using two policy scenarios. Results indicate inter alia that the new distribution rules of aids don’t incentive the adoption of integrated and organic farming. Alternatively, implementing green payment scheme would better redistribute public support from less to more environmentally-friendly olive farming practices, enhancing the CAP aids legitimacy.