The objective of this paper is identify the determinants of reaction to decoupling, focusing, in particular, on farm strategies and investment behaviour both on-farm and off-farm investment. The paper analyses a sample of 248 farm-households located in 8 EU countries, using decision tree...

This paper focuses on the basic element of the 2003 CAP reform process: on the single farm payment and its national implementation models. We examine possible economic impacts (production distorting effects, redistribution, restructuring, resource allocation and effects on land market) of the...

Agriculture in dry land Mediterranean areas faces considerable level of production risk as result of the unpredictable weather. Governmental income stabilisation instruments have had a major impact on Mediterranean farms in changing land allocation, and changing income levels and variability....

Our paper focuses on the question: how the measures of June 2003 agreement can help the EU to meet the new WTO commitments. As decoupling of direct payments and WTO classification of the new payments seem to be one of the most important questions from the point of view of WTO negotiations, our...

Recent reforms of agricultural policies in developed countries introduced direct payments to the detriment of traditional production enhancing instruments. Whereas these new instruments can influence production through several effects, current empirical studies do not show any significant impact...

Following the decoupling of the cotton subsidies in 2006 the production system has become less intensive in input usage with an average yield reduction of 40 per cent. Albeit the farm income has not been reduced, the reform has had a negative effect on the economy of some rural areas of Southern...

The financial performance of organic and conventional farming is highly influenced by the EU direct payment policy. While organic farms receive considerable support from agrienvironmental programmes, the design of the first pillar put organic farming at a disadvantage in the past. The 2003 CAP...

In our paper, we briefly discuss the outlook for the main agricultural sectors in Hungary until 2013, and present some of the latest results of our modelling work at the Research Institute for Agricultural Economics (AKI). In addition, we provide a short methodological overview of the applied...

In the context of the new CAP, decoupling subsidies from production should incite farmers to reorganize their production systems, particularly through diversification opportunities. In this paper we focus our analysis on the conditions that could permit the development of extensive orchards by...

Agri-environmental programs are part of the green box of the GATT Uruguay Round and are supposed to "have no, or at most minimal trade distorting effects or effects on production." In addition, "the amount of payment shall be limited to the extra costs or loss of income involved in complying...