Using a CGE model calibrated on Scottish data, this paper examines two important issues related to evaluating impacts of the Single Farm Payment. These are specification of product transformation functions and investigation into supply elasticity parameter. Simulation results from a standard CGE...

Previous research has ignored the influence of inputs on output risk when assessing the effects of decoupled income-support payments on production decisions. This paper studies the impacts of agricultural policy decoupling on output variability and mean by explicitly considering the influence of...

Our paper asses the impacts of the partially decoupled (PD) scheme, implemented during the 1990s and first half of the 2000s in the framework of the Common Agricultural Policy (CAP), on on-farm investment as well as on other production decisions. The Spanish COP sector was taken as a case study...

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...