Search

Achieving economic and social sustainability is the goal of any policy when defining measures. We focus on the beef sector, where many challenges have arisen due to its structural characteristics, such as an unfavourable scale structure, high costs, low efficiency, and a low environmental footprint. This paper presents an example of the support provided by a mathematical programming model in the development of a Common Agricultural Policy Strategic Plan for the period 2023-2027.

Permanent grasslands (PG) feature in the European rural landscape and represent a major agricultural production resource. They support multiple non-provisioning ecosystem services (ES), including climate regulation, flood control, biodiversity, and pollination. PG are at risk of loss or degradation due to agricultural land use and land management changes. The objective of this systematic review is to identify the main economic influences shaping management and maintenance of PG, and the risks and opportunities for delivery of a range of ES. A total of 51 papers were included. Relevant policy interventions and economic drivers are identified in relation to how they shape the management of EU grasslands over time and across farming systems, countries, or biogeographic zones. A high reliance on public payments from the EU Common Agricultural Policy (CAP), with uneven impact on mitigating PG losses and associated ES provisions, was identified, which needs to be considered in relation to ongoing CAP reform. There is a gap in the literature regarding economic tipping points for change. Future research needs to identify and map ES provisions by PG along with trade-offs and synergies, and link this to policy. There are substantive challenges to maintaining Europe's PG area and management, which must be addressed through EU-wide instruments. [ABSTRACT FROM AUTHOR]

The objective of this study is to perform an ex-ante assessment of the potential impacts of agro-environmental measures included in the post-2020 Common Agricultural Policy (CAP), by estimating farmers' responsiveness in adopting organic agricultural practices and an eco-scheme that incentivises extensive forage systems. This research is conducted by mean of an Agent-Based Model (ABM), based on Positive Mathematical Programming (PMP), implemented in GAMS. The ABM facilitate the simulation of interaction among farmers, allowing for an analysis of farm heterogeneity. The PMP methodology add a non-rational dimention to the farmers’ economic drivers. The model is calibrated using 2019 Farm Accountancy Data Network (FADN) data specific to the Emilia Romagna region in Italy. Our findings reveal significant impacts on land use, with a notable decrease in cereal cultivation in favour of protein and fodder crops. Moreover, structural shifts are observed, notably a decrease in the number of small-scale farms. We also assess environmental and economic implications, observing a modest reduction in CO2 equivalent emissions per hectare, an increase in water demand, and an overall economic stability among farms, as indicated by changes in gross margin per hectare.

The aim of this work is to assess the structural, production, environmental, and economic impact of an increasing tax on climate change gas emissions related to milk production under the current CAP payment system. The analysis is performed using an Agent-Based Model (ABM) based on Positive Mathematical Programming (PMP). The integration between ABM and PMP makes it possible to simulate farmers' strategies considering the interaction between them, the territorial specificity, and the heterogeneity of farms in the presence of little information on production costs. It also makes it possible to add a social and cultural perspective to the economic factors. The model is calibrated using FADN data for the Emilia-Romagna region (Italy) from the year 2020. The results show that farmers belonging to different age groups make decisions based on economic profitability, but also on their social and cultural background. To maximise their utility functions, farmers can opt for more efficient agricultural management practices that may result in the exchange of production factors, especially land. The overall impact penalises less efficient farms and agricultural production with higher negative externalities. [ABSTRACT FROM AUTHOR]

Among the keys enabling the actors of the food chain to become more sustainable, the Strategy assigns an important role to knowledge and information. For this reason, the Farm to Fork Strategy aims to make the Farm Accountancy Data Network (FADN) the main data source of sustainable indicators, turning it into a Farm Sustainability Data Network (FSDN). Wine not only represents one of the most important products of the Italian agri-food system (value of turnover and exports), but it is also characterised by a widespread use of traditional certification systems (PDO/ PGI, Organic), to which in recent years specific certifi cations of sustainability have been added, evaluated through its threefold dimension: economic, environmental, and social. Indeed, wine is much ahead of other sectors in the process of sustainability certification both for the process and the product itself. The paper is an effort to test the current set of information included in the FADN and some related computable indicators as a feasible tool for the assessment of sustainability in the wine sector. The goal of this paper is twofold. Firstly, we assess the actual level of sustainability of the wine sector in Italy through an indicator that synthetizes the three dimensions (economic, environmental, and social) of sustainability at the regional level. Secondly, more in general, we test the current capacity of the FADN information to provide a reliable measure of sustainability given the intention of the EU legislator to switch the European data network from FADN to FSDN. [ABSTRACT FROM AUTHOR]

In 2022, in Bordeaux due to a structural oversupply, grape growers' syndicates have asked to reimplement premiumized grub-ups in order to bring the market back to equilibrium. However, in today's CMO no legal basis exists to conduct such a policy. In this article, we go over the policy of planting rights (transformed in 2016 into planting authorization) and of premiumized grub-ups. In undertaking this historical review of Europe's grubbing-up policy, we analyze in detail Pierre Bartoli's 1982 thesis and studies of the Observatoire de l'Hérault (Dyopta) that take into account experts' opinions and statistical viewpoints. Th is review enables us to present the main indicators in order to "objectively" analyze data that we received from a 2007/2008 grubbing-up campaign in Hérault. Our originality is the analysis of a subset consisting of 341 Vinifl hor applications for grubbing-up premiums, which represents 20% of all benefi ciaries receiving premiums. Th e applications were later sent with the applicants' consent to a development agency that transmitted them to us. Within this subset, we selected 51 grape growers with whom we conducted a qualitative and quantitative survey. Our goal was to identify their real motivations for grubbing up their vines. We then put forward synthesized results explaining the qualitative interviews and run the data through an econometric model. Th e main results are that many grape growers grubbed up only a small fraction of their vineyards mainly to cash in on the premiums in times of dire wine crisis. Grubbing ups of young "improving varietals" reinforces this analysis. Furthermore, the 2007/2008 grubbing-up campaign comes a year just before the 2008/2011 Fischer-Boel grubbing-up campaigns that wanted to reduce Europe's vineyard of 175,000 ha of vines by eliminating the least effi cient grape growers. We thought it would be interesting to shed light on this 2008 wine CMO policy by using the results of the 2007/2008 grubbing-up campaign. [ABSTRACT FROM AUTHOR]

Permanent grasslands (PG) feature in the European rural landscape and represent a major agricultural production resource. They support multiple non-provisioning ecosystem services (ES), including climate regulation, flood control, biodiversity, and pollination. PG are at risk of loss or degradation due to agricultural land use and land management changes. The objective of this systematic review is to identify the main economic influences shaping management and maintenance of PG, and the risks and opportunities for delivery of a range of ES. A total of 51 papers were included. Relevant policy interventions and economic drivers are identified in relation to how they shape the management of EU grasslands over time and across farming systems, countries, or biogeographic zones. A high reliance on public payments from the EU Common Agricultural Policy (CAP), with uneven impact on mitigating PG losses and associated ES provisions, was identified, which needs to be considered in relation to ongoing CAP reform. There is a gap in the literature regarding economic tipping points for change. Future research needs to identify and map ES provisions by PG along with trade-offs and synergies, and link this to policy. There are substantive challenges to maintaining Europe’s PG area and management, which must be addressed through EU-wide instruments.

The aim of this work is to assess the structural, production, environmental, and economic impact of an increasing tax on climate change gas emissions related to milk production under the current CAP payment system. The analysis is performed using an Agent-Based Model (ABM) based on Positive Mathematical Programming (PMP). The integration between ABM and PMP makes it possible to simulate farmers’ strategies considering the interaction between them, the territorial specificity, and the heterogeneity of farms in the presence of little information on production costs. It also makes it possible to add a social and cultural perspective to the economic factors. The model is calibrated using FADN data for the Emilia-Romagna region (Italy) from the year 2020. The results show that farmers belonging to different age groups make decisions based on economic profitability, but also on their social and cultural background. To maximise their utility functions, farmers can opt for more efficient agricultural management practices that may result in the exchange of production factors, especially land. The overall impact penalises less efficient farms and agricultural production with higher negative externalities.

During the last 2 decades, two policy reforms--the Fischler Reform and the Common Market Organization Reform--have pushed the EU dairy sector toward economic liberalization. These changes affected the EU supply chains at different levels, altering the mechanisms of vertical price transmission. Against this backdrop, we apply error correction models to assess how price signals are passed through before and after the Italian milk supply chain reforms. In particular, we study the degree of price transmission asymmetries and conclude that market sluggishness has increased in the post-reform period, but the asymmetric dynamics are less evident. Reflections on future research needs are discussed. [ABSTRACT FROM AUTHOR]

Abstract The EU Common Agricultural Policy (CAP), and with it the EU wine policy, is experiencing a reform process, started in 2018, in order to address ambitious environmental and social objectives, in conjunction with the goal of a competitive agricultural sector. Given the role of the EU in wine supply, the aim of this paper is to present the design, the rationale and the potential effect of the proposed reform with specific reference to wine sector. To better understand the forthcoming process, it is firstly presented how CAP and its wine policy evolved in terms of objectives and tools over time. The EU wine policy is a paradigmatic example of a combination between the horizontal measures, valid for all agricultural sectors, and vertical measures, peculiarly encompassing the whole wine supply chain. The reform proposal confirms, with some interesting modifications, the set of tools already operating in the sector; however, it calls for a planning of the implementation of the available tools for all products in a unitary frame represented by a national CAP Strategic Plan, applying a lean administrative procedure. In the hypothesis that the COVID-19 outbreak will not cause a radical change in the global agri-food system, the proposed planning process should stimulate shared strategies. These are intended to effectively coordinate, according to the principle of complementarity, the implementation of available policy tools, in order to obtain a better use of resources and a more balanced achievement of all policy objectives.

Copyright of Ardeola is the property of Sociedad Espanola de Ornitologia and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Abstract Background Intensively cultivated agricultural landscapes often suffer from substantial pollinator losses, which may be leading to decreasing pollination services for crops and wild flowering plants. Conservation measures that are easy to implement and accepted by farmers are needed to halt a further loss of pollinators in large areas under intensive agricultural management. Here we report the results of a replicated long-term study involving networks of mostly perennial flower strips covering 10% of a conventionally managed agricultural landscape in southwestern Germany. Results We demonstrate the considerable success of these measures for wild bee and butterfly species richness over an observation period of 5 years. Overall species richness of bees and butterflies but also the numbers of specialist bee species clearly increased in the ecological enhancement areas as compared to the control areas without ecological enhancement measures. A three to five-fold increase in species richness was found after more than 2 years of enhancement of the areas with flower strips. Oligolectic bee species increased significantly only after the third year. Conclusions In our long-term field experiment we used a large variety of seed mixtures and temporal variation in seeding time, ensured continuity of the flower-strips by using perennial seed mixtures and distributed the measures over c. 10% of the landscape. This led to an increase in pollinator abundance, suggesting that these measures may be instrumental for the successful support of pollinators. These measures may ensure the availability of a network of diverse habitats and foraging resources for pollinators throughout the year, as well as nesting sites for many species. The measures are applied in-field and are suitable for application in areas under intensive agriculture. We propose that flower strip networks should be implemented much more in the upcoming CAP (common agricultural policy) reform in the European Union and promoted more by advisory services for farmers.

This paper examines the likely impact of the European Green Deal (EGD) and its sectoral strategies on CAP reform. The large-scale evolvement of the EGD is almost certain, while the financing and realization of growth are uncertain. The EGD emphasizes and financially relies on the CAP as a vehicle for actions for the environment such as biodiversity. The numerical targets will be addressed through a combination of the CAP and environmental regulations. The proposed reform of the CAP has its own environmental and climate measures that are compatible with the EGD, but the realization of the measures is uncertain, both in terms of the deliberations on the proposed reform and the expanded discretion of member countries. The CAP will be required to adapt further as the EGD policy progresses, including measures to reduce greenhouse gas emissions. The CAP will have to steer a difficult course between increasing the burden on the agricultural sector and eroding its planning authority and maintaining the agricultural budget. [ABSTRACT FROM AUTHOR]

The EU's Common Agricultural Policy (CAP) has had limited success in mitigating agriculture's environmental degradation. In this paper we simulate the impacts of the 2013 "greening" reform on biodiversity and ecosystem services in environmentally contrasting landscapes. We do this by integrating an agent‐based model of structural change with spatial ecological production functions, and show that the reform will likely fail to deliver substantial environmental benefits. Our study implies that greening measures need to be tailored to local conditions and priorities, to generate environmental improvements. Such spatial targeting of measures is though incompatible with the design of a common direct payments scheme. [ABSTRACT FROM AUTHOR]

This paper analyzes the microeconomic effects of the 2013 reform of the EU's Common Agricultural Policy (CAP). This is done using the EU‐wide individual farm model (IFM‐CAP). Simulation results show that although the reform succeeded to partially harmonize direct payments (DP) among farms and Member States, relatively strong differences in the distribution still remain in place. Around 62% of the farms increase their income, whereas the remaining 38% lose from the reform. The reform benefits small farms, while large farms lose out. As measured by the Gini coefficient, the 2013‐CAP reform only partially reduces the disparity in the distribution of DP and farm income among farms. The Gini decomposition shows that subsidies (in particular decoupled payments) contribute to a decrease in the inequality of total farm income. The future CAP reform needs to have a stronger overhaul of the DP system in order to achieve a substantial reduction in inequality in the distribution of payments among farms and regions in EU. [ABSTRACT FROM AUTHOR]

The Common Agricultural Policy (CAP) is at the crossroads of several policy interests. It is scrutinised by farming and environmental communities as well as by the food industry, regional authorities, research and public sector. The paper analyses the recent consultation process undertaken by the European Commission. The paper concludes that among the key reform issues are: the level of the financial support to the CAP; the continued environmental and other public goods orientation of the CAP and generational renewal. In addition, the focus on result orientation and reduction of the administrative burden can be expected. The relevant European Commission proposals are foreseen around summer 2018.

The Latest Common Agricultural Policy reform intends to expand and strengthen environmental and social support and to liberalise the delivery model carried out through strategic planning. This paper aims to assess the potential impacts of the new CAP reform on the main agricultural markets in Croatia. The impact assessment is analysed using the AGMEMOD model where, in addition to the baseline scenario, three scenarios of potential changes are developed and compared to the baseline. Changes in market patterns (production, yield and net trade) at the end of the simulated period are compared with the baseline scenario results by 2030. The reduction in support levels to production, abolishment of voluntary coupled supports and introduction of additional environmental constraints have a significant impact on the main Croatian agricultural markets. Crop markets prov to be less dependent on subsidies, so that market pattern changes will not mean the loss of Croatia’s net export status for soft wheat, maize and soy beans, while barley no longer holds this status. Livestock sectors, especially beef and dairy, in addition to demonstrating a distinct lack of competitiveness even before the Croatian accession to the EU, additionally suffer significant production volume losses along with an increase in imports. Although significant, changes to the Croatian agricultural market are not dramatic enough to cause a complete production breakdown by 2030.

This paper examines the impact of the European Green Deal (EGD) and its sectoral strategies on the CAP. The EGD emphasizes the CAP and relies on it financially. Numerical targets will be addressed through combinations of the CAP and environmental measures. The proposed CAP reform has its own environmental and climate measures that are compatible with those of the EGD, but there are uncertainties arising from the deliberations on the reform and the increased discretion of Member States (MS). A difficult manoeuvre is required between CAP budgetary limits, eroded policy-making powers, increased burden on the agricultural sector, and evolving EGD policies. [ABSTRACT FROM AUTHOR]

Current projections indicate that agricultural GHG emissions are hardly expected to fall between 2017 and 2030 while the sink in the LULUCF sector is projected to decline. These trends call into question the feasibility of the Commission's roadmap to reach net zero emissions by 2050. Contributing to climate change mitigation and adaptation is proposed as one of the nine specific objectives in the future CAP. This paper discusses how Member States could use the opportunities presented by the new CAP to reduce agricultural emissions while increasing removals in the LULUCF sector. The Commission has prefigured changes in the EU's climate architecture that could give Member States greater incentives to prioritize climate action in their CAP Strategic Plans. A higher share of future CAP expenditure should also be allocated to climate action under the proposal for climate mainstreaming of the EU budget, although the effectiveness of this mandate is undermined by the poor quality of the metrics proposed. The different elements of the proposed green architecture in the future CAP are reviewed to highlight the scope for climate action, including the Commission's proposal for a carbon farming initiative. Ultimately, it will be up to Member States to determine the priority they intend to give to climate action in their CAP Strategic Plans. [ABSTRACT FROM AUTHOR]

Since the advent of decoupling, the process of adapting the Common Agricultural Policy (CAP) to a rising set of environmental priorities has involved various approaches and technical adjustments, with most Member States inclined to move more slowly than the European Commission. The debate on the post 2020 incarnation of the CAP has revealed a continued preference for gradual adaptation which stands in contrast to the escalation of environmental ambition set out in the Commission's recent initiatives stemming from the Green Deal, including the Farm To Fork Strategy. Different ways of resolving this tension are discussed and some of the implications for the CAP and the related question of the distribution of EU funds to the Member States considered. [ABSTRACT FROM AUTHOR]

The EU Common Agricultural Policy (CAP), and with it the EU wine policy, is experiencing a reform process, started in 2018, in order to address ambitious environmental and social objectives, in conjunction with the goal of a competitive agricultural sector. Given the role of the EU in wine supply, the aim of this paper is to present the design, the rationale and the potential effect of the proposed reform with specific reference to wine sector. To better understand the forthcoming process, it is firstly presented how CAP and its wine policy evolved in terms of objectives and tools over time. The EU wine policy is a paradigmatic example of a combination between the horizontal measures, valid for all agricultural sectors, and vertical measures, peculiarly encompassing the whole wine supply chain. The reform proposal confirms, with some interesting modifications, the set of tools already operating in the sector; however, it calls for a planning of the implementation of the available tools for all products in a unitary frame represented by a national CAP Strategic Plan, applying a lean administrative procedure. In the hypothesis that the COVID-19 outbreak will not cause a radical change in the global agri-food system, the proposed planning process should stimulate shared strategies. These are intended to effectively coordinate, according to the principle of complementarity, the implementation of available policy tools, in order to obtain a better use of resources and a more balanced achievement of all policy objectives. [ABSTRACT FROM AUTHOR]

This paper investigates the effects of the convergence process of direct payments (DPs) on farm income inequality. The analysis uses the Gini coefficient concept and its decomposition on the FADN Italian sample in 2014 and 2019 to assess the impact of the DPs reform in Italy. Results of the analysis show that a marginal increase in direct payments will reduce income concentration. However, a shift of resources toward mountain areas could occur. The results of the analysis have some policy implications regarding the application of the convergence mechanism of the CAP in Italy: in fact, the convergence process leads to a redistribution of resources in favour of mountain areas. These results could feed the debate on the future of CAP direct payments after 2020, when the cut or, at least, the reduction of DPs could increase income concentration. [ABSTRACT FROM AUTHOR]

This article investigates the technological catching-up process related to the type of payments (coupled or decoupled) granted to a selection of farms in the French department of Meuse between 1992 and 2012. Using a robust nonparametric efficiency frontier, we first derive a distribution of technical efficiency estimates. Second, through a series of cross-sectional data samples, we regress these estimates on other exogenous, farm-specific variables, such as the subsidies granted and the financial situation. Our results show that technical catching-up occurred for the farms studied. Furthermore, the presence of decoupled payments during the final period slowed down this process. Finally, farms' mid-/long-term debts also had a negative impact on their technical catching-up. [ABSTRACT FROM AUTHOR]

Abstract: We assess the effects of the 2013 CAP reform on the capitalisation of decoupled payments in land rental values. Our estimates suggest that the reform leads to an increase in the capitalisation of decoupled payments by an additional 18 cents for each Euro of decoupled payments relative to the pre‐reform situation. However, there is an important variation in the reform effects between Member States (MS) particularly between Old Member States (OMS) and New MS (NMS). In NMS, the capitalisation rate slightly reduces from 83% in the pre‐reform period to 79% in the post‐reform period. Although, the rate is significantly lower in OMS, it doubles (from 21% to 43%) due to the reform. The main sources of the post‐reform capitalisation in the European Union (EU) are the pre‐reform capitalisation accounting for 69% of the total post‐reform capitalisation, followed by the entitlement stock change with 19%, by the internal convergence of payments with 18%, the budget change (including external convergence) with 1%, and the differentiation of payments (redistributive payment) with −7%. Overall, our estimates suggest that on average in the EU, the non‐farming landowners’ policy gains are 27% of the total decoupled payments in the post‐reform period compared to 18% in the pre‐reform period. [ABSTRACT FROM AUTHOR]

Abstract: The Common Agricultural Policy (CAP) is a core policy of the European Union (EU), representing 40 per cent of the EU budget and a cornerstone of the integration process. Due to the path dependency that defined its evolution, it had always been a rather homogeneous and centralized policy. For the first time, the 2014–20 reform endowed Member States with the possibility to tailor the direct payments of the CAP along different fields of flexibility and thereby better address their national needs. This article examines these national choices in terms of the discontinuity they impose on the centralized policy model, showing that they reduced the policy inertia associated to the historical processes in place at the EU level, along a new national path dependency re‐shaping the CAP implementation. The flexibility introduced by the 2014–20 reform was particularly embraced by Member States that had been penalized by the ‘one‐size‐fits‐all’ historical archetype. [ABSTRACT FROM AUTHOR]

The adoption of Conservation Agriculture (CA) in Europe varies according to the ecological regions of the continent. Although Europe is behind other countries in adoption of CA, the indicators for future progress are encouraging. The area where CA is applied is growing rapidly because of increasing environmental awareness, including soil protection, and because of the need to reduce production costs. The European Conservation Agriculture Federation (ECAF) plays an important role in the adoption and dissemination of CA practices, and in discussions involving CA and the EU Common Agricultural Policy (CAP) reform. Yield performance and stability, operating costs, environmental policies and programs of the Common Agricultural Policy (CAP), and climate change will likely be the major driving forces defining the direction and for the extension of CA in Europe. The role of agriculture in climate change mitigation in the EU is discussed in the paper.

In this paper, we assess the recent and anticipated changes on Scotland’s livestock-producing crofts, using a representative survey of Scottish farmers undertaken in 2013. We find that crofters are similar to other livestock farmers, both inside and outside of the traditional crofting counties, in terms of age, years of involvement in the holding and percentage of identified successors, but are less likely to own their holdings or to operate them for profit. Crofters reported being more subsidy dependent than other livestock producers, and many appear likely to retreat from crofting in the event of substantive subsidy reductions. However, crofting respondents identified input costs, regulations, commodity prices and climate change as having had greater influence on how they manage their crofts than the 2005 transition to the ‘Single Farm Payment’. Overall, crofters reported making fewer changes than their counterparts in non-crofting counties, but similar levels to those of other livestock farmers within crofting counties, suggesting less ‘room for manoeuvre’ within the remote areas in which most crofts are located. However, there is some evidence that ‘active’ crofts are ‘bouncing forward’ in response to recent challenges, particularly into forestry and agri-tourism, also reporting significantly higher perceived economic prospects. [ABSTRACT FROM PUBLISHER]

As the 2013 Reform of the Common Agricultural Policy (CAP) calls for the harmonisation of Single Payment Scheme (SPS) payments, we estimate the implications of this mandate on agricultural land rental rates over time as Germany began harmonising payments in 2010. Using Bavarian farm-level panel data we find strong capitalisation effects that increase substantially in the years following 2009. On average, the marginal effect on rental rates of an additional SPS euro is 37 cents, growing over time to 53 cents as harmonisation develops. [ABSTRACT FROM AUTHOR]

Off-farm labour participation is an important way in which farm households adapt their labour resources to farm labour needs, and is often viewed as an income integration and an insurance against risk. Nevertheless, it has also been questioned as a step for exiting agriculture. It is therefore important to assess whether or not it is a permanent status and which are its determinants. Most papers on this issue are based on cross-sectional analyses and thus disregard the problem of persistence in the state. Using a 5-wave panel of Italian family farms we estimate different dynamic nonlinear panel data models of the determinants of off-farm labour participation. We allow for two sources of persistence: unobserved heterogeneity and state dependence, and in addition we control for the initial conditions problem. We find a strong persistence in the state and our findings show that, when taking all these features into account, the present work state is almost totally explained by the previous state and by idiosyncratic characteristics. The variables concerning the farm and the farmer's characteristics, typically found to be relevant in cross-sectional analyses, are not significant in the dynamic setting. The reasons for the inconsistency between our results and those of cross-sectional studies are discussed, and an interpretation of how the determinants influence the off-farm labour participation is presented. The distinction between true state dependence and individual heterogeneity has important policy implications that are discussed. [ABSTRACT FROM AUTHOR]

The paper investigates the medium-term impacts of the 2014-2020 CAP reform in the Italian rice sector, analyzing farm's structural characteristics and profitability. Using FADN data, first pillar payments and their contribution to income were computed and compared before reform (2012) and in 2019 (at the end of the internal convergence). The data calculated for the 165 farms in the FADN sample were reported to the universe, and show that the support for rice will fall from 979 to 746 €/hectare and 230 million to 176 million overall, with a 24% loss. However, rice farms will keep a higher support, compared to other arable crops farms. The effect of greening obligations on rice farms was also estimated, even if they are largely exempted by the diversification requirements and ecological focus areas. [ABSTRACT FROM AUTHOR]

Agriculture contributes significantly to greenhouse gas (GHG) emissions, accounting for more than 10% of total CO 2 emissions in the EU-28 area. The Common Agricultural Policy (CAP) plays an important role in promoting environmentally and climate friendly practices and needs to respond to the new environmental challenges by better integrating its objectives with other EU policies. In this respect, the recent CAP reform 2014–2020 made a further step, making a large part of direct payments conditional on new agricultural practices beneficial for the climate and the environment, i.e. “greening”. In this study we estimate the potential environmental benefits from greening in terms of GHG emissions in four regions of Northern Italy, one of the major European agricultural areas in terms of emissions. The emissions were quantified and broken down into the three main GHGs (carbon dioxide, methane and nitrous oxide) per production process. This information was subsequently used in a Positive Mathematical Programming (PMP) farm-based model on more than 3,000 farms, to estimate the effects of greening on regional land use and its contribution in reducing the total emissions. The new agri-environmental constraints produce a modest abatement of total emissions of greenhouse gases (− 1.5%) in the analyzed area. The model estimates a reduction in CO 2 emissions of about 2%. Emissions from nitrous oxide show a decrease of 2.1% and the reduction in the methane is about 0.4% compared to the observed scenario. The process of “lightening” that affected the greening during the CAP negotiation has inevitably resulted in missing an opportunity to introduce a significant positive change of behaviour into agriculture, in line with the expectations and needs of society for EU agriculture as a provider of public goods. [ABSTRACT FROM AUTHOR]

The decline of agriculture, observable mainly in industrialized countries, shows itself not only in a gradual decrease in the economic weight of the primary sector, but also in the abandonment of land devoted to agricultural and livestock activities. The phenomenon of agricultural land abandonment is complex and, in order to explain the causes, it is necessary to consider not only the physical and productive features of the land but also the social and economic characteristics of the area. It also appears to be conditioned by production specialization, since traditional livestock-raising areas show a higher risk of abandonment. The process, which is gradual, starts with a reduction in production intensity followed by increasing marginalization and, finally, the total abandonment of land use. Focusing on a representative area on the Cantabrian Coast of northern Spain, this study tests the hypothesis that a large portion of agricultural land in livestock-oriented regions is underused. It also evaluates the viability of forestry as an alternative use for abandoned lands and the potential effects of the Common Agricultural Policy (CAP) reform.

After accession to European Union in 2004 direct payments became veryimportant income source also for farmers in Slovenia. But agricultural policy inplace at accession changed significantly in year 2007 as result of CAP reformimplementation. The objective of this study was to evaluate decision makingimpacts of direct payments scheme implemented with the reform: regional or morelikely hybrid scheme. The change in farm production structure was simulated withmodel, applying gross margin maximisation, based on static linear programmingapproach. The model has been developed in a spreadsheet framework in MS Excelplatform. A hypothetical farm has been chosen to analyse different scenarios andspecializations. Focus of the analysis was on cattle sector, since it is expected thatdecoupling is going to have significant influence on its optimal productionstructure. The reason is high level of direct payments that could in pre-reformscheme rise up to 70 % of total gross margin. Model results confirm that the reformshould have unfavourable impacts on cattle farms with intensive productionpractice. The results show that hybrid scheme has minor negative impacts in allcattle specializations, while regional scheme would be better option for sheepspecialized farm. Analysis has also shown growing importance of CAP pillar IIpayments, among them particularly agri-environmental measures. In all threeschemes budgetary payments enable farmers to improve financial results and inboth reform schemes they alleviate economic impacts of the CAP reform.

This rapid communication presents main results of the analysis of the income impacts of different direct payment policy options after the accession of Slovenia to the EU at the level of agricultural households. By applying static deterministic total income model, different post-accession direct payments policy options were investigated, with special attention given to the 2003 Common agricultural policy (CAP) reform provisions. The main conclusions based on model results are: i) the improved post-accession income situation of analyzed households under all post-accession policy scenarios, ii) standard direct payments scheme estimated as income most benefi cial, followed by basic fl at-rate area payment option (entirely decoupled) and iii) detection of possible redistributive impacts of 2003 CAP reform in favour of agricultural households engaged in extensive agricultural production.

This paper uses a dynamic, partial equilibrium econometric model to analyze the impact of the 2003 CAP reform and changes of exchange rate on agricultural markets and agricultural incomes in Slovakia. We evaluate three scenarios: (1) baseline scenario with no change in agricultural policies (Single Area Payment Scheme and top-ups are assumed until 2015), (2) CAP reform scenario with full decoupling from 2007 and with modulation from 2013, and (3) exchange rate scenario. In the baseline scenario, production increases. Consumption increases with some exceptions (like pork). Agricultural income rises significantly in the baseline scenario. The full decoupling has a minor impact on agricultural markets relative to the baseline. Weak Euro would lead to higher prices and higher production but lower consumption. Change in the exchange rate causes substitution in consumption of certain commodities due to the relative price changes.

A Nova Reforma da Política Agrícola Comum (PAC) aprovada em 2003 constitui um reforço dos principais objectivos das reformas anteriores de 1992 e de 2000, como a promoção da competitividade do sector agrícola, da multifuncionalidade dos espaços rurais e agrícolas e da exploração sustentável dos recursos. No essencial, substituem-se as ajudas diretas à produção previstas na maioria dos regulamentos das Organizações Comuns de Mercado, por um regime de pagamento único por exploração sujeito a normas de eco-condicionalidade e a limitações na reconversão dos sistemas de produção agrícola. Este artigo avalia os impactos da nova PAC na competitividade do regadio em Portugal nas explorações agrícolas do Alentejo, nomeadamente, dos efeitos do pagamento único na afetação e na retribuição dos recursos agrícolas, de modo a identificar as principais alterações nas orientações produtivas e nos rendimentos agrícolas. Também são avaliados alguns dos principais impactos sócio-econômicos e ambientais diretos decorrentes dos ajustamentos produzidos com a Nova PAC. A metodologia utilizada baseia-se no desenvolvimento de um modelo micro-econômico de programação matemática estocástica discreta de maximização do valor esperado e de minimização do risco, adaptado às características de uma empresa agrícola do Alentejo. O modelo é utilizado para avaliar prospectivamente o plano de produção e o rendimento no curto e no longo prazo, mediante os cenários da reforma da PAC de 2000 e da Nova Reforma da PAC de 2003.The 2003 Common Agricultural Policy (CAP) reform constitutes a reinforcement of the main objectives of the previous reforms of 1992 and of 2000, namely the promotion of the agricultural competitiveness, the multiple functions of the rural and agricultural areas and the sustainable resource exploitation. The direct production aids in the most Common Market Organizations are replaced by an only payment for each farm, subject to echo-conditionality and limits on the agricultural systems changes. This article evaluates the impacts of 2003 CAP reform on the Portugal irrigation competitiveness in the Alentejo region farms. The effects of the only payment in the agricultural returns, the main changes in the crop patterns and in the agricultural incomes were studied. They are also appraised direct social economic and environmental impacts of the adjustments produced with the 2003 CAP reform. The followed methodology is a discreet stochastic programming model. This model maximizes the expected income and minimizes the risk at the farm level. It was used to assess the crop patterns and the farm income in the short and in the long term, in the scenarios of the 2000 CAP and the of the 2003 CAP.

Two of the most important features of the CAP reform 2014–2020 are the redistribution system of direct payments and the establishment of a “greening” component linked to 30% of the national ceiling. Both these features may affect in a very different way similar farms located in the same area; therefore, specific tools able to estimate the effects on the individual farmers' behaviour are needed. The paper contributes to the debate on the CAP reform, assessing the farmers' behaviour in response to the greening implementation, taking into account possible sanctions in case of non-compliance with the requirements. We developed a two-step modelling approach able to estimate: i) the redistributive effect of direct payments reform for the greening and the basic payment scheme; ii) the farmers' behaviour, in terms of land use and income effects, with a positive mathematical programming (PMP) model on a Farm Accountancy Data Network (FADN) sample of Northern Italian farms, implementing the whole set of greening commitments and sanctions. Although the overall greening impact is low, some specific areas and productions are affected to a greater extent: greening causes a decrease in maize and, in some contexts, in wheat which are replaced by nitrogen-fixing crop surfaces. The consequent average income reduction is lower than 0.5% (− 7 €/ha) and almost all farms choose to fully apply the greening constraints in order to avoid sanctions. The weakening of greening measures during negotiations, the amount of greening payments and the sanctions system are strong incentives for farmers to fully comply with the greening practices. [ABSTRACT FROM AUTHOR]

Alternative agricultural systems, such as organic farming (OF), are promising options to sustain both agriculture productivity and environmental health. However, the adoption of OF by farmers is occurring more slowly than is advocated. A key factor limiting farmers is an inability to predict socio-economic consequences of converting to OF. To overcome this, we developed a novel method of integrated assessment of agricultural systems (IAAS) and applied it to scenarios of development of OF in the Camargue region, South of France. In collaboration with the local stakeholders, we characterized the agricultural systems at different spatial scales and defined scenario related to the future of agriculture and to OF. We then used agent-based modeling with farmers and bio-economic modeling with local stakeholders for scenario assessment. We examined the effects on the development of OF systems of key factors such as the ongoing reform in the European Common Agricultural Policy and the effects of regulations for decreased use of pesticides. The policy reform implied trends towards a diversification of crops and greater possibility for conversion to OF. Development of OF at the regional level led to improved environmental performance, but caused a decrease in profitability of the rice supply chains. In light of the observed trade-off between rice production and OF development, objectives and options towards more sustainable agricultural systems were discussed with farmers and local stakeholders. Stakeholders' assessment of the framework provided insights on the positive and specific aspects of the IAAS methodology requiring improvement. The complementarities of agent-based and bio-economic modeling provide stakeholders with a better-informed assessment of diverse scenarios, for the development of more sustainable agricultural systems. [ABSTRACT FROM AUTHOR]