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    Does the single farm payment affect farmers’ behaviour? A macro and micro analysis

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    Author
    Howley, Peter
    Breen, J.
    O'Donoghue, Cathal
    Hennessy, Thia
    Keyword
    Single Farm Payment
    CAP
    Farming attitudes
    Farmers' behaviour
    Date
    2012-10
    
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    URI
    http://hdl.handle.net/11019/385
    Citation
    Peter Howley, James Breen, Cathal O’Donoghue and Thia Hennessy. Does the single farm payment affect farmers’ behaviour? A macro and micro analysis. International Journal of Agricultural Management, Volume 2, Number 1, October 2012 , pp. 57-64
    Abstract
    Using Ireland as a case study, the overall aim of this paper is to determine if decoupled payments affect farmers’ behaviour. Using a dynamic, multi product, partial equilibrium model of the EU agricultural sector, this paper first compares levels of production that would be expected if decoupled payments had no impact on farmers’ activity with actual observed outcomes. Second this paper compares cereal and cattle farmers’ profitability prior to decoupling with that observed after the introduction of decoupled payments. The analysis presented here would suggest that decoupled payments do still maintain a significant effect on agricultural activity with farmers using this new form of support to partly subsidise unprofitable farm production.
    Funder
    European Commission
    Grant Number
    QLK5-CT-2000-00473; SSPE-CT-2005-021543
    ae974a485f413a2113503eed53cd6c53
    http://dx.doi.org/10.5836/ijam/2013-01-06
    Scopus Count
    Collections
    Agricultural Economics
    Agricultural Economics
    Agricultural Economics

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