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    CAP reform post 2013: Examining the equity dimensions of agricultural support.

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    Author
    Howley, Peter
    Donnellan, Trevor
    Hanrahan, Kevin
    Keyword
    Common Agricultural Policy
    Inequitable distribution of payments
    Agricultural production
    Multi-product partial equilibrium model
    Date
    2009
    
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    URI
    http://hdl.handle.net/11019/693
    Citation
    P.Howley, K. Hanrahan and T. Donnellan. CAP reform post 2013: Examining the equity dimensions of agricultural support. RERC Working Paper Series PUT 09-WP-RE-02
    Abstract
    Using a dynamic multi-product partial equilibrium model, this paper firstly examines the potential impact of recent policy changes accruing from the mid term review of the Common Agricultural Policy (CAP) in 2003 on the cattle and sheep sectors in Ireland. Secondly, this paper evaluates the potential impact of the implementation of a CAP budget neutral, common EU flat area payment across all Member States. The European Commission has signalled that it will be evaluating current differences in the level of support between Member States as, for example, in the explanatory memorandum accompanying the Commission’s Health Check proposals the Commission argues that it is “increasingly harder to justify the legitimacy of significant individual differences in the support level which are only based on past support” (CEC, 2008; p.18). This paper demonstrates how there are significant differences in the level of CAP payments per hectare across Member States, as generally farmers in more prosperous Western and Nordic countries receive a much higher level of payment per hectare than farmers in relatively poorer Central and Eastern European countries. In relation to Ireland, similar to most other EU-15 countries, farmers benefit from the current inequitable distribution of payments and the results indicate that any move towards equalising the level of payments per hectare will have a significant negative impact on agricultural production and net trade.
    Funder
    European Commission
    Grant Number
    SSPE-CT-2005-021543
    Collections
    Agricultural Economics

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