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European Association of Agricultural Economists >
120th Seminar, September 2-4, 2010, Chania, Crete >
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http://purl.umn.edu/109428
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| Title: | The impact of the Single Farm Payments on the Expenditure on Fertilizers and crop protection inputs: a comparative study of the Italian agriculture |
| Authors: | Vollaro, Michele |
| Keywords: | input use
agricultural intensification
CAP Mid Term Review
Single Farm Payments
cross-compliance. |
| Issue Date: | 2010 |
| Abstract: | The Health Check (HC) of the European Common Agricultural Policy in 2003 sped up the
process of policy reforms toward decoupled payments in order to urge agricultural production to
respond to market signals. However, since decoupled payments could generate “coupled” effects
on production, it remains questionable how single farm payment (SFP) alters agricultural
intensification. Therefore, through a comparative statistical analysis applied on Italian FADN
regional data, this paper aims at evaluating whether the HC reform had positive impacts on the
aggregate expenditure on fertilizers and crop production inputs. From the results, it is observed
that the expansion of profitable crops like vegetables, flowers and vineyards, along with the
receipt of SFP increased the expenditure of fertilizers and crop protection inputs. Such findings
suggest that the HC reform has been so far effective in terms of aligning agricultural production
to markets’ signals, but with the unintended consequence of higher intensification. We deduce
that farmers may allocate higher proportions of SFP to purchase fertilizers and crop protection
inputs whenever the opportunity of higher profits is found in those cropping activities requiring a
higher intensive use of production’ factors. |
| URI: | http://purl.umn.edu/109428 |
| Institution/Association: | European Association of Agricultural Economists>120th Seminar, September 2-4, 2010, Chania, Crete |
| Total Pages: | 26 |
| Collections: | 120th Seminar, September 2-4, 2010, Chania, Crete
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Files in This Item:
| File |
Description |
Size | Format |
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| Vollaro.pdf | Main paper | 617Kb | PDF | View/Open |
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