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

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.


Issue Date:
2012-10
Publication Type:
Journal Article
DOI and Other Identifiers:
ISSN 2047-3710 (Other)
PURL Identifier:
http://purl.umn.edu/159248
Published in:
International Journal of Agricultural Management, Volume 02, Number 1
Page range:
57-64
Total Pages:
8




 Record created 2017-04-01, last modified 2017-08-27

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