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Abstract

This paper analyses the effects of the Single Payment Scheme (SPS) with and without farm structural change. Particular focus is placed on how income distributional effects and farm restructuring are impacted by the SPS under: alternative entitlement tradability, crosscompliance and CAP ‘greening’ requirements, different SPS implementation models, the entitlement stock, market imperfections and institutional regulations. The authors find that the SPS implication details are highly significant: farmers’ benefits can range from 100% of the SPS value to a negative policy incidence, and farm structural change may be hindered by the SPS.

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