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The 2003 reform of the Common Agricultural Policy (CAP) brought about two major changes. First, various production linked support measures are substituted by a more transfer efficient single farm payment scheme, and secondly the programme for rural development will be expanded. This programme aims to attain a broad range of objectives by using many and different instruments. Such a policy shift challenges sector modelling approaches that were developed under a different policy paradigm. We present a quantitative model framework in spatial context, which accounts for the heterogeneity of programme objectives and instruments. The model is applied to Austria, a member state with an eminent programme for rural development.


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