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Abstract

Focusing on the case of France, this paper reflects on two Common Agricultural Policy (CAP) instruments that aim to have an impact on the distribution of direct payments among farms. The first, implemented from 2015, is the redistributive payment allocated to famers for the first 52 hectares of their land. The second involves degressivity and the capping of direct payments, in accordance with the proposals made by the European Commission on June 1, 2018. Using individual data from the Farm Accountancy Data Network (FADN) and several possible implementation modalities for these two instruments, some simulations are carried out to shed light on the impacts of these instruments. The results show the extent to which the level of potential redistribution is affected by the particular options chosen (threshold levels, exemption, targeting of funds collected, and so on).

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