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Abstract

The impact of decoupling direct payments from production in producers' decisions under risk is tested by using a multiperiod model of risk programming on beef cattle farms in two French regions: Limousin and Pays de la Loire. Farmers' strategies under risk are more uniform if support is increasingly decoupled from production. By introducing cross-compliance constraints, we show that this méthode suits to better integration of territorial and environnemental stakes of the CAP.

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