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Abstract
The European Commission has always considered the Common Agricultural Policy
(CAP) as a dynamic political tool that aims to link the agricultural sector with the evolving of
the economic, financial, social and political dynamics that distinguish the Member States of
the European Union. From this standpoint, the Health Check (HC) is much more than a
simple assessment of the state of health of European agriculture; it is a drawing up of the
“new rules” that are to manage the relations between farms and the market, on which the
future efficiency and survival of the said farms and the production sectors that characterise
entire European agricultural regions will depend. In this context, the aim of this paper is to
present and analyse the "innovations" of the future CAP compared to the current subsidy
management system. In particular, the impact of the modifications of the HC – relative to the
methods for funding farms due to the transition to the regionalised Single (Farm) Payment
Scheme (SPS) and to the new rates of modulation – on the competitiveness of farms
specialised in certain production sectors of four European regions will be considered: Emilia-
Romagna (IT), Kassel (DE), Anatoliki-Makedonia-Thraki (GR) and Ostra Mallansverige (SE).
The assessment of the impact of the HC on the competitiveness of farms is made by
taking the technical efficiency index, estimated by a DEA model, as a proxy for the capacity
of farms to use factors of production to their best advantage with respect to the farming
system adopted and hence to be able to be competitive with other enterprises in the same
sector. At the same time, the analysis of the impact of the HC measures is carried out using
the “generalised” Positive Mathematical Programming method in order to enable a
comparison between European regions. The integration of the two methods applied to the data
of the European FADN enables an in-depth assessment of the impacts and a critical
evaluation of the goals that the Community reform proposal is expected to attain.