Disaggregated Impacts of CAP Reforms: Proceedings of an OECD Workshop

This report collects papers presented at the OECD Workshop on Disaggregated Impacts of CAP Reforms, held in Paris in March 2010, which focused on recent reforms. In particular, it examined the implementation of the single payment scheme since 2005 and the transfer of funds between different measures.
Special attention was also paid to reforms of the sugar and dairy sectors with respect to the quota system and the restructuring of both these industries. The papers also look at the impact of the new direct payment system on land use, production and income.



The Common Agricultural Policy (CAP) is an important policy for the European Union and accounts for about 40% of the EU budget. Ever since its inception in 1958, the CAP has been regularly reviewed and adjusted to improve its performance and adapt to changing circumstances. At a time when the post-2013 future of the CAP is being discussed and major challenges such as food security and climate change lay ahead, it is important to review the impact of past reforms and to draw lessons for the design of future policies.

While the studies in these proceedings often take account of national and international market effects of agricultural policies, they tend to focus on the impact of policies on farms and at the regional and local levels. Today, the European Union is composed of very diverse regions that are affected very differently by any given farm policy, depending on the structural characteristics of the farms’ and regions’ economies.

Table of contents
Abbreviations
Overview
Part I. The Impact of Decoupling on Agricultural Markets and Farm Performance
Chapter 1. The impact of decoupling and modulation in the European Union: a sectoral and farm level assessment
Chapter 2. The economic impact of allowing partial decoupling under the 2003 Common Agricultural Policy reforms

Part II. The Impact of the Single Payment Scheme on Land Markets and Farm Structure
Chapter 3. European Union land markets and the Common Agricultural Policy
Chapter 4. The impact of the Health Check on structural change and farm efficiency: a comparative assessment of three European agricultural regions

Part III. The Impact of Dairy Reform
Chapter 5. European Union dairy policy reform: impact and challenges
Chapter 6. The impact of decoupling and price variation on dairy farmers’ strategy: overview of theoretical and real effects

Part IV. The Impact of CAP Reform on the Agro-Food Industry
Chapter 7. Scenar 2020-II: Decomposition analysis to understand policy impacts on agricultural primary production and related processing sectors
Chapter 8. The impact of the European Union sugar reform on the beet processing sector

Part V. The Impact of CAP Reform on the Distribution of Support and Income
Chapter 9. The impact of SPS implementation options on the distribution of support
Chapter 10. The CAP Health Check in France: A significant redistribution of payments?
Chapter 11. Distribution of agricultural direct payments: the case of France

Part VI. The Impact of CAP Reform on the Environment
Chapter 12. The impact of CAP reform on the environment: some regional results
Chapter 13. Environmental consequences in Austria of the 2003 CAP reform

Part VII. The Impact of CAP Reform on Rural Development
Chapter 14. The impact of the CAP on regional employment: a multi-modelling cross-country approach
Chapter 15. The impact of modulation as a policy instrument
Chapter 16. Spatial structure of agricultural production in France: the role of the Common Agricultural Policy
Annex