Farm Level Impacts of Trade Liberalisation and CAP Removal Across EU: An Assessment using the IFM-CAP Model

Impacts au niveau de l'exploitation agricole de la libéralisation du commerce et de l'élimination de la PAC à travers l'UE: une évaluation utilisant le modèle IFM-CAP

Pavel Ciaian, Maria Espinosa, Kamel Louhichi and Angel Perni
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Maria Espinosa: JRC - European Commission - Joint Research Centre [Seville], Universidad de Sevilla = University of Seville

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Abstract: This paper assesses the farm-level impacts of trade liberalisation and CAP removal across EU using IFM-CAP (Individual Farm Model for CAP Analysis). IFM-CAP is a static positive programming model developed to capture the full heterogeneity of EU farms in terms of feedback to policy representation and impacts. Simulation results show that a small set of farm-types experience an increase in income due to the improvement in prices and yields (e.g. farms spe-cialised in granivores, milk and horticulture), while farms that are most CAP subsidy dependent (e.g. specialist cattle, specialist COP and small farms) lose income by more than 12% at aggregate EU level. As much as 77% of all farms lose income if CAP is removed , while the proportion of most income vulnerable farms almost doubles.

Keywords: Common Agricultural Policy; Farm model; Positive Mathematical Programming; Direct payments; EU- wide; FADN (Farm Accountancy Data Network); Politique Agricole Commune; Modèle de Ferme; UE; Payments directs; Programmation Mathematique Positive; RICA (Réseau d'Information Comptable Agricole) (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-int
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Published in The German Journal of Agricultural Economics (GJAE) , 2020, 69 (2), pp.108-126. ⟨10.30430/69.2020.2.108-126⟩

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Journal Article: Farm Level Impacts of Trade Liberalisation and CAP Removal Across EU: An Assessment using the IFM-CAP Model (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02713353

DOI: 10.30430/69.2020.2.108-126

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