The Implications of Common Agricultural Policy Reform for Irish Farmers’ Participation in off-farm Labour Markets

Thia Hennessy (), Jasmina Behan and Tahir Rehman
Additional contact information
Thia Hennessy: Rural Economy and Development Programme, Teagasc, Athenry, Co. Galway, Ireland
Jasmina Behan: Skills and Labour Market Research Unit, FÁS, 25 Clyde Road, Dublin 4.
Tahir Rehman: School of Agriculture, The University of Reading, UK

No 504, Working Papers from Rural Economy and Development Programme,Teagasc

Abstract: This paper assesses the impact of agricultural policy reform on the representation of Irish farmers and their spouses in the non-farm labour market. The 2003 reform of the Common Agricultural Policy involves the decoupling of direct income support from production. The hypothesis that decoupling is likely to result in a shift of labour out of farming and into the non-farm labour market is tested empirically. The results support the theory that decoupling will result in a decline in the marginal value product of farm labour and therefore in an increase in the number of farmers and their spouses seeking off farm employment. However, the analysis of farm household demographic profiles and the available forecasts for employment in rural labour markets suggest that farmers are likely to encounter considerable difficulties in securing off-farm employment while the outlook for farmers’ spouses, who are predominately female, is somewhat more positive.

Pages: 26 pages
Date: 2005
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Citations: View citations in EconPapers (2)

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