Farmers’ Attitudes toward the Future of Direct Payments: An Empirical Study from Germany

Sabrina Bethge and Sebastian Lakner

German Journal of Agricultural Economics, 2023, vol. 72, issue 01

Abstract: The new Common Agricultural Policy (CAP) reform has met with large-scale protests from farmers throughout Europe, intending to change one of the most controversial components: direct payments. We analyze German farmers' attitudes and understanding of direct payments. The study employs a sur-vey of 435 farmers collected from January to Febru-ary 2021. Using cluster analysis and quantitative content analysis, we identified three distinct groups: (1) The “Independents” (43.7%) are entrepreneurs and have a competitive mindset. They would prefer to abolish direct payments associated with more freedom from policy conditions. (2) The “Conservatives” (27.0%) advocate an income policy based on direct payments, and they reject higher environmental standards. (3) The “Environmentalists” (30.3%) em-phasize a pronounced environmental awareness, fa-voring an environmentally performance-based ap-proach. The results show that policies are often per-ceived differently than they are intentionally designed. Improving the effectiveness of the policy measure requires sufficient information about the CAP's objec-tives for farmers, focusing on more transparent com-munication strategies. From a policy perspective, a more differentiated design of policy instruments and longer transformation periods are needed to engage farmers in policy change.

Keywords: Agribusiness; Agricultural and Food Policy; Agricultural Finance (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ags:gjagec:343344

DOI: 10.22004/ag.econ.343344

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