 CALCULATING THE RATE OF DECOUPLING FOR CROPS UNDER CAP/OILSEEDS REFORMSean A. Cahill Journal of Agricultural Economics, 1997, vol. 48, issue 1‐3, 349-378 Abstract: The model presented in this paper measures the rate of decoupling achieved by the compensatory payments package provided under ‘CAP/Oilseeds Reform’ legislation. Results from the model suggest that, contrary to expectations, we may view the compensatory payments as ‘effectively fully decoupled’ from production of wheat, rapeseed and soybeans. Three factors drive this result. First, when compared with base period returns, the compensatory payments ‘skew’ crop revenue per hectare. Second, the set–aside and ‘Blair House accord’ area restrictions on the model ensure effective full decoupling for rapeseed and soybeans. (Without these restrictions, the payments package is only partially decoupled from production of these crops.) Finally, as currently designed, the model does not allow land To leave crop production; thus, if area in one crop decreases in response to changes in prices and/or payments, area in at least one other crop must increase. For coarse grains and sunflower, the model generates decoupling rates of 80 per cent and 70 per cent respectively, suggesting partial decoupling of the payments package from production of these crops. Date: 1997 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:jageco:v:48:y:1997:i:1-3:p:349-378 Ordering information: This journal article can be ordered from Access Statistics for this article Journal of Agricultural Economics is currently edited by David Harvey More articles in Journal of Agricultural Economics from Wiley Blackwell |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.