Impact of CAP Reform on Agricultural Production in Four Different European Regions
No 36856, 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK from Agricultural Economics Society
The impact of the European Common Agricultural Policy (CAP) reform is of great interest with respect to the development of the agricultural sector. The Agro-eConomic pRoduction model at rEgional level (ACRE) was used to simulate the CAP reform 2003 up to 2013 for four European regions: England, Baden-Württemberg, Bavaria and Austria. The selected regions range in their production intensities from more intensive arable farming in England to more extensive grassland farming in Austria. Nomenclature of Territorial Units for Statistics 3 level (NUTS3) districts were clustered to 'regional farm clusters' representing different land use patterns within the regions. ACRE calculated the impact of the CAP reform 2003 under different price scenarios for agricultural products. The development of selected indicators was analysed to investigate the reaction of economic and environmental impacts as well as changes in agricultural production of the 'regional farm clusters'. The results show, that CAP changes affect agricultural production more than changes in prices for agricultural products. The agricultural income decreased in regional farm clusters with a high share of arable crop production and increased in grassland farming clusters. Agricultural production tends to get more extensive and nitrogen input is reduced. Pessimistic and optimistic price scenarios change the impact of CAP reform slightly.
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