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Farm level impacts of abolishing the CAP direct payments: An assessment using the IFM-CAP model

Pavel Ciaian, Maria Espinosa, Kamel Louhichi, Angel Perni and Sergio Gomez Y Paloma

No 272087, 162nd Seminar, April 26-27, 2018, Budapest, Hungary from European Association of Agricultural Economists

Abstract: This paper assesses the impacts of abolishing the direct payments of the CAP using the model IFM-CAP (Individual Farm Model for CAP Analysis). IFM-CAP simulates the behaviour of each individual farmer in the EU-FADN (Farm Accountancy Data Network). Simulation results show that some farm-types experience an increase in income due to the price and yields changes (specialist granivores and other fieldcrops), while farms that are more dependent on CAP subsides are negatively affected (e.g. specialist cattle, specialist COP and smallest economic size farms). As much as 64 % of farms loose more than EUR 100 per hectare of income if direct payments are eliminated.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Date: 2018-04-26
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