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Structural Implications of First Hectare Payments and Young Farmer Support within the EU CAP Reform 2013: The German Case

Alfons Balmann () and Christoph Sahrbacher

No 183066, 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia from European Association of Agricultural Economists

Abstract: Within the reformed CAP, Germany decided to support small and young farmers by higher hectare payments. Because of heterogeneous farm structures with smaller farms in the south and large in the east, this causes regional redistributions. Agent-based simulations show that these policies create incentives for small farms to continue production but cannot provide perspectives. As small farms compete usually with other smaller farms additional support fulminates in small farm dominated regions in higher land prices and a structural conservation. Moreover, large farms are not harmed by reduced payments as they mainly compete with other large farms which are equally affected.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr
Date: 2014-08
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