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Impact of the CAP Single Farm / Area payments on farmers’ decisions: Preliminary results of a farm-level survey

Elodie Douarin () and Laure Latruffe ()

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Abstract: This paper deals with the potential impact of the introduction of the SFP in EU-15 and of the SAP in NMS on farmers' decisions. A survey conducted in Sweden, Lithuania and Slovakia in 2005 investigates farmers' intentions over the next 5 years in two scenarios: introduction of SFP/SAP, and if the previous policy (Agenda 2000 or pre-accession national policy) remains in place. Results of the survey reveal that the global effect of the CAP switch on Swedish sector seems to be a reduction in production and in the willingness to remain a farmer. By contrast, in Slovakia and Lithuania individual farmers are willing to stay longer in farming and to increase their UAA. As for farmers' expectation regarding the future of the CAP, the survey results show that in the three countries the most probable policy is continuing decoupled payments. However, the second most probable option is payments recoupled to production activities for Slovakian and Lithuanian farmers, but no payment at all for Swedish farmers.

Date: 2006
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Published in Zemes Ukio Mokslai, 2006, pp.28-34

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Handle: RePEc:hal:journl:hal-02392181