CAP reform and reduction of income disparites. First effects in France

Réforme de la PAC et réduction des inégalités de revenu agricole. Premiers effets en France

Gilles Bazin (), Alain Blogowski and Philippe Boyer

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Abstract: CAP reform and reduction of income disparites. First effects in France Based on the Farm Accounting Data Network, the analysis of french farm incomes evolution from 1991 to 1993 (first years under cap reform) shows a clear decrease of disparities bet- wen natural handicaps areas. The new mechanisms of agricultural income support and farmer's adaptations to this new deal explain this breaking off of the former trend. For instance, direct subsidies based on farm structures (acreage, cattle), instead of former production-proportional prices support, involve higher relative increases in farm incomes of mountain or less favoured areas, wich are less productive per acre. The extra subsidies granted to extensive breeding, widely present in disadvantaged areas, accentuate the decoupling between land productivity and income support. However, in 1994, the less favoured areas looses a part of their advantage, wile the other regions increases their incomes.in the future, the evolution of cap measures up to reform completion will not have accentuated effects on incomes diparities reduction; the greater part of planned mechanisms have applied between 1991 et 1993.

Date: 1996
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Published in Économie rurale, 1996, pp.20 - 26. ⟨10.3406/ecoru.1996.4779⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02964295

DOI: 10.3406/ecoru.1996.4779

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