The multifunctional character of agriculture is used as a main argument for agricultural support. This argument is theoretical analyzed in a model with decreasing marginal utility and it is shown that such a support must depend on the size of the agricultural sector. Consequently the argument is...

In an analysis first posted on his blog at http://capreform.eu, the author considers differences between the agricultural support programmes of the United States of America and those of the European Union, in terms both of levels of support and of institutional processes. The likely content of...

Using Ireland as a case study, the overall aim of this paper is to determine if decoupled payments affect farmers’ behaviour. Using a dynamic, multi product, partial equilibrium model of the EU agricultural sector, this paper first compares levels of production that would be expected if...

The EU and the USA remain the largest exporters of agri-food products. Protection of the environment and production potential of the areas used for agriculture have long been of interest in the EU and the USA. The need to ensure the capacity of agriculture facing climate change increases the...

In this paper we estimate the impact the CAP subsidies on farm bank loans. According to the theoretical results, if subsidies are paid at the beginning of the growing season they may reduce bank loans, whereas if they are paid at the end of the season they increase bank loans, but these results...

In its periodic declarations of domestic support to the WTO, the EU has progressively reduced its amber-box declarations in line with its changing system of farm support. Surprisingly, however, in 2007/08 it managed to more than halve its amber box compared with that of the previous year, easily...

Several authors have emphasised the effect of agricultural policy (such as SFP) as a driver of structural change. This paper aims to identify the determinants of the change in the use of productive factors under different policy scenarios. The analysis is performed ex ante, assessing the effect...

Using a modified Fisher-Seater model with consideration of policy impacts, this paper attempts to tests the long-run neutrality of money supply on food prices in Germany after the launching of the Eurozone. The main findings include: (1) we can not reject the super neutrality of money for...

This study is concerned with measuring impacts of the Common Agricultural Policy (CAP) on farm income distribution of western Germany. Not only the sheer contribution of market price support and direct payments as a proportion of income is taken into account, but also the impact of support on...

The Mid Term Review introduced a decoupling of agricultural support from production decisions, although with opt-out clauses for specific payments in particular sectors. The ‘Health Check’ seeks to deepen the degree of decoupling, whilst importantly for Spain, offers the option of...