Assessment of CAP reform post 2013 in the rural areas of Emilia-Romagna Region

60 %
40 %
Information about Assessment of CAP reform post 2013 in the rural areas of Emilia-Romagna...
Business & Mgmt

Published on March 11, 2014

Author: RobertoGigante

Source: slideshare.net

Description

Assessment of CAP reform post 2013
in the rural areas of Emilia-Romagna Region - PSTER SESSION - Second Conference of the Italian Association
of Agricultural and Applied Economics

Assessment of CAP reform post 2013 in the rural areas of Emilia-Romagna Region RESULTS OBTAINED AND POLICY IMPLICATIONS R. Gigante, F. Arfini, M. Donati – University of Parma, Department of Economics n order to assess the CAP 2014-2020 reform in Emilia-Romagna region have been used the positive mathematical programming (PMP) methodology included in the AGRISP (Agricultural Regional Integrated Simulation Package) model. The model used consider the impact of Greening’s criteria, capping and the regionalization scheme on land allocation in different farm systems and the relative economic effects. INTRODUCTION OBJECTIVE STRUCTURE OF THE MODEL CONCLUSIONS METHODOLOGY AND DATA Wheat -4,3% Corn -6,0% Other cereals +18,3% Rice -3,7% Soybean -4,1% Other oil seeds -10,5% Sugar beet -1,2% Tomato -2,4% Forage -10,6% Pasture +3,6% Other crops -1,6% Greening surface 37.630 hectares BASELINE GREEN Variations of land use Changes in economics value by province and altimetry level BASELINE GREENING VARIATION (€/Ha) (%) REGION GSP 3.276 3.033 -7.4% - TOTAL VARIABLE COSTS 2.356 2.176 -7.7% = GROSS MARGIN (1° level) 920 857 -6.9% + TOTAL PAYMENT 307 237.8 -22.5% = GROSS MARGIN (2° level) 1.227 1.095 -10.8% PLAIN GSP 3.416 3.238 -5.2% - TOTAL VARIABLE COSTS 2.494 2.354 -5.6% = GROSS MARGIN (1° level) 922 884 -4.1% + TOTAL PAYMENT 339 237,8 -29.9% = GROSS MARGIN (2° level) 1.261 1.122 -11.1% HILLS GSP 2.922 2.606 -10.8% - TOTAL VARIABLE COSTS 2.051 1.801 -12.2% = GROSS MARGIN (1° level) 871 804 -7.6% + TOTAL PAYMENT 246 237,8 -3.4% = GROSS MARGIN (2° level) 1.117 1.042 -6.7% MOUNTAIN GSP 3.029 2.409 -20.5% - TOTAL VARIABLE COSTS 1.989 1.646 -17.2% = GROSS MARGIN (1° level) 1.041 763 -26.7% + TOTAL PAYMENT 186 237,8 27.6% = GROSS MARGIN (2° level) 1.227 1.001 -18.4% Changes in aids distribution at provincial and altimetry level The aim of this contribution is to provide a first evaluation of the impacts of the European Commission proposals on homogeneous rural areas of Emilia-Romagna Regions organized by province and altimetry level. Model used represent one of the possible application of the PMP across Europe. The model have been designed to reproduce effects of regionalized single payment system, Greening measures, and the new capping mechanism on farm behavior and farm economic performances. Work is based on the European Commission draft, so have to be consider as a possibility for understanding the potential consequences on farm system in the examined region. The simulations demonstrate a differential capability of farms in reacting to new policy and market scenarios, and how reform affect productions and economic levels of the investigated farms. The PMP model provides an insight of the production decisions of entrepreneurs, not only with reference to the observed situation (baseline), but also to the situation after reform, so as to compare the strategic changes of the farmer. The model is formed by three main phases: i) extraction of information, which is constituted by the data management of the two databases related to the sample of the selected companies; ii) through the PMP are estimated the cost functions of the selected farms, once obtained, there will be the calibration of the model compared to the observed reality and simulation; iii) Analysis of results. The one database composed by the land use (from AGREA database) and the profitability of single processes (form FADN database) with the methodology of PMP, allows to analyze the impact of agricultural policies at micro-level (for the purposes to define rural policies) and macro-level (for the purposes to estimate changes in supply on a regional and /or national level). In the phase concerning the reproduction of the effects of the agricultural policy measures at regional level, the relevant aspects of the AGRISP model are therefore the aggregation of the cost functions into a single regional model, and the construction of a suitable set of constraints able to correctly simulate the policies for the whole region. The integrate database FADN • Production • Output prices • Variable costs (crop and livestock) • Total variable costs per farms AGEA • Farms distribution • Use of the land • Livestock density • Payments per farms Results are detailed at regional and provincial level, with a focus also on altitude level. In particular the following scenarios have been identified: 1) Baseline: The base scenario on which the comparison is carried out is represented by the situation recorded in 2010, obtained by updating the results with the market price variation of the year 2007. 2) Greening: This scenario foresees the full application of the CAP reform. All the constraints and the new policy type of aids have been activated (new Basic Payment Scheme considering the distribution of aids on the all UAA, Greening scheme considered as mandatory, and the new capping scheme). esults produced by the model (assuming to maintain constant prices) show that the introduction of Greening practices combined with the regionalized distribution of basic payments will lead to substantial reductions in terms of the GSP and farm income. The greater consequences will be the difficulties to cover, at farm level, fixed cost for investment. The Greening component generate a double effect: a contraction of harvested surfaces and a strong reallocation in land use and resources towards those production that has higher price. The extension of regionalized aids to almost all UAA, with a single payment level in all regional territories, complemented by the reduction of the aids amount, will reduce the average aid per hectare for the areas like plain (where at present farmers are used to receive higher support) in favor of mountain areas. Despite to the increment of direct payment for mountain areas these areas appears as the most affected by the reform. POLICY IMPLICATION As formulated the new CAP offer less assurance to specific local and territorial farmers because delegate to single Member States the possibility to activate or not specific aids as “less-favored areas”, or maintain coupled aid for “productions with a local relevance”. This demand a direct intervention by the Policy Maker of Member States in order to activate specific and voluntary schemes. So if "the market" will be the new driver for production choices of farmers (whom can no longer focus on the maximization of aids), the strategic choices of European agriculture should not ignore the need to protect and guarantee the subsistence of local farms or of an entire productive sectors that operate in less favored areas. It will be necessary in all this cases to operate with a different logic: the lack of competitiveness of farms located in the regional mountain areas is due in most of the cases to factors involving territorial characteristics and economic environment rather the competitiveness of the farm itself.

Add a comment

Related presentations

Related pages

Legal proposals for the CAP after 2013 - Agriculture and ...

The European Commission's proposals for a reform of the CAP after 2013 aim to ... develop rural areas. ... proposal on support for rural ...
Read more

Assessment of CAP Reform 2014–2020 in the Emilia-Romagna ...

... of the European Commission proposals on rural areas of the Emilia-Romagna Region in ... (2013). Assessment of Cap reform post 2013 in rural areas of ...
Read more

The Common Agricultural Policy after the Fischler Reform ...

Providing an updated state of the art report on the effects of the 2003 Common Agricultural Policy (CAP) reform, this volume has a particular emphasis on ...
Read more

Commission Communication on the CAP towards 2020 ...

Commission Communication on the CAP ... (CAP) till 2013. ... policy issues regarding EU agriculture and rural areas. The CAP needs to ...
Read more

The Common Agricultural Policy after the Fischler Reform

The Common Agricultural Policy after the Fischler Reform National Implementations, Impact Assessment and the Agenda for Future Reforms Edited by Alessandro ...
Read more

Economic Impact of Rural Development Plan 2007 2013 in Tuscany

Economic Impact of Rural Development Plan 2007 2013 in ... of the CAP first pillar reform ... in un’area dell’Emilia Romagna in Estimo e ...
Read more

Common Agricultural Policy - Wikipedia, the free encyclopedia

... environmental and territorial challenges faced by agricultural and rural areas ... 418-billion post-2013 farm policy ... 2013 CAP reform ...
Read more

Mainstreaming of Climate Change into Rural Development ...

Mainstreaming of climate change in different policy areas is ... into rural development policy post 2013' ... (CAP) Project: Economics of Climate Change: ...
Read more

EUROPA - Topics of the European Union - Agriculture

... in 2013, shifted the focus ... Agriculture is one area of policy where EU governments have agreed to fully pool ... Agriculture, rural development and ...
Read more

Agriculture & Rural Development Rapid Assessment

Project co-financed by the European Regional Development Fund through OPTA 2007 – 2013 ... Rural Development Rapid Assessment ... Asia Region 1.
Read more