Abstract
This paper assesses the impact of current market conditions and Agenda 2000 CAP reforms, particularly the 'rebalancing' of support between cereals and oilseed crops, on crop gross margins and hence on the incentive to produce oilseed rape on three representative farm types in eastern England. Results indicate that under a conventional rotation, oilseed rape area falls substantially on two of the farm types considered. However, the incentive to plant break crops more frequently increases after the reform; under a two-break crop rotation, oilseed rape area remains at pre-reform levels. Oilseed rape prices of c. £100 per tonne, particularly when combined with unrestricted set-aside rates, conventional rotations and low cereal prices, would give farmers in eastern England substantial incentives to reduce the area of the crop grown.
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