Nouvelle PAC et nouveaux projets d'irrigation

Abstract

New CAP and investments in irrigation facilities In France, there is an increasing trend in irrigated land, especially where there are cereal and oil seed crops. In connection with the reform of the Common Agricultural Policy, major changes have affected irrigating farmers. This reform combines a decrease in farm prices with compensatory direct payments and a land set-aside scheme (restricted to professional farm operators). The implementation of the scheme takes into account regional diversity since payments are based on a flat rate per hectare which is determined using a reference yield for each "départements". Besides, special reference yields concerning irrigated crops are set apart in 55 "départements" to reflect the higher yields of irrigated land. Nevertheless there is an upper limit for this compensation, since only land equipped with irrigation facilities by 1992, is considered. The potential behaviour of a representative farmer facing this scheme is derived from a single microeconomic model. There is some evidence that it would not be profitable to develop facilities in order to irrigate more land. This conclusion holds for a drop in price as well as for the upper limit of total subsidy. It is questionable where there is a significant difference between reference and actual yields. A dramatic increase in world prices similar with the increase of 1995 could make profitable investing in irrigation facilities. This scheme involves a top premium part on water input which benefits irrigating farmers. They are entitled with property rights over water resources which are revealed through the payment scheme. Farmers' rights may prevail upon the rights of other categories of water users. This distribution of property rights does not reflect the social value of water in its alternative uses. Thus the CAP reform leads to paying pecuniary externalities, and results in a monetary transfer which benefits intensive cropping systems. This scheme does not benefit low input farming which creates amenities. Such a mechanism supports farm concentration, cost-competitive farming systems while environmental friendly practices are not encouraged.