Common Agricultural Policy Reform Research Articles

Upland landscapes in Britain and the 1992 CAP reforms

The impact of the Common Agricultural Policy (CAP) on the uplands of Great Britain is examined, with particular emphasis on open land characterized by large expanses of rough pasture and heath. Following much concern in the immediate post‐war period about the incomes of hill farmers, the paper outlines how the upland problem has been redefined in recent years as an environmental concern. The evolution of agricultural policy for the uplands is examined. In particular, the paper explores the impact of the 1992 reforms on upland management, drawing on a recent empirical study of the countryside impact of the CAP. It is shown that the environmental problem of overgrazing has not been seriously tackled by CAP reforms with extensification payments, cross‐compliance and agri‐environmental policies all too weak to tackle fully the underlying problem of high densities of sheep in the uplands. The problem is compounded by the decline of the beef sector in the hills. The paper concludes by speculating on the likely impact of the CAP reforms proposed under Agenda 2000 and suggests that the moves towards a new policy are encouraging but will need very careful drafting to ensure maximum environmental benefit.

Agenda 2000 und zukünftige Entwicklungszusammenarbeit der Europäischen Union Öffentliches Interesse vs. private Eigentumsrechte - Wettbewerbsprobleme in der Gaswirtschaft

Abstract This economic policy forum is assigned to the reform of the Common Agricultural Policy (CAP) with a view to the Agenda 2000. Thereby Winfried von Urff discusses the implications of the Agenda 2000 for developing countries. He argues that the implementation of the Agenda proposals would result at most in rather modest price increases on the markets for agricultural products. Therefore there will be no serious impact on developing countries. In the second part of his paper von Urff discusses the future relationship between the EU and the ACP countries. Thereby he analyses the Lomé Convention as a regional agreement that focuses on rural and agricultural development by allocating grants and loans to 70 ACP countries. He argues that the public should pay more attention to this issue. Michael Schmitz analyses the distributive and allocative effects of the reform of the CAP as outlined in the Agenda 2000. In general, he supports the Agenda 2000 initiative by the European Commission, because in his view it continues the 1992 CAP reform by reducing product related subsidies and encouraging farmers to use less intensive production methods. However, on some issues he also criticises the Agenda 2000. For instance, the Commission does not specify how to achieve a stronger efficiency control of its measures. Overall, the Commission fails to clearly commit itself to a market driven CAP. There remain too many interventionist elements. Konrad Hagedorn and Jörg Eggers analyse the environmental effects of the proposed CAP reform. Thereby they focus on the nitrogen problem. They show that the proposals of the Agenda 2000 will not result in a significant reduction of nitrogen as a main source of water pollution. Compensatory payments granted to farmers in order to offset the effects of price reductions might have the desired distributive effects. However, even if they are made conditioned upon fulfilling environmental criteria, they will not achieve the aim of a sustainable agriculture. Therefore they present an alternative model for agricultural production methods that is more likely to have a positive ecological impact.

Agenda 2000

Discusses the proposals for reform of the Common Agricultural Policy (CAP) contained in the European Commission’s Agenda 2000 document in the context of previous reforms of the CAP and the GATT Agreement on Agriculture. Identifies the obstacles to CAP reform and the problems of extending the policy to embrace the countries of Eastern and Central Europe.

Reform of the European Union's Common Agricultural Policy: How to reach GATT-compatibility?

This paper studies the reform of the European Union's Common Agricultural Policy (CAP). It examines three questions: 1. (1) do current reforms meet the targets specified in the Uruguay Round Agreement? 2. (2) what additional reforms are needed to make CAP GATT-compatible? and 3. (3) does CAP reform alleviate the EU's budgetary problem? To investigate these issues, we use a six-region, 13-sector computable general equilibrium model with explicitly modeled policies. We find that CAP reform worsens the EU's budgetary situation and does not meet the GATT targets. We quantify support price reductions and quota increases needed to reach the targets.

Gender, Employment and Training in Rural Tourist Attractions: The Case of Herefordshire, England

This paper discusses the rėsults of a quantitative survey of a rural country's tourist attractions and the types of employment, levels of training and expertise within them. Reform of the European Common Agricultural Policy has led to the need to restructure the economies of some rural areas. The county of Herefordshire, England, has been awarded European Community Objective 5b funding to aid restructuring. One of the main areas targeted is tourism and the development of tourist attractions. Rural women experience opportunity deprivation so it is hoped developing tourism employment will provide them with additional employment opportunities. The results of the survey suggested that the rate of establishment of attractions is increasing, attractions share similar themes of rurality and heritage, and over 50% had received some form of financial assistance. Breakdown of employment figures showed women tended to work in unskilled, seasonal and part-time work while men were more likely to be annual, full-time and managerial. Employees were well skilled and qualified while employers provided training both on and off site. There was concern that existing training provision overlooks the specific needs of tourist attractions particularly in the area of marketing. Two types of attraction were identified: those which operated for non-financial reasons and those which operated to gain income. Planners and funders need to work to optimise employment opportunities in attractions by trying to prevent an overly competitive environment, tying funds to employment targets, providing training specific to the needs of the attractions industry and taking measures to remedy women's under-representation in better quality tourism work.

The restructured CAP and the periphery of the EU

Agriculture is a vital element not only of the rural economy but also of the wider national economy for the peripheral countries of the European Union (EU), namely Greece, Ireland, Portugal and Spain. It accounts for a significant part of their economies with the highest share in national income and employment among the member states of the EU. The purpose of this paper is to evaluate and examine in a broad sense the consequences of Common Agricultural Policy (CAP) reform for the peripheral countries of the Union. The major conclusion is that the redistributive effects of the reform for cereals, though in favour of the Mediterannean states, are minor. In the milk and beef sectors, given that market prices (until the BSE scare) did not fall in line with institutional prices in conjuction with the compensation payments, the reform had a beneficiary impact on Irish livestock producers in the early years. For the southern European countries, post-reform changes are limited, although a positive effect is observed on milk output and farmers' income in Greece and Spain. Moreover, although there is no significant change in the sheep-goat sector, there is a net loss for tobacco producers. Finally, the most positive aspect of the reform for these countries appears to be the early retirement scheme for older farmers.

Contrasts in conservation attitudes and agricultural practices between farmers operating in wetlands and a plain in Macedonia, Greece

Conservation projects around the world have been impeded by conflicting land uses. In Greece, although agriculture is considered to have significant impacts on wetlands and adversely to have affected conservation, the attitudes of Greek farmers to wetlands and conservation have not been assessed. Data on demographic variables of farm operators, characteristics of the farming operation, irrigation practices, attitudes towards environment and the wetland resources, knowledge on the impact of agriculture on the local environment and opinions on the Common Agricultural Policy reform, were collected through a survey using personal interviews from a random sample of 196 farmers operating in two wetlands, Lakes Mikri Prespa and Kerkini (Ramsar sites), and 141 farmers operating in a plain, in Macedonia, northern Greece.Analysis of the data revealed that farmers practise crop and stock agriculture more intensively in wetlands than in the plain, and exploit wetland resources excessively. Hunting, fishing and wood harvesting are practised, and lake water is used intensively for irrigation by both groups of farmers, with no care for loss of the resources. Alternative methods of irrigation for improving efficiency of water use or alleviating hydrological pressures on the wetlands are not considered. Sustainability of agriculture is at risk as present practices result in impoverished soils, salinization of the fields and waste of water resources. Wetland farmers seemed to have a more negative attitude toward the wetland resources and seemed to be more ignorant of conservation issues or the impact of their practices on the environment than plain farmers. Moreover, their awareness and willingness to adopt an environmentally-friendly type of farming was very low.

The role of the agrofood industry in regional development in Spain Consequences of integration into the EC

This paper analyses the contribution of food processing industries in Spanish regional development. The agrofood industry is one of the most important industrial sectors in Spain and, in recent year, it has been an important component in the development of rural areas. Factors affecting the location of bod industries and changes taking place after accession to the European Community (EC) are analysed. The entry of Spain into the EC has brought about a change in the food industries relative growth in Spanish regions. Before joining the EC, the agrofood industry experienced the highest growth in the most developed regions, close to big consumption markets. After the Spanish entry into the EC, more investments have been taking place in regions where the rural sector plays an important role, trying to compensate for farmers' losses owing to decreasing agricultural prices as a consequence of the Common Agricultural Policy reform.

European perspectives on nitrogen fixation and the application of mineral nitrogen

An analysis is made of the main factors influencing nitrogen use in the European Union (EU). The Common Agricultural Policy (CAP) is identified as a major factor. A brief explanation is given of its functions and of recent reforms which are aimed at reducing overproduction. These reforms should favour more efficient use of nitrogen. The reasons why this is difficult to achieve are explained and the major factors influencing our ability to balance the nitrogen economies of food production are identified. The interrelationship between these factors is then used to predict the impact of CAP reforms on research, on fertiliser use and on the wider use of legumes. Keywords: Common Agricultural Policy, Europe, farm subsidies, legumes, nitrogen cycle, nitrogen fertiliser, nitrogen fixation, over-production, pollution, soil organic matter

The limits of common agricultural policy reform and the option of denationalization

Abstract The MacSharry reforms are the latest stage in a series of attempts to overhaul the Common Agricultural Policy (CAP). These reforms have prevented further deterioration in terms of budgetary costs and surpluses, but have not solved the underlying problems of the CAP which include contradictory goals unmatched by a sufficient number of policy instruments. The objectives of the General Agreement on Tariffs and Trade (GATT) are likely to be difficult to achieve. Analyses of the decline of the farm lobby are misplaced. Enlargement will place further strains on the CAP, especially if East European countries are eventually admitted. The policy option of renationalization recognizes the limits of the CAP as an integrative mechanism and seeks to create a new and more balanced partnership between the European Union and member states.

Integrating agronomic and economic models for policy analysis at the farm level: The impact of CAP reform in two European regions

An agronomic crop growth model generates yield and pollution data which are incorporated into a linear programming model for the estimation of the effects of Common Agricultural Policy (CAP) price changes on modal farm types in two regions, namely South East England and South West France. The economic model is run from 1990/91 to 1994/95 in a recursive fashion. The results indicate that modal farms in both regions do not have lower farm incomes following implementation of CAP reforms in 1992/93, compared to the previous years. However, farms in South East England appear to be penalised by the reforms when compared to the ‘no reform’ situation. We attribute this to the fact that crop yields in this region are 40% higher than those used to calculate the average regional yields (used in the calculation of area payments). In the French model, farm income is higher with CAP reform than without as a result of the very high area payment on some of the irrigated crops, and the much lower discrepancy between actual yields in the region and those yields used to calculate the area payments. With the CAP reforms, both models indicate an increased area of lower nitrogen (10–30%) input crop production, and this is associated with lower rates of nitrate loss.

Réforme de la Pac, accords au Gatt : quelles incidences sur les transferts financiers entre les Douze

The CAP Reform and the Gatt Agreements: Effects on Financial Transfers Between the Twelve, by Eve Fouilleux. The Common Agricultural Policy reform and the Gatt agricultural agreements have altered the way the financial advantages of belonging to the common agricultural market are distributed among the Twelve. The Directorate for Forecasting's Erpac model is used to evaluate this distribution by studying the CAP's redistributive effects before the reform and analyzing their potential development based on simulations up to 1996 (post reform) and 1999 (on the hypothesis that the new CAP will be brought into Une with the Gatt requirements). In spite of extensive changes to the type of transfers from which it benefits, France emerges as one of the countries that gains the most from these revisions.

Simulating impacts of agricultural policy on nitrogen losses from a watershed in Northern Italy

Thematic maps, statistical data, and field and farm sampling have been merged with digital satellite data to implement simulation models for managing the problems related to agricultural non-point source pollution. This has been done putting the different data sources and techniques into the same Geographical Information System (GIS). The integration of GIS with the environmental impact simulator and economic programming model was utilized for estimating the possible changes in environmental impact caused by the recent Reform in the Common Agriculture Policy (CAP) of the European Union. An economic programming model was built to evaluate land use changes induced by the CAP Reform under different hypotheses of technology adjustment. The entire data set has then been utilized as a geographical data base to run non-point source (NPS) simulation models to estimate the impact on water quality of the agricultural systems located within the study area. Nutrient (nitrogen) concentrations were the environmental indicators chosen to evaluate the impacts on water quality. In this way the system created by the linkage of GIS and simulation model (Spatial Environmental Impact Simulator, SEIS) has become a decision support system, for evaluating the effectiveness of environmental interventions on a regional scale.

The growing importance of diversification activities for French farm households

Diversification activities, on-farm or off-farm, can allow farmers not to rely exclusively on farming for the household's income. In many rural areas, onfarm tourism and off-farm employment have become an important and steady source of income for farm households. The most significant change over the last 10 years has been the substantial growth in off-farm labour participation by farm spouses. This paper, based on the neoclassical farm-household, is an attempt to characterize the variables that affect the decisions to work off-farm for the French farm households and the decision whether or not to hire labour on-farm. Furthermore the impact of the Common Agricultural Policy (CAP) on the participation in the off-labour market is studied. In a simplified model where male and female labour are perfect substitutes we can show that the reduction in the cereals price and the set-aside would induce a decrease in the reservation wage and hence an increase in the probability of off-farm participation. On the other hand the receipt of compensatory payment would have a negative impact on the probability of off-farm work participation. Empirical results show that while the CAP reform will increase wives' off-farm participation, education and age have a greater positive effect. Furthermore, simulations show that the impact of the CAP reform on off-farm labour market participation is higher for wives who do not have a high school diploma than for those who do.

Impact of EC reforms on animal production systems: The ruminant sector viewpoint

The 1991 reform of the EC Common Agricultural Policy was designed to be acceptable to a successful GATT agreement with EC bureaucrats having an understanding of the GATT objectives, with the start of the recent GATT round beginning in 1986. Hence, the objective of both pieces of legislation is similar - to encourage free trade by reducing support of product prices through removing import quotas, export subsidies etc. As a consequence CAP has transferred open ended support for product price to a support of limited numbers of production units through cow and sheep quotas. It is therefore expected that product prices will fall closer to world market prices, particularly for products in surplus in the EC such as beef. Precise market specifications will therefore impinge directly on producers in terms of price and encourage the development of specific production systems to meet these specific markets, eg ultra light Mediterranean market.

Irréversibilité et mesures agri-environnementales un modèle principal / agent

Flexibility in agro-environmental policy : a principal/agent model With the Common Agricultural Policy (CAP) reform in 1992, policy makers recognized the existence of positive externalities. We broached reflection on how to build an incentive policy concerning agro-environmental issues, taking into account the uncertainties and irreversibilities of different options.

Les modèles de simulation technico-économiques comme méthodes d'analyse des impacts de différentes politiques agricoles

Using technical and economic simulation models to analyse agricultural policies impacts In this paper, we present the interest of technical and economic simulation models to analyse agricultural policies impacts at a regional level. We consider here, the effects of the Common Agricultural Policy reform in the Beauce French region

Organisational competition and the neo‐corporatist fallacy in French agriculture

This article challenges the neo‐corporatist paradigm's explanation of agricultural interest group politics in France. It offers an alternative model that can better comprehend the relevant attributes of this interest group system, a system based on the muffled competition among groups with different policy preferences, all of which participate in a collaborative arrangement with the state. Empirical verification is drawn from the experiences of the 1980s, when the system came under stress after the election of a government of the Left and the reform of the European Common Agricultural Policy.

Common Agricultural Policy of the European Communities

The author is aiming at a complex analysis of the present problems of the EC agricultural programs, which have become a social problem since the 1950's. The specific development of agriculture, peculiarities of its production and realization as well as the pressure and political forces of farmers have enforced an extensive system of state regulations. In individual stages of the EEC building -up, agriculture played an important role and the common agricultural policy and common market represent the most elaborate systems of economic integration. In the parallelism of state regulations (national agricultural policies) and supra-state reglementation (common agricultural policy), agriculture has reached significant success concerning its self-sufficiency, export as well as the modernization of production structures. Along with this development there have been problems in regards to the economic effectiveness of production, agricultural surplus and unbearable expenses of budget financing the common agricultural policy. Even conflicts with other world exporters, especially with the US., have come. The article has three parts. The first part ,,State and supra-state regulation of agriculture, EEC integration", engages in the causes of state interventions and in the creation of an institutional framework. The second part, "Mechanism of common agricultural market", analyzed the principles of functioning for integrated agriculture. The last part is devoted to the problems of a common agricultural policy balance and reform concerning intervention and protection systems.

International Organization Documentation

Perhaps the single most important items of news concerning international organizations since my last column was the official notification by the U.S. Government late in December 1983 of its intention to withdraw from the United Nations Educational, Scientific and Cultural Organization (UNESCO) at the end of 1984. Numerous articles and editorial pieces have appeared in the press since that time. According to news accounts the U.S. National Commission for UNESCO, a nongovernmental advisory body, adopted a resolution December 16 at its annual meeting stating that continued U.S. membership in UNESCO “… is in the national interest,” but as far as the author can determine the text of the resolution, adopted by a 41 to 8 vote, has not been made public. It is my understanding that a 700-page report evaluating U.S. participation in UNESCO has been prepared and an executive summary is to be published by the State Department. From its origins UNESCO has been one of the most controversial and complex of the organizations within the United Nations system of organizations as shown in a new reference work on the Organization, Guide to UNESCO, by Peter I. Hajnal of the University of Toronto library staff. The reader's attention is directed to a review of the Guide published in this issue. Another event highlighted in the press was the failure of the December 1983 meeting of the European Council of Ministers in Athens to come to any agreement on reform of the European Community's Common Agricultural Policy and the 1984 Community budget. The meeting broke up without even agreeing on a final communique. In a statement issued December 7 the Commission of the European Community referred to the gravity of the situation but stated that “… the failure of the European Council session is not the failure of the Community, let alone the failure of a historical process that is to ensure the prosperity and strength of Europe.” (European Community News no. 23, December 9, 1983.) Another noteworthy event late in 1983 was the November 14 announcement by the Secretary-General of the Organization of American States (OAS), Alejandro Orfila, of his intention to resign. In a very outspoken speech, the OAS Secretary-General stated “… that the OAS has been detached from, or only tangentially involved in, many of the major issues that affect the present and determine the future of America.” (Washington Post, November 22, 1983.) At the United Nations discouragement also has been expressed increasingly at the inability of the Organization to do its first job of preserving peace. Upon his retirement from the UN in November 1983, Philippine Foreign Minister Carlos Romulo, head of his delegation since the founding conference in 1945, said “the world has changed [since then] but we have not changed enough. Human perspective is still transfixed on the precious but inadequate loyalties of home and country when it needs, at a time when men aim for the stars, to encompass at least the human family on a tiny planet, circling a minor sun.” (Quoted by Flora Lewis, New York Times, December 27, 1983.) In a New Year's message, the President of the 38th UN General Assembly, Jorge Illueca of Panama, called for an infusion “… of new energy into the machinery of the United Nations.” At the same time, he noted that our fate depends on “… human geography more than physical geography,” and he urged “… these human nucleii of diverse cultures” to come together so that “… we the peoples of the world, may strengthen our will to save mankind from the scourge of war.” (United Nations Weekly News Summary WS/1161, January 6, 1984.)