This work assesses to provide an ex-ante analysis of the potential impact of the introduction of an important Common Agricultural Policy (CAP) instrument, called regionalized payments, within the 2013-CAP reform, on the land market. The connection between the changes in the CAP and the land market consequent reactions is a subject widely investigated in literature. Especially, the CAP reform process has been a central issue for agricultural economics research in recent years, and is gaining further attention in view of the post-2013 perspectives. In Italy the switch of the payment regime from historical to regional bases will soon take place. In this context, farmers are expected to adjust their plans to the new policy environment as the regionalization of support is meant to create a change in incentives faced by farm operators. Using a household survey data from 2012 for Bologna province, this paper attempts to analyse how the factors, such as household, farmer, farm and geographical characteristics, have affected the decisions of the household on farmland size changes differently among CAP scenarios. One about the current CAP scenario, which concern the hypothesis of maintenance the present political strategy in the coming years and other on the regionalized scenario, which under the assumption of implementation of the regionalized payments over the coming years. The new payments system seems to produce differentiated effects and contribute to a general (slight) increase of land exchanges. The individual reaction to the new payments introduction would be different depending on location and specialization. These effects seem to be strongly influenced by the previous historical system of distribution of payments. Results of this work suggest of paying attention, especially at national level, to the effects on the value of farm assets, seeking to protect certain categories of farmers more negatively affected by the new distribution of direct payments.
Effects of 2013 CAP reform on land market: Regionalized farm payments and changes in farmers’ intended behaviour
BARTOLINI, FABIO;
2014-01-01
Abstract
This work assesses to provide an ex-ante analysis of the potential impact of the introduction of an important Common Agricultural Policy (CAP) instrument, called regionalized payments, within the 2013-CAP reform, on the land market. The connection between the changes in the CAP and the land market consequent reactions is a subject widely investigated in literature. Especially, the CAP reform process has been a central issue for agricultural economics research in recent years, and is gaining further attention in view of the post-2013 perspectives. In Italy the switch of the payment regime from historical to regional bases will soon take place. In this context, farmers are expected to adjust their plans to the new policy environment as the regionalization of support is meant to create a change in incentives faced by farm operators. Using a household survey data from 2012 for Bologna province, this paper attempts to analyse how the factors, such as household, farmer, farm and geographical characteristics, have affected the decisions of the household on farmland size changes differently among CAP scenarios. One about the current CAP scenario, which concern the hypothesis of maintenance the present political strategy in the coming years and other on the regionalized scenario, which under the assumption of implementation of the regionalized payments over the coming years. The new payments system seems to produce differentiated effects and contribute to a general (slight) increase of land exchanges. The individual reaction to the new payments introduction would be different depending on location and specialization. These effects seem to be strongly influenced by the previous historical system of distribution of payments. Results of this work suggest of paying attention, especially at national level, to the effects on the value of farm assets, seeking to protect certain categories of farmers more negatively affected by the new distribution of direct payments.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
