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Impact Analysis of the EU Commission's Proposal under the Mid-Term Review of the Common Agricultural Policy with CAPRI

EU-Commission, DG Agriculture, Contract no. 22.08.02 AGR 019924

October 2002– November 2002

Impact annalysis of the Mid 2002 EU Commission proposals for a “Mid Term Review of the Common Agricultural Policy”:

Decoupling current support measures from production decisions (with some exceptions)
Modulation (size dependent reduction) of support by on average 12%
Specific measures related to selected markets (e.g. the additional drop of cereal prices)

Important details of this CAPRI application were:

Decoupling has been modelled as a uniform area premium for eligible crops (all but permanent crops, fruit and vegetables)
Cross compliance is assumed
- to prevent the conversion of grassland to arable land or fallow land
- to impose maintenance cost of 75 Euro/ha on fallow land or set aside to keep it “in good agricultural condition”.

Main results were:

Decline in heavily supported sectors (durum wheat, beef)
A moderate decline of voluntary set aside and fallow land (due to maintenance cost)
A 5% increase in farm gate beef prices
Moderate impacts on agricultural income due to various compensating effects

EuroCARE [Authors: Britz, W., Wieck, C., Perez, I.] (2003): Mid-Term Review Proposal Impact Analysis with the CAPRI modelling system, Chapter IV, in: European Commission, DG Agriculture (eds.), Mid Term Review of the Common Agricultural Policy, July 2002 Proposals, Impact Analyses, Brussels, pp. 111-140. (pdf).

Last updated: Thursday, 30-Oct-2008 10:24:43 CET