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Tag: Farm-Income


Direct Payments in the CAP post 2013

Stefan Tangermann (2011).

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The long-term ineffectiveness of transfers: the trillion € waste

Since the beginning of OECD calculations in 1986, EU agricultural policies have transferred about €2.5 trillion from taxpayers and consumers to farmers. If an interest rate of 5% is assumed (a conservative figure compared to the social returns from investments in education and research), the present value of these transfers rises to about €5 trillion. If the agricultural subsidies and tariffs between 1957 and 1985 were added, for which no OECD data exists, we would get two-digit trillion numbers. But this money does not raise farm wages in the long run.

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The rise in farm incomes: 2010 and the next decade

Farmers and speakers from DG Agri have repeatedly complained about the double squeeze of farm incomes: falling farm gate prices combined with rising costs for inputs, such as energy and fertilizer. The disastrous year of 2009 had wiped out all the gains of the last 15 years, they said. But the upswing of 2010 has been generous with farmers, and future price increases promise further improvements in farm incomes.

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Options for getting rid of the Single Farm Payment

Berkeley Hill, Professor Emeritus of Policy Analysis at the University of London, discusses four exit strategies: simple expiration of the SFP in 2013, replacement by a transitory income support scheme, additional rural development measures to promote restructuring, and a bond scheme.

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Risk management in agriculture: Towards market solutions in the EU

Claire Schaffnit-Chatterjee, DB Research (2010)

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Risk management and agricultural insurance schemes in Europe

Bielza et al. (2009)

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Farm income support: much money, little evidence

The fragmentary evidence that is available suggests that, far from being a disadvantaged sector of society, EU farm households as a group have relatively high incomes compared to the rest of society. But the EU has abandoned earlier efforts to produce regular statistics of farm households’ total income – though this would be feasible at reasonable costs. Perhaps it is the fear of the light that worries the EU agricultural policymakers, writes Berkeley Hill, Professor Emeritus of Policy Analysis at the University of London.

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Which member states pay for the waste of public money?

The closer that CAP reform negotiations come to the finish line, the more will member states look at their financial bottom line. ‘How much do we pay, how much do we get?’ That question will concern finance ministers and heads of states at least as much as the objectives and instruments the CAP funds are spent on. Here are some interesting calculations.

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Scenar 2020-II – Update of scenario study on agriculture and the rural world

Nowicki, P. et. al., 2010

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EU Land Markets and the Common Agricultural Policy

Johan F.M. Swinnen, Pavel Ciaian and d’Artis Kancs, 2010.

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