| This paper analyses theoretically the consequences of decoupling and argues for a wider discussion among agricultural economists and the public. Quantitative work on forecasting the consequences seems to be problematic in general. We ask, if the allocation of land will change that dramatically, in particular, we wonder whether setaside will increase that much as some research and statements argue if direct payments are abolished or decoupled from land use. Taking into account economies of scale that can be realised because of faster change in the farming structure, adapted behaviour of farmers due to dramatic changes in the subsidisation scheme, technological progress, and price changes of factors and products in farmers’ benefit we conclude that most... |
