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Decoupled Payments to EU Farmers, Production, and Trade: An Economic Analysis for Germany AgEcon
von Witzke, Harald; Noleppa, Steffen; Schwarz, Gerald.
After an extended process of reform the European Union has introduced direct payments to farmers which are decoupled from production decisions as a central element of its Common Agricultural Policy. They are also referred to as Single Farm Payments. In this paper we analyze the production and trade effects of this policy and its compatibility with WTO international trade rules. A survey of the literature suggests that the system of direct payments in its present form has effects which are analogous to a subsidization of agricultural land. Thus, they act to increase production and trade. Furthermore we quantify the total economic cost of production of selected commodities in the European Union and compare them to the price at which EU production is sold in...
Tipo: Working or Discussion Paper Palavras-chave: European Union; Common Agricultural Policy; WTO rules; Decoupled payments; Agribusiness; Agricultural and Food Policy; Food Security and Poverty; International Development; International Relations/Trade; Risk and Uncertainty.
Ano: 2010 URL: http://purl.umn.edu/59853
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