Policy harmonized approach for the EU agricultural sector modelling

Authors

• Guna Salputra Latvian State Institute of Agrarian Economics (LSIAE), Struktoru 14, LV-1039, Riga, Latvia
• Frédéric Chantreuil INRA, 4 allée Adolphe Bobierre, CS 61103, 35011 Rennes cedex, France
• Kevin Hanrahan Rural Economy Research Centre (RERC), Teagasc, Athenry, Co. Galway, Ireland
• Trevor Donnellan Rural Economy Research Centre (RERC), Teagasc, Athenry, Co. Galway, Ireland
• Myrna van Leeuwen LEI, Alexanderveld 5, 2585 DB Den Haag, The Netherlands
• Emil Erjavec University of Ljubljana (LJUB), Groblje 3, 1230 Domzale, Slovenia

DOI: https://doi.org/10.2137/145960611797215655

Keywords:

modelling, CAP, direct support, decoupling, policy evaluation

Abstract

Policy harmonized (PH) approach allows for the quantitative assessment of the impact of various elements of EU CAP direct support schemes, where the production effects of direct payments are accounted through reaction prices formed by producer price and policy price add-ons. Using the AGMEMOD model the impacts of two possible EU agricultural policy scenarios upon beef production have been analysed full decoupling with a switch from historical to regional Single Payment scheme or alternatively with re-distribution of country direct payment envelopes via introduction of EU-wide flat area payment. The PH approach, by systematizing and harmonizing the management and use of policy data, ensures that projected differential policy impacts arising from changes in common EU policies reflect the likely actual differential impact as opposed to differences in how common policies are implemented within analytical models. In the second section of the paper the AGMEMOD models structure is explained. The policy harmonized evaluation method is presented in the third section. Results from an application of the PH approach are presented and discussed in the papers penultimate section, while section 5 concludes.;