CAPRI Common Agricultural Policy Regional Impact

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CAPRICommon Agricultural Policy Regional Impact
New representation of direct payments Torbjörn
Jansson, SLI and Bonn
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Outline

• Overview of conceptual change
• Implementation
• Examples MTR simulations

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Old versus New approach
Many premiums per activity
1 premium per activity
Ceilings per activity group
Many activities per premium
1 ceiling per premium
Fits into database
- Storage in GAMS files
- Far from regulation
Definition close to regulation
- Difficult to change policy
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New concept, definition of premiums
Premium name region activity
group value ceiling level ceiling uncut
amount application type
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Processing of premiums
Initialisation Break down tolower regional
leveland individual activities
Policy definition
Iterative adjustment Cut individual premiumsto
fit into tightest ceilingbefore each iteration
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Definition, detail
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Reports

• Sum of payments per activity
• Composition of payments per activity
• Cut factors (premium right shortage)
• Cost of premiums per region (MS-EU)

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Direct payments in MTR

• DPGRCU Direct payment to cereals
• DPPULS Specific payment for pulses
• DPDWHETR Traditional durum wheat premium
• DPDWHEES Established payment to durum wheat
• DPNONF Direct payment for non food crop
• DPPARI Specific rice premium remaining
  after MTR policy
• DPPARI_fa Farm income rice premiums
• DPSCOW Suckler cow premium
• DPBULF Special premium to bulls and steers
• DPDCOW Direct income support to dairy cows
• DPSHGM Direct payment for sheep and goat
• DPNE_SHGM National envelope for sheep and goat
• DPNE_DCOW National envelope dairy cows
• DPNE_MEAT National envelope bovine meat cattle
• DPSL_ADCT Slaughter premium for adult cattle
• DPSL_CALV Slaughter premium for calves
• DPNATMILK National dairy premium in northern
  Sweden and Finland

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Drawbacks?

• Full complexity not accounted for
• Premium rights depend on farm characteristics
• Alternative use of land for fodder area OR area
  payments
• No trade of premium rights
• No cross compliance
• Requires manual edition of policy files