Journal
OUTLOOK ON AGRICULTURE
Volume 44, Issue 3, Pages 215-222Publisher
I P PUBLISHING LTD
DOI: 10.5367/oa.2015.0215
Keywords
greening; positive mathematical programming; nitrogen-fixing crops; ecological focus area; farmer behaviour; CAP reform
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In the CAP reform 2014-2020, the 'green' component of direct payments remunerates environmental services and includes three greening requirements: crop diversification, maintenance of permanent grassland and establishment of an ecological focus area (EFA). This paper evaluates the effect of 'greening' and payment redistribution on farm incomes and land use, considering two different hypotheses of the EFA weighting factor (Ewf) for nitrogen-fixing crops. The evaluation is developed at farm level by a positive mathematical programming (PMP) model and applied to more than 2,000 farms in northern Italy. The results show that crop diversification will mainly affect the cereal area, with significant reductions in maize and wheat, while the EFA requirement, especially with the lower Ewf, will boost the spread of protein crops. Nevertheless, 'greening' does not significantly affect farm income, while greater economic effects are mainly due to the redistribution of direct payments.
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