Reform of the CAP reform: empirical evidence for the New Laender of Germany
1996
Kirschke, D. | Lotze, H. | Noleppa, S. | Witzke, H. von (Humboldt-Universitaet, Berlin (Germany). Landwirtschaftlich-Gaertnerische Fakultaet. Inst. fuer Agrarpolitik, Marktlehre und Agrarentwicklung)
The paper analyses the economic effects of a number of policy scenarios on agriculture in the new federal states (Laender) of Germany. The empirical analyses are based on a linear programming approach which is combined with a multi-market model. The results suggest that the recent reform of the Common Agricultural Policy has led to a set of suboptimal agricultural policy instruments. By abolishing land set-aside requirements and by paying plain subsidies based on agricultural land use or other criteria, farm incomes can be increased while direct transfer from the EU budget to farmers can be reduced.
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