13 jan 2006
The Impact on Yields of Arable Crops of Moving from Price Support to Area Payments OCDE
The aim of the study is to measure the impact of the 1992 reform of the Common Agricultural Policy (CAP) on arable crop yields in the European Union (EU), and more specifically to quantify the impact that the introduction of compensatory area payments had on yields. The CAP reform in May 1992 consisted largely in reducing support prices and offsetting the ensuing loss of income with direct payments based on factors of production, i.e. acreage in the case of COP (cereal, oilseed and protein) crops.
13 jan 2006
The Impact on Investment and Production of Different Agricultural Policy Instruments OCDE
All types of agricultural support measures are likely to have an impact on investment. This is particularly the case of the most coupled forms of support such as market price support. However, the dimension of the investment impacts may differ significantly across policy measures since they have different impacts on the farmer’s decision environment. For instance, they have different impact on effective incentive prices and different income transfer efficiency. Under these circumstances the investment effects can be very different, requiring a specific empirical analysis.
13 jan 2006
Modelling the Impact of Agricultural Policies on Farm Investments under Uncertainty OCDE
This paper is part of the OECD project on decoupling and follows the analytical framework defined in OECD (2001). The main objective is to estimate the importance of the dynamic investment effects of area payments using farm level data from the Italian FADN survey. It investigates the investment response by crop producers under the assumption that they are risk averse, and there is uncertainty concerning prices. A dynamic econometric model is estimated. Investment is defined as current expenditure on machinery and buildings for crop production. This paper uses the same data as OECD (2002) and makes estimations and simulations in a way that can be compared with the results obtained in that paper.
13 jan 2006
Dynamic Econometric Models of Crop Investment in Manitoba and Production under Risk Aversion and Uncertainty OCDE
Earlier studies in the OECD project on decoupling estimated static models of crop production incorporating risk aversion, following the analytical framework in OECD (2001). In contrast, this paper studies primarily dynamic models of crop investment. The province of Manitoba is selected as an example of Canadian prairie crop production, and investment is defined as current expenditure on machinery and equipment for Manitoba crop production (the data are not crop specific). This is the first econometric study of dynamic crop investment decisions for Canada, and as far as can be ascertained this is the first econometric study for any country of dynamic crop investment under risk aversion. Econometric results are used to simulate impacts of agricultural programmes on crop investment.
13 jan 2006
The Impact of Crop Insurance Subsidies on Land Allocation and Production in Spain OCDE
This study aims to establish whether farmers respond to insurance subsidies by either augmenting yields (changing non-land inputs use) or by changing crop patterns, or both. It also aims to provide an evaluation of farmers’ relative risk aversion coefficients.
13 jan 2006
A Review of Empirical Studies of the Acreage and Production Response to US Production Flexibility Contract Payments under the Fair Act and Related Payments under Supplementary Legislation OCDE
This paper provides a review of the literature relating to empirical studies of the acreage and/or production response to the direct payments made to US farmers of wheat, feed grains, cotton and rice under the Federal Agriculture Improvement and Reform Act of 1996 and related payments made under additional legislation during the period 1999-2002.
13 jan 2006
The Impact on Production Incentives of Different Risk Reducing Policies OCDE
Reflecting several recent policy developments that have brought risk management to the forefront of policy discussions, this paper looks at government intervention to reduce price and yield risk from farming and how it interacts with market instruments. The starting point is to compare existing policy measures from the point of view of their impact on production and their ability to reduce risk. In the context of "decoupling", two related questions are posed: What is the production response to each policy? What is the relative effectiveness of different policies in reducing farming risk? When dealing with the objective of farm risk reduction, both questions are inter-related because risk reduction induces production responses from risk adverse farmers.
13 jan 2006
Decoupling: A Conceptual Overview OCDE
The purpose of this paper is to explore the notion of decoupling with a view to improving understanding among economists, policy makers and agricultural trade negotiators, all of whom use the term in their deliberations but often with quite different meanings. The approach taken is conceptual or theoretical - designed to improve understanding of the different ways in which agricultural policies affect production and trade.
13 jan 2006
Decoupling: Policy Implications OCDE
The conclusions and policy implications presented in this report build on i) the estimates of relative price effects of different kinds of stylised policy measures, first developed using the Policy Evaluation Model PEMl1 (OECD, 2001b), ii) a conceptual framework on decoupling (OECD, 2002a) which drew attention to the potential for risk-related and dynamic effects which theory suggests are likely to occur in addition to the relative price effects, and iii) a series of studies aimed at explaining, analysing and, where possible,
13 jan 2006
Decoupling: Illustrating some Open Questions on the Production Impact of Different Policy Instruments OCDE
This paper is intended to clarify and facilitate discussion on areas that are an important part of the decoupling debate. This has been done using standard economic techniques and some illustrative examples.
13 jan 2006
Risk Effects of PSE Crop Measures OCDE
This paper is a first attempt to estimate some of the risk-related effects of
13 jan 2006
Effects of Quantitative Constraints on the Degree of Decoupling of Crop Support Measures OCDE
This report is divided into four parts. The first gives a brief description of base area and set-aside provisions in the EU’s direct area payments scheme, and examines the extent to which they are binding. The second part analyses the degree of effective decoupling of the scheme. Particular attention is paid to the impact of base area and set-aside constraints on the degree of decoupling. In the context of total decoupling, the third part looks at the impact of the EU system of direct area payments, in particular base area and set-aside provisions, on the variability of world prices. The final part sets out the conclusions. It endeavours, on the basis of the specific findings reported here, to gain broader insight into the impact of quantitative constraints on the degree of decoupling of support measures to agricultural producers.
13 jan 2006
Risk Related Non-price Effects of the CAP Arable Crop Regime OCDE
This paper seeks to provide an empirical measure of the (absolute and relative) size of the relative price effect, the wealth effect and the insurance effect for a specific policy package: the arable crop regime of the Common Agricultural Policy (CAP) of the European Union (EU).
