Impact of Agricultural Policy Reforms on the Economic and Environmental Performance of Agriculture

This chapter aims to estimate the impact of successive CAP reforms on the agricultural sector, in particular commodity and land markets, farm structure, farmers’ income and welfare, the environment, and some aspects of rural development. Implications of CAP reforms on markets, farm income and welfare are explored using two partial equilibrium models: the OECD Policy Evaluation Model (PEM) and the Common Agricultural Policy Regionalised Impact (CAPRI) modelling system. The analysis also draws on findings discussed at the OECD Workshop on the Disaggregated Impacts of CAP Reforms, held in Paris on 10-11 March 2010.