New perspectives on the distribution of farm incomes and the redistributive impact of CAP payments | Zendy

Laurent Piet | Zendy; Yann Desjeux | Zendy

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New perspectives on the distribution of farm incomes and the redistributive impact of CAP payments

Author(s) -

Laurent Piet,

Yann Desjeux

Publication year - 2021

Publication title -

european review of agricultural economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 1.4

H-Index - 60

eISSN - 1464-3618

pISSN - 0165-1587

DOI - 10.1093/erae/jbab005

Subject(s) - gini coefficient , direct payments , economics , distribution (mathematics) , income distribution , payment , inequality , agriculture , economic inequality , farm income , quantile , common agricultural policy , public economics , econometrics , international economics , macroeconomics , european union , geography , production (economics) , finance , mathematical analysis , mathematics , archaeology

We contribute to understanding the impact of potential drivers of farm income inequality and the redistributive impact of Common Agricultural Policy (CAP) payments. Our approach provides information at any quantile of the income distribution, in contrast to the widely used Gini coefficient. Income growth and inequality dynamics of French commercial farms between 2000 and 2017 are found to be explained by a change in both income levels and farm characteristics. Further, CAP payments are shown to participate in levelling off income inequalities, with Pillar 1 and 2 payments performing differently along the distribution. Our results may help inform on-going policy debates about fairness in the distribution of farm support and structural change implications for the future of European agriculture.

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