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The impact of decoupled subsidies on productivity in agriculture: a cross‐country analysis using microdata
Author(s) -
Kazukauskas Andrius,
Newman Carol,
Sauer Johannes
Publication year - 2014
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/agec.12068
Subject(s) - microdata (statistics) , subsidy , productivity , agriculture , direct payments , economics , agricultural productivity , common agricultural policy , agricultural policy , agricultural economics , production (economics) , payment , business , international economics , european union , economic growth , microeconomics , market economy , census , finance , population , demography , sociology , ecology , biology
Abstract The decoupling of direct payments from production introduced in the reform of the Common Agricultural Policy is expected to make production decisions more market‐oriented and farmers more productive. However, ex‐post analyses of the productivity of farms have yet to uncover any evidence of a positive impact of the decoupling policy on farm productivity. Using Irish, Danish, and Dutch farm‐level data, we identify whether the decoupling policy has contributed to productivity growth in agriculture and farm product adjustment behavior. We find some evidence that the decoupling policy had significant positive effects on farm productivity and behavioral changes related to farm specialization.