Economic impacts of CAP greening: application of an EU-wide individual farm model for CAP analysis (IFM-CAP)

Farmland Use Transitions After the CAP Greening: a Preliminary Analysis Using Markov Chains Approach

“…many Authors have attempted to forecast from a quantitative point of view possible effects of greening, mainly recurring to ex-ante simulations. The most popular tool for such kind of simulations is mathematical programming and, in particular, PMP (Van Zeijts et al, 2011;Czekaj et al, 2014;Solazzo et al, 2014;Ahmadi et al, 2015;2015;Solazzo et al, 2015;Solazzo and Pierangeli, 2016;Cortignani et al, 2017;Gocht et al, 2017;Louhichi et al, 2017;Cortignani and Dono, 2018). The main output of these simulations pertains the land use change effect induced by the greening.…”

“…Based on such estimations, some authors have then derived economic and/or environmental impacts of greening (Louchichi et al, 2017;Gocht et al, 2017;Solazzo and Pierangeli, 2016;Cortignani and Dono, 2018). .These simulations have been set to different territorial scale: at European level (Gocht et al, 2017;Louhichi et al, 2017), at country level (Czekaj et al, 2014) or at a regional scale (Solazzo and Pierangeli, 2016;2015;Cortignani and Dono, 2018). Some of the analysis covered only some crops or some type of farming (Solazzo et al, 2014, for tomato farms in Italy, Cortignani et al, 2017, for specialized arable farms in Italy).…”

Recent Contributions of Agricultural Economics Research in the Field of Sustainable Development

“…Such measures consist in crop diversification, allocation of a minimum share (5-7%) of farmland to ecological focus areas, and maintenance of permanent grasslands and pastures. Even if the debate around the CAP reform has sometimes defined the current greening measures as being a "low-profile compromise," their impact assessment has indicated that they have had quite a strong effect for farm and crop mixes in high intensity agricultural systems, while other areas are not affected by the policy instrument [24,25]. For instance, considering the plain area of the Lombardy region, which is one of the most intensive farming contexts in Europe [26], as a case study, Cavicchioli and Bertoni [27] measured the ex-ante impact of greening measures on 33% of farms and 72% of used agricultural area (30,000 hectares), finding a decrease in cereals in favor of nitrogen-fixing crops, with an estimated loss of 9.2 million euros.…”

Valuation of public goods and ecosystem services provided by agriculture

“…The greening measures of RDP 2014-2020 would impact farms in different ways: increasing costs and thus negatively impacting on income, or creating a direct or a potential loss of income (an opportunity cost) as a consequence of compliance with the measures [25]. Moreover, the greening measures, notably the crop diversification and the set-aside, could impact the prices of agricultural products and inputs, and therefore income, where the most affected are farms with a large economic size, followed by small farms [25].…”

“…Moreover, the greening measures, notably the crop diversification and the set-aside, could impact the prices of agricultural products and inputs, and therefore income, where the most affected are farms with a large economic size, followed by small farms [25]. 2007-2013 in Latvia shows that the expected positive effect on the sustainability and resilience of agricultural landscape as a provider of ecosystem services, as well as conservation of both agricultural biodiversity and nature biodiversity have not been received.…”