EVALUATING THE IMPACT OF FUTURE COMMON AGRICULTURAL POLICY OPTIONS ON FARM INCOMES AND AGRICULTURAL SUPPLY

The paper intends to evaluate the impact of the new budgetary perspectives and of the different options with regard to CAP reform on the Romanian farms. This approach starts from the fact that the new reform and the financial allocation proposed for the period 2014–2019 bring certain novelties in the direct payment mechanisms, among which the most important are: capping the payments to the large-sized farms, lump sums to small farms, increased payments to young farmers, increased payments for the less-favoured areas, etc. We expect that these measures will modify the Romanian farm incomes in the next years, and certain preliminary evaluations in this respect are mostly useful. At the same time, the new CAP reform brings novelties concerning environment preservation, the agricultural and rural area potential, and the new proposed measures will have significant implications on the farm production costs and last but not least on the structure and size of the future agricultural production. That is why we consider that in Romania’s case, it is necessary to mostly accurately evaluate the direct and indirect impact of the future reform measures upon the farm incomes and agricultural supply, so as to get a coherent picture of the Romanian agricultural potential to ensure food security for the population in the next period.