The study evaluates the efficiency of government intervention using a vertical structured model including imperfectly competitive agricultural input markets, the bread grain market, and the imperfectly competitive food industry. To test for policy efficiency the actually observed bread grain...

The Common Agricultural Policy (CAP) was fundamentally reformed in 2003. From 2005 on, farmers will receive decoupled income support payments instead of production premiums if basic standards for environment, food safety, animal health and welfare are met. Farmers will likely adjust production...