The Common Agricultural Policy is the basis for ensuring food security, the sustainable use of natural resources and the balanced development of rural areas in the Member States of the European Union. The three paths of the CAP through which these objectives are achieved are: direct payments,...

Agriculture is a risky and often expensive activity, where due to unpredictable weather conditions, crops may suffer and implicitly farm yields and incomes that may be significantly affected. The paper presents the main sources of subsidies used in agriculture, as well as the role they played in...

The Common Agricultural Policy has traditionally provided support to farm incomes via direct payments under the Single Payment Scheme. This article analyzes whether the reform of the SPS will decrease the concentration of direct payments and evaluates the effect of the new direct payment scheme...

Purpose – The purpose of this study is to examine the effects of agricultural policy reform – specifically the change from market to direct payment support – on income variability of Swiss farming households. In addition, the observed heterogeneity in income risks across farms and time is...

Purpose – For over 20 years, decoupled agricultural support programs have played a large role in farm policy. The purpose of this paper is to investigate the effects of decoupled agricultural support payments on farm-level debt. Design/methodology/approach – A two-stage least squares model...

Purpose The purpose of this paper is to assess how direct payments (DPs) of the Common Agricultural Policy affect income and revenue variability faced by Italian farmers. Design/methodology/approach Balanced farm-level panel data are used to construct coefficients of variation over the period...

Abstract This paper examines the impact of agricultural subsidies on rental rates for grassland. In theory, the capitalization of subsidies into grassland rents has become increasingly important as a result of the decoupling of direct payments from production in 2005. The focus is on the...

Abolishing a nearly 50-year-old policy for rice price support, Korea adopted a new direct payment program in 2005. Making the transition to decoupled income support has been governed by the need for operative and effective income safety nets and the WTO disciplines on domestic support. The...

Based on option value theory, we develop a theoretical model to assess the dollar compensation required for the conversion to organic farming. Our empirical model is a switching regression model with two regimes and we use county level data on organic and conventional corn and soybean production...