The CAP 2013 reform of direct payments: redistributive effects and impacts on farm income concentration in Italy

Abstract 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 sc...

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Main Authors: Stefano Ciliberti, Angelo Frascarelli
Format: Article
Language:English
Published: SpringerOpen 2018-10-01
Series:Agricultural and Food Economics
Subjects:
Online Access:http://link.springer.com/article/10.1186/s40100-018-0113-5
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author Stefano Ciliberti
Angelo Frascarelli
author_facet Stefano Ciliberti
Angelo Frascarelli
author_sort Stefano Ciliberti
collection DOAJ
description Abstract 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 on the redistribution of farm incomes. The decomposition of the Gini coefficient allows analysis of the evolution of farm income and direct payment distributions in Italy from 2014 to 2020, and empirical results based on the Italian Farm Accountancy Data Network show that the CAP 2013 reform is expected to decrease the concentration of direct payments. However, the reform is also expected to limit the reduction in farm income inequality due to the adoption of a partial convergence model (the so-called “tunnel” model) instead of a total convergence model as well as, more generally, the increasing share of farm income that is dependent on increased market exposure, leading to higher risks of price volatility and increasing pressure on income.
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spelling doaj.art-1aedcd15865c436383b09345dbb585c32022-12-21T17:31:49ZengSpringerOpenAgricultural and Food Economics2193-75322018-10-016111810.1186/s40100-018-0113-5The CAP 2013 reform of direct payments: redistributive effects and impacts on farm income concentration in ItalyStefano Ciliberti0Angelo Frascarelli1Department of Agricultural, Food and Environmental Sciences, University of PerugiaDepartment of Agricultural, Food and Environmental Sciences, University of PerugiaAbstract 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 on the redistribution of farm incomes. The decomposition of the Gini coefficient allows analysis of the evolution of farm income and direct payment distributions in Italy from 2014 to 2020, and empirical results based on the Italian Farm Accountancy Data Network show that the CAP 2013 reform is expected to decrease the concentration of direct payments. However, the reform is also expected to limit the reduction in farm income inequality due to the adoption of a partial convergence model (the so-called “tunnel” model) instead of a total convergence model as well as, more generally, the increasing share of farm income that is dependent on increased market exposure, leading to higher risks of price volatility and increasing pressure on income.http://link.springer.com/article/10.1186/s40100-018-0113-5CAPGini coefficientDirect paymentsFarm incomeFADNItaly
spellingShingle Stefano Ciliberti
Angelo Frascarelli
The CAP 2013 reform of direct payments: redistributive effects and impacts on farm income concentration in Italy
Agricultural and Food Economics
CAP
Gini coefficient
Direct payments
Farm income
FADN
Italy
title The CAP 2013 reform of direct payments: redistributive effects and impacts on farm income concentration in Italy
title_full The CAP 2013 reform of direct payments: redistributive effects and impacts on farm income concentration in Italy
title_fullStr The CAP 2013 reform of direct payments: redistributive effects and impacts on farm income concentration in Italy
title_full_unstemmed The CAP 2013 reform of direct payments: redistributive effects and impacts on farm income concentration in Italy
title_short The CAP 2013 reform of direct payments: redistributive effects and impacts on farm income concentration in Italy
title_sort cap 2013 reform of direct payments redistributive effects and impacts on farm income concentration in italy
topic CAP
Gini coefficient
Direct payments
Farm income
FADN
Italy
url http://link.springer.com/article/10.1186/s40100-018-0113-5
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