Home Economics Disaggregated impacts of CAP reforms : proceedings of an OECD workshop.
Impact on farm strategies
Farm strategies are here evaluated by considering the dynamics of the observed farms considered as single entities. In this case, using cluster analysis, it is possible to observe the behaviour of groups of homogeneous farms under the policy scenario that introduces regionalization by considering the European Union as a single region and price variation according to the FAPRI projections. The variables considered in the clustering process are the gross saleable production per hectare, the total variable costs per hectare, the subsidy level per hectare, the incidence of cereal production of the total UAA and, finally, the UAA class of each farm.
In each region, six groups (clusters) of farms are identified according to their structural characteristics and their specialization level in average with respect to each group of farms (Appendix 2):
The introduction of the scenario of European regionalization (EUReg_P) highlights a common pattern for the farms in the three regions: a reduction in the degree of disparity between the groups of farms. The six groups of farms identified for each region are characterized by a dynamic of concentration in some specific clusters. More specifically, Veneto region shows a migration towards cluster 1 (62 farms), cluster 2 (50 farms) and cluster 3 (37 farms), while farms belonging to cluster 4 and cluster 5 do not change due to the presence of tobacco and the extensive methods adopted in their management (Appendix 2). In Ile-de-France, a substantial group of farms changes the initial cluster by moving to the fifth group (average cereal farms) which becomes the most representative (from 17 to 48 farms) cluster. Only two farms belonging to cluster 2 (very large, highly intensive farms) do not change their global strategies. In Belgium, there is also a polarization, from intensive farms towards more extensive farms specializing in cereals (cluster 1 and cluster 6), while the very large intensive farms are quite stable (Table 4.5).
Table 4.5. Distribution of farms among clusters
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