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Home arrow Economics arrow Disaggregated impacts of CAP reforms : proceedings of an OECD workshop.

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Level and change of the payment claims

We refer to a study of the Technology University of Munich (Salhofer et al., 2009) commissioned by the Federal Agricultural Ministry (BMELV). The contractor was granted access to the central payment claims data bank for the analysis of payment distributions. Some results are shown next. Map 9.1 shows the level of the payment claims at the municipal (commune) level. Premium levels of less than EUR 150/ha are to be ascertained in the low mountainous areas in the west and the south as well as in the pre-alpine area of Bavaria, reflecting high shares of grassland and low livestock densities. Large areas with high shares of arable land show a level of payment claims of EUR 250 to EUR 350/ha. The highest level of the payment claims of EUR 450/ha and more are in areas with high concentration of bull fattening and milk production (the north, north-west and southeast). Red spots in eastern Germany point to the fact that specialised beef and milk production is often concentrated in large farms which cover the whole area of a municipality.

Map 9.1. Regional entitlements levels in 2005

shows the cumulative frequency of direct payments for eligible areas for Germany as a whole, and in two federal states in 2007

Figure 9.3 shows the cumulative frequency of direct payments for eligible areas for Germany as a whole, and in two federal states in 2007. In Germany, the payment claims for the lower and upper 10% of land is less than EUR 250/ha and more than EUR 450/ha, respectively. Lander with high shares of arable production (e.g. Sachsen-Anhalt) show a lower variation of Direct Payments than those with a high concentration of beef and milk production (e.g. Nordrhein-Westfalen).

Figure 9.3. Distribution of entitlements/ha of eligible area, 2007

Map 9.2 shows the future changes of payment claims due to full transition to the regional model in 2013. Premium increases of more than EUR 100/ha are to be expected in mountainous regions. This can be traced back to the upgrading of the level of the payment claims for grassland. On the other hand, premium losses of more than EUR 100/ha appear in areas with high concentration of bull fattening and milk production (northwest and south). In wide areas, no significant premium changes are to be expected. Nevertheless, it was found that the direct payments are redistributed above all to the disadvantage of farms with intensive beef and or milk production. Extensive cattle farms and farms located in less favoured areas are gaining.

Map 9.2. Change of entitlement levels between 2005 and 2013

 
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