Home Economics Disaggregated impacts of CAP reforms : proceedings of an OECD workshop.
A method for simulating measures resulting from the CAP Health Check
A simulation was carried out to assess the redistributive impacts of the French decrees of 23 February 2009 on direct payments and farm income. In order to better understand the strengths and weaknesses of this analysis, the next section presents its key methodological features, namely the choice of data source, the method for classifying farms, and our main assumptions regarding the allocation of funds to farms.
Data source and farm classification
The simulations were performed using individual data from FADN for fiscal year 2007. Of the various farm databases available (Chantry, 2003), FADN is unique in that it incorporates detailed information on their structures, economic returns, and financial positions. Each farm in the sample (7 377 units) is assigned a
weighting coefficient, allowing it to be extrapolated to represent 322 300 commercial holdings.4
Simulations were run for each farm in the sample, and the results then aggregated into composite indicators and categorized using a typological grid cross-matching the 22 metropolitan administrative regions to the following types of production (Box 10.1).
The distribution of commercial agricultural holdings across the seven farm types and 22 administrative regions is presented in Table 10.2. In the case of types with a sample size of fewer than 15 individuals, the results are not considered to be representative (these are labelled “N/A”). When assessing the regional effects of the CAP Health Check, it is important to take into consideration the prevalence of each farm type in the agricultural mix of the region.
Box 10.1. Definitions of types of production
Arable crops. All farms having fewer than five units of grazing livestock and engaged in the following farming activities: No. 13 Specialist cereals, oilseed and protein crops; No. 14 General field cropping; No. 60 Mixed cropping; No. 71 Mixed livestock, mainly grazing livestock; No. 81 Field crops-grazing livestock combined; and No. 82 Various crops and livestock combined.
Cattle, dairying. All farms with more than five dairy cows. This definition makes it possible to group all domestic milk production into a single type.
Cattle, rearing/fattening. All farms with fewer than five dairy cows and more than five head of cattle.
Mutton sheep. All farms with more than five units of grazing livestock and fewer than five head of cattle.
Pigs and poultry. All farms with fewer than five head of grazing livestock and belonging to farm types No. 50 “Specialist pig/poultry” and No. 72 “Mixed livestock, mainly pig/poultry”. Consequently, beef and/or sheep farms with a sideline of pigs or poultry are not included in this type, but rather in the previous types.
Wine. All farms with fewer than five head of grazing livestock and belonging to farm types No. 37 Vineyards with a designation of origin and No. 38 Other wine.
“Other” farm types. All farms with fewer than five head of grazing livestock and belonging to farm types: No. 28 Market gardening, No. 29 Flowers and mixed horticulture, and No. 39 Fruits and other perennials.
Table 10.2. Number of farms by production type and the regions of France
Source: AGRESTE - RICA France 2007 / INRA SAE2 Nantes calculations.
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