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Gross Value Added

Figure 15.7 shows percentage change in total Modified Gross Value Added (MGVA: GVA of agricultural activity plus value of premiums), divided by UAA in all regions, to indicate the regional distribution of the income effects. The colour yellow indicates regions where there is approximately no change, darker shades of red denote larger losses in MGVA per hectare, and green shades denote increases. There are broadly speaking different classes of regions where income decreases:

  • • In north-western Europe, due to a (general) redistribution of the FEOGA budget for the north-west towards the EAFRD budget in the south.
  • • In beef-producing regions, due to the more protected beef markets and coupled premiums.
  • • In the new member states, because they are almost exclusively indirectly affected via the lower market prices.

Figure 15.7. Change in gross value added plus premiums per hectare in Health Check scenario versus baseline

Simulation results from the partial equilibrium model CAPRI. The map shows the relative difference in Gross Value Added plus premiums between the Health Check and the baseline scenarios for 2013.

In Sweden, Austria and in particular in Finland, the return of modulated money in the form of agri-environment measures (including co-financing and top-ups) is relatively large, and contributes to supporting agricultural income there by supporting the provision of environmental services. Authorities in regions with farms experiencing a potential decline in income as measured by MGVA may increase payments for EAFRD measures in areas where the maintenance of specific farming practices or systems is a priority.

 
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