Redistribution and the Abolishment of Historical Entitlements in the CAP Strategic Plans: The Case of Greece

A key issue in CAP strategic planning in Greece is the treatment of historical entitlements. An unequal level of payments per hectare is difficult to justify in terms of the CAP’s rationale, and so the abolishment of these entitlements seems to be the most reasonable option. However, for historical...

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Bibliographic Details
Published in:Sustainability 2022-01, Vol.14 (2), p.735
Main Authors: Kremmydas, Dimitrios, Tsiboukas, Konstantinos
Format: Article
Language:English
Subjects:
Agriculture
Cotton
Farmers
Farms
Flat rates
Mathematical programming
Payments
Reforms
Rural development
Shadow prices
Small farms
Strategic planning
Sustainability
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Summary:A key issue in CAP strategic planning in Greece is the treatment of historical entitlements. An unequal level of payments per hectare is difficult to justify in terms of the CAP’s rationale, and so the abolishment of these entitlements seems to be the most reasonable option. However, for historical reasons, this abolishment may result in a transfer of payments from smaller to larger farms and between different agricultural sub-sectors which could in turn lead to negative effects on the incomes of small farms and lead to farmers leaving the sector. We simulate the change to a flat rate payment in order to quantify these effects, then explore the possibility of employing the new obligatory redistribution measure, termed complementary income support, to mitigate any negative effects. We conclude that redistribution is, indeed, a powerful tool for fine-tuning decoupled payments if historical entitlements are to be abolished.
ISSN:2071-1050
2071-1050
DOI:10.3390/su14020735