The economic effects of common agricultural policy on Mediterranean montado/dehesa ecosystem

The decoupling of CAP payments leads production decisions and resources allocation to be more dependent on market prices and competitive advantages. The objective of this paper is to assess the effects of CAP trends on the montado/dehesa traditional ecosystem of Mediterranean regions in terms of farm income, land, labour and capital. A positive mathematical supply model disaggregated by the montado agro-forestry production systems of the Alentejo region in southern Portugal is developed. The results show that decoupling payments of CAP have negative economic effects on agricultural activities and resource use. Agricultural income increases with single farm payments but the foreseen increases in prices do not compensate the loss of the Agenda 2000 area payments in terms of competitiveness. These results reinforce the need to promote alternative agricultural and non-agricultural activities and policies in Mediterranean rural European areas and regions. (C) 2011 Society for Policy Modeling. Published by Elsevier Inc. All rights reserved.

Is agricultural policy promoting a new role for farmers?: a case study

European Agenda 2000 considers the integration of environment in CAP and the role farmers can play on natural resources management. Alternative tillage technologies to seed cereals play an important economic and environmental role on the development of a sustainable agriculture and its adoption may depend on the agricultural policy, particularly policies on income support. The results obtained clearly show that the use of alternative soil tillage technologies would be promoted by the change of supports from the first to the second pillar of CAP and we can conclude that, in general, this change will encourage a faster technological adoption. (c) 2006 Society for Policy Modeling. Published by Elsevier Inc. All rights reserved.