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Research Report


Pierre Boulanger
Copyright Date: Feb. 1, 2010
Pages: 48
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Table of Contents

  1. (pp. 5-11)

    In order to adapt an almost exclusive past price support to a more market-oriented and budgetary-monitored agricultural policy, the 1992 reform started to shift the main mechanism from guaranteed price to direct “compensatory” payment. Its implementation allows a theoretical targeting of farm support since policy makers are able to determine their amount (coupled or decoupled to market-price and production, static or dynamic) criteria (respecting cross-compliance or providing specific amenities), and timing (bounded or not). In this context, the 1992 reform initiated the progressive targeting of the European farm support.³

    Direct payments towards crop lands have been computed, by hectare, considering...

  2. (pp. 11-24)

    The question of inequity in French distribution has never been accurately challenged. There are several dimensions when studying the support allocation issue. The sector-based one is the most relevant since it corresponds to the historical raison d’être of the CAP in spite of progressive decoupling. This section provides a case study on territorial distribution of support in light with market-commodity production and CAP’s pillar dichotomisation. It stresses the hybrid status of the French historical decoupling scheme.

    French crop producers have been the main financial recipients of the direct payment mechanism. By being a crucial livestock production input, cattle breeder indirectly...

  3. (pp. 25-32)

    This section examines the setting up and distribution of irrigation subsidies. It illustrates a public policy incoherency at a time of an expected persistent disequilibrium between water demand and supply. As a result, this case study also contributes to jeopardise the legitimacy and sustainability of French SFPs.

    Water management has been acknowledged a new “rural development” challenge within the CAP health check. This section focuses on the quantity issue of water management, not on quality. Human pressures on limited water resources call for various actors’ responsibilities and public policy coherence. France is facing a water problem and agriculture has a...

  4. (pp. 33-34)

    Distribution of support has to be considered in line with policy objectives. The progressive decoupling of market-commodity direct payments goes in line with minor redistribution. From 2010 on, less than 20% of French direct payments – supported by the European budget – are targeted in view with recent policy objectives. Most of direct payments remain broad SFPs labelled within the European regulations with “income support scheme for farmers”. It is a sector-based redistributive policy which suffers from weak income targeting (OECD, 2003). In addition, the scheme of a sector-based redistributive policy is still questionable. As a result, in spite of...