CONSEQUENCES OF THE 2003 CAP REFORM ON A MEDITERRANEAN AGRICULTURAL SYSTEM OF P...

• Author(s): Carvalho, Maria Leonor da Silva ; Godinho, Maria de Lurdes Ferro
• Date: 2005
• Persistent ID: http://hdl.handle.net/10174/5943
• Origin: Repositório Científico da Universidade de Évora
• Subject(s): agricultural policy modelling; decoupling; Mediterranean
• Document Type: Article
• Language: English

Description

Agriculture in dry land Mediterranean areas faces considerable level of production risk as result of the unpredictable weather. Governmental income stabilisation instruments have had a major impact on Mediterranean farms in changing land allocation, and changing income levels and variability. Using a mathematical programming model, the impact of the 2003 CAP reform on land allocation and on income variability is evaluated for a Portuguese Mediterranean farm. The results show an increase of extensification of production activities. They also show an increase in total farm income, a reduction in relative total income variability and an increase in relative production income variability.