Predicting the impact of the EU common agricultural policy reform in England: micro and macroeconomic aspects

Areal, F., Ceddia, M. G. and Pazienza, P. (2007) Predicting the impact of the EU common agricultural policy reform in England: micro and macroeconomic aspects. Journal of Business Economics and Management, 8 (4). pp. 237-244. ISSN 2029-4433 doi: 10.1080/16111699.2007.9636175

Abstract/Summary

In this article we investigate the effects of the European CAP reform on a selection of arable crops in England, both at a regional and national level. The results show that the CAP reform will push farmers to adjust to the new market conditions, which will cause a further restructuring of the English agricultural business sector. Our results show that, under the new market conditions, economically-small farms will increase their output by allocating more land to cereals, whereas economically-large farms will need to decrease land allocated to cereals to reduce production costs and achieve better returns.