Impact of CAP Direct Payments on French Farms’ Managerial Efficiency

This paper investigates the relationship between CAP direct payments and managerial efficiency for French crop and beef farms. Managerial efficiency scores are calculated using a four-step approach that allows to disentangle managerial inefficiency from other technical inefficiency components, notably what is due to unfavourable environment conditions. Then managerial efficiency scores are regressed over a set of explanatory variables, including CAP direct payments. Our empirical application, based on individual farm data and meteorological data at the municipality level for the year 2000, shows that there is a substantial component of inefficiency that is due to unfavourable conditions. Moreover, there is a significant negative relationship between managerial efficiency and CAP direct payments for crop farms, but a positive relationship for livestock farms. The type of payments also matter, with area-based and Less Favoured Area payments reducing crop farms’ efficiency but headage and agri-environmental payments increasing beef farms’ efficiency.technical efficiency, managerial efficiency, subsidies, crop farms, beef farms, France, Agricultural and Food Policy, Farm Management,

The monetary presentation of the euro area balance of payments

This occasional paper describes the monetary presentation of the euro area balance of payments and its use. The monetary presentation is a tool for assessing the impact of balance of payments transactions involving non-bank residents on monetary developments. The paper explains in detail the principle underlying this approach, i.e. the link between the external counterpart of money, as reflected in the balance sheet of the banking sector, and the balance of payments. From a statistical perspective, it is shown that the monetary presentation of the balance of payments, which is based on international statistical standards, may be applied in any country or currency union. With regard to euro area statistics, the paper elaborates on the practical implementation of the monetary presentation, while also describing a few approximations and remaining statistical challenges. Finally, the paper assesses how the monetary presentation of the balance of payments has been used for analysing monetary developments in the euro area, and highlights the significant impact of balance of payments transactions on monetary dynamics in certain periods. JEL Classification: E51, F40Monetary analysis, capital flows, balance of payments

AN ANALYSIS OF THE SEPA CARDS FRAMEWORK (SINGLE EURO PAYMENTS AREA) ADOPTION IN ROMANIA

The study examines the actual status and the future application of Single Euro Payments Area SEPA Cards Framework, based on Romanian experience. The paper highlights the fact that there is no national card scheme in Romania and that the local cards marketSingle Euro Payments Area (SEPA) Cards Framework SCF, National card scheme, Challenges of the SCF implementation in Romania

Card, Internet and mobile payments in Finland

Retail payment methods are in a stage of rapid development. New service providers and technological developments enable new payment services through a variety of channels. Payment solutions are being developed based eg on the Internet and on mobile phones. Presumably, the use of paper-based payment instruments will decrease further in the future thanks to electronification in the retail payment area. In this paper we focus on card payments in Finland and certain other countries. We also look at Internet- and mobile-based payments and discuss some of the challenges related to the new solutions. The paper ends with a brief discussion of recent changes in Finnish legislation in connection with retail payments.retail payments; payment cards; Internet payments; mobile payments

Decoupling Farm Payments: Experience in the U.S., Canada, and Europe

Commodity payments in Europe and North America are production based, encouraging greater chemical use and cropping area. Thus, each region undermines the other’s price supports at the expense of the environment. Countries can, however, sever the link between yield levels and payments. Allowing farmers to exit agriculture poses challenges for the US, but perhaps not for Canada and the EU.decoupling, liberalizing trade, environment, flexibility

An agglomeration payment for cost-effective biodiversity conservation in spatially structured landscapes

Compensation schemes in which land owners receive payments for voluntarily managing their land in a biodiversity-enhancing manner have become one of the most important instruments for biodiversity conservation worldwide. One key challenge when designing such schemes is to account for the spatial arrangement of habitats bearing in mind that for given total habitat area connected habitats are ecologically more valuable than isolated habitats. To integrate the spatial dimension in compensation schemes and based on the idea of an agglomeration bonus we consider a scheme in which land-owners only receive payments if managed patches are arranged in a specific spatial configuration. We compare the cost-effectiveness of agglomeration payments with spatially homogeneous payments on a conceptual level and for a real world case and find that efficiency gains of agglomeration payments are positive or zero but never negative. In the real world case, agglomeration payments lead to cost-savings of up to 70% compared to spatially homogeneous payments. --agglomeration bonus,biodiversity conservation,cost-effectiveness,ecologicaleconomic modelling,metapopulation,spatial heterogeneity

Some reasons for non-conversion of horticultural producers in Wales

A questionnaire survey of about 2500 farmers who had contacted OCIS in Wales since 1996 was used to find out why more horticultural producers were not converting to organic production. Of 272 respondents, 43 had a horticultural enterprise on their farm and 26 identified horticulture as one of their main enterprises. Twelve of these converted, but the main reasons given by the remainder for not converting were the cost of certification and the low level of OFS payments. The OFS provides only limited support for horticulture enterprises as payments are based on area, and many holdings are small and may even be ineligible for payment. No concerns were expressed about the market

Greek cotton farmers' supply response to partial decoupling of subsidies

A mathematical programming model based on a countrywide sample of farms is used to assess the impacts of the new C.A.P on the supply of the cotton sector in Greece. Results show a decrease in cotton cultivated area along with the introduction of a new production system called "semi-abandonment cotton". Farm income is practically unchanged, largely due to the decoupled payments. When these payments are not considered, farm income turns negative in some cases, thus leading towards abandonment of activities.Cotton, C.A.P, decoupling, mathematical programming, Agricultural and Food Policy, Agricultural Finance,

Economic Impact of a Proposed AGI Means Test on Representative Crop Farms

The Administration has proposed revising the AGI means test for eligibility to farm program payments. The 2002 farm bill excludes producers from farm program payments (CCP, DP, and MLG/LDP) if their average adjusted gross income (AGI) for three preceding years exceeds $2.5 million and less than 75$200,000 and repeal the 75% exclusion. The purpose of this report is to estimate the impacts of the AGI proposal on average annual government payments and real net worth in 2014 for representative crop farms. The AFPC maintains a data base of 64 representative commercial family farms in major production regions across the United States. The farms represent a full-time, commercial operation that is typical of farms in a particular area. The farmers who participate in the bi-annual farm update interviews are selected by the county agent based on farm size (typical for the area), crop mix and farming practices (typical for the area), and being full-time farmers (not employed off the farm). The farms were constructed with no off-farm income to illustrate the changes in wellbeing due to farm policy changes. To the extent that a farm has off-farm income, the results will be conservative.Agribusiness, Agricultural and Food Policy, Crop Production/Industries,

E-payment products and value-added services: Moving towards an innovative European internal market

Central banks analyse issues concerning retail payments - or just payments - to be able to promote optimal means of payment. Over the years, electronic payments - i.e. payments initiated and settled electronically - have gradually replaced manual paper-based payments on the grounds of convenience, security and efficiency. Moreover, payments become more efficient when services are offered to customers both before and after payment. These so-called value-added services (VAS) are fully electronic services such as e-invoicing and e-reconciliation, which bring time and cost-savings for all participants, as paper-based services and manual work are replaced. In this paper we prove a clear-cut distinction between electronic payment products (e-payments) and VAS. We use the so-called Single Euro Payments Area (SEPA) project as a case study and discuss its current state of fatigue. Based on practical experience in Europe we conclude that the SEPA fatigue can be overcome by real-time settlement for payments and VAS supporting end-to-end (e2e) straight-through processing (STP)