Costs and benefits of the cap reform.

This working paper presents a cost-benefit analysis of the reform of the Common Aqricultural policy (CAP) considering both its effects on farmers in the European Community (EC) and on farmers in third countries. The new questions raised by the Uruguay round of the GATT (General Aqreement on Tariffs and Tax) and the start up of the sinqle Market in Europe are considered in order to examine the possible effects on agricultural income with special reference to family farms in the south of Europe. In the case of Spain, data are presented for possible effects of restructuring work occasioned by the reform.CAP; EC; GATT; Cost-benefit; Agricultural economics;

A Cointegration Analysis of the Long-Run Supply Response of Spanish Agriculture to the Common Agricultural Policy.

Using cointegration techniques, we estimate two models that capture the long-term relationship between Spanish prices and agricultural production. The models were estimated over Spanish agricultural data from 1970 to 2000, a period spanning Spain’s implementation of the Common Agricultural Policy in 1986 and the application of the MacSharry Reforms in 1992. The models, as well as plausible counterfactual scenarios constructed to assess the production changes induced by the CAP, lead to three principal results. First, we find that Spanish agricultural output is responsive to agricultural prices. Second, we find that the MacSharry reforms have been instrumental in restraining agricultural production. Third, we find that Spanish agricultural output would have been higher if Spain had not applied the CAP. These results are important and have broad implications. First, they strengthen the position of those reformers both within and outside of Europe that argue for lower price supports as an appropriate policy for stemming European agricultural surpluses. Second, they indicate that recent EU reforms, which have in effect extended the MacSharry reforms, are appropriate measures for curbing European agricultural surpluses.Keywords: Price Support Policy; MacSharry Reforms; Cointegration Techniques; European Economic Integration.

Despoblación rural y convergencia en renta

[EN] Panel data models are estimated to highlight the income-gap as a driver of individual decisions to migrate. This procedure allows to testing the hypothesis that the per capita income-gap of rural spaces along with the employment rate and aging explain the fall in the population of rural villages and the concentration of population in functional urban areas (FUA). First, using panel data models, the links between rural depopulation and the income-gap are estimated with data at the municipal level. Second, the effects of the European Structural and Investment Funds (ESIF) on the convergence of income levels for rural inhabitants are evaluated.[ES] Estimamos unos modelos de datos de panel para ilustrar cómo la brecha de ingresos impulsa las decisiones individuales de emigrar y los usamos para contrastar la hipótesis de que la brecha de renta per cápita, junto con las tasas de empleo y de envejecimiento, explican la despoblación rural y la concentración de la población en las áreas funcionales urbanas (AFU). Estimamos modelos a nivel municipal para cuantificar la relación entre brecha de renta y despoblación. Seguidamente, estudiamos los efectos de los Fondos Europeos Estructurales y de Inversión para favorecer la convergencia del mundo rural.The authors appreciate the comments of the editors of the magazine. This work has been funded by the Institute of Fiscal Studies, project: “Budget architecture in the EU and Cohesion: Fiscal consequences for Spain of the changes in the CAP and in the European Funds”, project number 2018/00389/001 and the Carlos III University of Madrid, Strategic Action in European Economy and Resources Natural number 2009/00426/002.San Juan Mesonada, C.; Sunyer Manteiga, C. (2020). Rural depopulation and income convergence. Economía Agraria y Recursos Naturales - Agricultural and Resource Economics. 19(2):29-45. https://doi.org/10.7201/earn.2019.02.02OJS294519

Agricultural productivity in the United States: catching-up and the business cycle

This paper examines the relation between the business cycle and convergence in levels of total factor productivity (TFP) across states. First, we find evidence of convergence in TFP levels across the different phases of the business cycle, but the speed of convergence was much greater during periods of contraction in economic activity than during periods of expansion. Second, we find that technology embodied in capital was an important source of productivity growth in agriculture. As with the rate of catch-up, the embodiment effect was much stronger during low economic activity phases of the business cycle.Agriculture, Convergence, Total factor productivity

Efficiency, subsidies and environmental adaptation of animal farming under CAP.

The purpose of this paper is to model the interaction between the targets of the current CAP: environmental adaptation, subsidies and efficiency the of animal farming. To this end we first have to identify the production frontier and relative efficiency level for each animal oriented type of farm in the sample. The production frontier and efficiency index for each type of farm (assuming no specific production functions) are identified using DEA techniques. We then address the relationship between relative efficiency, farm size and environmentally friendly behavior realizing a non parametric regression of efficiency on economic size, a proxy for the degree of environmental appropriateness, and regional dummies. Calculations of the efficiency of the farms including direct subsidies, are compared with the counterfactual exercise in the case where direct subsidies are not considered. Finally, we look for relations between subsidies and factors such as farm size, efficiency and environmentally friendly behavior. One key result shows that on average absolute direct payments generally tend to increase efficiency. However, in most of the cases the mean efficiency decreases as the percentage of direct payments rises. Direct payments are found to be positively related to environmentally friendly production, at least in Germany. However, in general, the direct payment system is not sufficient to offset the fact that the less environmentally friendly farms as well as the larger ones are more efficient.Efficiency, subsidies, DEA, non-parametric regression, ecological farming, natural resources, agricultural productivity.

Precio de la tierra con presión urbana: Un modelo para España.

Land prices with urban sprawl: a model for Spain The paper describes the agricultural land price to identify the explanatory variables of the recent cycle in Spain. The key variables in our panel data model are location and expected farm rents as fundamentals and the housing prices and increases in the irrigated area as non fundamentals dependant variables. The demographic growth is also a relevant explanatory variable in the regions. The price cycle is also related with the specialization path of the regions and the impact of the integration in the CAP. The novelty of the paper relay on use of panel data models to identify fundamental factors related with agricultural productivity (expected agricultural rents) and location and no fundamental factors or speculative like (housing price, the irrigate area and the population) using regional data by type of land. The fundamental and non fundamental dependant variables are identify and the results are related with the regional and county specialization. RESUMEN La novedad de este trabajo consiste en identificar, mediante técnicas de datos de panel, factores no fundamentales (precios de la vivienda, creación de regadíos, cambio demográfico) que, además de los fundamentales, (ingresos esperados, costes de producción) determinan el valor de cada tipo de tierras y su productividad en cada región. En definitiva se trata de cuantificar que parte de la subida de precios observada se justifica por elementos “internos”, relacionados con la renta agraria esperada, y cual proviene de elementos externos o especulativos (cambio de uso del suelo). Palabras clave: Precios del suelo, competencia por la tierra, especulación urbana, datos de panel, precio de la vivienda, productividad agraria, regadíos, especialización regional. Estudiamos los precios de mercado de las tierras para uso agrario y elaboramos un modelo de datos de panel para identificar las variables que determinan la evolución de estos precios en España. La determinación del precio de la tierra es compleja, en nuestro modelo identificamos como variables fundamentales la evolución de los ingresos esperados por los agricultores y la localización geográfica, y como no fundamentales o especulativos la presión urbanizadora y el incremento del área de regadío, que tienen un impacto significativo. El crecimiento demográfico es otras de las variables significativas en el modelo. Además tratamos de describir los elementos del ciclo de precios que están más relacionados con el proceso de especialización productiva de las regiones, ya que el período estudiado coincide con la aceleración de la especialización en el ámbito regional y la integración en la PAC.Land prices, land competing, urban pressure, panel data, agricultural productivity, irrigated land, regional specialization.

Precio de la tierra con presión urbana: Un modelo para España.

Land prices with urban sprawl: a model for Spain The paper describes the agricultural land price to identify the explanatory variables of the recent cycle in Spain. The key variables in our panel data model are location and expected farm rents as fundamentals and the housing prices and increases in the irrigated area as non fundamentals dependant variables. The demographic growth is also a relevant explanatory variable in the regions. The price cycle is also related with the specialization path of the regions and the impact of the integration in the CAP. The novelty of the paper relay on use of panel data models to identify fundamental factors related with agricultural productivity (expected agricultural rents) and location and no fundamental factors or speculative like (housing price, the irrigate area and the population) using regional data by type of land. The fundamental and non fundamental dependant variables are identify and the results are related with the regional and county specialization. RESUMEN La novedad de este trabajo consiste en identificar, mediante técnicas de datos de panel, factores no fundamentales (precios de la vivienda, creación de regadíos, cambio demográfico) que, además de los fundamentales, (ingresos esperados, costes de producción) determinan el valor de cada tipo de tierras y su productividad en cada región. En definitiva se trata de cuantificar que parte de la subida de precios observada se justifica por elementos “internos”, relacionados con la renta agraria esperada, y cual proviene de elementos externos o especulativos (cambio de uso del suelo). Palabras clave: Precios del suelo, competencia por la tierra, especulación urbana, datos de panel, precio de la vivienda, productividad agraria, regadíos, especialización regional. Estudiamos los precios de mercado de las tierras para uso agrario y elaboramos un modelo de datos de panel para identificar las variables que determinan la evolución de estos precios en España. La determinación del precio de la tierra es compleja, en nuestro modelo identificamos como variables fundamentales la evolución de los ingresos esperados por los agricultores y la localización geográfica, y como no fundamentales o especulativos la presión urbanizadora y el incremento del área de regadío, que tienen un impacto significativo. El crecimiento demográfico es otras de las variables significativas en el modelo. Además tratamos de describir los elementos del ciclo de precios que están más relacionados con el proceso de especialización productiva de las regiones, ya que el período estudiado coincide con la aceleración de la especialización en el ámbito regional y la integración en la PAC.Land prices, land competing, urban pressure, panel data, agricultural productivity, irrigated land, regional specialization.

The Impact of Direct Subsidies in Spain before and after the CAP'92 Reform

This paper focuses on the changes in farm e±ciency as a tool for policy analysis. The methodology is applied to the introduction of direct payments (DP) and the price sup- port reduction a®ecting large samples of individual farms with joint animal and vegetal production (comparing before and after CAP'92). The case study is justi¯ed for their relevance for Mediterranean forest and grazing land preservation in Spain. Using a non parametric method (DEA) we do not specify the production function of the farms, and can explain the impact of the direct payments on environmental adaptation and e±ciency for animal orientated farms before and after the (DP) introduction in 1992 (CAP'92 reform). Even though the direct payments increased sharply after the CAP'92 reform, in general, the new direct payment system turns out to be insu±cient to o®- set the fact that less environmentally friendly farms remain much more \e±cient," i.e. pro¯table for the farmer. The paper also studies the relationship of e±ciency with other policy relevant factors such as economic size. The results show that after the CAP'92 reform, the subsidy schedule was even more correlated with farm size than before, which we ¯nd to be counterproductive

Capital as a Factor of Production in OECD Agriculture: Measurement and Data

This paper provides a farm sector comparison of levels of capital input for fourteen OECD countries for the period 1973-2002. The starting point for construction of a measure of capital input is the measurement of capital stock. Estimates of depreciable capital are derived by representing capital stock at each point of time as a weighted sum of past investments. The weights correspond to the relative efficiencies of capital goods of different ages, so that the weighted components of capital stock have the same efficiency. Estimates of the stock of land are derived from balance sheet data. We convert estimates of capital stock into estimates of capital service flows by means of capital rental prices. Comparisons of levels of capital input among countries require data on relative prices of capital input. We obtain relative price levels for capital input via relative investment goods prices, taking into account the flow of capital input per unit of capital stock in each country.Financial Economics,