Resilience of European farms under different CAP scenarios

Abstract

The upcoming reform of the Common Agricultural Policy will put pressure on agricultural incomes and will cause more price volatility and income risk for farms in the EU. This raises the question if and how farms will survive these disturbances. Farms are able to survive only if they respond appropriately to disturbances. This resilience of farms is explained in this research by analysing the number of strategies that farmers indicate that they will use in a situation where the current CAP will continue and in a situation where it will disappear. The outcomes show that under both scenarios large more specialised farms with young farm heads are most resilient, and small more diversified farms headed by old farmers are least resilient. Results also show that farms that indicate to exit are the ones that are most dependent on CAP support, have old farm heads, and are part-time and diversified farms.resilience, governance, CAP reform, count model, Agricultural and Food Policy, Farm Management,