Organic Farming and the New CAP - Results for the Austrian Agricultural Sector

Abstract

In 2003, the Common Agricultural Policy (CAP) has been reformed and decoupling direct payments from farm output is one of its core elements. We estimate the likely responses in organic product supply due to the reform at regional and sectoral levels. In addition, we analyse how the new programme for rural development, to be implemented in 2007, might affect organic farming. Our results show that organic farming will become more attractive after the 2003 CAP reform in Austria. Our results support the view that interactions among agri-environmental measures affect farmers' choice to maintain, abandon or adopt organic farming practices.agricultural sector modelling, Common Agricultural Policy, organic farming, Agricultural and Food Policy, Research Methods/ Statistical Methods, Q11, Q18, Q21,