Despite the fact that agricultural policy should have a prominent role in determining the propensity to invest, recent studies on teh imapct of the CAP reform process (both the Health Check and decoupling), as well as on farming strucutre in new MEmber States, emphasize the role of non-policy and non-farm variables associated with farm household (e.g. demography, ageing) and the surrounding eocnomic environmental (e.g. shadow wages in farm households, return on capital, quality of life in rural areas) in determining farmers' behaviour. This is particualrly true for investments and decommissioning. However , there is limited prmary research on the impact of the CAP reform process on farmers' investment behaviour. Within the above regulatory and economic framework, the present paper aims to investigate farmers' investment behaviour, and evaluate the impact of differenting CAP scenarios - seen in the international economic context - on selcected group of farming systems, hence contributing to the understaning of the relation between policy objectives and farmers' behaviour. this chapter is translated originally from the project report "Farm Investment Behaviour under the cAP Reform Process" IPTS, 2010
