The impact of the 1999 CAP reforms on the efficiency of the COP sector in Spain

  1. Fatima Lambarraa1,*,
  2. Spiro Stefanou2,3,
  3. Teresa Serra4,
  4. José M. Gil4

Article first published online: 14 APR 2009

DOI: 10.1111/j.1574-0862.2009.00378.x

Issue

Agricultural Economics

Agricultural Economics

Volume 40, Issue 3, pages 355–364, May 2009

Additional Information

How to Cite

Lambarraa, F., Stefanou, S., Serra, T. and Gil, J. M. (2009), The impact of the 1999 CAP reforms on the efficiency of the COP sector in Spain. Agricultural Economics, 40: 355–364. doi: 10.1111/j.1574-0862.2009.00378.x

Author Information

  1. 1

    Centre de Recerca en Economia i Desenvolupament Agroalimentaris CREDA-UPC-IRTA, Parc Mediterrani de la Tecnologia, Edifici ESAB, Avinguda del Canal Olímpic s/n 15, 08860 Castelldefels, Spain

  2. 2

    Department of Agricultural Economics, Armsby Building, Pennsylvania State University, University Park, PA 16802, USA

  3. 3

    Department of Social Sciences, Wageningen University, P.O. Box 8130, Wageningen, The Netherlands

  4. 4

    Centre de Recerca en Economia i Desenvolupament Agroalimentaris CREDA-UPC-IRTA, Castelldefels, Spain

* *Corresponding author: Tel.: 34-93-552-1208; fax: 34-93-552-1001. E-mail address: fatima.lambarraa@upc.edu (F. Lambarraa).

Publication History

  1. Issue published online: 14 APR 2009
  2. Article first published online: 14 APR 2009
  3. Received 28 February 2008; received in revised form 24 December 2008; accepted 26 January 2009

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Keywords:

  • Q12;
  • Q18
  • Agenda 2000;
  • Distance function;
  • Efficiency;
  • Spanish COP sector

Abstract

The cereal, oilseeds, and protein crop sector (COP) occupies a prominent position within the European Union's agricultural sector. Within Spain, the COP sector accounts for almost a third of total Agricultural Guidance and Guarantee Fund expenses, and half of the utilized agricultural area (UAA). The COP sector is not only relevant because of its physical and economic magnitude, but also because of the political attention it receives. The Common Agricultural Policy (CAP) reforms that occurred during the 1990s paid special attention to this sector. This article aims to determine the impacts of Agenda 2000 on a sample of Spanish COP farmers’ production decisions by using an output-oriented stochastic distance function. The distance function allows for an assessment of the reform-motivated changes on total output, input used, input composition, and crop mix. It also permits an assessment of the impacts of the reform on farms’ technical efficiency.

Results show that the reform has shifted the production frontier inward and changed output composition in favor of voluntary set-aside land. With respect to input composition, Agenda 2000 induced a decrease in land, fertilizers, pesticides, and other inputs in favor of labor. In addition, Agenda 2000 has had a negative impact on technical efficiency.

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