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Impact of the 2003 CAP reform on organic farming in Germany

Sanders, Jürn; Nieberg, Hiltrud and Offermann, Frank (2008) Impact of the 2003 CAP reform on organic farming in Germany. Paper at: 109th EAAE Seminar " THE CAP AFTER THE FISCHLER REFORM", Viterbo, Italy, 20-21.11.2008.

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Online at: http://agecon.lib.umn.edu/

Summary

The financial performance of organic and conventional farming is highly influenced
by the EU direct payment policy. While organic farms receive considerable support from agrienvironmental programmes, the design of the first pillar put organic farming at a disadvantage in the past. The 2003 CAP reform has changed this situation particularly by decoupling direct payments and reducing price support. This paper has therefore the aim to identify and assess the impact of the CAP reform on the relative profitability and production structure of organic farms in Germany. The statistical analysis of FADN data from the years 2003/04 and 2006/07 suggests that differences in payments from the first pillar decreased, affecting positively the relative profitability of organic farms. A survey among German organic farmers revealed however that only a minority attributes substantial changes in profits to the CAP reform and decoupling, respectively. The outcomes of this investigation suggest that organic farmers still require more specific information and advice in order to use the new possibilities given through decoupling.


EPrint Type:Conference paper, poster, etc.
Type of presentation:Paper
Keywords:organic farming, decoupling, relative profitability, CAP Health Check
Subjects: Food systems > Policy environments and social economy
Research affiliation: Germany > Federal Research Institute for Rural Areas, Forestry and Fisheries - VTI > Institute of Farm Economics - BW
Deposited By: Sanders, Jürn
ID Code:14983
Deposited On:18 Nov 2008
Last Modified:21 Nov 2011 10:31
Document Language:English
Status:Published
Refereed:Peer-reviewed and accepted

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