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German Farmers’ Perspectives on Direct Payments in the Common Agricultural Policy

Author

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  • Marius Michels
  • Johannes Möllmann
  • Oliver Musshoff
Abstract
After several reforms of the Common Agricultural Policy and gradual liberalisation, direct payments that serve to stabilise farm incomes remain highly pertinent for EU farmers in that they continue to contribute a high share of total farm income. This was also reflected in our survey of German farmers’ perspectives on direct payments, which showed the importance that these payments play in their financial situation. However, several economists have pointed to the lack of justification for poorly targeted direct payments in achieving societal goals, namely the delivery of valued public goods. In particular, the surveyed German farmers also recognised societal disapproval of the direct payment scheme. However, without direct payments, an accelerated structural change in German agriculture is very likely, leading to larger, less diversified farms and more intensive farming; which contrasts with the expectations of the German society for the agriculture sector. As German tax payers contribute substantially to financing the CAP, societal approval in terms of animal welfare and environmental services should receive greater priority in the direct payment scheme. The latter could be achieved by a well‐aimed targeting of direct payments, providing compensation for farmers producing agri‐environmental public goods and/or clearly contributing to improved animal welfare. Après plusieurs réformes de la politique agricole commune et une libéralisation progressive, les paiements directs qui servent à stabiliser les revenus agricoles restent d'une grande pertinence pour les agriculteurs de l'Union européenne dans la mesure où ils continuent de représenter une part importante du revenu agricole total. Notre enquête sur le point de vue des agriculteurs allemands en matière de paiements directs en témoigne également, ce qui montre l'importance de ces paiements dans leur situation financière. Plusieurs économistes ont toutefois souligné le défaut de justification pour des paiements directs mal ciblés vers la réalisation d'objectifs sociétaux, à savoir la fourniture de biens d'intérêt public appréciés. En particulier, les agriculteurs allemands interrogés ont également reconnu que la société désapprouve le système de paiements directs. Il reste qu'en l'absence de paiements directs, l'agriculture allemande ferait probablement l'objet d'un changement structurel accéléré, conduisant à des exploitations plus grandes et moins diversifiées et à une agriculture plus intensive, ce qui contraste avec les attentes de la société allemande pour le secteur agricole. Les contribuables allemands participant de manière substantielle au financement de la PAC, le régime de paiements directs devrait accorder une plus grande priorité aux attentes de la société en matière de bien‐être animal et de services environnementaux. Ce dernier objectif pourrait être atteint par un ciblage plus précis des paiements directs, offrant une compensation aux agriculteurs produisant des biens d'intérêt public agro‐environnementaux et / ou contribuant clairement à l'amélioration du bien‐être des animaux. Nach mehreren Reformen der Gemeinsamen Agrarpolitik (GAP) und der schrittweisen Liberalisierung bleiben Direktzahlungen, die der Stabilisierung der landwirtschaftlichen Einkommen dienen, für EU‐Landwirte von großer Bedeutung, da sie weiterhin einen hohen Anteil am gesamten landwirtschaftlichen Einkommen ausmachen. Dies spiegelt sich auch in unserer Umfrage zu Direktzahlungen aus Sicht der Landwirte wider, die aufzeigt, wie wichtig diese Zahlungen für ihre finanzielle Situation sind. Eine Reihe von Ökonomen hat jedoch darauf hingewiesen, dass es keine Rechtfertigung für Direktzahlungen gibt, sofern sie nicht auf die Erreichung gesellschaftlicher Ziele ausgerichtet sind. Diese Ziele beinhalten speziell die Bereitstellung von öffentlichen Gütern. Die befragten deutschen Landwirte nahmen demgegenüber aber besonders auch die gesellschaftliche Ablehnung des Direktzahlungssystems wahr. Ohne Direktzahlungen wäre jedoch ein beschleunigter Strukturwandel in der deutschen Landwirtschaft sehr wahrscheinlich. Dieser würde zu größeren, weniger diversifizierten Betrieben und zu einer intensiveren Landwirtschaft führen, was im Gegensatz zu den gesellschaftlichen Erwartungen in Deutschland an den Agrarsektor steht. Da die deutschen Steuerzahler einen wesentlichen Beitrag zur Finanzierung der GAP leisten, sollten die gesellschaftlichen Erwartungen im Hinblick auf die Themen Tierschutz und ökologische Dienstleistungen im Direktzahlungssystem einen höheren Stellenwert erhalten. Letzteres könnte durch eine zielgerichtete Ausgestaltung der Direktzahlungen erreicht werden, die eine Entschädigung für die Landwirte vorsieht, die entweder öffentliche Agrarumweltgüter bereitstellen und/oder einen deutlichen Beitrag zum verbesserten Tierschutz leisten.

Suggested Citation

  • Marius Michels & Johannes Möllmann & Oliver Musshoff, 2020. "German Farmers’ Perspectives on Direct Payments in the Common Agricultural Policy," EuroChoices, The Agricultural Economics Society, vol. 19(1), pages 48-52, April.
    • Handle: RePEc:bla:eurcho:v:19:y:2020:i:1:p:48-52
    DOI: 10.1111/1746-692X.12231
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    References listed on IDEAS

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    1. S. Severini & A. Tantari & G. Di Tommaso, 2016. "Do CAP direct payments stabilise farm income? Empirical evidences from a constant sample of Italian farms," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-17, December.
    2. S. Severini & A. Tantari & G. Di Tommaso, 2016. "Do CAP direct payments stabilise farm income? Empirical evidences from a constant sample of Italian farms," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-17, December.
    3. Uthes, Sandra & Piorr, Annette & Zander, Peter & Bienkowski, Jerzy & Ungaro, Fabrizio & Dalgaard, Tommy & Stolze, Matthias & Moschitz, Heidrun & Schader, Christian & Happe, Kathrin & Sahrbacher, Amand, 2011. "Regional impacts of abolishing direct payments: An integrated analysis in four European regions," Agricultural Systems, Elsevier, vol. 104(2), pages 110-121, February.
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    1. Spörri, Martina, 2023. "Farmers' perceptions and perspectives in regard to agricultural policy making in Switzerland," 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK 334514, Agricultural Economics Society - AES.

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