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Premium payments in CAPRI

Torbjörn Jansson*. CAPRI Common Agricultural Policy Regional Impact. Premium payments in CAPRI. CAPRI Training Session in Warzaw June 26-30, 2006. *Corresponding author +49-228-732323 www.agp.uni-bonn.de. Department for Economic and Agricultural Policy Bonn University Nussallee 21

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Premium payments in CAPRI

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  1. Torbjörn Jansson* CAPRICommon Agricultural Policy Regional Impact Premium payments in CAPRI CAPRI Training Session in Warzaw June 26-30, 2006 *Corresponding author +49-228-732323www.agp.uni-bonn.de Department for Economic and Agricultural Policy Bonn University Nussallee 21 53115 Bonn, Germany

  2. Premiums with ceilings (quotas) • Two principal possibilities • Individual premium rights: The marginal premium is discontinuous with a sharp drop • Each individual perceives the premium rate as constant • All premiums in CAPRI work as (II) • Minimum data required for each premium: • Activity list for which premium is defined • Premium amount if ceiling not reached • Ceiling in Euro or Hectares/Heads

  3. PGGRCU = {SWHE, RYEM, BARL …} Sets defined in policy\policy_sets.gms Definitions are hierarchical: EU  MS  NUTS2 Example from Agenda 2000

  4. Partial decoupling Decision 1: Degree of coupling per premium Decision 2: How redistribute decoupled funds? Farm specific payment Regional flat rate premium Different amounts for grassland and arable land? Which regional level? Additional payment for farms with certain cattle activities (Hybridmodell)

  5. Premiumremainingcoupled Premiumdefinitions Referencepayments P Referenceproduction D1 € Decoupled € Decoupled € Decoupled Grassland Hybrid Farm All land Arable land D2 P Decoupledpayments Fund flows

  6. MTR standard mtrstd.gms Other scenario ScenarioName.gms Files defining the policies • Agenda 2000 is always read • For simulations into the future, a standard MTR scenario is used • Further scenarios are defined incrementally, as reforms of previously defined scenarios • GAMS-files are named as the scenarios Agenda 2000: agenda.gms

  7. Reports Sum of payments per activity Composition of payments per activity Cut factors (premium right shortage) Cost of premiums per region (MS-EU) Best explored using the XML-tool

  8. Simple scenarios • Simulations for 2013, France, no market • Together: Sheep and goats premium not decoupled • Exercises pair-wise, any of the following: • Fully de-couple DPSCOW for France (=eps) • Fully de-couple DPGRCU for France (=eps) • Couple bull-premium (DPBULF) for France to 75% • Prepare to explain 10 min what happened! • Income • Premium • Activity level

  9. Dual values • Remember the first order conditions • If revenues m rise for an activity… • …the other terms must compensate • Other endogenous terms: x and 

  10. m a Bx Dual values in CAPRI All outputs + Premiums + Variable inputs + Value of feed + Young animals + N,P,K + Land balance + Set aside + Quota rents + PMP levels + PMP feed = Unexplained rest (0) • Report found in XML under “Dual values” • Exercise: The groups describe their scenarios using dual values.

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