Olive Tree Farming in Jaen: Situation With the New Cap and Comparison With the Province Income Per Capita.



results obtained within the CMO reform offer a substantial change with respect to margins
obtained without reform.

Figure 1. Real Subsidies and simulation single payment in 1999 and 2000 crop year.

To make the simulation it has been considered the average of subsidies obtained in the
two crop years belonging to the reference period (1999-2003). Data obtained have been
introduced in the AGROS system to get subsidies in the original survey, single payment
estimation and direct gross margin variation as shown in figure 1. As it can be observed the
average subsidy and single payment aid for these two crop years does not affect in the same way
the analysed farms. In 1999 there was a reduction in the direct gross margin in all types of land,
which is normal as the subsidies were more elevated in that year than in the average of the two
crop years. However, the margins of marginal land and dry land increase in 9% and 18.5%
whilst the margin of irrigated land is reduced in a 7.4%.

The third part of our analysis corresponds with the comparison between the average
income obtained per type of farm and average per capita income in the province of Jaén. The
farms income comes from paid salaries and direct gross margin cultivation management.

It has only been chosen 1994 and 1999 crop years because both of them present
disintegrated information about salaries and wages paid to workers, whilst in 1991 crop year
there was not information about employment and salary costs and in 2000 there was not data

13



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