The Role of area-yield crop insurance program face to the Mid-term Review of Common Agricultural Policy



4 - Results

The decision farmers’ behavior is very well described by these mathematical
programming models. After the validation the models with the 2000 Common
Agricultural Policy reform, it was introduced in the models the full and partial decoupling
payments and the area-yield crop insurance program under the mid-term review of the
Common Agricultural Policy to attain the two objectives proposed for this research work.
Model results presented in Table 4.1, with full decoupling of income payment from
agricultural production, show that all of the farms do not produce durum wheat.

Table 4.1- Model Results with the new CAP- Full Decoupling of Income Payments

Description

Farm

Farm

Farm

Farm

Farm

Farm

Farm

Farm

Farm

1

2

3

4

5____

6

7

8

9

Crop Activities

Barley

43.9

20.7

63.8

48.6

36.1

67.5

Oats

136.8

34.8

27.9

Sunflower

105.3

2.6

67.5

Oats/Vicia

64.6

64.5

46.0

1.7

142.3

Pastures

824.2

442.0

111.0

270

120.0

786.0

Setaside________

69.1

107.0

2.3

236.2

394.9

200.0

260.0

27.7

415.0

Total area______

1200.0

660.0

180.0

570.0

600.0

200.0

260.0

1020.0

550.0

Livestock Activities

Beef cattle

400

150

74

450

Sheep_________

182

74

Farm Income

State of Nat. 1

21 944

34 916

6 303

25 745

12 765

9 926

17 319

24 857

2 534

State of Nat. 2

56 484

40 806

11 773

26 485

13 706

9 926

17 319

58 986

9 224

State of Nat. 3

78 991

48 962

15 538

31 729

20 454

9 926

17 319

74 399

17 986

State of Nat. 4

94 223

54 808

18 300

36 644

26 751

9 926

17 319

85 680

26 199

State of Nat. 5

103 949

56 754

19 438

36 890

27 089

9 926

17 319

90 030

32 337

Subsidies

Dec. payment

235 105

111 938

43 409

75 371

94 768

33 894

45 983

198 293

101 466

Notes: Crop activities in hectares, livestock activities in animal units and monetary values in tousends Euros.
Source: Model Results.

18



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