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

The farm 9, that has good soils, does not produce durum wheat and it starts to produce
barley. With respect to the beef cattle farms, these farms maintain the number of cattle
heads, they increase the pasture and forage areas and they substitute durum wheat for
barley. The sheep farms reduce their herds drastically and they substitute durum wheat
for barley and oats. As the decoupling of income payments is not related to farm
production, the variability of the results decreases. The level of subsidies decreases due to
the new values of the specific subsidy to the durum wheat and the modulation.

Table 4.2 - Model Results with the new CAP- Partial Decoupling of Income Payments

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

Among various alternatives under the mid-term review of the Common Agricultural
Policy, the Portuguese government decided to assign to farm production 50% of sheep
premium, 100% of veal premium, 100% of suckler cow premium and 40% of slaughter

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