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Impacts of Three Direct Payment Options on Farm Structure, Economic Performance and Production Pattern: Results from the MEA-Scope Case Study in Italy

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Rural Landscapes and Agricultural Policies in Europe

Abstract

The Mugello area in the heart of Tuscany, Italy is a traditional region in which the existence of the characteristic cultural landscape is closely linked to quality beef and dairy production. This chapter uses the MEA-Scope modelling approach that is based on the micro-economic models AgriPoliS, MODAM and FASSET, to analyse how different EU policy options affect farm structure, farm profits, and agricultural production activities in Mugello. Simulated scenarios include an assumed continuation of the Agenda 2000 policy, an introduction of a decoupled single farm payment, and a scenario without direct payments.

Dairy farms and specialised field crop farms were better equipped to cope with extreme political changes than grazing livestock or mixed farms. Single farm payments led to more extensification compared to Agenda 2000, while the no-direct-payments scenario caused intensification expressed in an increased share of cereals and abandonment of set-aside. All scenarios led to considerable loss of mountainous grassland areas, whereby the single farm payment scenario caused the smallest abandonment.

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Ciancaglini, A. et al. (2009). Impacts of Three Direct Payment Options on Farm Structure, Economic Performance and Production Pattern: Results from the MEA-Scope Case Study in Italy. In: Piorr, A., Müller, K. (eds) Rural Landscapes and Agricultural Policies in Europe. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-79470-7_15

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