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CAPRI Premium payments in CAPRI Torbjörn Jansson* *Corresponding author +49-228-732323 www.agp.uni-bonn.de Department for Economic and Agricultural Policy.

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Presentation on theme: "CAPRI Premium payments in CAPRI Torbjörn Jansson* *Corresponding author +49-228-732323 www.agp.uni-bonn.de Department for Economic and Agricultural Policy."— Presentation transcript:

1 CAPRI Premium payments in CAPRI Torbjörn Jansson* *Corresponding author Department for Economic and Agricultural Policy Bonn University Nussallee Bonn, Germany CAPRI Training Session in Warzaw June 26-30, 2006 CAPRI Common Agricultural Policy Regional Impact

2 CAPRI CAPRI Training Session in Warzaw, June 26-30, Premiums with ceilings (quotas) Two principal possibilities I.Individual premium rights: The marginal premium is discontinuous with a sharp drop II.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 CAPRI CAPRI Training Session in Warzaw, June 26-30, Example from Agenda 2000 PGGRCU = {SWHE, RYEM, BARL …} Sets defined in policy\policy_sets.gms Definitions are hierarchical: EU MS NUTS2

4 CAPRI CAPRI Training Session in Warzaw, June 26-30, 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 CAPRI CAPRI Training Session in Warzaw, June 26-30, Fund flows Premium definitions Reference production P Reference payments D1 Premium remaining coupled Decoupled Decoupled Decoupled D2 P Decoupled payments Farm Hybrid Grassland Arable land All land

6 CAPRI CAPRI Training Session in Warzaw, June 26-30, 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 MTR standard mtrstd.gms Other scenario ScenarioName.gms

7 CAPRI CAPRI Training Session in Warzaw, June 26-30, 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 CAPRI CAPRI Training Session in Warzaw, June 26-30, 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 CAPRI CAPRI Training Session in Warzaw, June 26-30, 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 CAPRI CAPRI Training Session in Warzaw, June 26-30, 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 m a BxBx Exercise: The groups describe their scenarios using dual values.


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