Economic Assessment Results Markus Kempen

Cross Compliance Assessment Tool Economic Effects (EU27)

Cross Compliance Assessment Tool Regional Income Effects % diff Full Compl vs. Zero Compl. % diff Full Compl. vs. Reference

Cross Compliance Assessment Tool Cost Implication of CC Standards

Cross Compliance Assessment Tool Cost Implication per Activities

Cross Compliance Assessment Tool Cost Implication per Activities

Cross Compliance Assessment Tool Regional Cost Implication 5% Total cost of compliance in % of agr. income 25Mio Total cost of compliance in Mio €

Cross Compliance Assessment Tool Agricultural Production (1)

Cross Compliance Assessment Tool Agricultural Production (2)

Cross Compliance Assessment Tool Regional Production - overview 1.5 Land allocation and herd size: % diff. full compl. vs. zero compl. cereals permanent fodder set aside other arable dairy (beef) cattle pigs poultry

Cross Compliance Assessment Tool Regional Production (Pigs) 1.5 herd size (pigs) % diff. full compl. vs. zero compl Livestock density (pigs) LU/ha

Cross Compliance Assessment Tool Summary Income: –Overall income decreases –Increasing market prices can partially compensate additional cost Cost: –Directive 4 (Nitrate) accounts for major cost effects (especially manure storage and transport) –Intensive (land independent) animal production systems have to cover significant cost –Cost of compliance are in the range of premium cuts in case of violation Production: –CC tends to lead to a slight decrease in agricultural production –Cereals remain stable in level but yield goes down –Specific crops (e.g. corn, oats, pulses … ) requiring cover crops during winter decline more than others –Other arable (specialty) crops tend to concentrate in “high yield” regions –Set aside and fallow land go up –Meat production decreases in prevailing intensive regions but overall supply remains practically stable since other regions expand production (mainly pork and poultry) –Permanent crops and dairy sector almost not affected