1. CAPRI 3 rd CAP-STRAT Workshop, 24./25.03.2003, Bologna New representation of direct payments Torbjörn Jansson, SLI and Bonn CAPRI Common Agricultural Policy Regional Impact

2. CAPRI 3 rd CAP-STRAT Workshop, 24./25.03.2003, Bologna Outline Overview of conceptual change Implementation Examples: MTR simulations

3. CAPRI 3 rd CAP-STRAT Workshop, 24./25.03.2003, Bologna Old versus New approach Old approachNew approach 1 premium per activity Ceilings per activity group Many premiums per activity 1 ceiling per premium Many activities per premium + Fits into database - Far from regulation - Storage in GAMS files + Definition close to regulation - Difficult to change policy

4. CAPRI 3 rd CAP-STRAT Workshop, 24./25.03.2003, Bologna New concept, definition of premiums Premium name region activity group value ceiling level ceiling uncut amount application type Activity group Activity

5. CAPRI 3 rd CAP-STRAT Workshop, 24./25.03.2003, Bologna Processing of premiums Policy definition Initialisation: Break down to lower regional level and individual activities Prmcut.gms Iterative adjustment: Cut individual premiums to fit into tightest ceiling before each iteration Supply models Reports Expanded policy definition Policy.gms Effective payments/ activity Manually edited policy file in \capri\gams\policy\ \capri\gams\policy\policy.gms Parameters PP_EPAY() and PPDATA() \capri\gams\policy\prmcut.gmsIn DATA-parameter, row PRME

6. CAPRI 3 rd CAP-STRAT Workshop, 24./25.03.2003, Bologna Definition, detail Payment name DPGRCU Apptype can be: 1: per level 2: per slaughtered head 3: per main output 4: per historic yield Specification of payment per crop group Base level for premium defined per MS

7. CAPRI 3 rd CAP-STRAT Workshop, 24./25.03.2003, Bologna Reports Sum of payments per activity Composition of payments per activity Cut factors (premium right shortage) Cost of premiums per region (MS-EU)

8. CAPRI 3 rd CAP-STRAT Workshop, 24./25.03.2003, Bologna Direct payments in MTR -DPGRCU Direct payment to cereals -DPPULS Specific payment for pulses -DPDWHETR Traditional durum wheat premium -DPDWHEES Established payment to durum wheat -DPNONF Direct payment for non food crop -DPPARI Specific rice premium remaining after MTR policy -DPPARI_fa Farm income rice premiums -DPSCOW Suckler cow premium -DPBULF Special premium to bulls and steers -DPDCOW Direct income support to dairy cows -DPSHGM Direct payment for sheep and goat -DPNE_SHGM National envelope for sheep and goat -DPNE_DCOW National envelope dairy cows -DPNE_MEAT National envelope bovine meat cattle -DPSL_ADCT Slaughter premium for adult cattle -DPSL_CALV Slaughter premium for calves -DPNATMILK National dairy premium in northern Sweden and Finland - DPMTR The MTR decoupled payment € (MS)

9. CAPRI 3 rd CAP-STRAT Workshop, 24./25.03.2003, Bologna Drawbacks? Full complexity not accounted for –Premium rights depend on farm characteristics –Alternative use of land for fodder area OR area payments –No trade of premium rights No cross compliance Requires manual edition of policy files