Journal
EUROPEAN REVIEW OF AGRICULTURAL ECONOMICS
Volume 48, Issue 2, Pages 385-414Publisher
OXFORD UNIV PRESS
DOI: 10.1093/erae/jbab005
Keywords
farm income; inequality; counterfactual distribution; CAP direct payments; France
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Funding
- Centre for Studies and Strategic Foresight (CEP) of the French Ministry of Agriculture
- French National Research Agency (ANR) as part of the 'Investissements d'Avenir' programme (Centre d'acces securise aux donnees - CASD) [ANR-10-EQPX-17]
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The study found that income growth and inequality dynamics of French commercial farms were influenced by changes in both income levels and farm characteristics. Additionally, Common Agricultural Policy payments were shown to help reduce income inequalities, with Pillar 1 and Pillar 2 payments having different effects along the income distribution.
We contribute to understanding the impact of potential drivers of farm income inequality and the redistributive impact of Common Agricultural Policy (CAP) payments. Our approach provides information at any quantile of the income distribution, in contrast to the widely used Gini coefficient. Income growth and inequality dynamics of French commercial farms between 2000 and 2017 are found to be explained by a change in both income levels and farm characteristics. Further, CAP payments are shown to participate in levelling off income inequalities, with Pillar 1 and 2 payments performing differently along the distribution. Our results may help inform on-going policy debates about fairness in the distribution of farm support and structural change implications for the future of European agriculture.
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