Direct payments in the CAP post-2013: Impact analysis of potential scenarios
Following their introduction in 1992,direct payments have become one of the main instruments of the Common Agricultural Policy. The aim of this study is to analyse potential scenarios of harmonization of direct payments in the CAP post-2013. In doing so, we use the CAPRI model, which represents the functioning of agricultural markets at the global level and simultaneously models CAP measures at the EU regional level. Results suggest that while a flatter rate of direct payments would have minor impacts on agriculture at the EU level, it would imply substantial redistributive effects, both across regions and Member States.
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