The Economic Impact of Public Support to Agriculture An Internationa

The recent reforms of the Common Agricultural Policy (CAP) of the European Union extend in a significant way the “decoupling” process started some ten years earlier. By adopting the Single Farm Payment (SFP) scheme only limited support for agriculture is

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Series Editors Rolf Färe, Shawna Grosskopf, R. Robert Russell

For further volumes: http://www.springer.com/series/6551

V. Eldon Ball · Roberto Fanfani · Luciano Gutierrez Editors

The Economic Impact of Public Support to Agriculture An International Perspective

Foreword by David Blandford

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Editors V. Eldon Ball Economic Research Service U.S. Department of Agriculture 1800 M Street, NW Washington, DC 20036-5831 USA [email protected]

Roberto Fanfani Department of Statistics “Paolo Fortunati” University of Bologna Via Belle Arti 41 - 40126 Bologna Italy [email protected]

Luciano Gutierrez Department of Economics and Woody Plant Ecosystems University of Sassari Via E. De Nicola 1 07100 Sassari Italy [email protected]

ISBN 978-1-4419-6384-0 e-ISBN 978-1-4419-6385-7 DOI 10.1007/978-1-4419-6385-7 Springer New York Dordrecht Heidelberg London Library of Congress Control Number: 2010929580 © Springer Science+Business Media, LLC 2010 All rights reserved. This work may not be translated or copied in whole or in part without the written permission of the publisher (Springer Science+Business Media, LLC, 233 Spring Street, New York, NY 10013, USA), except for brief excerpts in connection with reviews or scholarly analysis. Use in connection with any form of information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed is forbidden. The use in this publication of trade names, trademarks, service marks, and similar terms, even if they are not identified as such, is not to be taken as an expression of opinion as to whether or not they are subject to proprietary rights. Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com)

Foreword

Despite a gradual and sustained decline in the contribution of agriculture to the economies of the member countries of the Organization for Economic Cooperation and Development (OECD), the sector remains socially and politically important. Although agriculture accounts for less than 2% of the gross domestic product of the OECD countries, it occupies over 35% of their total land area. Predominantly rural regions, where agriculture remains particularly important, contain almost one quarter of the population of OECD countries. The past quarter century has witnessed significant changes in agricultural policies in OECD countries. Although total support remains high, a shift has taken place from price-linked measures to direct income support, most notably in the European Union. Policies have been adapted to meet pressing social concerns, such as ensuring food security and improving environmental quality. OECD countries face major economic issues due to the ageing of their populations and the need to adapt to globalization and increasing competition from emerging economies. Continued pressure to reform agricultural policies will be exerted by the need to economize on the use of scarce public resources. At the same time, agriculture faces new challenges genera