Determinants of regional disparities in farm income: markets or policy?

Author/s Rudiger Elsholz, Johannes Harsche
Publishing Year 2014 Issue 2014/1 Language Italian
Pages 24 P. 13-36 File size 235 KB
DOI 10.3280/ECAG2014-001002
DOI is like a bar code for intellectual property: to have more infomation click here

Below, you can see the article first page

If you want to buy this article in PDF format, you can do it, following the instructions to buy download credits

Article preview

FrancoAngeli is member of Publishers International Linking Association, Inc (PILA), a not-for-profit association which run the CrossRef service enabling links to and from online scholarly content.

In this paper, the focus is on regional disparities in agricultural income, particularly in the context of agricultural price fluctuations and the impact of agricultural policy. In a first step, a theoretical model explaining regional disparities in farming revenues is presented. The following chapter contains an illustration of the development of agricultural prices as well as farming income with and without support. Additionally, we give an overview of regional disparities with regard to the instability of farm revenues, considering the issue of the stabilization effects of the cap. Analysis of the instability of farm revenues with and without support due to the adoption of different policies has revealed that there are remarkable differences among several of the policy scenarios. In order to get some information on causalities, we investigate regional disparities in farm revenues and analyse the differences for crop and animal production. The results of this analysis indicate substantial disparities between farms located in geographically different types of regions. That is to say, farms located in favoured agricultural regions obviously generate higher revenues than farms located in regions having to operate in poor conditions. Furthermore, investigation into recent regional changes in farm revenues finds that farms with a more balanced farming strategy generate the highest increase in farm revenues.

Keywords: Disparities in farm income, aggregate supply and demand analysis, regional economic activity

Jel codes: O18, Q11, Q18, R11, R12

  1. Aiello, F. (1999). The stabilisation of LDCs’ export earnings. The impact of the eu
  2. STABEX programme. International Review of Applied Economics, 13(1), 71-86.
  3. DOI: 10.1080/026921799101742
  4. Allanson, P. (2007). Classical horizontal inequities in the provision of agricultural
  5. income support. Review of Agricultural Economics, 29(4), 656-671.
  6. 10.1111/j.1467-9353-2007.00379.x.
  7. Allanson, P., & Rocchi, B. (2008). A comparative analysis of the redistributive
  8. effects of agricultural policy in Tuscany and Scotland. Review of Agricultural and
  9. Environmental Studies, 86, 35-56.
  10. ami Agrarmarkt Informations-Gesellschaft (2013). Agrarrohstoff-Index für Deutschland:
  11. Oktober 2013.
  12. Anders, S., Harsche, J., Herrmann, R. & Salhofer K. (2004). Regional income effects
  13. of producer support under the cap. Cahiers d’économie et sociologie rurales, 73,
  14. 103-122.
  15. Anders, S., Harsche, J., Herrmann, R., Salhofer, K. & Teuber, R. (2007). The interregional
  16. and intertemporal allocation of eu producer support: Magnitude and determinants.
  17. Jahrbuch für Regionalwissenschaft, 27(2), 171-193. DOI: 10.1007/s10037-007-0018-3
  18. Bahrenberg, G., Giese, E., Mevenkamp, N. & Nipper, J. (2008). Statistische Methoden
  19. in der Geographie: Multivariate Methoden. Berlin: Gebr. Borntraeger.
  20. Brady M., Kellermann K., Sahrbacher C. & Jelinek L. (2009). Impacts of decoupled
  21. agricultural support on farm structure, biodiversity and landscape mosaic: Some eu
  22. results. Journal of Agricultural Economics, 60(3), 563-585. DOI: 10.1111/j.1477
  23. 9552.2009.00216.x.
  24. Crescenzi, R. (2009). Undermining the principle of concentration? European Union
  25. regional policy and the socio-economic disadvantage of European regions.
  26. Regional Studies, 43, 111-133.
  27. Cuddy, J., Della Valle, P. (1978). Measuring the instability of time series data. Oxford
  28. Bulletins of Economics and Statistics, 40(1), 79-85.
  29. Dewbre, J., Giner, C., Thompson, W. & von Lampe, M. (2008). High food commodity
  30. prices: will they stay? Who will pay? Agricultural Economics, 39 (Issue Supplement
  31. s1), 393-403. DOI: 10.1111/j.1574-0862.2008.00346.x
  32. Dissart, J. (2007). Landscapes and regional development: What are the links?
  33. Cahiers d’économie et sociologie rurales, 84-85, 61-91.
  34. ec European Council (1999). Council Regulation 1257/1999 from the 17th of May 1999
  35. on Support for Rural Development from the European Agricultural Guidance and
  36. Guarantee Fund (eaggf). Official Journal of the European Communities, L 160/80.
  37. ec European Council (2003). Council Regulation 1782/2003 from the 23rd of
  38. September 2003 Establishing Common Rules for Direct Support Schemes under
  39. the Common Agricultural Policy and Establishing Certain Support Schemes for
  40. Farmers. Official Journal of the European Communities, L 270/1.
  41. Elsholz, R., & Harsche, J. (2008). Common Agricultural Policy Impacts on Farm
  42. Revenues. Paper at the XIIth eaae Congress in Gent, Belgium.
  43. Elsholz, R. (2008). Assessment of second pillar programs at the regional level. Paper
  44. presented at the 109th eaae Seminar in Viterbo, Italy.
  45. Elsholz, R. (2012). Regionale Bewertung der ersten und der zweiten Säule der
  46. Europäischen Agrarpolitik: theoretische Überlegungen und empirische Analyse.
  47. Agrarökonomische Studien, Band 27. Kiel, Wissenschafts-Verlag Vauk.
  48. European Commission (2012). com (2012) 496 final. Brussels.
  49. Eurostat (2009). Total means of agricultural production. Main tables, agricultural
  50. prices and price indices.
  51. Ezcurra, R., & Pascual, P. (2008). Fiscal decentralisation and regional disparities:
  52. evidence from several European Union countries. Environment and Planning, 40(5), 1185-1201. DOI: 10.1068/a39195
  53. Geppert, K., & Stephan, A. (2008). Regional disparities in the European Union: Convergence and agglomeration. Papers in Regional Science, 87(2), 193-217. DOI: 10.1111/j.1435-5957.2007.00161.x
  54. Gil, C., Pascual, P. & Rapún, M. (2004). Regional Economic Disparities and Decentralisation. Urban Studies, 41(1), 71-94. DOI: 10.1080/0042098032000155696
  55. Gilbert, C. (2010). How to understand high food prices. Journal of Agricultural Economics, 61(2), 398-425. DOI: 10.1111/j.1477-9552.2010.00248.x
  56. Glebe, T., & Latacz-Lohmann, U. (2007). Agricultural multifunctionality and trade liberalisation. Cahiers d’économie et sociologie rurales, 82-83, 57-73.
  57. Harsche, J. (2009). Regionale Inzidenz und ökonomische Bestimmungsgrößen der Gemeinsamen Europäischen Agrarpolitik. Schriften zur Internationalen Entwicklungs- und Umweltforschung, Band 23. Frankfurt am Main: Peter Lang.
  58. Headey, D., & Fan, S. (2008). Anatomy of a crises: the causes and consequences of surging food prices. Agricultural Economics, 39 (Issue Supplement s1), 375-391. DOI: 10.1111/j.1574-0862.2008.00345.x
  59. Helmberger, P. (1995). Economic analysis of farm programs. New York: McGraw-Hill.
  60. Hessisches Statistisches Landesamt - hsl (various issues). Hessische Gemeindestatistik.
  61. Hill, B. (2000). Farm incomes, wealth and agricultural policy. Aldershot: Ashgate Publishing.
  62. Klausing, O. (1987). Die Naturräume Hessens. Schriftenreihe der Hessischen Landesanstalt für Umwelt, Heft 67, Wiesbaden.
  63. Latacz-Lohmann, U., & Hodge, I. (2001). Multifunctionality and free trade – conflict or harmony? Euro Choices, 1(1), 42-47. DOI: 10.1111/j.1746-692X.2001.tb00074.
  64. oecd (2003). Farm household income: Issues and Policy Responses. Paris.
  65. oecd (2009). Database on Producer and Consumer Support Estimates. oecd data base 1986-2008.
  66. Robinson, G. (2004). Geographies of agriculture: Globalisation, restructuring and sustainability. London: Pearson.
  67. Rocchi, B., Romano, D. & Stefani, G. (2005). Distributive impacts of alternative agricultural policies: a sam-based analysis for Italy. Cahiers d’économie et sociologie rurales 77, 85-112.
  68. Schmitz, A., Furtan, H. & Schmitz, T. (2009). Agricultural policy: high commodity and input prices. Agricultural and Resource Economics Review, 38(1), 18-35.
  69. Sckokai, D., & Moro, P. (1999). Modelling the cap arable crop regime in Italy: Degree of decoupling and impact of Agenda 2000. Cahiers d’économie et sociologie rurales, 53, 49-73.
  70. Shucksmith, M., Thomson, K. & Roberts, D. (2005). The cap and the regions: The territorial impact of the Common Agricultural Policy. Oxfordshire: cab International.

  • One or many European models of agriculture? How heterogeneity influences income creation among farms in the European Union Łukasz Kryszak, Thomas Herzfeld, in Agricultural Economics (Zemědělská ekonomika) /2021 pp.445
    DOI: 10.17221/154/2021-AGRICECON

Rudiger Elsholz, Johannes Harsche, Determinants of regional disparities in farm income: markets or policy? in "ECONOMIA AGRO-ALIMENTARE" 1/2014, pp 13-36, DOI: 10.3280/ECAG2014-001002