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CARERA The Impact of CAP Reform on the Employment Levels in Rural Areas

CARERA The Impact of CAP Reform on the Employment Levels in Rural Areas. CaReRa. D12 An Assessment of the Impact of CAP Reform on the Competitiveness of the Farming Sector (Field cropping). Xueqin Zhu & Alfons Oude Lansink Business Economics, Wageningen University (8 June 2007, Uppsala).

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CARERA The Impact of CAP Reform on the Employment Levels in Rural Areas

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  1. CARERA The Impact of CAP Reform on the Employment Levels in Rural Areas CaReRa D12 An Assessment of the Impact of CAP Reform on the Competitiveness of the Farming Sector (Field cropping) Xueqin Zhu & Alfons Oude Lansink Business Economics, Wageningen University (8 June 2007, Uppsala)

  2. Overview • Frontier model (Output distance function) and inefficiency effect model • Input and output variables • Field cropping in four countries (GE,GR,NL & SW) • Input and output prices • Explanatory variables (z) of the efficiency effects model • Frontier function & technical efficiency estimates • Present activities and future plan

  3. Output distance function and inefficiency effects model • Translog • Inefficiency effects model • Technical efficiency

  4. Outputs and inputs specification • 4 Outputs • Cereals • Root crops (aggregated by potatoes and sugar beets) • Other crops (10 remaining crops in FADN data) • Other products (livestock products and other output) • 6 Inputs • 3 variable inputs • Seeds • Chemicals (aggregated by fertilisers and pesticides) • Other variable inputs (other specific inputs & farm overheads) • Three factors (labour, land and capital)

  5. Composition of field crop outputs(%)

  6. Composition of variable inputs (%)

  7. Tornqivist price indexes for outputs and inputs • Root crops aggregated by 2 EUROSTAT price indexes • Other crops aggregated by 7 EUROSTAT price indexes • Other output by 2 EUROSTAT price indexes • Chemicals (input) by 2 EUROSTAT price indexes • Other variable inputs by 3 EUROSTAT price indexes

  8. Price index of root crops

  9. Price index of other crops

  10. Explanatory variables in inefficiency effects model- exogenous factors • z1 (composition of subsidy): coupled (crop) subsidy/ total subsidy • z2 (composition of revenue): total subsidy/total revenue • z3: farm taxes • z4:farm size • z5 (crop specialization): crop output/total output • z6 (family labour): unpaid labour/total labour • z7 (ownership of land): rented land/total land • z8 (long term debt):long term loans/total assets • z9 (short term debt): short term loans/total assets

  11. Explanatory variables in inefficiency effects model- regional Dummy’s • 13 regions for Germany Schleswig-Holstein, Niedersachsen,Nordrhein-Westfalen, Hessen, Rheinland-Pfalz, Baden-Württemberg, Bayern,Saarland, Brandenburg, Mecklenburg-Vorpommen,Sachsen, Sachsen-Anhalt, Thueringen • 4 regions for Greece Makedonia-Thraki, Ipiros-Pelponissos-Nissi Loniou, Thessalia, Sterea Ellas-Nissi Egeaou-Kriti • 3 regions for Sweden Slattbygdslan, Skogs-och mellanbygdslan, Lan i norra

  12. Mean technical efficiency 1995-2004 • Germany: 0.64 • Greece: 0.52 • Netherlands: 0.75 • Sweden: 0.69

  13. Technical efficiency over time

  14. Regional technical efficiency Germany

  15. Regional technical efficiency Greece

  16. Regional technical efficiency Sweden

  17. Impacts of z variables on TE

  18. Present activites • Efficiency and productivity analysis: • Calculation of production elasticity's of inputs • Productivity analysis and decomposition into technical change, technical efficiency change, allocative efficiency change and scale effects • Workpackage 6: • Farmers’ survey • Non-farmer stakeholders’ survey

  19. Future plan • Interpretation of the results, especially the impact of subsidy’s on technical efficiency, and the regional differences, with cooperation with partners • Request to the partners: • Comments on the selection of inputs and outputs • The regional information (Local, national subsidy’s, infrastructural conditions, market access etc.) which can explain the efficiency • Cost efficiency of the crop sector • Further study on the dairy sector

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