Coupled support for sugar beet in the European Union: Does it lead to market distortions?

Under the EU Common Agriculture Policy, only 11 of 19 sugar beet producing Member States provide coupled direct payments for beet. This paper analyses market effects this uneven implementation an agricultural policy instrument along supply chain, focusing in particular on changes production individual States. In addition to previous literature, competing crops are also presented. Moreover, support investigated under two different yield levels account uncertainties arising from application ban certain insecticides that came into force 2018. The simulation was carried out using partial equilibrium model AGMEMOD. Results suggest market-distorting effect remains limited and tends be higher optimistic development. Assuming unchanged growth, simulated increase countries providing totals 258,000 tonnes (+5.7%), while without declines by 21,000 (?0.2%) resulting overall 236,000 (+1.3%). Despite these rather effects, cannot supported economic point view because it contradicts objective a stronger market-orientation production.