The Reform of the Common Agricultural Policy: Effects on Farm Labour Demand in Austria

نویسندگان

  • Erwin Schmid
  • Franz Sinabell
چکیده

On the 26 of June 2003, an agreement was reached by agricultural ministers to reform the Common Agricultural Policy. Decoupling direct payments from farm output and reductions of administrative prices are core elements of this reform. Major reform goals are less output of cereals, beef, sugar and milk, stabilised farm incomes and a more competitive farm sector. Model simulations show that these results will likely materialise in Austria. Member States have various options to choose in which direct payments will be decoupled from 2005 on. An important Austrian policy goal is to ensure full land covering farming. A sector model is used to estimate farm labour demand in response to the policy change. The analysis shows how sensitive farm labour demand is to the various decoupling strategies.

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تاریخ انتشار 2003