ABSTRACT
This chapter derives from a project for the UK Department of Environment, Food and Rural Affairs (Defra) ‘Estimating the Environmental Impacts of Pillar I Reform and the Potential Implications for Axis II funding’. The purpose of the chapter is to estimate the extent that farmers are cross-subsidising the Single Payment Scheme (SPS) payments by applying them to productive activities as if they were coupled payments, and not selecting the most profitable ones at the new prices.
