ABSTRACT

The Common Agricultural Policy (CAP) has undergone a gradual change from market intervention instruments to decoupled measures attempting to enhance the environmental performance of the European Union (EU) agricultural sector. This chapter aims to quantify the changes in the total budget allocation and in the average decoupled unit payments under the 2013-CAP reform. It seeks to assess to what extend the post-2013 CAP will reduce the disparities in the distribution of funds among EU member states, regions and farmers. One of the main objectives of the post-2013 CAP reform related to the direct payments is to improve efficiency and equity of the CAP through more targeted and equitable direct payments. The Farm Accountancy Data Network is the only source of micro-economic data that is harmonized within the EU. It is a key dataset for both policy makers and researchers, as it serves as a basis for compiling statistics and policy analysis at farm level.