ABSTRACT
The last Common Agricultural Policy reform was finalised in 2013 and includes the period 2014–2020. New aspects in this reform were the abolishment of production constraints, a new crisis reserve, and the principle of supporting only active farmers and the additional Pillar I payment for young farmers. This chapter describes the Common Agricultural Policy Regionalised Impact model with its farm-type models, how land use and labour use are modelled. It explores how the impact of Pillar II measures is simulated and describes the scenarios: the 'Baseline' and the 'Shift-15%' scenario. The chapter presents the results of this simulation by comparing the Shift-15% scenario to the Baseline and discusses the effects on land use, yields and supply, prices, agricultural income, labour use and environmental indicators. Through the enhancement of the Pillar II one would expect a positive impact on environmental indicators, because most Pillar II measures support an extensification of agricultural production.
