Common Agricultural Policy and climate variability changes: an impact assessment of the first-pillar reform on an agricultural area of Grana Padano in different climate scenarios

Abstract

The reform of the Common Agricultural Policy it started in 2015 with several innovative aspects. Regarding the first pillar, such aspects are especially the convergence of the basic payments, the green payments and the coupled payments. In this regard seems interesting carry out analysis about to evaluate the policy impact considering the risks and opportunities due to climate change.

In this study the impact of the convergence of basic payments, the introduction of the green payments and the coupled payments has been evaluated on dairy cattle farms in the Grana Padano area. The impact has been evaluated in different climate scenarios by economic, social and environmental indicators. The methodology used is the mathematical programming and especially a model of Discrete Stochastic Programming has been used to represents farms of the FADN database.

The main results show that a significant part of the farms is affected by the diversification constraint that reduces the land devoted to corn silage. Farmers could cultivate corn silage after a principal crop (e.g. ryegrass) in order to avoid the diversification constraint, however, determining a negative impact on the use of environmental resources. To consider also that in the future there is an increase of corn silage yields with long cycle.

Another result to underline is that which concerns the possibility of soybean cultivation in the ecological focus areas. In fact, considering the coupled payment provided for this crop, the ecological focus areas seem to be an important source of income for the farms.

Finally, the analysis shows that the convergence of the basic payment will result in a reallocation of direct payments between farms with a significant impact on farm incomes.