Enforcement of the 2003 CAP reform in 5 countries of the West European Union: Consequences on land rent and land market

Abstract

This paper analyses the enforcement of the 2003 CAP reform in 5 countries of the West European Union: France, Germany, Italy, Spain and United Kingdom. The reform gives multiple possibilities of adaptation at a national or regional level. Two standard strategies are foreseen: that of the States which mobilized to the maximum the innovations that the reform allowed, and that of the States which have chosen the option of a minimal application, to limit the effects of reorientation of the productions (maximum sectors remain coupled) or of the redistribution of the payments (historical references). The great diversity of the conditions of agricultural production is one of the main explanations of the differences of enforcement of the reform. We analyse the first impacts of the reform. One can generally expect that the market of entitlements will be a priori limited, because of the links of the entitlements to land. The regionalisation of the calculation of the entitlements is incontestably the mechanism, which introduces the most redistributive effects, compared to the individual historical references. We examine also the consequences of the Single Payment System (SPS) on land rent and land market.