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BONDSCHEME
An assessment of the practicalities and acceptability of a bond scheme as part of Common Agricultural Policy reform

The project sought to assess the so-called bond scheme as a way of providing transitional relief to farm businesses experiencing reductions in price and income support as part of the reform of the Common Agricultural Policy (CAP). The purpose of the project was to design a workable bond scheme, and to test its practicality and acceptability on policymakers, farmers and the stakeholders in agriculture.

Objectives
The project had the following four main objectives:
1) to design a bond scheme capable of providing transitional relief to farms throughout the EU under CAP reform as currently proposed
2) to cost this proposed bond scheme
3) to assess its practicality and acceptability with policy-makers and farmers
4) to discuss the realism of the proposed bond scheme with a wide range of individuals and organisations with interests in, and responsibilities for, agriculture.
The research project will assess the practicalities and acceptability of a bond scheme for farmers and their businesses as part of the CAP reform. Such a scheme would involve farmers being issued with bonds on which the EU would make annual payments for several years. These bonds would be transferable and could be sold. Several variants of the bond scheme will be developed as part of the study.
The aim will be to subject the proposed scheme to wide consultation among farmers, policymakers and other stakeholders in agriculture.

Progress to Date
The objectives were achieved via a literature review, a conference, a postal survey, a series of case-study interviews with farmers and workshops involving stakeholders.
The expected result was a costed and worked-out scheme, applicable to the full range of farmers in the UK, Germany and Portugal, but extendable to the rest of the European Union.
The project has now been completed and the final report is being prepared. A book containing the results is also in preparation.

Results
The project found that a wide range of stakeholders, including farmers, thought the proposed scheme could work. Farmers' responses across the three study countries were very similar. While few said they would leave land idle after receiving the bond, significant numbers said that they would use it to finance diversification or make improvements to their farms.

Classified in CAP AND RURAL DEVELOPMENT

Scientist responsible for the project

Mr RICHARD Tranter
Earley Gate Box 237
RG6 6AR Reading
United Kingdom (The) - GB

Phone: +44 118 378 8155
Fax: +44 118 935 3423
E-mail: r.b.tranter@reading.ac.uk

References

Project ID QLRT-1999-01510
Organisation The University of Reading
Area 5.4
Start date 01 February 2000
Duration (months) 30
Total cost 508 124 €
Total EC contribution   411 500 €
Status Completed

The partners

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