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Effects of the CAP Reform and possible further developments on organic farming within the EU

Contract nr: FAIR-CT96-1794
Project nr: 1794
Project type: SC
Starting date: 01/03/1997
Duration: 40 months
Total cost: 1,582,000 EUR
EC Contribution: 1,130,000 EUR
Scientific Officer: Alkmini KATSADA
Research topic: Policy-relevant economic analysis. Impact assessment
Acronym: ORGANIC FARMING AND THE CAP

Background:
Organic farming is still a minor part of European agriculture, although in some countries it has gained acceptance on over 9 % of farms. Recent policy emphasis towards more environmentally sensitive farming practices and the importance of surplus reduction has led to more attention being paid to organic farming and specific policy provisions. Of special importance is EC regulation 2078/92 (on agricultural production methods compatible with the requirements of the protection of the environment and the maintenance of the countryside) and other factors affecting organic farming, such as the general CAP rules and the development of the market for organic food, including EC-regulation 2092/91 covering certification of organic food.

Objectives:
The general objective of the project is to assess the impact of CAP reform and other regulations and possible policy developments on organic farming in all 15 EU Member States plus the Czech Republic, Norway and Switzerland. Specific objectives are to:

1) analyse existing CAP regulations relevant to organic farming;
2) assess the impact of CAP policies on organic agriculture;
3) evaluate the contribution organic farming can make to EU policy goals;
4) explain the differing adoption rates of organic farming between countries;
5) develop and evaluate scenarios on a more widespread adoption of organic farming;
6) develop and evaluate options for EU policy with respect to organic farming and give input for decision support in this field to the EU.


Description:
The project consists of five tasks:

1) the policy and regulatory environment for organic farming in the European Union;
2) impact assessment of current policies on organic farming and its contribution to policy objectives;
3) institutional factors influencing the variation in rates of conversion to organic farming;
4) impact assessment of different levels of adoption of organic farming and policy options;
5) policy implications and recommendations.

A systematic understanding of the policy environment of agriculture as it is relevant to organic farming (Task 1) is the starting point for the whole project, specifically for the work carried out in Task 2. Task 3 broadens the view and seeks to explain both the development of organic farming before the recent reform and the institutional and other factors that influence the differing conversion rates beyond the policy influence. These tasks set the stage for Task 4 which aims to assess the impact of an increased adoption and the consequences of alternative policy options. Subtask 4.1 adopts a case study approach to demonstrate likely adaptation of organic farms to a changed policy environment and generates hypotheses for the more macro-oriented approaches, especially Subtask 4.2. This subtask will adapt and develop existing quantitative sector models to fulfil the objective of Task 4. Subtask 4.3 uses scenario analysis to integrate and evaluate the results in a semi-quantitative and qualitative fashion. Tasks 5 draws on all previous tasks to provide conclusions and policy recommendations.

Current situation/results:
All the following results are published in the series 'Organic Farming in Europe: Economics and Policy'. Details are available on the publication's website below.

  • Task 1: The policy and regulatory environment for organic farming in the European Union
    Task 1 provides a comparative analysis of the policy and regulatory environment within which organic farming operates in the 18 study countries. European, national and regional regulations are reviewed. The focus is on agri-environmental and mainstream agricultural support measures, marketing and regional development programmes, certification systems and support in the form of advice, training and research.
  • Subtask 2.1: Number of organic farms, land area and enterprise structure
    Subtask 2.1 provides the most authoritative source for statistical data on organic farming with respect to land area, number of farms, livestock and crop production in 18 European countries from 1993-1998.
  • Subtask 2.2: Market growth and development
    Subtask 2.2 identifies and compares national markets for the main organic products in 18 European countries on the basis of the most comprehensive data collection ever presented covering 1993 to 1997/98. The report shows that European demand for organic products is far from being met and considers the requirements to realise this potential.
  • Subtask 2.3: Farm level and regional socio-economic performance
    Subtask 2.3 investigates the physical and economic performance of organic farms in 18 European countries, based on the latest empirical data available. The report concludes that profits on organic farms are, on average, comparable to those on conventional farms. A comprehensive analysis of policy implications establishes that the relative competitiveness of organically managed systems is likely to increase further as a result of Agenda 2000.
  • Subtask 2.4: Environmental and resource use impacts
    Subtask 2.4 concludes that organic farming makes a positive contribution to the environment. Using a series of indicators ranging from climate and the ecosystem to animal welfare and food quality, the study evaluates the environmental impacts of organic versus conventional agriculture in 18 European countries. The policy relevance of the results are also discussed in detail.
  • Subtask 2.5: Output and public expenditure implications
    This subtask provides a detailed analysis of the consequences that organic farming has produced so far on agricultural output and public expenditure in the 18 study countries, drawing on the latest studies in this field. The report concludes that organic farming contributes to EU public expenditure savings.

Work in progress
Work on tasks 3 to 5 is currently in progress. Results will be available shortly.


Website: http://www.uni-hohenheim.de/~i410a/eu_org/Fair3_Index.htm
Publications website: http://www.uni-hohenheim.de/~i410a/ofeurope/


Coordinator
Stephan DABBERT
Institute of Farm Economics
University of Hohenheim
D-70593 Stuttgart

Tel.: +49 711 459 25 41
Fax: +49 711 459 25 55
E-mail: dabbert@uni-hohenheim.de


Partners

  • Johannes MICHELSEN
    Institut for Statskundskab,
    University of Southern Denmark
    Niels Bohrs Vej 9
    DK-6700 Esbjerg
    Tel.: +45 65 50 41 61
    Fax: +45 65 50 10 91
    E-mail: jm@sam.sdu.dk

  • Nicolas LAMPKIN
    University of Wales
    Lanbadarn Campus
    Aberystwyth
    UK-SY23 3AL
    Tel.: +44 1970 62 22 48
    Fax: +44 1970 62 22 38
    E-mail: nhl@aber.ac.uk

  • Raffaele ZANOLI
    Università degli Studi di Ancona
    Via Brecce Bianche
    I-60131 Ancona
    Tel.: +39 071 220 49 29
    Fax: +39 071 220 48 58
    E-mail: zanoli@agrecon.unian.it

  • Hiltrud NIEBERG
    Federal Agricultural Research Centre
    Bundesallee 50
    D-38116 Braunschweig
    Tel.: +49 531 59 65 51
    Fax: +49 531 59 63 57
    E-mail: nieberg@kepler.dv.fal.de

 
 
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