The Effects of the Reformed C.A.P. to Cereal Crops

The Effects of the Reformed C.A.P. to Cereal Crops

Theodoros Markopoulos (Department of Agricultural Development, Democritus University of Thrace, Orestiada, Greece), Sotirios Papadopoulos (Department of Agricultural Development, Democritus University of Thrace, Orestiada, Greece), Christos Karelakis (Department of Agricultural Development, Democritus University of Thrace, Orestiada, Greece), Konstantinos Galanopoulos (Department of Agricultural Development, Democritus University of Thrace, Orestiada, Greece) and Konstadinos Mattas (Department of Agricultural Economics, Aristotle University of Thessaloniki, Thessaloniki, Greece)
DOI: 10.4018/IJFBMBM.2017070101

Abstract

This article studies the effects of the CAP Reform which introduced the decoupling of subsidies (2003) in the agricultural production, focusing on the cultivation of cereals, in the region of Eastern Macedonia and Thrace. The data for this research was gathered by agronomists, through a qualitative research. The valid responses reached a 67% percentage out of the total scientists who are responsible at the Stores selling pesticides and other supplies to farmers in the region. A Factor Analysis led to a Structural Equations Model (SEM) which was considered as the appropriate statistical tool and it was selected for further analysis. Based on the results, the significant impacts as well as the relationship between Cultivation, Production and Marketing of cereals with Local Economy was formed after the effects of the application of the revised CAP, successfully. Out of the three (3) hypotheses recorded, based on the pronouncements of the EU over the announcement of the specific revision, two (2) were accepted, while one (1) was rejected.
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Theoretical Background

Researchers in many scientific papers, even before the implementation of this reform, expressed concerned that decoupling might cause a reduction in agricultural activity, reduce competitiveness and then reduce the profitability of companies engaged in the transportation of agricultural products (Conforti et al, 2002). Other researchers expressed the view that there is an influence in farmers' behavior and in the choices and risks they are undertaking in the cultivation procedure (Bhaskar and Bengin, 2009). It is obvious that the impact of the revision in terms of culture and all the features regarding the productivity, intensification and change in the size of farms ultimately affect farmers’ income.

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