Economic Assessment
Results
Markus Kempen
Economic Effects (EU27)
Cross Compliance Assessment Tool
Regional Income Effects
% diff Full Compl vs. Zero Compl.
<-3
-3 - -0.5
% diff Full Compl. vs. Reference 2005
-0.5 – 0.5
0.5 – 3
>3
Cross Compliance Assessment Tool
Cost Implication of CC Standards
Cross Compliance Assessment Tool
Cost Implication per Activities
Cross Compliance Assessment Tool
Cost Implication per Activities
Cross Compliance Assessment Tool
Regional Cost Implication
< 1%
1%-2%
2%-3% 3%-5%
>5%
Total cost of compliance in % of agr. income
<2Mio
2-5Mio 5-10Mio 10-25Mio >25Mio
Total cost of compliance in Mio €
Cross Compliance Assessment Tool
Agricultural Production (1)
Cross Compliance Assessment Tool
Agricultural Production (2)
Cross Compliance Assessment Tool
Regional Production - overview
cereals
permanent
dairy
fodder
(beef) cattle
<-1.5
-1.5- -0.5 -0.5-0.5
set aside
pigs
0.5-1.5
other arable
poultry
>1.5
Land allocation and herd size: % diff. full compl. vs. zero compl.
Cross Compliance Assessment Tool
Regional Production (Pigs)
<-1.5
-1.5- -0.5 -0.5-0.5
0.5-1.5
>1.5
herd size (pigs) % diff. full compl. vs. zero compl.
<0.025 0.025-0.5 0.05-0.1 0.1-0.25 >0.25
Livestock density (pigs) LU/ha
Cross Compliance Assessment Tool
Summary
Income:
–
–
Overall income decreases
Increasing market prices can partially compensate additional cost
Cost:
–
–
–
Directive 4 (Nitrate) accounts for major cost effects (especially manure storage and transport)
Intensive (land independent) animal production systems have to cover significant cost
Cost of compliance are in the range of premium cuts in case of violation
Production:
–
–
–
–
–
–
–
CC tends to lead to a slight decrease in agricultural production
Cereals remain stable in level but yield goes down
Specific crops (e.g. corn, oats, pulses … ) requiring cover crops during winter decline more
than others
Other arable (specialty) crops tend to concentrate in “high yield” regions
Set aside and fallow land go up
Meat production decreases in prevailing intensive regions but overall supply remains
practically stable since other regions expand production (mainly pork and poultry)
Permanent crops and dairy sector almost not affected
Cross Compliance Assessment Tool