Old and new style of greening payments: economic and environmental implications for italian agriculture

Abstract

The recent CAP reform proposed a green component of the first pillar that remunerates farmers for the prevision of environmental public goods by allocating the 30% of the direct payment to the greening payment. In order to obtain this payment, the farmers shall ensure a specified set of mandatory farm practices. The purpose of this paper is to provide a first assessment of the greening measures on different farms types. The study, through FADN data (2009-2010), aims at quantifying the impact of these measures of three sample companies of the Marche region according to the original proposal (2011) and the current proposal CAP approved in June 2013. The results shows different impact of the green payment according to the characteristic, the location and the economical state of the farms.