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2009: Assessment of the impact of partial decoupling

In June 2003 the EU Council of Agricultural Ministers agreed radical measures to remove the link between payments to farmers and the level of production. The intention was to move towards a more market-orientated agricultural sector by removing the distorting effects of payments linked to output. Farmers would still receive support in the form of payments under the Single Payment Scheme, provided they adhered to a set of cross-compliance measures.

However, the Single Payment Scheme included a significant degree of national discretion in implementation and allowed Member States to retain elements of the former coupled direct payments. This briefing reports recent research that set out to quantify the distortion to competition that partial decoupling has on the affected sectors by comparing production, prices and farm revenues over time.

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Assessment of the impact of partial decoupling

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