Full payment decoupling best option for farmers, says study
The studies deal with the likely impact of CAP reform and World Trade Organisation (WTO) changes on the agricultural and food sectors. They show that full decoupling, combined with some changes in agricultural trade policies under the WTO talks, would lead to a 10% increase in aggregate farm income in 2012 compared to the income level that would occur under current policies.
Beef and sheep production would generally decline as a result of a reduction in suckler cow and ewe numbers. However, following an initial price fall, beef and sheep prices would increase by 2012 to a higher level. Milk prices would fall as a result of the intervention price reduction agreed in the mid-term review and increased competition.
