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the CAP as a whole. Full decoupling turns the single payment into a subsidy to farmland ownership” (Baldwin and Wyplosz 2009, 374). This is evident from the figure 10 below which shows rapid rise of the CAP transfers to the land owners already since the MTR. It was also decided that from 2010 onwards, extra funds for Rural Development pillar generated by modulation will be partially used to fund four new priorities and one old priority. These four new priorties are climate change, renewable energy, water management and biodiversity. The old priority mentioned is the troublesome the dairy sector which had suffered from a severe drop in the milk price and where intervention instruments were left nearly unreformed. (Daugbjerg and Swinbank 2011, 71) Figure 10: Distribution of the CAP’s benefits and costs 30% 60.00 € 25% 25% 30% 23% 24% 21% 21% 20% 19% 19% 20% 20% 19% 19% 20% 40.00 € 18% 17% 15% 15% 15% 20% 13% 13% 20.00 € 10% 0.00 € 0% ‐20.00 € ‐40.00 € ‐60.00 € ‐80.00 € 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Farm Households Landowners Input Suppliers Consumers Taxpayers Dead weight loss Source: Author’s compilation of OECD (2011) data. 54