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The modulation of direct payments (article 10 of Council Regulation n°1782/2003). Case Study Report for France

Abstract : Following the 2003 CAP reform, and under Article 10 of EC Regulation No. 1782/2003, a compulsory modulation of direct aids from the first pillar was implemented in 2005. This device allows to deduct 5% of direct aids from the first pillar beyond a franchise set at 5 000 euros per farm. In France, a part (80%) of the collected funds is redistributed in favour of the Rural Development Programme (PDRH). This report presents an evaluation of the impacts (economic, social and environmental) of this modulation device for French agriculture. This evaluation was conducted using several sources of information: a literature review focused on documents related to the CAP and the rural development programme; some interviews focused on specific issues of the evaluation; some simulations conducted thanks to the Farm Accountancy Data Network (FADN). This report was produced as part of a more comprehensive evaluation (at the European scale) directed by LEI (agricultural economics research institute in the Netherlands) for the Directorate General of Agriculture and Rural Development of the European Commission. The report also proposes an analysis of the modulation device applied in France in 2000 and 2001 (Article 4 of EC Regulation No. 1259/1999) and proposals made (20 may 2008) by the European Commission under the health check of the CAP.
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  • HAL Id : hal-02813825, version 1
  • PRODINRA : 34118

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Vincent Chatellier. The modulation of direct payments (article 10 of Council Regulation n°1782/2003). Case Study Report for France. 2009. ⟨hal-02813825⟩

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