© 1987 Oxford University Press and the Foundation for the European Review of Agricultural Economics
research-article |
The economic or the ecological way? Basic alternatives for the EC's agricultural policy
University of Hohenheim Stuttgart-Hohenheim, Fed. Rep. of Germany
Institut fÜr landwirtschaftliche Betriebslehr der Universität Hohenheim Postfach 70 05 62, 7000 STUTTGART 70, Fed. Rep. of Germany
Summary
The policy proposals presented in the Green Paper are not consistent with the stated objectives. They will not prevent a rapid decrease in the number of farms and the abolition of farming in the less-favoured regions.
After a systematic discussion of the various policy alternatives and their implications, a proposal is developed to reduce output by decreasing the use of yield-increasing inputs and to support farming in the less favoured areas by direct income aids and retirement payments. The reduction in the use of yield-increasing inputs, particularly nitrogen, can be achieved by imposing a tax.
This policy would not only reduce surplus production but would also encourage a less intensive and ecologically more desirable use of the land.