Potential impact of the EU 2003 CAP reform on land idling decisions of French landowners: Results from a survey of intentions

The 2003 reform of the European Union Common Agricultural Policy (CAP) introduced Single Farm Payments (SFPs) which are decoupled payments conditional on cross-compliance, and allows these payments to be claimed for land kept fully idle but maintained in good agricultural and environmental conditions (GAEC). This paper focuses on the potential impact of the reform on land idling decisions in France with the help of a survey of the intentions of landowners. Both operator and non-operator landowners were considered since, although SFP entitlements are owned only by operator landowners in France, non-operator landowners may now have a higher incentive to switch to operating land by idling land and maintaining it under GAEC in order to claim SFPs. The key variables in landowners’ decisions to idle land in GAEC appear to be both monetary and non-monetary. Despite the likely difference in conversion and cross-compliance costs, operators and non-operators were shown to be equally uninterested in GAEC, suggesting that no dramatic changes in terms of idling land should occur in France as a result of the 2003 reform.