Regionale und einzelbetriebliche Konsequenzen der Neuorientierung der Agrarpolitik am Beispiel der Modulation

In the context of reorientation of agricultural policy, there is a discussion about introducing the so called "modulation" in Germany. Regulation 1259/1999 of the European Commission allows a reduction of EU direct payments up to 20 %. France and the United Kingdom already apply this modulation. In France, the reduction is restricted mainly to large labour-extensive farms. Therefore jobs are protected in the agricultural sector and it give to rural areas an economic boost On the other hand there is in the United Kingdom a linear reduction of EU direct payments, i.e. the reduction is independent of farm size or type. The effects of modulation in Germany are assessed for both, a degressive scenario with an employment-dependant allowance, and linear scenario with an equal basic allowance per farm. Without consideration the effects of the "Agenda 2000", both scenarios lead to savings of more than 400 million DEM of EU direct payments in Germany. Labour-extensive grain growing farms would be primarily affected. Small and labour-intensive farms would be strengthened in their relative competition due to modulation. The degressive modulation scenario leads to stronger shifts in relative competitiveness. Due to the different farm structures in the old and the new Länder the agriculture of the new Länder would face the most serious reductions, particularly in the degressive scenario. The differences between the Länder of the surface-related EU-direct payments between the Länder are reduced by the modulation.