Boosting the effectiveness of the Basic Payment Scheme in enhancing farm income: what really matters? Evidences from Italy

Stefano Ciliberti, Angelo Frascarelli


The debate over the Common Agricultural Policy (CAP) after 2020 is mainly focused on making more effective the public expenditure on agriculture. Specific attention is given to the Basic Payment Scheme (BPS) of Pillar I, which is criticized for being unequally distributed and scarcely targeted towards specific and measurable goals. The present paper is aimed to evaluate whether and how the choice of land as a criterion for redistributing and receiving aids affects the ability of the BPS to enhance farm incomes. To this end, the Italian version of the Farm Accountancy Data Network is used. Findings reveal that other parameters, such as work and value added, should be also taken into account in order to improve the effectiveness of BPS in increasing incomes of Italian farms.


direct payments; CAP; farm incomes; FADN; Italy

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