The Reform of the Common Agricultural Policy. Consequences for the Austrian Agricultural Sector

On the 26th of June 2003 an agreement was reached by farm ministers to reform the Common Agricultural Policy of the EU. Decoupling direct payments from farm output and the reduction of administrative prices are core elements of this reform. The goals of the reform are less output of cereals, beef, and milk, stabilised farm incomes and a farm sector that will be more competitive. Model simulations show that the intended outcomes are likely to be realised in Austria.Austrian agriculture; common agricultural policy; sector modelling; Austria