The visibility of agricultural subsidies and market illusions in the common agricultural policy: some evidence from farmers' views in Germany, Portugal and the United Kingdom

Carsten Daugbjerg*, Richard Tranter, Philip Jones, Jonathan Little, Leonardo Costa, Thomas Knapp, Miguel Sottomayor, Alan Swinbank

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

12 Citations (Scopus)

Abstract

This article demonstrates that the design and nature of agricultural support schemes has an influence on farmers' perception of their level of dependence on agricultural support. While direct aid payments inform farmers about the extent to which they are subsidised, indirect support mechanisms veil the level of subsidisation, and therefore they are not fully aware of the extent to which they are supported. To test this hypothesis, we applied data from a survey of 4,500 farmers in three countries: the United Kingdom, Germany and Portugal. It is demonstrated that indirect support, such as that provided through artificially +high consumer prices, gives an illusion of free and competitive markets among farmers. This 'visibility' hypothesis is evaluated against an alternative hypothesis that assumes farmers have complete, or at least a fairly comprehensive level of, information on agricultural support schemes. Our findings show that this alternative hypothesis can be ruled out.

Original languageEnglish
Pages (from-to)749-766
Number of pages18
JournalEuropean Journal of Political Research
Volume44
Issue number6
DOIs
Publication statusPublished - Oct 2005

Fingerprint

Dive into the research topics of 'The visibility of agricultural subsidies and market illusions in the common agricultural policy: some evidence from farmers' views in Germany, Portugal and the United Kingdom'. Together they form a unique fingerprint.

Cite this