Thumbnail Image

Decoupling direct payments in North Macedonia

Impacts on farmer income















Weber, R., Díaz González, A.M. & Morales Opazo, C. 2023. Decoupling direct payments in North Macedonia – Impacts on farmer income. Agricultural Development Economics Working Paper, 23-03. Rome, FAO.




Also available in:
No results found.

Related items

Showing items related by metadata.

  • Thumbnail Image
    Policy brief
    Policy brief
    Farmer income and decoupled direct payments in North Macedonia 2023
    Also available in:
    No results found.

    This policy brief summarizes the key findings and policy recommendations of the corresponding working paper “Decoupling direct payments in North Macedonia: impacts on farmer income”. North Macedonia’s ambition to join the European Union requires reforms of the agricultural sector and subsidy system. One major reform is the alignment to the rules of the Common Agricultural Policy (CAP) of the European Union on direct payments, including the “decoupling” of direct payments from production quantities. The decoupling of direct payments is likely to have significant impacts on production decisions, prices and therefore on farmer income. This paper identifies four possible scenarios for North Macedonia to align the direct payment scheme to the regulations of the European Union and subsequently analyses the impact of each scenario on farmers' income, using an ex ante analysis method in the form of a static microsimulation approach and the farm accountancy data network (FADN) data at individual farm level. The results show that, on average, farmer income increases when direct payments are decoupled in North Macedonia. We further test for heterogeneity and identify different effects along farm types and economic farm size – and find that some farmers would exhibit income losses as a result of the reform (i.e. specialist cattle, mixed crops and livestock farmers).
  • Thumbnail Image
    Book (series)
    Policy brief
    Exploring the decoupling of direct payments to farmers in North Macedonia
    FAO Agricultural Development Economics Policy Brief 30
    2020
    Also available in:
    No results found.

    North Macedonia’s ambition to join the European Union (EU) makes it necessary to reform the agricultural sector, such that it aligns with the EU Common Agricultural Policy (CAP). This involves the “decoupling” of farm subsidies, i.e. a shift to payments that are not linked to area and production levels of specific commodities, livestock numbers, and input use. The decoupling of direct payments has significant impacts on production decisions, prices and therefore on farmer’s income. The study underlying this policy brief identifies five possible scenarios for North Macedonia to align their direct payment scheme with EU regulations and analyses the impact on farmer’s income. The results show that on average farmer’s income increases through the decoupling of direct payments in North Macedonia, with small farmers having a positive effect on income while bigger farmers experience a negative impact. To allow for a smooth alignment with the CAP in North Macedonia, a gradual phase-in of direct payments measures is recommended.
  • Thumbnail Image
    Book (stand-alone)
    Technical book
    Comprehensive analysis of disaster risk reduction and management system for agriculture in North Macedonia
    Revised edition
    2024
    Also available in:
    No results found.

    This report aims to highlight the current strengths of the institutional disaster risk reduction (DRR) system for agriculture in North Macedonia as well as indicate existing gaps and capacity needs to further enhance it. A comprehensive assessment is conducted, which includes a general overview of the country’s agriculture sector and outlines the most frequent natural hazards impacting it. It is followed by an analysis of the existing legal, policy, and institutional structure and discusses various components of the system, including the functioning of early warning systems, assessments of disaster risks, post-disaster needs assessments, including damage and loss assessments, and the availability of agricultural insurance for farmers. It concludes by providing recommendations for capacity-building interventions to strengthen the current system to reduce the adverse impacts of natural hazards, in particular, floods, landslides and droughts, and climate change on agriculture in North Macedonia.

Users also downloaded

Showing related downloaded files

  • Thumbnail Image
    Book (stand-alone)
    High-profile
    Status of the World's Soil Resources: Main Report 2015
    Also available in:
    No results found.

    The SWSR is a reference document on the status of global soil resources that provides regional assessments of soil change. The information is based on peer-reviewed scientific literature, complemented with expert knowledge and project outputs. It provides a description and a ranking of ten major soil threats that endanger ecosystem functions, goods and services globally and in each region separately. Additionally, it describes direct and indirect pressures on soils and ways and means to combat s oil degradation. The report contains a Synthesis report for policy makers that summarizes its findings, conclusions and recommendations.

    The full report has been divided into sections and individual chapters for ease of downloading:

  • Thumbnail Image
    Booklet
    High-profile
    FAO Strategy on Climate Change 2022–2031 2022
    The FAO Strategy on Climate Change 2022–2031 was endorsed by FAO Council in June 2022. This new strategy replaces the previous strategy from 2017 to better FAO's climate action with the Strategic Framework 2022-2031, and other FAO strategies that have been developed since then. The Strategy was elaborated following an inclusive process of consultation with FAO Members, FAO staff from headquarters and decentralized offices, as well as external partners. It articulates FAO's vision for agrifood systems by 2050, around three main pillars of action: at global and regional level, at country level, and at local level. The Strategy also encourages key guiding principles for action, such as science and innovation, inclusiveness, partnerships, and access to finance.
  • Thumbnail Image
    Book (stand-alone)
    High-profile
    State of knowledge of soil biodiversity - Status, challenges and potentialities
    Report 2020
    2020
    Also available in:
    No results found.

    There is increasing attention to the importance of biodiversity for food security and nutrition, especially above-ground biodiversity such as plants and animals. However, less attention is being paid to the biodiversity beneath our feet, soil biodiversity, which drives many processes that produce food or purify soil and water. This report is the result of an inclusive process involving more than 300 scientists from around the world under the auspices of the FAO’s Global Soil Partnership and its Intergovernmental Technical Panel on Soils, the Convention on Biological Diversity, the Global Soil Biodiversity Initiative, and the European Commission. It presents concisely the state of knowledge on soil biodiversity, the threats to it, and the solutions that soil biodiversity can provide to problems in different fields. It also represents a valuable contribution to raising awareness of the importance of soil biodiversity and highlighting its role in finding solutions to today's global threats.