Investment behaviour in conventional and emerging farming systems under different policy scenarios

OBJECTIVE To assess the impact of the 2003 CAP Reform - with special focus on the Single Farm Payment - on producers’ investment behaviour, and to evaluate the consequences of the investment behaviour on the sustainability of farming systems. CONTENTS The last CAP reform of 2003 is based on de-linking farm subsidies from production and concentrates the previous in a Single Farm Payment (SFP) supporting producers’ income. Little is known about how farmers will use their new income; accordingly the impact of SFP on farmers’ investment strategies – including both on- and off-farm activities – deserves further analysis, as well as the consequences of the observed behaviour on farming systems’ sustainability. The study includes: a review of literature associated to farmers’ investment behaviour and a database of studies on methodologies/tools used, and research gaps identified. An empirical analysis of conventional and emerging farming systems in terms of socio-economic sustainability, and investment activities. An agricultural policy scenarios analysis evaluating the impact of policy instruments on the identified selected farming systems