Word
Action number 21106 Last updated 29/11/2011 17:30:36 Year 2012
Title Sustainable Agriculture and Rural Development: the socio-economic dimension
Acronym SUSTAG
Type Action
Url http://agrilife.jrc.es
Institute JRC.J Institute for Prospective Technological Studies (Seville)
Leader GOMEZ Y PALOMA Sergio JRC.J.4   E-Mail
Thematic Area TA1 - Towards an open and competitive economy
TA3 - Sustainable management of natural resources
TA1.HLO3 - To analyse contribution of the Agricultural sector to EU's innovation and growth
TA1.HLO4 - To contribute to the impact assessment analysis of EC policies paving the way towards a lower carbon economic system
TA3.HLO1 - To develop multidisciplinary analyses and indicators of past trends and present state of natural resources use in Europe and its global interdependencies
TA3.HLO2 - To develop scenarios describing the efficient use of natural resources in the global transition towards a green and low carbon economy
TA3.HLO4 - Serve the EU's internal and external policies by monitoring environmental situations and conditions, building capacity, encouraging good governance and underpinning EU goals for global environmental stewardship
2 Solidarity and the responsible management of resources
2.1 Agriculture, rural development, and fisheries
2.1.1 Agriculture and Rural Development

AGRI - Agriculture and Rural Development
DEVCO - Development and Cooperation - EuropeAid



DEVCO - Development and Cooperation - EuropeAid
ELARG - Enlargement
ENV - Environment
ESTAT - Eurostat


FAO - THE FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS (FAO)
MS EU - Member states EU
OECD - Organisation for Economic Co-operation and Development (OECD)
Sustainable agriculture, farm-household, rural development, quantitative analysis, modelling, CAP, European Development Cooperation, food security, ex-ante & ex-post impact assessment, regional and farm typologies, local economy.
Rationale
The common agricultural policy (CAP) has evolved in response to the changing economic context and the enlargement of the European Union. The 2003 Reform followed by the Health Check in 2008 placed direct payments decoupled from production at the heart of the CAP and put substantial emphasis on competitiveness, and on environmental issues, including new challenges such as provision of public goods, renewable energy, biodiversity, water and climate change, food standards and quality, rural diversification as well as animal welfare. In addition the recent EU east enlargement plays an important political and economic role. Further debate on post 2013 CAP is developing, in the framework of the EU 2020 strategy for a smart, green and inclusive growth, within the limits of the financial perspectives 2013-2020. Its results will affect policy instruments available as from 2013 both concerning CAP pillar 1 and pillar 2.
With regard to the European Development Cooperation, the EU is the world's largest donor of development assistance, with the EC playing an important role in both policy formulation and the technical aspects of programme implementation. The Joint Africa-EU Strategy provides an overarching long-term framework for Africa-EU relations. A key role is played in this framework by measures directly and indirectly oriented to improving the economic conditions (competitivness/viavility/sustainability) of the farming sector. A sound ex-ante and ex-post (quantitative) analysis of the social and economic impact of these measures is the necessary pre-requisite for improving the EC policy setting.
The work programme of SUSTAG is in line with the IPTS long-term strategy for research and policy support in the area of socio-economic analysis of agriculture and rural development, and with needs of Commission services, particularly in the framework of the CAP and of the Development Cooperation Policy. Responding to the current needs of clients and anticipating the future ones, SUSTAG concentrates on further strengthening the Commission’s socio-economic policy analysis capability in the area of agriculture and rural development at farm-household level and at regional level (both within and beyond the EU). It includes improving and further development of ex-ante and ex-post policy analysis tools (quantitative/modelling - sometimes qualitative – analysis based on primary and secondary data sources), and providing a stable platform for these tools that makes them readily available for Commission services. Sustainability issues are analysed from the economic and the social viewpoints. The environmental component is not taken into consideration unless otherwise specified in the particular deliverables.
The main customers are DGs Agriculture and Rural Development, External Relationship DGs such as DEV, AIDCO and ELARG, Regional Policy, Environment, Research, Estat.
Summary of the activity
In 2012 the SUSTAG action focuses on the economic and social aspects of farming and rural development, particularly in the context of the Common Agricultural Policy (CAP). SUSTAG continues providing and strengthens its capacity in the analysis of farmers' and other rural agents' response to policy changes, technological progress, and market developments and opportunities. The following activities are part of the action:

1. Farming Sector and Rural Areas in the Black Sea Region The idea is - with regard to selected areas of the Bleak Sea Region - to study what role the farming sector/rural areas have in grain production/export, to provide insights regarding food security in the short and medium run, and to perform impact analyses of policies (EU and national level). The ultimate goal is to contribute to EU policy design, specifically by conducting quantitative/modelling (socio)economic analyses (micro/regional levels), including the study of the contribution of agriculture to sustainable development in selected regions/countries included in the EU-neighbour countries/Potential Candidate Countries Policy (e.g. Ukraine, Russia, Western Balkans).
Specifically, the challenge is to study the current state/prospects of agriculture and rural development in selected countries of the region, identify and analyse drivers of agricultural and rural development, and understand the extent to which recent changes, particularly within the farming sectors and rural areas, are affecting food security in the region and outside. From a methodological viewpoint major trends of the socio-economy(ies) (migration, ageing, dualization of the farming sector/countryside, etc.) and environment (e.g. fertiliser, pesticide use) are studied by using quantitative tools on a wide set of time series data covering multiple characteristics of households and farms. In 2012 the above approach is applied for Ukraine and for Russia.


2 Effects of the CAP reform process on farm-households in the EU. Following discussion with EC services, SUSTAG focuses on:
I. CAP impact analysis on farm-household behaviour, including the study of the adaptation of agriculture through decoupling and other measures part of the CAP reform process. In 2012 the work concentrates on assessing/modelling the impact of the CAP reform process on farm-household investment strategies. The focus includes (Semi)subsistence farming. In this framework is included the analysis of input reduction (incl. pesticides) in the EU farming sector.
II. Impact analysis of the CAP via modelling (CAPRI-Farm) and using pan European farm-level databases, e.g. FADN and FSS, focussing on income distribution and structural change. The aim is to contribute to the understanding of the CAP effects of the following inner issues for the farming sector: (i) who are the beneficiaries of the subsidies (e.g. farmers, landowners); (ii) how the distributional effects differ by CAP subsidy type, (iii) what are the effects of the CAP on structural change at farm level (iv) what are the effects on farm production costs. Participation in the RTD FP7 supported FADNTOOL project.

3. CAP and other EC policies impact on the Sustainability of the farming sector in low income / least industrialized economies. Throughout the work a socio-economic approach (quantitative/modelling - development of FSSIM) is adopted to understand how policy (CAP, EC external policy, etc.) and other key drivers take effect and impact farm-household systems viability/sustainability in a varying regional context. The aim is to study medium-long term farming structures and related drivers contributing to food (in)security at local and world level, with a special focus on low-income country areas. It is recognised that sustainability goals refer to regional specificities (i.e. socio-economic, institutional and natural resource constraints) and the task is to provide assessment of how the EU policy framework contributes to meeting these goals. Impact evaluations of the EU development cooperation policies is thus performed with the aim to contribute to EU policy design, specifically by conducting socio-economic analyses (micro/regional/macro levels), including the study of the contribution of agriculture to sustainable development in selected regions/countries of Africa. The focus includes relevant issues involving the farming sector world wide, e.g. foreign direct investments /land grabbing. Activities are defined in consultation with DG DEV, AIDCO, AGRI and RTD. Cooperation with FOODSEC, AGRI4CAST (bio-physical input data for economics modelling) in the framework of the AVEMAC project (CROSS-JRC, IPSC-MARS). Cooperation with MONDE actions, Thematic Programme (TP) ACP Observatory.


4. Greening the CAP. Rural development and rural economy. This area of research focuses on the role of agriculture, including as provider of public goods, and the impacts of agricultural/rural development policies on all the aspects of rural economies. SUSTAG continues its 2010-2011 work on modelling spatial impacts of CAP measures (Rural Development measures in the first instance) on rural/urban economies and their relations through bi-regional Computable General Equilibrium models at Nuts 3 level (CGE - based on the IFPRI standard model). This line of activities includes the (quantitative) analysis of rural economies. In this framework SUSTAG contributes to the IPTS-work on regional databases in coordination with other IPTS actions. Participation in the RTD FP7 supported CLAIM project.



5. Agriculture, food industry and economic growth . The focus is on the analysis of agriculture and the food industry in the economy. In 2012 activities include the study of the role of agriculture in the economic growth, particularly in resource or technology constraint areas, and quality issues in the food industries. Quality issues are gaining importance both within food supply chains, with a view to foster competitiveness of the agro-food sector, and within policy instruments (Commission quality package proposed end 2010 and to be adopted by Council and EP in 2012). This activity draw on the 2005/2006 SUSTAG work on certification schemes in support of the main policy above-mentioned. This line of studies includes the analysis of short-food supply chains in the EU, the analysis of supply chains for agri-food mountain products and the analysis of crop production (legislative changes + climate change) within the wider context of EU food quality. Support to DG AGRI. Participation in the RTD FP7 project PURE (Integrated Pest Management).
 
  1
Farming Sector and Rural Areas in the Black Sea Region (TA 1; support to E&I and CC). Identify and analyse the most dominant challenges for agricultural and rural development in selected countries of the region.
Deliverable  1.1
Report / scientific paper on Prospects of the farming sector and rural development in European Neighbourhood Policy Countries. The case of Ukraine. (CAT 2 / 7)
30/06/2012
JRC Scientific Support - Scientific and policy reports
Global Europe
AGRI - Agriculture and Rural Development
Deliverable  1.2
Report / scientific paper on the analysis of the farming sector and rural development in European Neighbourhood Policy Countries. The case of Russia. (CAT 2 / 7)
30/09/2012
JRC Scientific Support - Scientific and policy reports
Global security
AGRI - Agriculture and Rural Development
  2
Effects of the CAP reform process on EU-27 farm-household (TA 1). To analyse effects of relevant scenarios of the CAP reform on Farm-Households in the EU, including investment behaviour, (semi)subsistence farming, structural change, via development and application of farm-type level quantitative analysis/modelling tools (CAPRI-Farm) at case study level and/or covering EU-27.
Deliverable  2.1
Report / Scientific paper on the analysis of Farm Behaviour under the CAP reform process.(CAT 2 / 7)
30/06/2012
JRC Scientific Support - Scientific and policy reports
Sustainable Growth - Resource efficiency and industrial competitiveness
AGRI - Agriculture and Rural Development
Deliverable  2.2
Report / Scientific paper on CAP impact analysis on Farm Structural Change. Analysis of CAP reform impact on Farm structural change via the FADN (CAT 2 / 7)
30/11/2012
Sustainable Growth - Resource efficiency and industrial competitiveness
AGRI - Agriculture and Rural Development
  3
CAP and other EC policies impact on the Sustainability of the farming sector in low income / least industrialized economies (TA 3). Analysis of sustainability and food security in selected regions/countries. Policy impact of (CAP and EU development cooperation policies) on farm-household viability and food security.
Deliverable  3.1
Report on Food Security. Quantitative analysis aiming at assessing major current/future issues on food security, particularly seen from the viewpoint of the farming sector (CAT 2)
30/12/2012
JRC Scientific Support - Scientific and policy reports
Global Europe
AGRI - Agriculture and Rural Development
Deliverable  3.2
Report / Scientific paper the Development of the FSSIM model for AFRICA. Case study on Central Equatorial Africa (CAT 2 / 7)
30/09/2012
JRC Scientific Support - Scientific and policy reports
Global security
DEVCO - Development and Cooperation - EuropeAid
  4
Greening the CAP. Rural development and rural economy (TA 3). Develop research on the socio-economic role of agriculture/rural areas, including as provider of public goods, and the impact of Rural Development measures, on rural economies.
Deliverable  4.1
Report / Scientific paper of the Rural-ECMOD study (follow-up using CGE modelling based on IFPRI standard model) (impact analysis of relevant scenarios of Rural development Measures / new NUTS3 case studies). (2012-06-30) (CAT 2 / 7)
30/06/2012
JRC Scientific Support - Scientific and policy reports
Sustainable Growth - Resource efficiency and industrial competitiveness
AGRI - Agriculture and Rural Development
Deliverable  4.2
Report / Scientific paper on Agriculture as a provider of Public Goods, and evaluation of the EU landscape (2012-12-30) (CAT 2 / 7)
30/12/2012
JRC Scientific Support - Scientific and policy reports
Sustainable Growth - Resource efficiency and industrial competitiveness
AGRI - Agriculture and Rural Development
  5
Study the role of agriculture and the food industry in the economy (TA 1). Particularly the role of the farming sector in economic development, and the impact of (quality) policies on the agri-food sector at disaggregate level.
Deliverable  5.1
Report/Scientific Paper Agricultural Productivity and Growth. Analysis of the relationship between productivity of the farming sector and economic growth. An inter-countries comparison. (CAT 2 / 7)
30/11/2012
JRC Scientific Support - Scientific and policy reports
Sustainable Growth - Resource efficiency and industrial competitiveness
AGRI - Agriculture and Rural Development
Deliverable  5.2
Report / scientific paper on Short Food Supply Chains and on Food Supply Chains of Mountain products. Case studies. (CAT 2 / 7)
30/09/2012
JRC Scientific Support - Scientific and policy reports
Sustainable Growth - Resource efficiency and industrial competitiveness
AGRI - Agriculture and Rural Development
Deliverable  5.3
Report in the framework of the FP7 PURE study (CAT 2 / 7)
30/10/2012
JRC Scientific Support - Scientific information systems and databases
Global security
AGRI - Agriculture and Rural Development
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