The CAP direct payments reform 2023–2027 in Italy: A path to fairer redistribution?
Abstract The distribution and concentration of Common Agricultural Policy (CAP) support and its impact on farm income have gained increasing attention in public debate and scientific literature. Previous studies highlighted the highly concentrated nature of direct payments, which represent the bulk...
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| Format: | Article |
| Language: | English |
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SpringerOpen
2025-07-01
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| Series: | Agricultural and Food Economics |
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| Online Access: | https://doi.org/10.1186/s40100-025-00384-4 |
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| author | Fabio Pierangeli Luigi Biagini Maria Rosaria Pupo D’Andrea Simone Severini Alessandro Sorrentino |
| author_facet | Fabio Pierangeli Luigi Biagini Maria Rosaria Pupo D’Andrea Simone Severini Alessandro Sorrentino |
| author_sort | Fabio Pierangeli |
| collection | DOAJ |
| description | Abstract The distribution and concentration of Common Agricultural Policy (CAP) support and its impact on farm income have gained increasing attention in public debate and scientific literature. Previous studies highlighted the highly concentrated nature of direct payments, which represent the bulk of CAP support. Despite this, direct payments have shown mixed effects on income inequality, yielding unclear results. CAP 2023–2027 aims to address this issue by redistributive payments designed to increase support for small farms. This paper assesses the reform’s redistributive effects in Italy by comparing the status quo (2020) with a post-reform scenario (2026). Using a composite dataset integrating FADN and National Entitlements Register data, we estimate inequality indexes (Gini index, Herfindahl–Hirschman index, and 80/20 quintile share ratio). Results show improved equity in decoupled direct payments distribution: the Gini index decreases from 0.626 (2020) to 0.530 (2026), while the Herfindahl–Hirschman index drops from 4.65 to 3.27. The 80/20 quintile share ratio also improves significantly, reducing from 8.4 to 5.2. However, the reform’s impact on farm income concentration remains marginal, with only slight reductions observed across all inequality indexes. |
| format | Article |
| id | doaj-art-212155ab152a4ae692b2b1c2d7df60cb |
| institution | Kabale University |
| issn | 2193-7532 |
| language | English |
| publishDate | 2025-07-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Agricultural and Food Economics |
| spelling | doaj-art-212155ab152a4ae692b2b1c2d7df60cb2025-08-20T04:01:43ZengSpringerOpenAgricultural and Food Economics2193-75322025-07-0113112410.1186/s40100-025-00384-4The CAP direct payments reform 2023–2027 in Italy: A path to fairer redistribution?Fabio Pierangeli0Luigi Biagini1Maria Rosaria Pupo D’Andrea2Simone Severini3Alessandro Sorrentino4Council for Agricultural Research and EconomicsUniversity of Tuscia (DAFNE)Council for Agricultural Research and EconomicsUniversity of Tuscia (DAFNE)University of Tuscia (DEIM)Abstract The distribution and concentration of Common Agricultural Policy (CAP) support and its impact on farm income have gained increasing attention in public debate and scientific literature. Previous studies highlighted the highly concentrated nature of direct payments, which represent the bulk of CAP support. Despite this, direct payments have shown mixed effects on income inequality, yielding unclear results. CAP 2023–2027 aims to address this issue by redistributive payments designed to increase support for small farms. This paper assesses the reform’s redistributive effects in Italy by comparing the status quo (2020) with a post-reform scenario (2026). Using a composite dataset integrating FADN and National Entitlements Register data, we estimate inequality indexes (Gini index, Herfindahl–Hirschman index, and 80/20 quintile share ratio). Results show improved equity in decoupled direct payments distribution: the Gini index decreases from 0.626 (2020) to 0.530 (2026), while the Herfindahl–Hirschman index drops from 4.65 to 3.27. The 80/20 quintile share ratio also improves significantly, reducing from 8.4 to 5.2. However, the reform’s impact on farm income concentration remains marginal, with only slight reductions observed across all inequality indexes.https://doi.org/10.1186/s40100-025-00384-4Direct paymentsInequality indexGini coefficientFarm incomeIACS and FADN |
| spellingShingle | Fabio Pierangeli Luigi Biagini Maria Rosaria Pupo D’Andrea Simone Severini Alessandro Sorrentino The CAP direct payments reform 2023–2027 in Italy: A path to fairer redistribution? Agricultural and Food Economics Direct payments Inequality index Gini coefficient Farm income IACS and FADN |
| title | The CAP direct payments reform 2023–2027 in Italy: A path to fairer redistribution? |
| title_full | The CAP direct payments reform 2023–2027 in Italy: A path to fairer redistribution? |
| title_fullStr | The CAP direct payments reform 2023–2027 in Italy: A path to fairer redistribution? |
| title_full_unstemmed | The CAP direct payments reform 2023–2027 in Italy: A path to fairer redistribution? |
| title_short | The CAP direct payments reform 2023–2027 in Italy: A path to fairer redistribution? |
| title_sort | cap direct payments reform 2023 2027 in italy a path to fairer redistribution |
| topic | Direct payments Inequality index Gini coefficient Farm income IACS and FADN |
| url | https://doi.org/10.1186/s40100-025-00384-4 |
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