Rivista di Economia Agraria (REA) / Italian Review of Agricultural Economics, n. 1/2023 · 20 mar 2023
Fabio Pierangeli; Roberto Cagliero; Salvatore Carfì; Luca Cesaro; Antonio Giampaolo; Giulia Pastorelli; Alfonso Scardera; Maria Rosaria Pupo D’Andrea; Luca Ruscio
The 2023-2027 CAP reform strongly emphasises Specific Objective 1, targeted to support viable farm income and resilience of the agricultural sector. The new
CAP aims to achieve a fairer distribution of income support, in particular for small and
medium-sized farms. This does not affect all Member States in the same way, depending
on the choices made in previous programming periods. Italy has maintained the allocation of income support based on payment entitlements. Despite the internal convergence process that started in 2015, there are still important differences among farms in
the level of unit support. This paper aims to analyse the effects of internal convergence
of the Basic income support for sustainability (BISS), according to the Italian decisions
established in the CAP Strategic Plan 2023-2027. It exploits administrative micro-data
containing the value of each of the 10.5 million payment entitlements stored in Italy in
the Entitlement Register of the Integrated Administrative and Control System (IACS).
The analyses are based on the development of an original simulation tool replicating the
actual implementation methods adopted by Italy for the 2023-2027 period. The results
highlight that the internal convergence determines a significant modification to the
financial allocation at both farm and territorial levels. Indeed, the internal convergence
transfers support from very small and large farms towards small- and medium-sized
ones. At the territorial level, the areas with a specialized agricultural sector experience a
reduction of support to the benefit of more marginal and rural areas.