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Abstract
The 2003 Common Agricultural Policy (CAP) reform consti-tutes a reinforcement of the main objectives of the previous reforms of
1992 and of 2000, namely the promotion of the agricultural competitive-ness, the multiple functions of the rural and agricultural areas and the
sustainable resource exploitation. The direct production aids in the most
Common Market Organizations are replaced by an only payment for
each farm, subject to echo-conditionality and limits on the agricultural
systems changes.
This article evaluates the impacts of 2003 CAP reform on the Portugal
irrigation competitiveness in the Alentejo region farms. The effects of
the only payment in the agricultural returns, the main changes in the
crop patterns and in the agricultural incomes were studied. They are
also appraised direct social economic and environmental impacts of the
adjustments produced with the 2003 CAP reform.
The followed methodology is a discreet stochastic programming model.
This model maximizes the expected income and minimizes the risk at
the farm level. It was used to assess the crop patterns and the farm inco-me in the short and in the long term, in the scenarios of the 2000 CAP
and the of the 2003 CAP.