How decoupling could mean dismantling of the cotton sector in Spain

An analysis is made of the impact of the latest reform of the EU Cotton Reg ulation of 29th April 2004, which will come into force in the 2006/07 season, on the cotton production sector of Andalusia. Using an initial characterization of producers based on a survey carried out in 2004, the impact of two policy scenarios is assessed: (a) the implementation of the reform without any addi tional measures, and (b) the addition of a complementary environmentallybased area payment plus the modulation of the decoupled subsidy according to the raw cotton quality . In the first scenario, the producers would reduce in puts to a minimum and leave the raw cotton in the fields. In the second sce nario, the production of cotton would shift from conventional to Integrated Production with a 30% reduction with respect to the current hectareage.

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