Farm with pigs in France and CAP reform

The 2003 CAP reform, which is characterized by the implementation of decoupling, the direct payments modulation, the reinforcement of the conditionality and the modification of the Common Organization of Market for milk products (CMO), modifies the economic context of the farms. What will the consequences of this reform for pig producing farms (including diversified units) be?Firstly, by mobilizing data from several statistical tools (agricultural census, structure farm survey, Farm Accountancy Data Network -FADN-), an analysis of the structural and economic situation of the French pig producing farms is carried out according to several production systems. In a second part, a simulation of the CAP reform is applied to the FADN data. It evaluates the future amount of the single payment and discusses, for the pig industry, the implications of the decoupling.Taking into account the weak weight of the direct payments compared to the value of the agricultural production, decoupling should not play a determining part in the strategies of the units specialized in pig production. In the systems “field crops and pigs” or “bovine-milk and pigs”, the amount of the single payment (2007) will be important and could affect the choices of the actors. In the systems “bovine-meat and pigs”, the choice (in France) of an important coupling on some bovine premiums should limit the possible reorientations.