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Effects of the Cotton Reform in Spain


Cahiers Agricultures. Volume 18, Number 5, 408-16, septembre-octobre 2009, Étude originale

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Author(s) : Manuel Arriaza, Humberto Capellán

Summary : This paper analyzes the effects of the New Cotton Reform (NCR) in Spain for 2007-2008, two years after its application but before its amendment in June 2008. The particularity of this analysis is that it highlights the processes underlying the production decline. It is based on the exploitation of official statistics collected by the Andalusia Region and information obtained during the interviews of cotton sector stakeholders. These interviews were conducted so as to have cotton growers elaborate on the eventual implications of the NCR on their cultivation practices. This approach avoids having to build complex mathematical models to capture the impact of the NCR on production modes and outcomes. While cotton production was rather stable during the 1996-2005 period, the application of the NCR has contributed to a decrease in cotton acreage by more than 30%. The production diminution was higher, around 60%, one year immediately after the application of the reform because of the collapse of seedcotton yield associated with a strong reduction of input use. This evolution is positive from the environmental standpoint, but employment losses in the industrial and agricultural sectors are harmful, notably to the municipalities where cotton production is concentrated. The economic processes underlying the production decline should not be reversed following the amendment of the NCR in June 2008. The amendment makes it compulsory for growers to harvest but without any requirement of minimum yield. The production decline in Spain should continue.

Keywords : economy and rural development, vegetal productions

 

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