Exploring the decoupling of direct payments to farmers in North Macedonia

Key messages:

• Agricultural reform and the adoption of “decoupled” direct payments is central for European Union accession.
• Scenarios show that adoption of the Common Agricultural Policy (CAP) Direct Payment schemes (obligatory + voluntary) increases farmers’ income on average.
• Reform should consider a balanced combination of different schemes of CAP Direct Payments and a gradual phase-in phase-out strategy.