| The CAP-AB project focuses on the measurement of traditional and environmentally adjusted productivity in the agriculture sectors of Austria and Bavaria. In particular, the project considers the principle of circularity by incorporating this concept into productivity measurement and also by investigating economic and environmental performance of farm groups which differ with respect to the degree they follow circular or organic farming practices. By recognizing the dual role of agriculture in providing both private goods (e.g., food, biomass) and public goods (e.g., soil health, carbon sinks, water quality), the project aims to support the agricultural transition by providing a framework to quantify the progress toward resilient and competitive farming systems. Central to the project is the development and application of an environmentally adjusted Total Factor Productivity (envTFP) framework, which extends traditional productivity metrics by incorporating environmental indicators such as greenhouse gas emissions and resource use efficiency. Using farm-level data from the FADN and FSDN networks, farms will be classified via the LIFT typology into circular, circular-organic, organic, and conventional categories. This enables a comparative analysis of productivity and environmental outcomes across farming systems and the role that CAP investment initiatives can shape these outcomes. The project is structured into three work packages: (1) assessing farm-level productivity and circularity, (2) evaluating the impact of CAP investment funds on circular practices and productivity using causal inference methods, and (3) enhancing the envTFP framework for broader EU applicability. By linking policy interventions to measurable performance outcomes and its related practices, CAP-AB provides actionable insights for policymakers, farmers and stakeholders. Ultimately, the project contributes to the EU’s climate and competitiveness goals by offering a robust methodology for evaluating the farm performance accounting for both economic and environmental aspects, and the effectiveness of CAP measures in promoting circular, resource-efficient, and climate-friendly agriculture. It also supports Austria’s and Bavaria’s bioeconomy strategies and promotes the development towards resilient agricultural production in Europe. |