The current article details the impact of the Common Agricultural Policy (CAP), particularly the impact of each CAP reform on agricultural production and the rural economy in the region of Eastern Macedonia-Thrace (EMT), Greece, done via an econometric approach employing Factor Analysis techniques and Structural Equation Model. Detailed qualitative and quantitative data were obtained through structured questionnaires completed during in-depth interviews of the scientific staff working in regional agriculture and were subsequently used to build a Structural Equation Model. This scientific work was undertaken twice, each time following successive CAP reforms, in order to evaluate immediate impact, not only on the Local Economy, but the continuing regional Local Development. Following the comparison of the two successive reforms SEMs, a series of sectoral comparisons of the two reforms was undertaken to clarify the differences between the two specific reforms.It is concluded that the 2003 reform has had a negative impact on the local EMT economy compared to the 2014 reform, which appears to have contributed more favourably to the local economy and regional development, with Land Value-Purchase, Land Value-Hire, Product processing, Labour hands (harvesting, standardization, packaging etc) and Purchase of inputs (pesticides, fertilizers, supplies, etc.) being the local economy sectors that have responded positively to the second reform.
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