Impact of the CAP reform on small-scale grassland regions
AbstractThis paper presents a regional land-use model that conceives farms as independent agents aiming at maximum individual utility. Farm agents optimize their utility with the help of a linear-programming algorithm that takes into account natural, economic and personal restrictions. Interactions between farms take place on the land market, which is modelled as an equilibrium market. The model is applied in three typical grassland regions in southern Bavaria. The results indicate that the CAP reform of 2003 has various significant consequences for grassland use. In particular, the decreasing profitability of dairy farming will lead to low-intensity forms of grassland use, including mulching. In general, land rents will increase due to the effects of decoupling.
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Bibliographic InfoArticle provided by Humboldt-Universitaet zu Berlin, Department for Agricultural Economics in its journal German Journal of Agricultural Economics.
Volume (Year): 55 (2006)
Issue (Month): 5/6 ()
CAP Reform; linear programming; land-market simulation; agent-based modelling; farmers attitude; policy analysis; Agricultural and Food Policy; Land Economics/Use;
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- Henseler, Martin, 2008. "Impact of CAP Reform on Agricultural Production in Four Different European Regions," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36856, Agricultural Economics Society.
- Roeder, Norbert & Lederbogen, Dirk & Trautner, Juergen & Bergamini, Ariel & Stofer, Silvia & Scheidegger, Christoph, 2009. "The impact of changing agricultural policies on jointly used rough pastures in the Bavarian Pre-Alps - an economic and ecological scenario approach," 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland 51070, Agricultural Economics Society.
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