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Analysing Farm‐specific Payments for Norway using the Agrispace Model

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  • Klaus Mittenzwei
  • Wolfgang Britz

Abstract

Norway maintains a complex system of activity or type specific coupled payments which account for a large share of farm income. Most of the payment rates are negatively related to farm size and are higher in remote areas compared to central regions. We present and use a newly developed recursive‐dynamic multi‐commodity model (Agrispace) with CES production functions depicting regional farm clusters derived from the full farm population. Using this model, we simulate impacts of current and alternative subsidy policies on production, prices, input use, income and farm structural change. Mapping cluster results to each farm along with behavioural rules allows estimation of individual profits and farm exits. Our results indicate that, in the short run, the current policy regime seems to support the policy objective of maintaining a variety of farms in all parts of Norway. In the long run, farm structural change is less affected by a policy reform that leaves total support levels unchanged.

Suggested Citation

  • Klaus Mittenzwei & Wolfgang Britz, 2018. "Analysing Farm‐specific Payments for Norway using the Agrispace Model," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(3), pages 777-793, September.
    • Handle: RePEc:bla:jageco:v:69:y:2018:i:3:p:777-793
    DOI: 10.1111/1477-9552.12268
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    References listed on IDEAS

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    Cited by:

    1. Klaus Mittenzwei, 2020. "Greenhouse Gas Emissions in Norwegian Agriculture: The Regional and Structural Dimension," Sustainability, MDPI, vol. 12(6), pages 1-13, March.
    2. Sebastian Neuenfeldt & Alexander Gocht & Thomas Heckelei & Klaus Mittenzwei & Pavel Ciaian, 2021. "Using Aggregated Farm Location Information to Predict Regional Structural Change of Farm Specialisation, Size and Exit/Entry in Norway Agriculture," Agriculture, MDPI, vol. 11(7), pages 1-22, July.
    3. Wenche E. Dramstad & Neil Sang & Henrik Forsberg-Mathiesen & Anders Bryn, 2021. "Five Ways of Characterizing Agricultural Land Use Dynamics and Abandonment from Subsidy Data," Land, MDPI, vol. 10(11), pages 1-17, October.

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