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A ‘beyond WTO’ scenario for Swiss agriculture: Consequences for income generation and the provision of public goods

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  • Robert Huber
  • Christian Häberli

Abstract

The future agricultural policy framework seems clear. Even though the present trends do not point in this direction there is a strong probability that in the long run Swiss agriculture will have to forfeit border protection, while domestic support will be restricted to fully Green Box-compatible direct payments. We use a normative math-ematical programming model to illustrate possible effects for agri-cultural production and the corresponding agricultural income in the medium term (2012–2018) under such a ‘beyond WTO’ scenar-io. We discuss the results with respect to the provision of the pub-lic goods stated in Art.104 of the Swiss constitution. The potential effects for agricultural production in Switzerland are considerable. The agricultural sector in the lowlands would be especially affect-ed, with dairy farming remaining the most viable sector. In order to survive commercially, a further drastic reduction in production costs would be unavoidable, and efforts to realise prime premiums would have to be intensified.

Suggested Citation

  • Robert Huber & Christian Häberli, 2010. "A ‘beyond WTO’ scenario for Swiss agriculture: Consequences for income generation and the provision of public goods," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 3(1), pages 361-400.
    • Handle: RePEc:cha:ysa001:v:3:y:2010:i:1:p:361-400
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    References listed on IDEAS

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    1. Happe, Kathrin & Balmann, Alfons & Kellermann, Konrad & Sahrbacher, Christoph, 2008. "Does structure matter? The impact of switching the agricultural policy regime on farm structures," Journal of Economic Behavior & Organization, Elsevier, vol. 67(2), pages 431-444, August.
    2. Zimmermann, Albert, 2008. "Combination of the Swiss agrarian sector model SILAS-dyn with the life cycle assessment tool SALCA," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6603, European Association of Agricultural Economists.
    3. Aerni, Philipp, 2009. "What is sustainable agriculture? Empirical evidence of diverging views in Switzerland and New Zealand," Ecological Economics, Elsevier, vol. 68(6), pages 1872-1882, April.
    4. Michael Hartmann & Robert Huber & Simon Peter & Bernard Lehmann, 2009. "Strategies to mitigate greenhouse gas and nitrogen emissions in Swiss agriculture: the application of an integrated sector model," IED Working paper 09-09, IED Institute for Environmental Decisions, ETH Zurich.
    5. Anderson, Kym, 2000. "Agriculture's 'multifunctionality' and the WTO," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(3), pages 1-20.
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    More about this item

    Keywords

    WTO; sector modelling; Swiss agricultural policy;
    All these keywords.

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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