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Farm-based modelling of the EU sugar reform: impact on Belgian sugar beet suppliers

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Author Info

  • Jeroen Buysse
  • Bruno Fernagut
  • Olivier Harmignie
  • Bruno Henry de Frahan
  • Ludwig Lauwers
  • Philippe Polomé
  • Guido Van Huylenbroeck
  • Jef Van Meensel

Abstract

A mathematical programming model, calibrated on individual farm data, is used to analyse the reform of the common market organisation (CMO) in the sugar sector of the European Union. The model includes a precautionary farm supply function for out-of-quota sugar beet that is estimated as part of a simultaneous system of first-order conditions. Simulation results from a sample of Belgian sugar beet farms show that the sugar CMO reform induces different supply and income effects across farms depending on their share of out-of-quota sugar beet relative to their total beet supply and their quota rent. A further cut in the minimum price of sugar beet initiates structural change in the farm sector. Copyright 2007, Oxford University Press.

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Bibliographic Info

Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 34 (2007)
Issue (Month): 1 (March)
Pages: 21-52

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Handle: RePEc:oup:erevae:v:34:y:2007:i:1:p:21-52

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Cited by:
  1. Frédéric Courleux & Hervé Guyomard & Fabrice Levert & Laurent Piet, 2008. "How the EU Single Farm Payment should be modelled: lump-sum transfers, area payments or… what else?," Working Papers SMART - LERECO 08-01, INRA UMR SMART.
  2. Severini, Simone & Valle, Stefano, 2008. "The Abrogation Of Set Aside And The Increase Of Cereal Prices: Can They Revert The Decline Of Cereal Production Generated By Decoupling?," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44782, European Association of Agricultural Economists.
  3. Louhichi, Kamel & Gomez y Paloma, Sergio, 2014. "A farm household model for agri-food policy analysis in developing countries: Application to smallholder farmers in Sierra Leone," Food Policy, Elsevier, vol. 45(C), pages 1-13.
  4. Louhichi, Kamel, 2012. "Impact of EU biofuel policies on the French arable sector: A micro-level analysis using global market and farm-based supply models," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 93(03), pages 233-272, September.
  5. Ceddia, M.G. & Heikkil, J. & Peltola, J., 2009. "Managing invasive alien species with professional and hobby farmers: Insights from ecological-economic modelling," Ecological Economics, Elsevier, vol. 68(5), pages 1366-1374, March.
  6. Gocht, Alexander, 2008. "Estimating input allocation for farm supply models," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6469, European Association of Agricultural Economists.
  7. Heckelei, Thomas & Britz, Wolfgang & Zhang, Yinan, 2012. "Positive Mathematical Programming Approaches – Recent Developments in Literature and Applied Modelling," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 1, April.
  8. Buysse, Jeroen & Van der Straeten, Bart & Claeys, Dakerlia & Lauwers, Ludwig H. & Marchand, Fleur L. & Van Huylenbroeck, Guido, 2008. "Flexible quota constraints in positive mathematical programming models," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6640, European Association of Agricultural Economists.
  9. Renwick, Alan W. & Revoredo-Giha, Cesar & Philippidis, George & Bourne, Michael & Reader, Mark A. & Lang, Ben, 2012. "Sugar and Spice and all things nice? Assessing the Impact of the 2006 EU sugar regime reforms," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134706, Agricultural Economics Society.

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