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Effects of agri-environmental measures and changes in EU single farm payments on Dutch agriculture

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  • Helming, John F.M.
  • Schrijver, R.A.M.
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    Abstract

    Part of the Health check of the Common Agricultural Policy (CAP) of the European Union in 2008, will be a discussion of the linkage between direct payments to farmers and the contribution of agricultural production to social important values. The objective of this paper is to analyse the economic and environmental effects of extra region specific environmental measures and a redistribution of direct payments to the Dutch agricultural sector in 2020. In doing so a chain of models is used from the dairy farm level to the regional sector level in the Netherlands to the European sector level. From the dairy farm model it is found that the extra-environmental measures result in a decrease in the number of dairy cows per ha and a decrease in the gross margin per ha in the regions at hand. At maximum the gross margin decreases with about € 1,300 per ha. This is the case on intensive types of dairy farms in the Nature2000 areas. Linking and aggregating these results to the regional sector level and using the sector model of the Netherlands it is found that income from dairy farming at sector level and national milk production decreases with about 6%. Emission of ammonia decreases with 11% and Nitrogen (N) surplus at soil level decreases with 22%. However, economic and environmental results can be very different per type of dairy farm and province.

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    File URL: http://purl.umn.edu/6602
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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 107th Seminar, January 30-February 1, 2008, Sevilla, Spain with number 6602.

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    Date of creation: 2008
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    Handle: RePEc:ags:eaa107:6602

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    Related research

    Keywords: economic models; model linking; policy; regions; dairy farming; environment and nature; Agricultural and Food Policy; Agricultural Finance; Livestock Production/Industries; Research Methods/ Statistical Methods;

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    1. Kuhlman, Tom & van Tongeren, Frank W. & Helming, John F.M. & Tabeau, Andrzej A. & Gaaff, Aris & Groeneveld, Rolf A. & Koole, Boudewijn & Verhoog, A. David & Dekkers, Jasper, 2006. "Future land-use change in the Netherlands: an analysis based on a chain of models," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 55(5/6).
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    Cited by:
    1. Hansen, Kristiana & Frahan, Bruno Henry de, 2011. "Evaluation of Agro-Environmental Policy through a Calibrated Simulation Farm Model," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114577, European Association of Agricultural Economists.

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