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A Farm Level Analysis Of The Relation Between Cap Reforms And Local Environmental Legislations: How And In Which Extent Flemish Dairy Farmers Can Fill Up Extra Milk Quota?

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  • Van der Straeten, Bart
  • Buysse, Jeroen
  • Nolte, Stephan
  • Marchand, Fleur L.
  • Lauwers, Ludwig H.
  • Claeys, Dakerlia
  • Van Huylenbroeck, Guido
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    Abstract

    The agricultural policies shift gradually from EU-level organised market interventions to local organised environmental policies. This paper explores the growth possibilities of the Flemish dairy sector with the outlook of a quota abolishment as a case study of this policy shift. The dairy quota policy seems very restrictive for the highly profitable Flemish dairy sector, but the environmental restrictions from the manure regulation can limit the growth of the dairy sector as well. The paper uses a spatial multi-agent simulation model applied to a sample of 40.000 farms to estimate price development of emission rights and their possible impact on the growth of the dairy production. The results show that a higher milk production leads to higher prices for emission rights. However, the increased cost of manure emission rights is not expected to impede dairy farm growth because the current milk quota rent estimates go far beyond the cost of manure emission rights.

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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 109th Seminar, November 20-21, 2008, Viterbo, Italy with number 44846.

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    Date of creation: 14 Nov 2008
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    Handle: RePEc:ags:eaa109:44846

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    Related research

    Keywords: milk quota; manure emission rights; mathematical programming; Flanders; Agricultural and Food Policy; Industrial Organization; Research Methods/ Statistical Methods; C02; C61; L11; Q18;

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    1. Berger, Thomas, 2001. "Agent-based spatial models applied to agriculture: a simulation tool for technology diffusion, resource use changes and policy analysis," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 25(2-3), September.
    2. Breen, James P. & Donnellan, Trevor & Hennessy, Thia C. & Thorne, Fiona S., 2008. "A farm level analysis of the impact of milk quota reform: integrating econometric estimation with optimisation models," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6480, European Association of Agricultural Economists.
    3. Claeys, Dakerlia & Lauwers, Ludwig H. & Marchand, Fleur L. & Van Meensel, Jef & Buysse, Jeroen & Van der Straeten, Bart & Van Huylenbroeck, Guido, 2008. "Derogation on the EU Nitrates Directive: does it make a difference?," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44436, European Association of Agricultural Economists.
    4. Rémy Courdier & Fran�ois Guerrin & Fenintsoa Andriamasinoro & Jean-Marie Paillat, 2002. "Agent-Based Simulation of Complex Systems: Application to Collective Management of Animal Wastes," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 5(3), pages 4.
    5. Van der Straeten, Bart & Buysse, Jeroen & Marchand, Fleur L. & Lauwers, Ludwig H. & Claeys, Dakerlia & Van Huylenbroeck, Guido, 2008. "Fertilization: trade-offs between manure abatement and plant productivity," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43642, European Association of Agricultural Economists.
    6. Kathrin Happe, 2005. "Agricultural policies and farm structures - agent-based simulation and application to EU-policy reform," Others 0504011, EconWPA.
    7. Berger, Thomas, 2001. "Agent-based spatial models applied to agriculture: a simulation tool for technology diffusion, resource use changes and policy analysis," Agricultural Economics, Blackwell, vol. 25(2-3), pages 245-260, September.
    8. Eli Feinerman & Marinus Komen, 2005. "The Use of Organic vs. Chemical Fertilizer with a Mineral Losses Tax: The Case of Dutch Arable Farmers," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 32(3), pages 367-388, November.
    9. Balmann, Alfons, 1997. "Farm-Based Modelling of Regional Structural Change: A Cellular Automata Approach," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 24(1), pages 85-108.
    10. 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.
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