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Farm level effects of EU policy liberalization: Simulations based on an EU-wide agricultural sector model and a supply model of the German agricultural sector

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  • Deppermann, Andre
  • Grethe, Harald
  • Offermann, Frank

Abstract

The impact of sectoral or economy wide policy scenarios is often of strong political and public interest, yet it is a scientific challenge. When analyzing different levels of aggregation, the use of single models may not be sufficient. In this paper we establish an interface between the European Simulation Model (ESIM) and the Farm Modelling Information System (FARMIS). The linkage of the two models allows us to quantify adjustment processes both at the sectoral level and at the farm group level for the German agricultural sector. Different liberalization scenarios are presented and compared to a reference scenario. The abolishment of market price support leads to a reduction of farm incomes, especially if direct payments are also reduced. The low absolute level of return to labor, particularly in grazing livestock farms, suggests strong changes in farm structure as well as the farm input industry in Germany under the full liberalization scenario.

Suggested Citation

  • Deppermann, Andre & Grethe, Harald & Offermann, Frank, 2010. "Farm level effects of EU policy liberalization: Simulations based on an EU-wide agricultural sector model and a supply model of the German agricultural sector," 114th Seminar, April 15-16, 2010, Berlin, Germany 61083, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa114:61083
    DOI: 10.22004/ag.econ.61083
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    References listed on IDEAS

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    1. Rutherford, Thomas F. & Böhringer, Christoph, 2006. "Combining Top-Down and Bottom-up in Energy Policy Analysis: A Decomposition Approach," ZEW Discussion Papers 06-007, ZEW - Leibniz Centre for European Economic Research.
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    1. Deppermann, Andre & Grethe, Harald & Offermann, Frank, 2011. "An ex-ante analysis of distributional effects of the CAP on western German farm incomes," 122nd Seminar, February 17-18, 2011, Ancona, Italy 99428, European Association of Agricultural Economists.
    2. 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.
    3. Deppermann, Andre & Offermann, Frank & Grethe, Harald, 2016. "Redistributive effects of CAP liberalisation: From the sectoral level to the single farm," Journal of Policy Modeling, Elsevier, vol. 38(1), pages 26-43.
    4. Deppermann, Andre & Grethe, Harald & Offermann, Frank, 2011. "Distributional Effects of the CAP on Western German Farm Incomes and Regional Farm Income Disparity," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114442, European Association of Agricultural Economists.
    5. Deppermann, Andre & Offermann, Frank & Grethe, Harald, 2014. "Income effects of EU biofuel policies in Germany," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182803, European Association of Agricultural Economists.
    6. Deppermann, Andre & Offermann, Frank & Puttkammer, Judith & Grethe, Harald, 2016. "EU biofuel policies: Income effects and lobbying decisions in the German agricultural sector," Renewable Energy, Elsevier, vol. 87(P1), pages 259-265.
    7. Gabriela Trnková & Z. Malá, 2012. "Analysis of distribution impact of subsidies within the Common Agricultural Policy on field production businesses in the Czech Republic," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(7), pages 415-424.

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    Keywords

    Agricultural and Food Policy; Farm Management; Land Economics/Use;
    All these keywords.

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