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Impact of the CAP Reform on Small-Scaled Grassland Regions in Bavaria, Germany

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  • Roeder, Norbert
  • Kantelhardt, Jochen
  • Kapfer, Martin

Abstract

The CAP reform of 2003 will change farmer's business environment in Europe. This paper analyses the impact of the reform on the land use in southern German grassland regions. The assessment will be based on model calculations for two typical grassland regions. Each study area represents one village with its specific farm structure and natural conditions. These regions differ in their excellence with respect to agricultural use. In Southern Germany small to medium sized family farms is the most frequent type of farming. We use a regional land-use model that conceives farms as independent agents aiming at maximum individual utility. Farm agents optimize their farm organisation with the help of a linear-programming algorithm that takes into account natural, economic and personal restrictions. Interactions between farms take place on the land market, which is modelled as an equilibrium market. It becomes clear that the CAP reform of 2003 has various significant consequences with respect to grassland use. In particular the decreasing profitability of dairy farming will relatively promote low-intensive forms of grassland use, including mulching. If some payments (e. g. agri-environmental payments) remain coupled to livestock production area-wide agriculture can be maintained even in marginal areas. Land rents will generally increase in more marginal areas due to the effects of decoupling.

Suggested Citation

  • Roeder, Norbert & Kantelhardt, Jochen & Kapfer, Martin, 2006. "Impact of the CAP Reform on Small-Scaled Grassland Regions in Bavaria, Germany," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25383, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25383
    DOI: 10.22004/ag.econ.25383
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    References listed on IDEAS

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    2. Happe, Kathrin & Balmann, Alfons, 2002. "Struktur-, Effizienz- und Einkommenswirkungen von Direktzahlungen," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 51(08), pages 1-13.
    3. Jager, W. & Janssen, M. A. & De Vries, H. J. M. & De Greef, J. & Vlek, C. A. J., 2000. "Behaviour in commons dilemmas: Homo economicus and Homo psychologicus in an ecological-economic model," Ecological Economics, Elsevier, vol. 35(3), pages 357-379, December.
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    Cited by:

    1. Silke Huettel & Anne Margarian, 2009. "Structural change in the West German agricultural sector," Agricultural Economics, International Association of Agricultural Economists, vol. 40(s1), pages 759-772, November.
    2. Roeder, Norbert & Lederbogen, Dirk & Trautner, Juergen & Bergamini, Ariel & Stofer, Silvia & Scheidegger, Christoph, 2010. "The impact of changing agricultural policies on jointly used rough pastures in the Bavarian Pre-Alps: An economic and ecological scenario approach," Ecological Economics, Elsevier, vol. 69(12), pages 2435-2447, October.
    3. Roeder, Norbert & Lederbogen, Dirk & Trautner, Juergen & Bergamini, Ariel & Stofer, Silvia & Scheidegger, Christoph, 2009. "The impact of changing agricultural policies on jointly used rough pastures in the Bavarian Pre-Alps - an economic and ecological scenario approach," 83rd Annual Conference, March 30 - April 1, 2009, Dublin, Ireland 51070, Agricultural Economics Society.
    4. Farwick, J. & Krämer, J., 2009. "Auswirkungen möglicher Agrarpolitikszenarien auf landwirtschaftliche Betriebe in Nordrhein-Westfalen: Eine Simulation anhand typischer Betriebe," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 44, March.

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