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The Key Role of the Milk Quota in the Reform of the Swiss Agricultural Policy

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  • Cretegny, Laurent

Abstract

The main feature of the Swiss reform is to decoupled direct payments from agricultural production. These payments are given with respect to the degree of ecological farming and not as a function of the quantity produced. We study the impact of these measures within the framework of a single-country, 22-sector computable general equilibrium model, where farm policy instruments are explicitly represented and environmental farming modelled as a public good. For the parameters of our model, the reform decreases the welfare of the farmers. This result comes from the non-compensated diminution of the raw milk quota rent generated by the reduction of price support.

Suggested Citation

  • Cretegny, Laurent, 2002. "The Key Role of the Milk Quota in the Reform of the Swiss Agricultural Policy," Conference papers 331039, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331039
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    References listed on IDEAS

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    1. Jikun Huang & Fangbin Qiao & Linxiu Zhang & Scott Rozelle, 2000. "Farm Pesticide, Rice Production, and Human Health," EEPSEA Research Report rr2000051, Economy and Environment Program for Southeast Asia (EEPSEA), revised May 2000.
    2. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    3. Pray, Carl & Ma, Danmeng & Huang, Jikun & Qiao, Fangbin, 2001. "Impact of Bt Cotton in China," World Development, Elsevier, vol. 29(5), pages 813-825, May.
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