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The effect of decoupling on marginal agricultural systems: implications for farm incomes, land use and upland ecology

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  • Acs, Szvetlana
  • Armsworth, Paul R
  • Dallimer, Martin
  • Gaston, Kevin J
  • Hanley, Nicholas
  • Robertson, Philip
  • Wilson, Paul

Abstract

In many parts of Europe, decades of production subsidies led to the steady intensification of agriculture in marginal areas, but the recent decoupling of subsidies from production decisions means that the future of farming in these areas is uncertain. For example, in the uplands of the United Kingdom, an area important both for biodiversity conservation and ecosystem service provision, hill farmers steadily increased stocking densities in response to headage payments but must now reconfigure farm businesses to account for the shift to the Single Farm Payment scheme. We examined hill farming in the Peak District National Park as a case study into the future of marginal agriculture after decoupling. We surveyed 44 farm businesses and from this identified six representative farm types based on enterprise mix and land holdings. We developed linear programming models of production decisions for each farm type to examine the impacts of policy changes, comparing the effects of decoupling with and without agri-environment and hill farm support, and evaluating the effects of removal of the Single Farm Payment. The main effects of decoupling are to reduce stocking rates, and to change the mix of livestock activities. Agri-environmental schemes mediate the income losses from decoupling, and farmers are predicted to maximise take up of new Environmental Stewardship programmes, which have both positive and negative feedback effects on livestock numbers. Finally, removal of the Single Farm Payment would lead to negative net farm incomes, and some land abandonment. These changes have important implications for ongoing debates about how ecological service flows can be maintained from upland areas, and how marginal upland farming communities can be sust ained.

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File URL: http://hdl.handle.net/1893/534
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Bibliographic Info

Paper provided by University of Stirling, Division of Economics in its series Stirling Economics Discussion Papers with number 2008-18.

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Date of creation: Sep 2008
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Handle: RePEc:stl:stledp:2008-18

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Postal: Division of Economics, University of Stirling, Stirling, Scotland FK9 4LA
Phone: +44 (0)1786 467473
Fax: +44 (0)1786 467469
Web page: http://www.econ.stir.ac.uk/
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Related research

Keywords: upland farming; ecological-economic modelling; de-coupling; CAP reform;

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References

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  1. Erwin Schmid & Franz Sinabell, 2004. "On the Choice of Farm Management Practices after the Reform of the Common Agricultural Policy in 2003," WIFO Working Papers 233, WIFO.
  2. Nick Hanley & Sergio Colombo & Pamela Mason & Helen Johns, 2007. "The Reform of Support Mechanisms for Upland Farming: Paying for Public Goods in the Severely Disadvantaged Areas of England," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(3), pages 433-453, 09.
  3. Oliver Balkhausen & Martin Banse & Harald Grethe, 2008. "Modelling CAP Decoupling in the EU: A Comparison of Selected Simulation Models and Results," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(1), pages 57-71, 02.
  4. Hanley, Nick & Tinch, Dugald & Angelopoulos, Konstantinos & Davies, Althea & Barbier, Edward B. & Watson, Fiona, 2009. "What drives long-run biodiversity change? New insights from combining economics, palaeoecology and environmental history," Journal of Environmental Economics and Management, Elsevier, vol. 57(1), pages 5-20, January.
  5. Alexandre Gohin, 2006. "Assessing CAP Reform: Sensitivity of Modelling Decoupled Policies," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(3), pages 415-440.
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Cited by:
  1. Acs, Szvetlana & Dallimer, Martin & Hanley, Nick & Gaston, Kevin J. & Armsworth, Paul R., 2009. "Linking biodiversity, land-use and incomes at the farm level: an interdisciplinary modelling approach," 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland 51056, Agricultural Economics Society.

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