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An investigation of the level of structural change in the agrifood sector of Ireland, Denmark and the Netherlands

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Author Info

  • Darragh Clancy

    ()
    (Rural Economy and Development Programme, Teagasc, Athenry, Co. Galway, Ireland)

  • A. Kazukauskas

    (Department of Economics, Trinity College Dublin)

  • C. Newman

    (Department of Economics, Trinity College Dublin)

  • Fiona Thorne

    (Rural Economy and Development Programme, Teagasc, Athenry, Co. Galway, Ireland)

Abstract

This paper conducts a detailed, micro-focused investigation of the implications of issues such as recent agricultural policy changes and growth in the wider economy on the structure of production systems in Ireland, Denmark and the Netherlands in terms of farm numbers, system switching, specialisation, the role of economies of scale and on-farm investment. The ability of each member state to choose the degree to which agricultural payments can be decoupled from production allows for comparisons of agricultural structural change under alternative decoupling strategies. The Netherlands and Denmark are ideal case studies for this purpose given their similarities to Ireland in terms of their size, climate, recent economic performance, the relative importance of agriculture to their overall economy and their participation in the Farm Accountancy Data Network. The results indicate that a ‘safety first’ approach is being taken by farmers, with structural change continuing along historical levels.

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File URL: http://www.agresearch.teagasc.ie/rerc/downloads/workingpapers/09wpre15.pdf
File Function: First version, 2009
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Bibliographic Info

Paper provided by Rural Economy and Development Programme,Teagasc in its series Working Papers with number 0915.

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Length: 48 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:tea:wpaper:0915

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Postal: Athenry, Co Galway
Phone: +353 91 845845
Fax: +353 91 845847
Web page: http://www.agresearch.teagasc.ie/rerc/
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Keywords: Policy Reform; Agricultural Structural Change; FADN;

References

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  1. C. S. Kim & G. Schluter & G. Schaible & A. Mishra & C. Hallahan, 2005. "A Decomposed Negative Binomial Model of Structural Change: A Theoretical and Empirical Application to U.S. Agriculture," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(2-3), pages 161-176, 06.
  2. Rasmussen, Svend, 2000. "Technological Change and Economies of Scale in Danish Agriculture," Unit of Economics Working papers 24185, Royal Veterinary and Agricultural University, Food and Resource Economic Institute.
  3. Chau, Nancy H. & de Gorter, Harry, 2000. "Disentangling The Production And Export Consequences Of Direct Farm Income Payments," 2000 Annual meeting, July 30-August 2, Tampa, FL 21854, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Zimmermann, Andrea & Heckelei, Thomas, 2008. "Farm Structural Change in German Regions - An Empirical Analysis using Micro and Macro Data," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44049, European Association of Agricultural Economists.
  5. Zimmermann, Andrea & Heckelei, Thomas & Perez Dominguez, Ignacio, 2006. "Working paper: Literature Review of Approaches to Estimate Structural Change," Reports 9304, SEAMLESS: System for Environmental and Agricultural Modelling, Linking European Science and Society.
  6. Darragh Clancy & James Breen & A.M Butler & Fiona Thorne & M. Wallace, 2008. "A Discounted Cash Flow Analysis of Financial Returns from Biomass Crops in Ireland," Working Papers 0808, Rural Economy and Development Programme,Teagasc.
  7. Gebremedhin, Tesfa G. & Christy, Ralph D., 1996. "Structural Changes In U.S. Agriculture: Implications For Small Farms," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(01), July.
  8. James Oehmke & David Schimmelpfennig, 2004. "Quantifying Structural Change in U.S. Agriculture: The Case of Research and Productivity," Journal of Productivity Analysis, Springer, vol. 21(3), pages 297-315, May.
  9. Emma J. Dillon & Thia Hennessy & Stephen Hynes & Cloe Garnache & Verena Commins, 2007. "Measuring the sustainability of agriculture," Working Papers 0701, Rural Economy and Development Programme,Teagasc.
  10. H. Frederick Gale, 2003. "Age-Specific Patterns of Exit and Entry in U.S. Farming, 1978–1997," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(1), pages 168-186.
  11. Robert E. Evenson & Wallace B. Huffman, 1997. "Long-Run Structural and Productivity Change in U.S. Agriculture: Effects of Prices and Policies," Working Papers 773, Economic Growth Center, Yale University.
  12. Christoph R. Weiss, 1999. "Farm Growth and Survival: Econometric Evidence for Individual Farms in Upper Austria," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 103-116.
  13. Emma J. Dillon & Thia Hennessy & Stephen Hynes & Verena Commins, 2008. "Assessing the Sustainability of Irish Agriculture," Working Papers 0809, Rural Economy and Development Programme,Teagasc.
  14. Sauer, Johannes & Park, Tim, 2009. "Organic farming in Scandinavia -- Productivity and market exit," Ecological Economics, Elsevier, vol. 68(8-9), pages 2243-2254, June.
  15. Michael Boehlje, 1992. "Alternative models of structural change in agriculture and related industries," Agribusiness, John Wiley & Sons, Ltd., vol. 8(3), pages 219-231.
  16. Breen, James P. & Hennessy, Thia C. & Thorne, Fiona S., 2005. "The effect of decoupling on the decision to produce: An Irish case study," Food Policy, Elsevier, vol. 30(2), pages 129-144, April.
  17. Pfeffer, Max J, 1989. "Part-time Farming and the Stability of Family Farms in the Federal Republic of Germany," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 16(4), pages 425-44.
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