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Methodological Approach for Evaluation ff Investment Behavior of Farmers in Different Development Scenarios

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Listed:
  • Sergo Gomez i Paloma
  • Vittorio Galerani
  • Meri Ragi
  • Davide Viagi
  • Dimitar Nikolov

Abstract

Methodological instruments are presented for analysis of the impact of the Common agricultural policy (CAP) on investment behavior of farms for a long-term period based on the direct payments for a unit of area. To achieve the set aim a methodology is proposed which will be used to conduct an ex-ante analysis of investment behavior of farmers towards unfavorable rural areas which are grouped in several types of farms. Scenarios are developed to measure the impact of the CAP on investment behavior of producers in Bulgarian agriculture. The analysis of farmers’ investment behavior and the evaluation of the impact of different CAP scenarios will assist for revealing the relations between the goals of the policy and the behavior of farmers.

Suggested Citation

  • Sergo Gomez i Paloma & Vittorio Galerani & Meri Ragi & Davide Viagi & Dimitar Nikolov, 2008. "Methodological Approach for Evaluation ff Investment Behavior of Farmers in Different Development Scenarios," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 81-96.
  • Handle: RePEc:bas:econth:y:2008:i:5:p:81-96
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    References listed on IDEAS

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    1. Michael T. Wallace & Joan E. Moss, 2002. "Farmer Decision-Making with Conflicting Goals: A Recursive Strategic Programming Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(1), pages 82-100.
    2. Carl Johan Lagerkvist, 2005. "Agricultural policy uncertainty and farm level adjustments--the case of direct payments and incentives for farmland investment," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(1), pages 1-23, March.
    3. Kathrin Happe, 2005. "Agricultural policies and farm structures - agent-based simulation and application to EU-policy reform," Others 0504011, EconWPA.
    4. Barry K. Goodwin & Ashok K. Mishra, 2005. "Another Look at Decoupling: Additional Evidence on the Production Effects of Direct Payments," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1200-1210.
    5. Eli Feinerman & Jack Peerlings, 2005. "Uncertain Land Availability and Investment Decisions: The Case of Dutch Dairy Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(1), pages 59-80.
    6. Paolo Sckokai & Daniele Moro, 2006. "Modeling the Reforms of the Common Agricultural Policy for Arable Crops under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 43-56.
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    Cited by:

    1. O’Toole, Conor & Hennessy, Thia, 2015. "Do decoupled payments affect investment financing constraints? Evidence from Irish agriculture," Food Policy, Elsevier, vol. 56(C), pages 67-75.

    More about this item

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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