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A ‘beyond WTO’ scenario for Swiss agriculture: Consequences for income generation and the provision of public goods

  • Robert Huber
  • Christian Häberli
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    The future agricultural policy framework seems clear. Even though the present trends do not point in this direction there is a strong probability that in the long run Swiss agriculture will have to forfeit border protection, while domestic support will be restricted to fully Green Box-compatible direct payments. We use a normative math-ematical programming model to illustrate possible effects for agri-cultural production and the corresponding agricultural income in the medium term (2012–2018) under such a ‘beyond WTO’ scenar-io. We discuss the results with respect to the provision of the pub-lic goods stated in Art.104 of the Swiss constitution. The potential effects for agricultural production in Switzerland are considerable. The agricultural sector in the lowlands would be especially affect-ed, with dairy farming remaining the most viable sector. In order to survive commercially, a further drastic reduction in production costs would be unavoidable, and efforts to realise prime premiums would have to be intensified.

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    File URL: http://archive.jsagr.org/v3/YSA2010_13_Huber_Haeberli_361_400.pdf
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    Article provided by Swiss Society for Agricultural Economics and Rural Sociology in its journal Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture).

    Volume (Year): 3 (2010)
    Issue (Month): 1 ()
    Pages: 361-400

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    Handle: RePEc:cha:ysa001:v:3:y:2010:i:1:p:361-400
    Contact details of provider: Web page: http://jsagr.org

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    1. Anderson, Kym, 2000. "Agriculture's 'multifunctionality' and the WTO," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(3), September.
    2. Happe, Kathrin & Balmann, Alfons & Kellermann, Konrad & Sahrbacher, Christoph, 2008. "Does structure matter? The impact of switching the agricultural policy regime on farm structures," Journal of Economic Behavior & Organization, Elsevier, vol. 67(2), pages 431-444, August.
    3. Aerni, Philipp, 2009. "What is sustainable agriculture? Empirical evidence of diverging views in Switzerland and New Zealand," Ecological Economics, Elsevier, vol. 68(6), pages 1872-1882, April.
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