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

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  • Robert Huber
  • Christian Häberli

Abstract

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.

Suggested Citation

  • Robert Huber & Christian Häberli, 2010. "A ‘beyond WTO’ scenario for Swiss agriculture: Consequences for income generation and the provision of public goods," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 3(1), pages 361-400.
    • Handle: RePEc:cha:ysa001:v:3:y:2010:i:1:p:361-400
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    References listed on IDEAS

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    1. Michael Hartmann & Robert Huber & Simon Peter & Bernard Lehmann, 2009. "Strategies to mitigate greenhouse gas and nitrogen emissions in Swiss agriculture: the application of an integrated sector model," IED Working paper 09-09, IED Institute for Environmental Decisions, ETH Zurich.
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    5. 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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    Keywords

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    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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