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Winners And Losers Of Policy Changes – What Is The Role Of Structural Change?

Author

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  • Sahrbacher, Christoph
  • Kellermann, Konrad
  • Balmann, Alfons

Abstract

In this paper several decoupling options are evaluated concerning their impact on structural change especially on farm incomes and their surviving. Therefore, the agent-based model AgriPoliS was used and extended to account the income of leaving farms. This enables the comparison of future incomes of leaving and surviving farms to find out whether leaving farms are losers or not. The disaggregated analysis of farms’ household incomes showed that leaving farmers even benefit from their decision in case that enough off-farm jobs are available. Losers are farms that would have left agriculture under conditions of the Agenda 2000. After decoupling they stay in the sector and cannot increase their income as much as under Agenda conditions. Furthermore, the analysis displayed a persistence of farms in the sector despite it would have been more profitable for them to quit agriculture.

Suggested Citation

  • Sahrbacher, Christoph & Kellermann, Konrad & Balmann, Alfons, 2008. "Winners And Losers Of Policy Changes – What Is The Role Of Structural Change?," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6472, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa107:6472
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    File URL: http://purl.umn.edu/6472
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    References listed on IDEAS

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    1. Happe, Kathrin, 2004. "Agricultural policies and farm structures: agent-based modelling and application to EU-policy reform," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 30, number 14945.
    2. Kathrin Happe, 2005. "Agricultural policies and farm structures - agent-based simulation and application to EU-policy reform," Others 0504011, EconWPA.
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    Cited by:

    1. Sahrbacher, Christoph, 2011. "Regional structural change in European agriculture: Effects of decoupling and EU accession," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 60, number 60.

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