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Effects of agri-environmental measures and changes in EU single farm payments on Dutch agriculture

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  • Helming, John F.M.
  • Schrijver, R.A.M.

Abstract

Part of the Health check of the Common Agricultural Policy (CAP) of the European Union in 2008, will be a discussion of the linkage between direct payments to farmers and the contribution of agricultural production to social important values. The objective of this paper is to analyse the economic and environmental effects of extra region specific environmental measures and a redistribution of direct payments to the Dutch agricultural sector in 2020. In doing so a chain of models is used from the dairy farm level to the regional sector level in the Netherlands to the European sector level. From the dairy farm model it is found that the extra-environmental measures result in a decrease in the number of dairy cows per ha and a decrease in the gross margin per ha in the regions at hand. At maximum the gross margin decreases with about € 1,300 per ha. This is the case on intensive types of dairy farms in the Nature2000 areas. Linking and aggregating these results to the regional sector level and using the sector model of the Netherlands it is found that income from dairy farming at sector level and national milk production decreases with about 6%. Emission of ammonia decreases with 11% and Nitrogen (N) surplus at soil level decreases with 22%. However, economic and environmental results can be very different per type of dairy farm and province.

Suggested Citation

  • Helming, John F.M. & Schrijver, R.A.M., 2008. "Effects of agri-environmental measures and changes in EU single farm payments on Dutch agriculture," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6602, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa107:6602
    DOI: 10.22004/ag.econ.6602
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    References listed on IDEAS

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    1. Richard E. Howitt, 1995. "Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 329-342.
    2. Heckelei, Thomas & Britz, Wolfgang, 2005. "Models Based on Positive Mathematical Programming: State of the Art and Further Extensions," 89th Seminar, February 2-5, 2005, Parma, Italy 234607, European Association of Agricultural Economists.
    3. Kuhlman, Tom & van Tongeren, Frank W. & Helming, John F.M. & Tabeau, Andrzej A. & Gaaff, Aris & Groeneveld, Rolf A. & Koole, Boudewijn & Verhoog, A. David & Dekkers, Jasper, 2006. "Future land-use change in the Netherlands: an analysis based on a chain of models," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 55(05-06), pages 1-10.
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    Cited by:

    1. Hansen, Kristiana & Frahan, Bruno Henry de, 2011. "Evaluation of Agro-Environmental Policy through a Calibrated Simulation Farm Model," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114577, European Association of Agricultural Economists.

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    Keywords

    Agricultural and Food Policy; Agricultural Finance; Livestock Production/Industries; Research Methods/ Statistical Methods;
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