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Impacts of Decoupling and Milk Quota Trade on the French and German Dairy Sectors

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  • Huettel, Silke
  • Kleinhanss, Werner
  • Offermann, Frank

Abstract

This paper analyses the impacts of the 2003 CAP reform and of milk quota trade at the national level. To this end, a mathematical programming model has been further developed for Germany and extended to other main milk-producing EU member states like France. Homogeneous farm groups are built on the basis of EU Farm Accountancy Data Network. The results show that quotas will be fully used in both countries if quota trade is possible. A clear tendency in the reallocation of production from small towards large farms can be seen in all regions for France. In Germany, the redistribution of direct payments induced by the implementation of the regional scheme of decoupled payments leads to higher reductions of income in dairy & beef farms than in France.

Suggested Citation

  • Huettel, Silke & Kleinhanss, Werner & Offermann, Frank, 2005. "Impacts of Decoupling and Milk Quota Trade on the French and German Dairy Sectors," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24731, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae05:24731
    DOI: 10.22004/ag.econ.24731
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    File URL: https://ageconsearch.umn.edu/record/24731/files/os05hu01.pdf
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    References listed on IDEAS

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    1. Offermann, Frank & Kleinhanss, Werner & Huettel, Silke & Kuepker, Bernd, 2005. "Assessing the 2003 CAP Reform Impacts on German Agriculture Using the Farm Group Model FARMIS," 89th Seminar, February 2-5, 2005, Parma, Italy 234635, European Association of Agricultural Economists.
    2. Richard E. Howitt, 1995. "Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 329-342.
    3. Golan, Amos & Judge, George G. & Miller, Douglas, 1996. "Maximum Entropy Econometrics," Staff General Research Papers Archive 1488, Iowa State University, Department of Economics.
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    Cited by:

    1. Frédéric Courleux & Hervé Guyomard & Fabrice Levert & Laurent Piet, 2008. "How the EU Single Farm Payment should be modelled: lump-sum transfers, area payments or… what else?," Working Papers SMART 08-01, INRAE UMR SMART.
    2. Frédéric Courleux & Herve Guyomard & Fabrice Levert & Laurent Piet & . Inra & . Société Française d'Economie Rurale, 2007. "How the EU single farm payment should be modelled: lump-sum transfers, area payments or… something else ?," Post-Print hal-02282245, HAL.

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