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Farm growth and exit: consequences of EU dairy policy reform for Dutch dairy farming

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  • Peerlings, Jack H.M.
  • Ooms, Daan L.

Abstract

The purpose of this paper is to analyse farm growth and exit and its interaction in Dutch dairy farming as consequences of the 2003 CAP reform and 2008 CAP Health Check. Results indicate that the decision to exit dairy farming is largely determined by household characteristics as age and the size of the household. Farm growth is strongly influenced by the availability of labour, capital and land. Simulation results show that the dairy policy reforms reduce farm growth and exit. This is mainly caused by the quota increases.

Suggested Citation

  • Peerlings, Jack H.M. & Ooms, Daan L., 2008. "Farm growth and exit: consequences of EU dairy policy reform for Dutch dairy farming," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44384, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae08:44384
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    File URL: http://purl.umn.edu/44384
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    References listed on IDEAS

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    1. Kimhi, Ayal & Bollman, Ray D., 1999. "Family farm dynamics in Canada and Israel: the case of farm exits," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 21(1), August.
    2. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    3. Jeremy D. Foltz, 2004. "Entry, Exit, and Farm Size: Assessing an Experiment in Dairy Price Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 594-604.
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    Keywords

    Agricultural and Food Policy;

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