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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
    DOI: 10.22004/ag.econ.44384
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    References listed on IDEAS

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    1. Kimhi, Ayal & Bollman, Ray, 1999. "Family farm dynamics in Canada and Israel: the case of farm exits," Agricultural Economics, Blackwell, vol. 21(1), pages 69-79, August.
    2. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, 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.
    4. Thomas Glauben & Hendrik Tietje & Christoph Weiss, 2004. "Intergenerational Succession in Farm Households: Evidence from Upper Austria," Review of Economics of the Household, Springer, vol. 2(4), pages 443-462, August.
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    Cited by:

    1. Viira, Ants-Hannes & Pöder, Anne & Värnik, Rando, 2013. "The Determinants of Farm Growth, Decline and Exit in Estonia," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 62(01), pages 1-13, February.
    2. Viira, Ants-Hannes & Pöder, Anne & Värnik, Rando, 2013. "The Determinants of Farm Growth, Decline and Exit in Estonia," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 62(1).
    3. Roel Jongeneel & Ana Gonzalez-Martinez, 2022. "EU Dairy after the Quota Abolition: Inelastic Asymmetric Price Responsiveness and Adverse Milk Supply during Crisis Time," Agriculture, MDPI, vol. 12(12), pages 1-16, November.
    4. Pieralli, Simone & Hüttel, Silke & Odening, Martin, 2014. "Abandonment of milk production under uncertainty and inefficiency: The case of West German farms," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170236, Agricultural and Applied Economics Association.

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    Agricultural and Food Policy;

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