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Agent-Based Modeling of Farming Behavior: A Dutch Case Study on Milk Quota Abolishment and Sustainable Dairying

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  • Oudendag, Diti
  • Hoogendoorn, Mark
  • Jongeneel, Roel

Abstract

Gaining insight on the effect of policies upon the agricultural domain is essential for policy makers, famers and the agribusiness sector. A variety of models have therefore been developed that enable a prediction of agricultural development under different policies. Most models do however not make predictions on a fine grained level and are weak in accounting for specific factor market and resource constraints farmers (agents) face at farm level. The paper presents an agent-based model where each farm is modeled by means of an agent and studies the effect of milk quota abolishment. Two simulations policy simulations are made: 1) abolition of the milk quota; and 2) land-tied sustainable dairy scenario. Outcomes are analyzed and compared with the predictions of sector models.

Suggested Citation

  • Oudendag, Diti & Hoogendoorn, Mark & Jongeneel, Roel, 2014. "Agent-Based Modeling of Farming Behavior: A Dutch Case Study on Milk Quota Abolishment and Sustainable Dairying," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182700, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae14:182700
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    References listed on IDEAS

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    1. Hugo Storm & Thomas Heckelei & Ron C. Mittelhammer, 2016. "Bayesian estimation of non-stationary Markov models combining micro and macro data," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 43(2), pages 303-329.
    2. Zohra Bouamra-Mechemache & Roel Jongeneel & Vincent RĂ©quillart, 2009. "EU Dairy Policy Reforms: Luxembourg Reform, WTO Negotiations and the Quota Regime," EuroChoices, The Agricultural Economics Society, vol. 8(SpecialIs), pages 13-22, April.
    3. Silke Huettel & Roel Jongeneel, 2011. "How has the EU milk quota affected patterns of herd-size change?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 38(4), pages 497-527, October.
    4. Markus Lips & Peter Rieder, 2005. "Abolition of Raw Milk Quota in the European Union: A CGE Analysis at the Member Country Level," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(1), pages 1-17.
    5. Axel Tonini & Roel Jongeneel, 2009. "The distribution of dairy farm size in Poland: a markov approach based on information theory," Applied Economics, Taylor & Francis Journals, vol. 41(1), pages 55-69.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    agent based modelling; dairy; milk quota; Institutional and Behavioral Economics; Research Methods/ Statistical Methods;

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