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MacSharry Challenge: A Farm Simulation Study, The

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  • Govanni Giardini

Abstract

A mathematical programming model is used to investigate the effects of the MacSharry Common Agricultural Policy (CAP) reform on crop yields, rotations, and tillage systems of a representative Italian farm. Both professional and small producer regimes are evaluated. The results of the simulation show the profound impact of the policy changes on farm income and land value. No-tillage is introduced to compensate for lower returns, with a strong reductive effect on crop yields. Overall, farm returns are maximized under the professional support regime.

Suggested Citation

  • Govanni Giardini, 1994. "MacSharry Challenge: A Farm Simulation Study, The," Center for Agricultural and Rural Development (CARD) Publications 94-gatt6, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  • Handle: RePEc:ias:cpaper:94-gatt6
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    References listed on IDEAS

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    1. Fulginiti, Lilyan E & Perrin, Richard K, 1993. "Prices and Productivity in Agriculture," The Review of Economics and Statistics, MIT Press, pages 471-482.
    2. Chris Fawson & C. Richard Shumway & Robert L. Basmann, 1990. "Agricultural Production Technologies with Systematic and Stochastic Technical Change," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(1), pages 182-199.
    3. Basmann, R. L. & Hayes, K. J. & Slottje, D. J. & Molina, D. J., 1987. "A new method for measuring technological change," Economics Letters, Elsevier, vol. 25(4), pages 329-333.
    4. R. E. Lucas, 1967. "Tests of a Capital-Theoretic Model of Technological Change," Review of Economic Studies, Oxford University Press, vol. 34(2), pages 175-189.
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