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UK Sugar Beet Farm Productivity under Different Reform Scenarios: A Farm Level Analysis

Author

Listed:
  • Alan W. Renwick

    (Land Economy Research Group, Scottish Agricultural College, UK)

  • Cesar L. Revoredo Giha

    () (Department of Land Economy, University of Cambridge)

  • Mark A. Reader

    (Department of Land Economy, University of Cambridge)

Abstract

The purpose of this paper is to study the effect that the imminent reform in the European Union (EU) sugar regime may have on farm productivity in the United Kingdom (UK). We perform the analysis on a sample of sugar beet farms representative of all the UK sugar beet regions. To estimate the changes in productivity, we estimate a multi-output cost function representing the cropping part of the farm, which is the component that would be mostly affected by the sugar beet reform. We use this cost function to compute the new allocation of outputs and inputs after the changes in the sugar beet quota and price support. This are subsequently used to compute measures of total factor productivity. Our results show slight decreases in the productivity at the individual farm level under both quota and price support reduction. However, when considering the aggregate level, the reduction in the price support shows significant increases in productivity, in contrast to the results obtained from a reduction in quota.

Suggested Citation

  • Alan W. Renwick & Cesar L. Revoredo Giha & Mark A. Reader, 2005. "UK Sugar Beet Farm Productivity under Different Reform Scenarios: A Farm Level Analysis," Environmental Economy and Policy Research Working Papers 04.2005, University of Cambridge, Department of Land Economics, revised 2005.
  • Handle: RePEc:lnd:wpaper:200504
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    File URL: http://www.landecon.cam.ac.uk/RePEc/pdf/200504.pdf
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    References listed on IDEAS

    as
    1. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
    2. Antonio Alvarez & Carlos Arias, 2003. "Diseconomies of Size with Fixed Managerial Ability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 134-142.
    3. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, May.
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    Cited by:

    1. Gohin, Alexandre & Bureau, Jean-Christophe, 2006. "WTO Discipline and the CAP: the Constraints on the EU Sugar Sector," Working Papers 18872, TRADEAG - Agricultural Trade Agreements.
    2. Gohin, Alexandre & Bureau, Jean-Christophe, 2006. "Bridging Micro- and Macro-Analyses of the EU Sugar Program: Methods and Insights," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25799, International Association of Agricultural Economists.
    3. G. Lindberg & P. Midmore & Y. Surry, 2012. "Agriculture’s Inter-industry Linkages, Aggregation Bias and Rural Policy Reforms," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(3), pages 552-575, September.

    More about this item

    Keywords

    EU sugar reform; UK agriculture; UK sugar beet production; Multi-output cost function; Total factor productivity;

    JEL classification:

    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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