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Impact of the CAP reform on small-scale grassland regions

Author

Listed:
  • Roeder, Norbert
  • Kantelhardt, Jochen
  • Kapfer, Martin

Abstract

This paper presents a regional land-use model that conceives farms as independent agents aiming at maximum individual utility. Farm agents optimize their utility with the help of a linear-programming algorithm that takes into account natural, economic and personal restrictions. Interactions between farms take place on the land market, which is modelled as an equilibrium market. The model is applied in three typical grassland regions in southern Bavaria. The results indicate that the CAP reform of 2003 has various significant consequences for grassland use. In particular, the decreasing profitability of dairy farming will lead to low-intensity forms of grassland use, including mulching. In general, land rents will increase due to the effects of decoupling.

Suggested Citation

  • Roeder, Norbert & Kantelhardt, Jochen & Kapfer, Martin, 2006. "Impact of the CAP reform on small-scale grassland regions," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 55(05-06), pages 1-11.
    • Handle: RePEc:ags:gjagec:97192
    DOI: 10.22004/ag.econ.97192
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    Cited by:

    1. Roeder, Norbert & Lederbogen, Dirk & Trautner, Juergen & Bergamini, Ariel & Stofer, Silvia & Scheidegger, Christoph, 2009. "The impact of changing agricultural policies on jointly used rough pastures in the Bavarian Pre-Alps - an economic and ecological scenario approach," 83rd Annual Conference, March 30 - April 1, 2009, Dublin, Ireland 51070, Agricultural Economics Society.
    2. Silke Huettel & Anne Margarian, 2009. "Structural change in the West German agricultural sector," Agricultural Economics, International Association of Agricultural Economists, vol. 40(s1), pages 759-772, November.
    3. Henseler, Martin, 2008. "Impact of CAP Reform on Agricultural Production in Four Different European Regions," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36856, Agricultural Economics Society.
    4. Farwick, J. & Krämer, J., 2009. "Auswirkungen möglicher Agrarpolitikszenarien auf landwirtschaftliche Betriebe in Nordrhein-Westfalen: Eine Simulation anhand typischer Betriebe," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 44, March.

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