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'Effective prices' as a device to analyze the impact of the Agenda 2000 and Mid-Term Review policy reforms on dairy and beef: measurement and simulation results for Germany

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  • Jongeneel, Roelof A.

Abstract

The Agenda 2000 and the Mid-Term Review introduced a complex combination of policy changes for beef and dairy. It is not clear to what extent the package will influence production decisions. This study proposes a simple method for incorporating the effect of direct payments into the analysis of cow herd response. Effective support prices are derived by adjusting the Agenda 2000 reductions in dairy and beef support prices to reflect the compensation given to farmers in terms of direct payments and premiums. Following the Mid-Term Review different assumptions are made with respect to the extent to which these payments are, or are perceived as being coupled to production. The effective prices obtained for Germany are used in a simulation model to assess the impact of the latest agricultural policy reforms on German milk and beef producers.

Suggested Citation

  • Jongeneel, Roelof A., 2003. "'Effective prices' as a device to analyze the impact of the Agenda 2000 and Mid-Term Review policy reforms on dairy and beef: measurement and simulation results for Germany," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 52(07), pages 1-11.
    • Handle: RePEc:ags:gjagec:98076
    DOI: 10.22004/ag.econ.98076
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    1. Gardner, Bruce L., 2002. "North American Agricultural Policies And Effects On Western Hemisphere Markets Since 1995, With A Focus On Grains And Oilseeds," Working Papers 28602, University of Maryland, Department of Agricultural and Resource Economics.
    2. Gardner, Bruce L., 2002. "U.S./Canadian Agricultural Policies And Effects On Western Hemisphere Markets Since 1995, With A Focus On Grains And Oilseeds," Working Papers 28577, University of Maryland, Department of Agricultural and Resource Economics.
    3. Lansink, Alfons Oude & Peerlings, Jack, 1996. "Modelling the New EU Cereals and Oilseeds Regime in the Netherlands," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 23(2), pages 161-178.
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    1. Hansen, Heiko, 2005. "Effects of Agricultural Policy Measures on Gross Transfers to Farmers: Intertemporal and Interregional Evidence from the CAP," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24625, European Association of Agricultural Economists.

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    Keywords

    Agricultural and Food Policy;

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