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Policy Risk Through Modulation of Direct Payments: Can Farms Live with a Strategic Disadvantage?

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  • Osuch, Amanda
  • Sahrbacher, Christoph
  • Kellermann, Konrad
  • Happe, Kathrin

Abstract

This paper explores the impacts of modulation as suggested by the EU Commission (“Preparing for the “Health Check” of the CAP reform”, 2007). The agent-based model AgriPoliS has been adapted to the case study region Ostprignitz-Ruppin (Brandenburg, Germany). Impacts on farm structures, regional production and the distribution of profits throughout farms are investigated, as well as impacts of the transfer of money coming from modulation to a second pillar measure widely spread in the case study region. The relative gains or losses of farms depending on their modulation groups are documented and potential expectations on such policies discussed.

Suggested Citation

  • Osuch, Amanda & Sahrbacher, Christoph & Kellermann, Konrad & Happe, Kathrin, 2008. "Policy Risk Through Modulation of Direct Payments: Can Farms Live with a Strategic Disadvantage?," 108th Seminar, February 8-9, 2008, Warsaw, Poland 48113, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa108:48113
    DOI: 10.22004/ag.econ.48113
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    File URL: https://ageconsearch.umn.edu/record/48113/files/Policy%20risks%20through%20modulation%20of%20direct%20payments_%20Can%20farms%20live%20with%20a%20strategic%20disadvantage_.pdf
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    References listed on IDEAS

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    1. Happe, Kathrin, 2004. "Agricultural policies and farm structures: Agent-based modelling and application to EU-policy reform," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 30, number 14945.
    2. Kathrin Happe, 2005. "Agricultural policies and farm structures - agent-based simulation and application to EU-policy reform," Others 0504011, University Library of Munich, Germany.
    3. Bertelsmeier, M., 2004. "Analyse der Wirkungen unterschiedlicher Systeme von direkten Transferzahlungen unter besonderer Berücksichtigung von Bodenpacht- und Quotenmärkten," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 39.
    4. Alfons Weersink & Steve Clark & Calum G. Turvey & Rakhal Sarker, 1999. "The Effect of Agricultural Policy on Farmland Values," Land Economics, University of Wisconsin Press, vol. 75(3), pages 425-439.
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    Cited by:

    1. Sahrbacher, Amanda, 2012. "Impacts of CAP reforms on farm structures and performance disparities: An agent-based approach," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 65, number 65.

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