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Structural, Efficiency And Income Effects Of Direct Payments - An Agent-Based Analysis Of Alternative Payment Schemes For The German Region Of Hohenlohe

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  • Happe, Kathrin
  • Balmann, Alfons

Abstract

The paper analyses various forms of direct payments using the spatial and dynamic model AgriPoliS. In AgriPoliS farms are represented as agents which act and interact individually. This allows for endogenous structural change. The model is fitted to the agricultural region 'Hohenlohe' in Baden-Württemberg which is characterised by intensive livestock farming. The policy simulations show that the fixing of a single income payment and coupling it to the farming of land - as it has been proposed by the EU Commission in the mid-term review - does not have significant effects on structural change, competitiveness, and income as compared to the current Agenda 2000 policy. In order to reach a significant and lasting effect on the competitiveness of agriculture, a further decoupling of payments would be necessary, in which direct payments would be completely decoupled from land and farming. Direct payments should rather be offered to farmers or farms, independent of whether or not farming is continued. Furthermore, area payments should be decreased to an extent which is just necessary to maintain certain land management standards. Such a policy would also break with the effect that a large part of subsidies and direct payments is transferred to the land owners rather than to the farmers. It is especially the farms with a growth potential and a high share of leased land which would benefit from such a policy.

Suggested Citation

  • Happe, Kathrin & Balmann, Alfons, 2003. "Structural, Efficiency And Income Effects Of Direct Payments - An Agent-Based Analysis Of Alternative Payment Schemes For The German Region Of Hohenlohe," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25920, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae03:25920
    DOI: 10.22004/ag.econ.25920
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    References listed on IDEAS

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    1. Isermeyer, Folkhard, 2002. "Grundlegende Reform des Prämiensystems? Stellungnahme zur Halbzeitbewertung der gemeinsamen Agrarpolitik und Entwicklung eines Alternativvorschlags," Arbeitsberichte aus der vTI-Agrarökonomie 03/2002, Johann Heinrich von Thünen Institute, Federal Research Institute for Rural Areas, Forestry and Fisheries.
    2. Happe, Kathrin & Balmann, Alfons, 2002. "Struktur-, Effizienz- und Einkommenswirkungen von Direktzahlungen," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 51(08), pages 1-13.
    3. Balmann, Alfons, 1997. "Farm-Based Modelling of Regional Structural Change: A Cellular Automata Approach," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 24(1), pages 85-108.
    4. Balmann, Alfons & Lotze, Herrmann & Noleppa, Steffen, 1998. "Agrarsektormodellierung auf der Basis typischer Betriebe, Teil 2," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 47(06).
    5. Happe, Katrin & Balmann, Alfons, 2002. "Struktur-, Effizienz- und Einkommenswirkungen von Direktzahlungen," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 51(8), pages 376-388.
    6. Berger, Thomas, 2001. "Agent-based spatial models applied to agriculture: a simulation tool for technology diffusion, resource use changes and policy analysis," Agricultural Economics, Blackwell, vol. 25(2-3), pages 245-260, September.
    7. Balmann, Alfons & Lotze, Herrmann & Noleppa, Steffen, 1998. "Agrarsektormodellierung auf der Basis typischer Betriebe, Teil 1," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 47(05).
    8. Balmann, Alfons & Happe, Kathrin, 2001. "Agentenbasierte Politik- und Sektoranalyse - Perspektiven und Herausforderungen," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 50(08), pages 1-12.
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    2. Patton, Myles & Kostov, Philip & McErlean, Seamus & Moss, Joan, 2008. "Assessing the influence of direct payments on the rental value of agricultural land," Food Policy, Elsevier, vol. 33(5), pages 397-405, October.
    3. Sahrbacher, Christoph, 2011. "Regional structural change in European agriculture: Effects of decoupling and EU accession," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 60, number 60.
    4. Feil, Jan-Henning & Musshoff, Oliver & Roeren-Wiemers, Tobias, 2014. "Farm level effects of policy reforms in Germany: First empirical evidence," Journal of Policy Modeling, Elsevier, vol. 36(6), pages 1036-1047.

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