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Modelling Organic Farming at Sector Level - An Application to the Reformed CAP in Austria

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  • Schmid, Erwin
  • Sinabell, Franz

Abstract

We analyse whether the 2003 CAP reform and the anticipated new program of rural development will lead to an expansion or a reduction of organic farming. An extended version of the Positive Mathematical Programming (PMP) method is developed in order to differentiate organic farming from conventional and other agri-environmental management practices in a sector model. Austria is chosen for the case study because 8 % of its farmland are managed organically, and detailed data on alternative management practices are available. The results suggest that the recent agricultural policy reforms will make organic farming more attractive for farmers, given the price premiums relative to conventional products will remain at observed levels.

Suggested Citation

  • Schmid, Erwin & Sinabell, Franz, 2006. "Modelling Organic Farming at Sector Level - An Application to the Reformed CAP in Austria," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25300, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25300
    DOI: 10.22004/ag.econ.25300
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    References listed on IDEAS

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    1. Richard E. Howitt, 1995. "Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 329-342.
    2. Donna J. Lee & Richard E. Howitt, 1996. "Modeling Regional Agricultural Production and Salinity Control Alternatives for Water Quality Policy Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 41-53.
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    Cited by:

    1. Christian Schader & Jürn Sanders & Thomas Nemecek & Nic Lampkin & Matthias Stolze, 2008. "A Modelling Approach for Evaluating Agri-Environmental Policies at Sector Level," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 1(1), pages 93-132.
    2. Sanders, Jurn & Lampkin, Nicolas & Stolze, Matthias, 2008. "Impact Of The Wto Liberalisation On Organic Farming In Switzerland," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6481, European Association of Agricultural Economists.
    3. Schader, Christian & Lampkin, Nicolas & Christie, Mike & Stolze, Matthias, 2011. "How cost-effective are direct payments to organic farms for achieving environmental policy targets?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115991, European Association of Agricultural Economists.

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    More about this item

    Keywords

    Agricultural and Food Policy; Farm Management;

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices

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