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Economic Impact of the Mid-Term Review on Agricultural Production, Farm Income and Farm Survival: A Quantitative Analysis for Local Sub-Regions of Schleswig-Holstein in Germany

Author

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  • Henningsen, Arne
  • Henning, Christian H.C.A.
  • Struve, Carsten
  • Müller-Scheeßel, Jörg

Abstract

This study analyzes the impact of the Mid-Term Review (MTR) on the agricultural sector in Schleswig-Holstein, a federal state in Germany. First, a very detailed farm group linear programming model is built to quantify the effects on agricultural production and farm incomes. The production adjustment to the MTR and its impact on farm profit vary significantly between individual farms. These results depend mainly on the farm type and the resource endowments of the farms. Second, the impact on structural change is examined with a farm survival model. Although the MTR clearly reduces the incomes of several farm types, it accelerates the structural change only gradually.

Suggested Citation

  • Henningsen, Arne & Henning, Christian H.C.A. & Struve, Carsten & Müller-Scheeßel, Jörg, 2005. "Economic Impact of the Mid-Term Review on Agricultural Production, Farm Income and Farm Survival: A Quantitative Analysis for Local Sub-Regions of Schleswig-Holstein in Germany," MPRA Paper 1395, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:1395
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    Cited by:

    1. 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.

    More about this item

    Keywords

    policy reform; modeling production adjustment; farm income; structural change;
    All these keywords.

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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