Farm-level impacts of recent and proposed environmental regulations on selected farm types

SUMMARYThe latest Common Agricultural Policy (CAP) reforms could bring substantial changes to Scottish farming communities. Two major components of this reform package, an introduction of environmental measures into the Pillar 1 payments and a move away from historical farm payments towards regionalized area payments, would have a significant effect on altering existing support structures for Scottish farmers, as it would for similar farm types elsewhere in Europe where historic payments are used. An optimizing farm-level model was developed to explore how Scottish beef and sheep farms might be affected by the greening and flat rate payments under the current CAP reforms. Nine different types of beef and sheep farms were identified and detailed biophysical and financial farm-level data for these farm types were used to parameterize the model. Results showed that the greening measures of the CAP did not have much impact on net margins of most of the beef and sheep farm businesses, except for ‘Beef Finisher’ farm types where the net margins decreased by 3%. However, all farm types were better off adopting the greening measures than not qualifying for the greening payments through non-compliance with the measures. The move to regionalized farm payments increased the negative financial impact of greening on most of the farms but it was still substantially lower than the financial sacrifice of not adopting greening measures. Results of maximizing farm net margin, under a hypothetical assumption of excluding farm payments, showed that in most of the mixed (sheep and cattle) and beef suckler cattle farms the optimum stock numbers predicted by the model were lower than actual figures on farm. When the regionalized support payments were allocated to each farm, the proportion of the mixed farms that would increase their stock numbers increased whereas this proportion decreased for beef suckler farms and no impact was predicted in sheep farms. Also under the regionalized support payments, improvements in profitability were found in mixed farms and sheep farms. Some of the specialized beef suckler farms also returned a profit when CAP support was added.

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Farm Level Impacts of Trade Liberalisation and CAP Removal Across EU: An Assessment using the IFM-CAP Model

German Journal of Agricultural Economics ◽

10.30430/69.2020.2.108-126 ◽

2020 ◽

Vol 69 (2) ◽

pp. 108-126

Author(s):

Pavel Ciaian ◽

Kamel Louhichi ◽

Angel Perni

Keyword(s):

Programming Model ◽

Trade Liberalisation ◽

Farm Level ◽

Farm Model ◽

Policy Representation ◽

Small Set ◽

Cap Model ◽

Individual Farm ◽

Cap Analysis ◽

Farm Types

This paper assesses the farm-level impacts of trade liberalisation and CAP removal across EU using IFM-CAP (Individual Farm Model for CAP Analysis). IFM-CAP is a static positive programming model developed to capture the full heterogeneity of EU farms in terms of feedback to policy representation and impacts. Simulation results show that a small set of farm-types experience an increase in income due to the improvement in prices and yields (e.g. farms specialised in granivores, milk and horticulture), while farms that are most CAP subsidy dependent (e.g. specialist cattle, specialist COP and small farms) lose income by more than 12% at aggregate EU level. As much as 77% of all farms lose income if CAP is removed, while the proportion of most income vulnerable farms almost doubles.

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CAP post 2022 scenarios and income impacts – a case analysis for selected typical farms in Slovenia

Acta agriculturae Slovenica ◽

10.14720/aas.2021.117.2.2116 ◽

2021 ◽

Vol 117 (2) ◽

pp. 1

Author(s):

Jaka ŽGAJNAR ◽

Luka JUVANČIČ ◽

Stane KAVČIČ ◽

Emil ERJAVEC

Keyword(s):

Agricultural Policy ◽

Farm Income ◽

Farm Level ◽

Farm Model ◽

Financial Framework ◽

Direct Payments ◽

Representative Farms ◽

The Impact ◽

High Share ◽

Farm Types

Assessment based on representative farms is an established approach in the modern assessment of the effects of changes in agricultural policy. In line with previous CAP reforms, we can expect income redistribution impacts also with the implementation of the legislative and financial framework of the CAP for the next period. This paper discusses a scenario analysis using the farm model. The model is based on linear programming, which enables to address various technological challenges at farm level. We formed the scenarios for the analysis following the example of the scenarios contained in the impact assessment that the European Commission prepared for the CAP after 2020. The analysis involves selected farm types from selected sectors. The results suggest that the expected reduction in the envelope will generally lead to lower farm-level revenues from CAP direct payments. Consequently, economic performance will deteriorate, what is likely to be amplified in some sectors by the abolition of historical payments. The range of consequences at farm level will likely be considerable, especially for sectors and production types with a high share of CAP payments in the structure of total farm income. In certain sectors, however, there is even an improvement regarding the current situation.

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The influence of extreme weather events on farm economic performance – a case study from Serbia

Italian Journal of Agrometeorology ◽

10.36253/ijam-1073 ◽

2021 ◽

pp. 51-62

Author(s):

Saša Todorović ◽

Sanjin Ivanović ◽

Natalija Bogdanov

Keyword(s):

Regression Analysis ◽

Extreme Weather ◽

Extreme Weather Events ◽

Financial Loss ◽

Loss Assessment ◽

Software Environment ◽

Farm Level ◽

Production Type ◽

Weather Events ◽

Farm Types

Western Balkan region, particularly Serbia, is faced with an increased frequency of extreme weather events, as a consequence of global climate change. However, there is still no enough research on how the effects of extreme weather events could be measured on the farm level. More importantly, there is no standard international methodology that is used regularly to address the issue. Therefore, the aim of this research was to evaluate the effects of extreme weather events on business performances of two the most common farm types in Serbia. To achieve this goal, the authors performed a financial loss assessment on a farm level. Panel models and R software environment were used to perform a multiple regression analysis allowing to indicate determinants of financial loss indicator depending on the farm’s production type. The results indicated that performance of both farm types is more influenced by drought than by floods. The regression analysis revealed that for both farm types financial stress is the most important independent variable.

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p-EMA (II): evaluating ecological risks of pesticides for a farm-level risk assessment system

Agronomie ◽

10.1051/agro:2002075 ◽

2003 ◽

Vol 23 (1) ◽

pp. 75-84 ◽

Cited By ~ 9

Author(s):

Andy Hart ◽

Colin D. Brown ◽

Kathy A. Lewis ◽

John Tzilivakis

Keyword(s):

Risk Assessment ◽

Assessment System ◽

Ecological Risks ◽

Farm Level

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Assessment on the Effect of Environmental Regulations on the Share of Coal in the Power Sector in USA - A Combined Qualitative and Quantitative Approach -

Journal of Environmental Policy and Administration ◽

10.15301/jepa.2017.25.2.199 ◽

2017 ◽

Vol 25 (2) ◽

pp. 199-230

Author(s):

Taek-Whan Han ◽

Dong Soon Lim ◽

Si Yong Park ◽

Jin Tae Kim

Keyword(s):

Environmental Regulations ◽

Quantitative Approach ◽

Power Sector ◽

Qualitative And Quantitative

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Impacts of Environmental Regulation on Sustainable Economic Growth

Journal of Business and Economics ◽

10.15341/jbe(2155-7950)/09.09.2018/001 ◽

2018 ◽

Vol 9 (9) ◽

pp. 749-773

Author(s):

Jonathan Fisher

Keyword(s):

Economic Growth ◽

Environmental Regulation ◽

Technical Change ◽

Best Practice ◽

Environmental Regulations ◽

The European Union ◽

Porter Hypothesis ◽

The United Kingdom ◽

Environment Agency ◽

Sustainable Economic Growth

There is considerable concern and debate about the economic impacts of environmental regulations. Jonathan Fisher, former Economics Manager at the Environment Agency in England and Wales, reviews the available evidence on this subject. Section 2 presents estimates of the costs and benefits of environmental regulations. Section 3 examines the impacts of environmental regulations on economic growth, innovation and technical change as well as impacts on competitiveness and any movement of businesses to less pollution havens. He questions call for greater certainty regarding future environmental regulations, whereas in fact there should be calls for less uncertainty. This section then suggests how this could be achieved. This section then finishes with an overview of the available evidence. This includes an examination of the Porter Hypothesis that environmental regulations can trigger greater innovation that may partially or more than fully offset the compliance costs. Section 4 then sets out principles for how better environmental regulation can improve its impacts on sustainable economic growth and illustrates how the European Union (EU) Water Framework Directive is a good example of the application of these principles in practice. Section 5 reviews current and recent political perspectives regarding developments in environmental regulations across the EU and shows how the United Kingdom (UK) has successfully positively managed to influence such developments so that EU environmental regulations now incorporate many of these principles to improve their impacts on economic growth. Section 5.1 then examines the implications of Brexit for UK environmental regulations. Finally, Section 6 sets out some best practice principles to improve the impacts of environmental regulation on sustainable economic growth, innovation and technical change.

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