Changing agricultural policies - impact on markets

Background and Objective

We provide a scientific basis for the development of efficient policies. We evaluate existing regulations, for example impacts of sustainability criteria, as well as potential options for future policy making.

Approach

At the Institute of Market Analysis, we concentrate on assessing how policy changes impact agri-food markets, and how markets can adjust. Our activities are closely integrated with those of the two other economic Thünen Institutes as well as the „Thünen Model Network“ and the working group „Weiterentwicklung der Agrarpolitik“.

Data and Methods

We use a wide range of different data sources and analytical methods. On the one hand, we can draw on extensive existing data bases, like e.g. the GTAP database. On the other hand we also collect data, often in co-operation with partners - e.g. like the AGMEMOD or MERA database. For the analysis we use general and partial equlibrium market  models, such as MAGNET, MERA and AGMEMOD. In our analysis we compare different scenarios with our baseline by changing the assumptions concerning the general framework or with respect to policies.

Preliminary Results

In recent years we have analysed a wide range of both policy proposals and concrete changes to regulations. The analyses focus on reforms of the EU Common Agricultural Policy (CAP), like the decoupling of direct payments and its national implementation, the design and abolishment of the milk quota scheme, and policies supporting bio-energy.

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