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Ökologischer Betrieb
Ökologischer Betrieb
Institute of

BW Farm Economics

EU Agricultural Policy

The EU's common agricultural policy affects the situation and development of agriculture by numerous supportive and regulatory measures. Given the extraordinarily dynamic change of the environment and social requirements facing agriculture, the EU's agricultural policy is under constant review. Against this background, we develop a scientific basis for effective policy-making. Firstly, we evaluate current instruments of EU agricultural policy, such as the farm investment support. Secondly, we analyze options for future policy development, e.g. the future of direct payments or the consequences of the abolition of the milk quota system. Together with the Institute for Rural Studies and the Institute of Market Analysis, we also investigate the impact of different options for a fundamental reform of the CAP after 2020, and thus support policy makers to develop a targeted and efficient overall concept.

In the Institute of Farm Economics, we focus on the question of how political decisions affect farms and how they can adapt to the related changes in framework conditions. Focus of our research is the Germany-wide assessment of the impact of changing conditions on production, land use, income and environment in differently structured farms. In addition, we provide answers to the question of how the economic performance of farms evolves and which individual adaptation strategies exist. To this end we use a variety of different data sources and methods, e.g. the German Farm Accountancy Data Network [Link] and, within the Thünen Model Network the farm models FARMIS as well as TIPICAL and TYPI-CROP of the agri benchmark network.

Projects of EU Agricultural Policy

Explaining and predicting farm structural change

The EU commission annually develops a projection of the future development in agriculture to detect trends as early as possible. Until now, the structure of farms played only a minor role. A greater consideration of the structure of farms would increase the quality of the projections, particularly after the reorientation of the Common Agricultural Policy (CAP) in 2013. The impact of the “Greening” of the first Pillar is closely related to the productive orientation of a farm – e.g., whether a farm produces as grassland farm rather milk or as arable farm cereals. Main objective of this project ...

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Explaining and predicting farm structural change

Model-based analysis of the structural change in agriculture

In the year 2013, the EU agricultural budget was 57 billion €. Most of the payments to farmers were subject to certain conditions to contribute to the protection of climate and environment. To maximise the efficiency of the policy, the impacts of certain policies should be estimated. Economic models are in fact an important contribution. The main objective of this project is to improve and extend our economic models to better estimate the positive and negative impacts on the environment, income of farmers and land use or farm structure.

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Model-based analysis of the structural change in agriculture

Common Agricultural Policy from the rural point of view: the CAPRI-RD model

Policy measures to promote rural areas like village renewal or promotion of young farmers do not only impact agricultural holdings but also other economic sectors, e.g. tourism, food processing or education. For responsible handling of tax payers’ money, it is important to know if the policy measure is adequately targeted. It is especially challenging to consider the interactions between the different economic sectors, merely because of the great number of different funding programs. The aim of this project is to solve this task and to quantify the impacts of promoting the rural areas.

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Common Agricultural Policy from the rural point of view: the CAPRI-RD model

The Thünen agricultural atlas

The German agricultural statistics are an important source of information to assess environmental impacts and to estimate agricultural trends. Unfortunately, the access to this information is limited through data protection rules. This was the reason why the project Agraratlas was initialized, to generate a data set at community level on land use and live stocks, without restrictions but fulfilling all data security issues at the same time.

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The Thünen agricultural atlas

TRUSTEE Task „Validation of the implementation logic of RD-measures and the Baseline in the CAPRI model“

To quantify the impact of policy measures for rural development, the development of the pan European model „Common Agricultural Policy Regionalised Impact - The Rural Development Dimension“ (CAPRI-RD) was the first important step. During the development process it became clear that measures to promote the rural area can only be modelled successfully, if national experts validate them continuously. In the TRUSTEE project, national experts come together to further continue this procedure.

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TRUSTEE Task „Validation of the implementation logic of RD-measures and the Baseline in the CAPRI model“

Agricultural products: marketable by promoting investments?

The competitiveness and added value of the entire agricultural sector is determinded by the processing and marketing of agricultural products. Therefore, processing and marketing is supported intensively for decades with public funds. Within the project, we are pursuring the (sectoral) effects on competitiveness, added value and employment wich can be attributed to the support scheme.

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Agricultural products: marketable by promoting investments?

On-going evaluation of seven RDP in Germany from 2007 to 2013: Effects on animal welfare

In cooperation with the Thünen-Institute of Rural Studies, we evaluate the Rural Development Programs (RDP) of North Rhine-Westphalia, Hesse, Mecklenburg-Western Pomerania, Schleswig-Holstein, Lower Saxony / Bremen and Hamburg.

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On-going evaluation of seven RDP in Germany from 2007 to 2013: Effects on animal welfare

Renewable resources - economically analyzed

Politics are supporting renewable resources for the provision of bioenergy or for the material use. However, the question arises whether this is the right way: consumers complain about increasing electricity prices, environmentalists about the ploughing of grassland and farmers about increasing land rents. Therefore, we analyze how the political support of renewable resources can be optimized.

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Renewable resources - economically analyzed

Establishment of various income source in agriculture: What can be achieved via subsidies?

Impact analysis of public support of income diversification in agricultural holdings in the framework of monitoring and ongoing evaluation of six state programmes for rural development during the years 2007-2013

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Establishment of various income source in agriculture: What can be achieved via subsidies?

What is the impact of investment support in agriculture?

If agricultural holdings are keen to persist they ought to invest in technology and buildings. The state supports them via grants and garantees. We investigate the effectiveness and efficiency of these aids.

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What is the impact of investment support in agriculture?

Conversion and transmission of national farm returns and analyses with regard to FADN

The Farm Accountancy Data Network (FADN) is a harmonised data base throughout the EU that consists of accounting data from a representative sample of agricultural holdings. Based on this income, structural and production developments can be analysed. The EU Commission uses the FADN extensively to evaluate the impacts of the CAP and to design new policy measures.

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Conversion and transmission of  national farm returns and analyses with regard to FADN

Modelling farm structural change

The number of farms has declined by 50 % over the last 20 years. There is no end in sight to the rapid structural change.

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Modelling farm structural change

Impact analysis of EU and national agricultural policies

The next reform is just around the corner - that much is clear to anybody following agricultural policy in Germany and the EU. While some may groan in exasperation, these continuous adjustments reflect the extremely dynamic change of framework conditions and societal expectations that the agricultural sector is faced with.

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Impact analysis of EU and national agricultural policies

Further development of the Thünen model network - Farm models

EU agricultural policies as well as international trade policies have changed considerably during the last decades. This has led to an increased demand from policy makers and scientists for model-based quantitative assessments of the consequences of respective policy reforms.

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Further development of the Thünen model network - Farm models

Distributional effects of CAP liberalisation

The Common Agricultural Policy (CAP) of the EU has a significant influence on farm incomes. But does the CAP reduce income gaps in the agricultural sector? What (unintended) distributional effects would further liberalisation of the European agricultural sector entail?

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Distributional effects of CAP liberalisation

What are the impacts of the EU rural development programmes on the environment? New methods for environmental evaluation

How can the provision of public goods such as biodiversity be effectively supported through the Common Agricultural Policy? This is one of the core questions in political and scientific debates of the future Common Agricultural Policy in the EU. To be able to answer this question requires the establishment of robust causal linkages between support measures and the desired environmental impacts and consistent methodological frameworks to assess environmental impacts across different scales and levels.

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What are the impacts of the EU rural development programmes on the environment? New methods for environmental evaluation

Economics of arable crop production

Policy makers very often are faced with the challenge to access the implications of changes in the political, legal or technological framework conditions on arable production. This may for example referr to the ban of individual crop protection products. This project is providing ready-to-use answers to such questions - both on the national as well as on the international level.

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Economics of arable crop production

Evaluation of the EU Organic Regulation

The EU regulation on organic farming defines the legal framework of organic farming in Europe and aims to contribute to a sustainable development of the sector. How effective and relevant are the current rules and where is a need for a change?

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Evaluation of the EU Organic Regulation

Monitoring of organic support policies

Organic farming is supported with public funding in Europe. Which support measures exist and how much funding is available in Germany and in other EU Member States?

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Monitoring of organic support policies

More beef import from the US to the EU soon?

The USA and Canada are major beef producers and exporters. Given the beef price differential to the EU, both countries have an interest to export beef to the EU.

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More beef import from the US to the EU soon?

Impact of changing policy framework conditions on organic farming

The development of organic farming is heavily influenced by the general agricultural policy framework, which are continously changed. What are the impacts of the recent reforms on the organic sector?

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Impact of changing policy framework conditions on organic farming

Explaining, predicting and linking European farm structural change with the European farm supply model IFM-CAP

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Explaining, predicting and linking European farm structural change with the European farm supply model IFM-CAP

On-going evaluation of five RDP in Germany from 2014 to 2020: Effects on animal welfare

In cooperation with the Thünen-Institute of Rural Studies, the Thünen-Institue of International Forestry and Forest Economics and entera, the Thünen-Institute of Farm Economics evaluates the Rural Development Programs (RDP) of North Rhine-Westphalia, Hesse, Schleswig-Holstein and Lower Saxony / Bremen.

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On-going evaluation of five RDP in Germany from 2014 to 2020: Effects on animal welfare

Greenhouse Gas Emissions and Reduction Strategies in Germany: Analyses at Farm Level

What contribution can agriculture make to climate protection and what are the costs for the farms when implementing an adaptation strategy? With a model-based analysis conducted with the farm group model FARMIS, we analyse and evaluate the effects of possible greenhouse gas (GHG) mitigation strategies.

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Greenhouse Gas Emissions and Reduction Strategies in Germany: Analyses at Farm Level

Agricultural policy instruments to support farm level risk management

Both climate change and increasing liberalisation of EU agricultural policy involve the danger of increasing volatility and economic risk at the farm level.

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Agricultural policy instruments to support farm level risk management

Remuneration for the environmental benefits of organic farming

Lower nitrogen burdens in water courses, reduced resource use, more biodiversity in farmed landscapes – organic farming delivers many benefits for society. But organic farms are not rewarded appropriately for their services. What needs to change?

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Remuneration for the environmental benefits of organic farming

Support of weather insurances - is this the answer to extreme weather events?

Droughts, floods, hail and heavy rainfalls: extreme weather events can lead to severe damages in the agricultural sector. It is therefore important for farmers to protect themselves against weather damage that could endanger their livelihood.

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Support of weather insurances - is this the answer to extreme weather events?

Agricultural long-term policies for climate mitigation (AGRILOP)

Agriculture is considered as an essential part of climate change mitigation. The recent Green Deal and the Farm-to-Fork Strategy of the European Union additionally highlight the importance of market-based instruments to alleviate climate change. A quantitative assessment of different instruments is crucial for successful climate policies.

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Agricultural long-term policies for climate mitigation (AGRILOP)

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