Vosough Ahmadi, B., Shrestha, S., Thomson, S. G., Barnes, A. P., & Stott, A. W. (2015). Impacts of greening measures and flat rate regional payments of the Common Agricultural Policy on Scottish beef and sheep farms. J. Agric. Sci., 153(04), 676–688.
Abstract: The 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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Barnes, A., Shrestha, S., Thomson, S., Toma, L., Mathews, K., & Sutherland, L. A. (2014). Comparing visions for CAP reforms post 2015: Farmer intentions and farm bio-economic modelling (Vol. 3).
Abstract: This paper illustrates the impacts of two of the potential CAP reform post 2015 scenarios using an optimising farm level model and compares results with farmers’ perception about the policy changes, captured in a farmer intentions survey. The model results suggest that beef farms suffer a loss in farm net margins under fully decoupled (up to -21%) as well as under partially decoupled scenario (up to -19%) compared to current historical single farm payments. The model also shows that farm respond by reducing the number of beef animals on farm by up to 5%. However, under a partial decoupled scenario, beef farms increase calf numbers by 15% to benefit from coupled calf payment. A survey of 1,400 beef producers with respect to their intentions toward 2020 was conducted in the Summer of 2013. A set of hypothetical payment scenarios was used to test self-reported response to a number of scenarios related to expanding and extensifying. These were compared with the modelling results and found a range of responses which could, we argue, be used for future calibration and ‘sense-checking’ of results within future modelling strategies. No Label
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Barnes, A., Shrestha, S., Thomson, S., Toma, L., Mathews, K., & Sutherland, L. A. (2014). Comparing visions for CAP reforms post 2015: Farmer intentions and farm bio-economic modelling. FACCE MACSUR Mid-term Scientific Conference, 3(S) Sassari, Italy.
Abstract: This paper illustrates the impacts of two of the potential CAP reform post 2015 scenarios using an optimising farm level model and compares results with farmers’ perception about the policy changes, captured in a farmer intentions survey. The model results suggest that beef farms suffer a loss in farm net margins under fully decoupled (up to -21%) as well as under partially decoupled scenario (up to -19%) compared to current historical single farm payments. The model also shows that farm respond by reducing the number of beef animals on farm by up to 5%. However, under a partial decoupled scenario, beef farms increase calf numbers by 15% to benefit from coupled calf payment. A survey of 1,400 beef producers with respect to their intentions toward 2020 was conducted in the Summer of 2013. A set of hypothetical payment scenarios was used to test self-reported response to a number of scenarios related to expanding and extensifying. These were compared with the modelling results and found a range of responses which could, we argue, be used for future calibration and ‘sense-checking’ of results within future modelling strategies.
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Shrestha, S., Hennessy, T., Abdalla, M., Forristal, D., & Jones, M. J. (2014). Determining short term responses of Irish dairy farms under climate change. German Journal of Agricultural Economics, 63(3), 143–155.
Abstract: This study aimed to determine short term farm responses of Irish dairy farms under climate change. The Irish National Farm Survey data and Irish weather data were the main datasets used in this study. A set of simulation models were used to determine grass yields and field time under a baseline scenario and a future climate scenario. An optimising farm level model which maximises farm net income under limiting farm resources was then run under these scenarios. Changes in farm net incomes under the climate change scenario compared to the baseline scenario were taken as a measure to determine the effect of climate change on farms. Any changes in farm activities under the climate run compared to the baseline run were considered as farm’s responses to maximise farm profits. The results showed that there was a substantial increase in yields of grass (49% to 56%) in all regions. The impact of climate change on farms was different based on the regions. Dairy farms in the Border, Midlands and South East regions suffered whereas dairy farms in other regions generally fared better under the climate change scenario. For a majority of farms, a substitution of concentrate feed with grass based feeds and increasing stocking rate were identified as the most common farm responses. However, farms replaced concentrate feed at varying degree. Dairy farms in the Mid East showed a move towards beef production system where medium dairy farms in the South East regions shifted entire tillage land to grass land. Farms in the South East region also kept animals on grass longer under the climate change scenario compared to the baseline scenario.
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