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.

Abstract: Within the context of nitrogen (N) management, since 1950, with the rapid intensification of agriculture, farmers have often applied much larger fertiliser quantities than what was required to reach the yield potential. However, to prevent pollution of surface and groundwater induced by nitrates, The European Community launched The European Nitrates Directive 91/6/76/EEC. In 2002, in Wallonia (Belgium), the Nitrates Directive has been transposed under the Sustainable Nitrogen Management in Agriculture Program (PGDA), with the aim of maintaining productivity and revenue for the country’s farmers, while reducing the environmental impact of excessive N application. A feasible approach for addressing climatic uncertainty lies in the use of crop models such as the one commonly known as STICS (simulateur multidisciplinaire pour les cultures standard). These models allow the impact on crops of the interaction between cropping systems and climatic records to be assessed. Comprehensive historical climatic records are rare, however, and therefore the yield distribution values obtained using such an approach can be discontinuous. In order to obtain better and more detailed yield distribution information, the use of a high number of stochastically generated climate time series was proposed, relying on the LARS-Weather Generator. The study focused on the interactions between varying N practices and climatic conditions. Historically and currently, Belgian farmers apply 180 kg N ha(-1), split into three equal fractions applied at the tillering, stem elongation and flag-leaf stages. This study analysed the effectiveness of this treatment in detail, comparing it to similar practices where only the N rates applied at the flag-leaf stage were modified. Three types of farmer decision-making were analysed. The first related to the choice of N strategy for maximising yield, the second to obtaining the highest net revenue, and the third to reduce the environmental impact of potential N leaching, which carries the likelihood of taxation if inappropriate N rates are applied. The results showed reduced discontinuity in the yield distribution values thus obtained. In general, the modulation of N levels to accord with current farmer practices showed considerable asymmetry. In other words, these practices maximised the probability of achieving yields that were at least superior to the mean of the distribution values, thus reducing risk for the farmers. The practice based on applying the highest amounts (60-60-100 kg N ha(-1)) produced the best yield distribution results. When simple economical criteria were computed, the 60-60-80 kg N ha(-1) protocol was found to be optimal for 80-90% of the time. There were no statistical differences, however, between this practice and Belgian farmers’ current practice. When the taxation linked to a high level of potentially leachable N remaining in the soil after harvest was considered, this methodology clearly showed that, in 3 years out of 4,30 kg N ha(-1) could systematically be saved in comparison with the usual practice.