An ex-ante impact assessment of the Common Agricultural Policy reform in the North-Western Romania

The paper aims to assess the impact of the Common Agricultural Policy reform (post 2014) in the environmental vulnerable areas from Romania. It proposes a bio-economic dynamic farm model calibrated with the positive mathematical programming (PMP). The standard PMP approach was extended to simulate t...

Full description

Saved in:
Bibliographic Details
Published in:Agricultural economics (Praha) 2015-01, Vol.61 (2), p.88-103
Main Authors: JITEA, Mugurel Ionel, DUMITRAȘ, Diana Elena, SIMU, Vasile Alexandru
Format: Article
Language:English
Subjects:
agri-environment schemes (aes)
Agricultural economics
Agricultural policy
Agricultural resources
bio-economic model
Calibration
Common Agricultural Policy
Economic models
Farms
Grasslands
land abandonment
Livestock
Livestock farming
Livestock production
Mathematical programming
Mixed cropping
Policy reform
positive mathematical programming (pmp)
Rural development
Sheep
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The paper aims to assess the impact of the Common Agricultural Policy reform (post 2014) in the environmental vulnerable areas from Romania. It proposes a bio-economic dynamic farm model calibrated with the positive mathematical programming (PMP). The standard PMP approach was extended to simulate the mixed farming systems through the introduction of a livestock production activity in the first calibration step. It allows incorporating activities not available in the base year, but that can be performed by the farmers after the future policy reforms. The model provides supply-responses for both the crop and livestock farms according to the agricultural and financial policy shifts. It maximizes the farm net financial flows subject to the resource, livestock, financial and agricultural policy constraints. The initialisation data were obtained from a face-to-face stratified survey applied on the mixed-sheep farms that have used grassland areas under the Agri-Environment Schemes (AES) in the North-Western Romania (Transylvania). The results show that the most vulnerable group to the policy changes is represented by the small-size farms, to which the AES are very important economic drivers. Thus, the diversification and the off-farm employments possibilities should be integrated into the future rural development plans as a premise for their survival.
ISSN:0139-570X
1805-9295
DOI:10.17221/116/2014-AGRICECON