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The Key Role of the Milk Quota in the Reform of the Swiss Agricultural Policy

Laurent Cretegny

No 331039, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: The main feature of the Swiss reform is to decoupled direct payments from agricultural production. These payments are given with respect to the degree of ecological farming and not as a function of the quantity produced. We study the impact of these measures within the framework of a single-country, 22-sector computable general equilibrium model, where farm policy instruments are explicitly represented and environmental farming modelled as a public good. For the parameters of our model, the reform decreases the welfare of the farmers. This result comes from the non-compensated diminution of the raw milk quota rent generated by the reduction of price support.

Keywords: Agricultural and Food Policy; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 21
Date: 2002
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