SIMULATING FARM LEVEL RESPONSE TO CROP DIVERSIFICATION POLICY
Guido Van Huylenbroeck and
No 182797, 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia from European Association of Agricultural Economists
One of the new political instruments of the European Common Agricultural Policy-reform is the crop diversification measure. To comply with this measure, arable farmers will have to grow a minimum number of crops on their land, in given proportions. In this paper a non-parametric simulation model is developed to predict land cover changes while tackling the self-selection problem. Farmers’ behaviour is based on their closest peer‘s behaviour. A comparison between the results on diversity, measured through the Shannon Diversity Index, and the policy impact on farms, shows a clear trade-of and a potential for targeting.
Keywords: Agricultural and Food Policy; Farm Management (search for similar items in EconPapers)
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