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Abstract
This study analyzes the impact of the Mid-Term Review (MTR) on the agricultural sector in
Schleswig-Holstein, a federal state in Germany. First, a very detailed farm group linear programming
model is built to quantify the effects on agricultural production and farm incomes.
The production adjustment to the MTR and its impact on farm profit vary significantly between
individual farms. These results depend mainly on the farm type and the resource endowments
of the farms. Second, the impact on structural change is examined with a farm survival
model. Although the MTR clearly reduces the incomes of several farm types, it accelerates the
structural change only gradually.