Files
Abstract
Organic farming is increasingly considered in the European Common Agricultural
Policy. Sound evaluations of the effects of policy measures on organic farms in the EU
are needed to face the challenges in future policy design.
The effects of various policy scenarios on profitability and development strategies of
typical organic arable and dairy farms are analysed for the EU-countries Germany,
Denmark, the United Kingdom and Italy. Based on an approach which integrates
simulation modelling and focus groups, profitability of model farms is analysed ex-post
for year the 1999 and their potential development simulated until 2008 under
Agenda 2000 and three alternative policy scenarios. For each policy scenario potential
farm adaptation strategies are analysed.
Size, structure, productivity, achieved output prices and policy surrounding of typical
organic farms differ widely between countries and farm types. Great differences in the
contribution of payments to total farm profit and farm family labour remuneration are
observed. Dairy model farms are expected to slightly benefit from Agenda 2000, while
arable farms are more susceptible to price reductions of the Agenda 2000 package. In
adaptation to Agenda 2000 organic dairy farms are expected to grow, while arable
farms are more likely to diversify production or envisage valued adding strategies. The
effects of alternative policy scenarios on profitability of typical farms are similar in all
countries. The choice of adaptation strategy of farmers in the different countries,
however, vary significantly, mainly due to the current national market situation.