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Dairy Farms without Quotas: Simulations Based on a Multi-output Multi-input Cost Function AgEcon
Baudry, Alexandre; Frahan, Bruno Henry de; Polome, Philippe; Howitt, Richard E..
This paper evaluates the farm level supply and income effects from removing milk quotas and reducing producer prices with increasing direct compensatory payments. Using a panel of Belgian dairy farms, we first estimate long-run flexible multioutput multi-input marginal cost curves for each farm of the sample. Second, we embed each estimated long-run farm cost function in the objective function of a profit maximisation programming model built for each farm of the sample. Simulations show that, without quotas, aggregated milk supply and farm gross margin increase by 18 per cent and 37 per cent respectively from their reference level. A 20 per cent decline in producer prices and a compensation rate set at 30 per cent of the price decline maintain the...
Tipo: Conference Paper or Presentation Palavras-chave: Flexible cost function; Microsimulation; Dairy reform; Livestock Production/Industries.
Ano: 2008 URL: http://purl.umn.edu/43965
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Estimating an Ex Ante Cost Function for Belgian Arable Crop Farms AgEcon
Hansen, Kristiana; Baudry, Alexandre; De Blander, Rembert; Frahan, Bruno Henry de; Polome, Philippe.
We estimate a farm-level cost function for Belgian crop farms using FADN data over the study period 1996-2006. We rely on an estimation of farmers' expected yields at the time cropping decisions are made rather than actual yields observed in the FADN data. The use of an ex ante cost function improves the cost function estimation. We subsequently suggest how our cost function can be used in simulations to analyze farmer response to changes in output price risk.
Tipo: Conference Paper or Presentation Palavras-chave: Cost function estimation; Panel data; Risk; Agricultural and Food Policy; Crop Production/Industries; Production Economics; Q12; Q18.
Ano: 2009 URL: http://purl.umn.edu/49477
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