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Conference papers

Milk quotas abolishment and simplification of the single payment scheme: implications on dairy farmers’ productive strategy in the West of France

Abstract : This paper deals with the effects of several options for the future evolution of the Common Agricultural Policy (CAP) on the productive strategies of French dairy farms (for four types which represent the diversity of regional production models). Based on European Commission proposals made in May 2008 for the Health Check, simulations are run from a model based on the linear programming method. The purpose of these simulations is to discuss the impact of the abolition of milk quotas and the simplification of the single payment scheme (with the adoption of a full decoupling and the implementation of a regionalization ). While placing the maximization of profit in the heart of economic optimization, this model also consider, via the "Utility efficient programming" method, the risk of an increasing price volatility (output and input). Various constraints, zootechnical, agronomical, environmental, structural and regulatory interact in the process of optimization. The results of these simulations underline that French milk producers have significant latitude to increase their volume of milk production with constant surface and fixed costs. The adoption of a full decoupling would encourage farmers to replace part of corn silage by grassland. Furthermore, the implementation of the regionalization of payment would lead to important redistribution of direct aid between categories of farms.
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  • HAL Id : hal-02818140, version 1
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Baptiste Lelyon, Vincent Chatellier, Karine Daniel. Milk quotas abolishment and simplification of the single payment scheme: implications on dairy farmers’ productive strategy in the West of France. 109. EAAE Seminar: The CAP after the fischler reform: national implementations, impact assessment and the agenda for future reforms, European Association of Agricultural Economists (EAAE). INT., Nov 2008, Viterbo, Italy. 16 p. ⟨hal-02818140⟩

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