Farm Type Layer in CAPRI

Project co-ordination: Alexander Gocht

Disaggregation by farm type mainly aims to capture heterogeneity in farming practises and farms within a region, in order to reduce aggregation bias in response to policy and market signals, with a focus on farm management, farm income and environmental impact. The argument is especially striking when policy instruments are either targeting specific farm types or are modulated depending on farm characteristics.

Characteristics of the farm types in CAPRI

  • Full integration in the CAPRI modelling chain
    • This which ensures price feedback based on sequential calibration with the global, large-scale market model. Linking these other farm models to existing market models is far from easy due to differences in product definitions, but also due to the missing match to the data sets underlying market models, questions of IT integration notwithstanding.

  • The strict and consistent top-down disaggregation
    • This ensures a harmonized data set across regional scales and farm types.

  • A farm type is a supply module
    • The supply model for each farm type and each region consists of independent aggregate non linear programming models, representing as an aggregate all activities of all farms falling into that type and a specific administrative regional unit at Nomenclature of Territorial Units for Statistics level II (NUTS2).

  • Features of the supply model
    • Farm supply models, similar to the regional ones, capture the premiums paid under the CAP, NPK balances and a module with feeding activities covering nutrient requirements of animals. Constraints, besides the feed block, relate to arable land and grassland in form of a land supply curve, set-aside obligations and milk quotas (baseyear).

  • Prices
    • Prices are exogenous in the supply module and provided by the market module, with which they are solved sequentially until convergence. Grass, silage and manure are assumed to be non-tradable and receive internal prices based on their substitution value and opportunity costs.

    Coverage

  • A maximum of nine of the most important farm types per region, plus they always include a residual farm type to exhaust regional production as well as input and primary factor use defined by a selction routine developed in close cooperation with IPTS-SUSTAG
    • Table 1: Type of Farming groups and Economic size classes in CAPRI.
    Type of farming abbr.Economic size classabbr.
    Specialist cereals, oilseed and protein crops 13 less than 16 ESU ESC 1
    General field cropping + Mixed cropping 14_60 greater equal 16 and less than 100 ESU ESC 2
    Specialist horticulture 20 greater equal 100 ESU ESC 3
    Specialist vineyards 31
    Specialist fruit and citrus fruit 32
    Specialist olives 33
    Various permanent crops combined 34
    Specialist dairying 41
    Specialist cattle + dairying rearing, fattening 42_43
    Sheep, goats and otder grazing livestock 44
    Specialist granivores 50
    Mixed livestock holdings 70
    Mixed crops-livestock 80

  • The up to nine farm groups are characterized by “type of farming,” see Table 1, defined by the relative contribution of different production branches to the gross margin of the farm (European Commission, CD 85/377/EEC, Article 6), and the “economic size class” based on “European size units” (ESU), a concept defined in Chapter IV Article 8 in CD 85/377/EEC and Annex III.

    • Projects

    2009-2010: EUFARM-SCEN, scenario analysis with a focus on the CAPRI farm type layer
    Project financed by the JRC-IPTS, AGRILIFE unit, SUSTAG action, CAPRI contribution by VTI Braunschweig, LEI, The Hague and EuroCare, Bonn

    Applications

    Britz, W., Gocht, A., Pèrez Dominguez, I., Jansson, T., Grosche, S. and Zhao, N.:
    EU-Wide (Regional and Farm Level) Effects of Premium Decoupling and Harmonisation Following the Health Check Reform
    German Journal of Agricultural Economics, vol. 61, p. 44-56

    Gocht, Alexander; Britz, Wolfgang; Ciaian, Pavel; Gomez y Paloma, Sergio (2011):
    EU-wide distributional effects of EU Direct Payment Harmonization analyzed with CAPRI : paper prepared for presentation at the EAAE 2011 Congress Change and Uncertainty ; challenges for agriculture, food and national resources, August 30 to September 2, 2011 ETH Zurich, Zurich, Switzerland

    Gocht, A., and Britz, W. (2011):
    EU-wide farm type supply models in CAPRI - How to consistently disaggregate sector models into farm type models.
    Journal of Policy Modeling (2010), 33(1), pp 146-167

    Gocht, A., Britz, W., Adenäuer, M. (2011):
    Farm level policy scenario analysis Luxembourg: Publications Office of the European Union, 80 Seiten, JRC scientific and technical reports 64334

    Moreddu, Catherine; Martini, Roger; Kimura, Shingo; Britz, Wolfgang; Gocht, Alexander; Pérez Dominguez, Ignacio; Hart, Kaley; Baldock, David (2011) Evaluation of agricultural policy reforms in the European Union. :
    Evaluation of Agricultural Policy Reforms in the European Union Paris: OECD, 180 pages

    Renwick, A., Jansson, T., Verburg, P., Revoredo-Giha C.; Britz, W., Gocht, A., McCracken, D. (2011):
    Impact of agricultural and trade policy reform on land-use within the EU: paper prepared for presentation at the EAAE 2011 Congress Change and Uncertainty ; challenges for agriculture, food and national resources, August 30 to September 2, 2011 ETH Zurich, Zurich, Switzerland. Zürich

    Renwick A., Jansson T., Verburg P.H., Revoredo-Giha C., Britz W., Gocht A. and McCracken D.:
    Policy Reform and Agricultural Land Abandonment
    Paper presented at 85th Annual Conference of the Agricultural Economics Society, Warwick University, U.K., 18 - 20 April 2011

    Gocht, A. and Britz, W. (2010)
    EU-wide farm types supply in CAPRI - how to consistently disaggregate sector models into farm type model
    Selected paper at 50. Jahrestagung der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V., 29.9.-1.10.2010, Braunschweig, Germany

    Gocht, A., Pérez Domínguez and Cristoiu A (2010) Update of a quantitative tool for farm systems level analysis of agricultural policies, JRC Scientific and Technical Reports, Institute for Prospective Technological Studies, Seville, EUR 24321 EN