Farm-based modelling of the EU sugar reform: impact on Belgian sugar beet suppliers |
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Authors: | Buysse, Jeroen Fernagut, Bruno Harmignie, Olivier de Frahan, Bruno Henry Lauwers, Ludwig Polome, Philippe Van Huylenbroeck, Guido Van Meensel, Jef |
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Affiliation: | 1 Ghent University, Belgium 2 Institute for Agricultural and Fisheries Research, Merelbeke, Belgium 3 Université catholique de Louvain, Belgium |
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Abstract: | A mathematical programming model, calibrated on individual farmdata, is used to analyse the reform of the common market organisation(CMO) in the sugar sector of the European Union. The model includesa precautionary farm supply function for out-of-quota sugarbeet that is estimated as part of a simultaneous system of first-orderconditions. Simulation results from a sample of Belgian sugarbeet farms show that the sugar CMO reform induces differentsupply and income effects across farms depending on their shareof out-of-quota sugar beet relative to their total beet supplyand their quota rent. A further cut in the minimum price ofsugar beet initiates structural change in the farm sector. |
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Keywords: | Positive mathematical programming farm model sugar reform Common Agricultural Policy European Union |
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