description
- The design of effective and targeted CAP measures relies on a proper assessment of the impacts of EU policy changes and market developments on farmers and the whole economy. Uncertainty, instability and price volatility that relentlessly reshape agricultural markets today, call upon the development of new modelling tools able to scrutinise all relevant dynamics while also remaining easy to use and amend. The project improves and extends existing economic models that make use of the FADN informatics environment by developing a unique modelling framework that (i) encompasses all aspects of farmers’ production decisions (ii) targets the single farm but also consistently aggregates to regional, national and the EU level (iii) takes into consideration the effects of uncertainty and risk on farmers’ behaviour (iv) can be employed in different market environments, i.e. throughout the EU-27 and (v) can be amended and/or fine-tuned by EU and national FADN units. The project draws upon two major modelling tools (econometric and mathematical programming), while the validity of the employed theoretical models will be verified by their empirical application in each EU-27 country. The project’s final outcome is the construction of a methodological framework comprised of state-of-the-art economic models custom-built for the FADN database that will provide to policy makers an inclusive impact analysis of the effects of alternative policy and market developments scenarios under a real-life, dynamic context. Given the complexity of this framework, a simplified version of the models will be developed, all consistently and operatively joined into an amendable interface that will be user-friendly and easy to operate and still allow for a concise replication of our policy simulation results, capable to target at the efficiency of CAP measures, i.e. the single farm payment, although the whole framework will be also applicable providing some acquaintance with modelling parameterisation.