Farm-Based Modelling of the EU Sugar Reform: Impact on Belgian Sugar Beet Suppliers

Posted: 17 Jun 2008

See all articles by Jeroen Buysse

Jeroen Buysse

Ghent University

Bruno Fernagut

affiliation not provided to SSRN

Olivier Harmignie

affiliation not provided to SSRN

Bruno Henry de Frahan

affiliation not provided to SSRN

Ludwig Lauwers

affiliation not provided to SSRN

Abstract

A mathematical programming model, calibrated on individual farm data, is used to analyse the reform of the common market organisation (CMO) in the sugar sector of the European Union. The model includes a precautionary farm supply function for out-of-quota sugar beet that is estimated as part of a simultaneous system of first-order conditions. Simulation results from a sample of Belgian sugar beet farms show that the sugar CMO reform induces different supply and income effects across farms depending on their share of out-of-quota sugar beet relative to their total beet supply and their quota rent. A further cut in the minimum price of sugar beet initiates structural change in the farm sector.

Keywords: Positive mathematical programming, farm model, sugar reform, Common Agricultural Policy, European Union

JEL Classification: Q12, Q18

Suggested Citation

Buysse, Jeroen and Fernagut, Bruno and Harmignie, Olivier and de Frahan, Bruno Henry and Lauwers, Ludwig, Farm-Based Modelling of the EU Sugar Reform: Impact on Belgian Sugar Beet Suppliers. European Review of Agricultural Economics, Vol. 34, No. 1, pp. 21-52, 2007, Available at SSRN: https://ssrn.com/abstract=1146911 or http://dx.doi.org/jbm001

Jeroen Buysse (Contact Author)

Ghent University

Coupure Links 653
Gent, 9000
Belgium

Bruno Fernagut

affiliation not provided to SSRN

Olivier Harmignie

affiliation not provided to SSRN

Bruno Henry De Frahan

affiliation not provided to SSRN

Ludwig Lauwers

affiliation not provided to SSRN

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
687
PlumX Metrics