Farm growth and exit: consequences of EU dairy policy reform for Dutch dairy farming
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The purpose of this paper is to analyse farm
growth and exit and its interaction in Dutch dairy
farming as consequences of the 2003 CAP reform and
2008 CAP Health Check. Results indicate that the
decision to exit dairy farming is largely determined by
household characteristics as age and the size of the
household. Farm growth is strongly influenced by the
availability of labour, capital and land. Simulation
results show that the dairy policy reforms reduce farm
growth and exit. This is mainly caused by the quota
increases.