Assessing the 2003 CAP Reform Impacts on German Agriculture Using the Farm Group Model FARMIS
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FARMIS is a comparative-static process-analytical programming model based on FADN data
for the German agricultural sector. Recent developments cover the areas of the modelling of
land, premia and quota markets, and the creation of a generic model design and structure
which allow the use of different databases such as the EU FADN. The impact on the German
agricultural sector of 2003 CAP Reform is analysed for both the Single Farm Payment (SFP)
and the national implementation (Regional Model: RM). The analysis shows that the impacts of
both decoupling schemes on factor allocation and corresponding supply are similar, but differ
with respect to income effects. The rental prices of milk quota decrease in both scenarios.
While land prices are predicted to decrease under the SFP, in the case of the RM rental prices
for grassland increase significantly.