Effects Of The EU Nitrate Directive for the Dutch Agricultural Sector: an Application of a Regional Model of Dutch Agriculture Based on Positive Mathematical Programming
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This paper applies the Dutch Regionalized Agricultural Model (DRAM) to analyze the effects
of Dutch manure and nutrients policies of 2004 for the Dutch agricultural sector and economy
as compared to a base of 1996. DRAM can be characterized as a regionalised, environmental,
partial equilibrium, mathematical programming model of Dutch agriculture. The model combines
the technical detail, including technology options available to farmers in different regions
of the Netherlands, of mathematical programming farm models with some market effects at
agricultural industry level e.g. land and manure markets. Moreover the mathematical programming
model is linked to a mixed input-output model to analyze economy wide effects of
changes in Dutch agriculture. A special feature of DRAM is the explicit modeling of manure
markets. It is found that through increased manure prices, manure policies specially affects
production and profits in the beef and pigs and poultry sectors.