GENEDEC

End of Project reportGENEDEC was a European project funded under the 6th Framework. It was co-ordinated by INRA Grignon with ten European partners and a time frame of 42 months. The purpose of the project was to conduct a quantitative and qualitative assessment of the socio-economic and environmental impacts of the decoupling of direct payments on agricultural production, markets and land use in the EU. It was envisaged that the pan-EU nature of the project would facilitate an international comparison of the effects of decoupling and would provide policy makers with sufficient information to identify the key winners and losers from decoupling throughout the EU. The project aimed to provide insights into the workability of decoupling and its impacts, and to analyse alternative policy options to improve the agricultural support system. Specifically, through the use of farm level models, this project estimated the effects of existing and proposed decoupled support schemes on production, land use and land prices and the implications for farm incomes and the future structural development of farms. The project was divided into 9 Work Packages depending on objectives and time frame of the project. The main role of RERC Teagasc was in Work Package 2 which aimed to develop farm level mathematical models and used the models developed to determine the impact of decoupling on Irish farms. The work in RERC started in November 2004 and ended in May 2006. A brief description of the models developed and results generated by RERC is provided here.GENEDEC was a European project funded under the 6th Framework

Analysing the Impact of Decoupling at a Regional Level in Ireland: A Farm Level Dynamic Linear Programming Approach

This paper describes a methodology to assess the impact of the decoupling of payments on Irish farms at a regional level. The methodology is based on a farm level dynamic linear programming model which optimises regional gross margin under a set of constraints. Regionally representative farms are selected using cluster analysis. The model maximises aggregate gross margins from all the farm types in a region allowing land and milk quota to transfer between farms within the region. The model is estimated for a baseline scenario, assuming no policy change, and under a decoupled scenario where farm payments are fully decoupled from production. An example of an impact study at the Border region in Ireland is presented in this paper to demonstrate the methodology.Decoupling, Linear Programming, Cluster analysis, Agricultural policy, Regional level, Agricultural and Food Policy,

The effect of decoupling on farming in Ireland: A regional analysis

peer-reviewedData from the Irish National Farm Survey and Census of Agriculture were used to analyse the regional implications of the decoupling of direct payments for farmers in Ireland. A mathematical programming model was used to estimate the regional effects of decoupling while a micro-simulation model was exploited to map the geographic distribution of decoupled payments. The results show that under the historical decoupling scheme, milk quota will shift from less efficient to larger more efficient farms in all regions. Beef cattle numbers are projected to decrease on all farms, with the exception of the Mideast and Southeast regions where numbers are projected to increase. The regional effect of decoupling on sheep farming was marginal with all regions projected to benefit from the policy change. The analysis also shows, using a static micro-simulation model that a shift to a flat rate national calculation of the decoupled payment would result in a significant movement of revenues from the southern regions to the northwestern regions of the country. In particular, large beef and dairy farmers in the southern regions would lose out while small dairy and sheep farmers in the western and northern regions would be most likely to gain

A prospect of moving towards free milk quota market in Ireland – will milk quota movement follow efficiency?

Quota trade in Ireland is ‘ring fenced’ to milk processors where farmers are not allowed to trade milk quota outside their designated milk processor. This ensures milk production staying within a region but has implications for the efficiency of milk production. In this paper, we simulated a free milk quota market in Ireland and compared the results with a milk quota exchange which was ring fenced to determine if the quota move from an inefficient region to a more efficient region. The results show that quota indeed follow efficiency of production when there is restriction over trade area.Milk quota trade, Irish quota market, Farm level model, Agricultural and Food Policy,

Screening of Actinomycetes from Soil for Antibacterial Activity

Actinomycetes are Gram positive, free living saprophytes which are distributed in soil as one of the major populations and are primary source of antibiotics. This study was carried out with a quest to isolate actinomycetes from soil samples of different places and assess their antibacterial activity. Isolation of actinomycetes was carried out by serial dilution of soil sample followed by spread plate method. The antimicrobial extract was extracted using ethyl acetate. Assessment of antimicrobial activity was performed by using Agar cup plate assay against test organisms (Pseudomonas aeruginosa, Escherichia coli, Klebsiella pneumoniae, Salmonella typhi, Salmonella paratyphi, Bacillus subtilis, Staphylococcus aureus). Antibacterial activity was tested against Methicillin Sensitive Staphylococcus aureus and Methicillin Resistant Staphylococcus aureus in the isolates having effective inhibitory activity against Staphylococcus aureus. From 15 soil samples of 12 different locations, 121 actinomycetes isolates were isolated. Among them, 58 (47.9%) isolates were inhibitory against at least 1 test organism in primary screening, of which 22 isolates effective against more than 1 test organism was chosen for secondary screening. Out of them, 8 were inhibitory against 2 test organisms while 14 were inhibitory against 3 test organisms. Staphylococcus aureus was found to be the most susceptible test organism with its susceptibility against 12 actinomycetes isolates. Among 12 isolates effective against Staphylococcus aureus, 10 were found to have an inhibitory effect against Methicillin Susceptible Staphylococcus aureus while 6 were found to have inhibitory effect against Methicillin Resistant Staphylococcus aureus strain. The findings of this study highlight the inhibitory potential of actinomycetes and the need for further investigation for obtaining novel antimicrobial agents from actinomycetes from various unexplored areas

Comparing the cost effectiveness of GHG mitigation options on different Scottish dairy farm groups

Greenhouse gas (GHG) mitigation is one of the main challenges faced by agriculture sector especially under an increasing demand for food. Production expansion needs to be accompanied by reductions in the GHG emission intensity of agricultural products. However, any uptakes of mitigation options by the farmers depend on the cost effectiveness of adopting such options as well as the farm characteristics. A highly effective mitigation option might not be practical for a farmer if the associated costs are high. A list of mitigation option implemented on different farm types with their cost effectiveness on farms would therefore be very useful for farmers as well as policy makers to make a decision. This paper aims to explore the use of three GHG mitigation options on different dairy farm groups in Scotland and determine the cost effectiveness of each of the options in those farm groups. The mitigation options considered for this paper are; i) use of sexed semen, ii) installing and using anaerobic digester and iii) increasing the share of concentrate diet. Farm level data from the Scottish Farm Accountancy dataset (FAS) was used and a cluster analysis was carried on to identify different dairy farm groups. The potential reduction of GHG emission per farm, including emissions arising from inputs used on the farm, under each of the option is then calculated using the GLEAM life cycle assessment model. An optimising farm level model, ScotFarm, was used on each of the farm groups to determine the optimum farm net margins under a baseline situation (with no options implemented) and three mitigation scenarios. The cost effectiveness of all three mitigation options are then determined based on reduction in GHG emission per farm and change in farm net margins under those options. Initial results for the sexed semen scenario suggest that this option can be cost effective for both efficient dairy farms (-£6.26/tCO2e) and medium-sized dairy farms (-£12.56/tCO2e)

An Examination of the Implications of Milk Quota Reform on the Viability and Productivity of Dairy Farming in Ireland

End of project reportThe aim of the project was to produce quality, scientific based policy advice on the most efficient means for the transfer of milk quota between dairy farmers. The main objective of the project was to identify milk quota transfer mechanisms that would ensure the viability of the maximum number of farmers in Ireland while still supporting an internationally competitive agricultural sector. During the course of the project the Irish Department of Agriculture introduced a new milk quota transfer scheme. The milk quota exchange scheme was launched in November 2006. At this stage the objectives of the project were altered to be more policy relevant. Rather than exploring the efficiency of various milk quota transfer models, the aim of the project was redirected to explore the efficiency of the scheme as it was operated in Ireland. The rationale for this change was to provide relevant and timely feedback to policy makers on the operation of the new scheme. While the MTR agreement guaranteed the continuation of the EU milk quota regime until 2014/15, it also made provisions for a review of the milk quota system to be conducted in 2008. Clearly any changes to EU milk quota policy would have implications for farmers in Ireland. A second objective of this project was to explore some policy scenarios that may transpire from the milk quota review and to estimate the implications for farmers in Ireland

EU wide regional impacts of climate change

The current paper investigates the medium term impact of climate changes on EU agriculture. We employ CAPRI partial equilibrium modelling framework. The results indicate that within the EU, there will be both winners and losers, with some regions benefitting from climate change, while other regions suffering losses in production and welfare. In general, there are relatively small market effects at the EU aggregate. For example, the value of total agricultural income, land use and welfare change by approximately between -0.3% and 2%. However, there is a stronger impact at regional level with the effects increase by a factor higher than 10 relative to the aggregate EU impacts. The price adjustments reduce the response of agricultural sector to climate change in particular with respect to production and income changes

EU sugar policy : a sweet transition after 2015 ?

This report compares the production, market and trade outcomes of two alternative policy scenarios, namely expiry of EU sugar quotas in 2015/16 and extension of the current sugar quota scheme. All other EU policy measures pertaining to the sugar sector, and to agriculture more generally, are assumed the same in both scenarios. The year of comparison is 2020. The CAPRI model was used for the simulations. The report begins with a description of beet and sugar production within the EU, and outlines the policies applied in the sugar sector within the EU’s Common Agricultural policy. This is followed by a description of the workings of the EU market for sugar. A theoretical model is used to summarise the main functional relationships in the EU sugar market and related markets, and the EU’s trade in sugar, from which a number of theory-based predictions about the impacts of quota expiry are derived. There is then a very brief overview of the CAPRI model and the way it has been used in this study. Isoglucose quotas will expire along with sugar quotas, and there is much speculation about the extent of potential competitive substitution between the two sweeteners, which has until now been neutralised by the quota arrangements. Sensitivity analysis was performed to obtain greater insight into this issue. Two additional quota-expiry scenarios were run, in which isoglucose was assumed to take a 10% and a 20% share of the sweetener market at the expense of sugar. The main findings are: • production of sugar beet and white sugar increases by around 4%,. • there is little net impact on the production of cereals, • total ethanol production hardly changes, but the importance of sugar as an ethanol feedstock declines by a few percentage points, • raw sugar imports from high-cost third countries decline very substantially, but those from the low-cost producer Brazil decrease only slightly, • EU sugar exports fall, • EU human consumption of sugar increases only marginally, despite a fall of 15-16% in beet prices for sugar for internal human consumption, • there is a very small positive welfare change, although income accruing to sugar beet producers falls by over 17%,JRC.J.4-Agriculture and Life Sciences in the Econom

Comparing visions for CAP reforms post 2015: Farmer intentions and farm bio-economic modelling

This paper illustrates the impacts of two of the potential CAP reform post 2015 scenarios using an optimising farm level model and compares results with farmers’ perception about the policy changes, captured in a farmer intentions survey. The model results suggest that beef farms suffer a loss in farm net margins under fully decoupled (up to -21%) as well as under partially decoupled scenario (up to -19%) compared to current historical single farm payments. The model also shows that farm respond by reducing the number of beef animals on farm by up to 5%. However, under a partial decoupled scenario, beef farms increase calf numbers by 15% to benefit from coupled calf payment. A survey of 1,400 beef producers with respect to their intentions toward 2020 was conducted in the Summer of 2013. A set of hypothetical payment scenarios was used to test self-reported response to a number of scenarios related to expanding and extensifying. These were compared with the modelling results and found a range of responses which could, we argue, be used for future calibration and ‘sense-checking’ of results within future modelling strategies