However, although direct deficiency payments do not directly affect production, the changed policy will lead to a strong decrease in the number of dairy farms in the Netherlands.
Daan Ooms developed econometric models to study the expected effects of policy changes on dairy farms. These models took into account differences between farms that are not directly observable in their production figures, for example, the difference in management capacity between dairy farm owners.
Loss of small farms
The changed policy will have a negative effect on the income of dairy farmers. This effect is relatively strong for small farms. The falling income increases the chance that farms stop milk production. This will probably lead to the disappearance of many small farms. The remaining farms will then be able to grow further and benefit from the increased capacity to earn.
In 2006, the European Union introduced direct deficiency payments. The World Trade Organisation (WTO) called for indirect (not dependent on production size) deficiency payments for family farms. According to WTO this approach has the least impact on production and trade. Yet economists argue that indirect deficiency payments do affect production, for example, due to income effects on labour input and investments. Yet the farm-specific models developed by Ooms reveal no consequences for the production. There is, however, an effect on the number of farms.
The Dutch dairy sector is to a large extent regulated by the Common Agricultural Policy (CAP) of the European Union. Since 1984 this has regulated milk production via a farm-specific quota. The CAP has become even more farm-specific with the introduction of direct deficiency payments in 2006. Ooms has developed models in order to understand how individual family farms respond to changes in the CAP. Daan Ooms’ research was funded by NWO.
Dr D.L. Ooms | alfa
How Strong Brands Translate into Money
15.11.2016 | Kühne Logistics University - Wissenschaftliche Hochschule für Logistik und Unternehmensführung
Demographic change depresses tax revenues
04.11.2016 | Fraunhofer-Institut für Angewandte Informationstechnik FIT
In recent years, lasers with ultrashort pulses (USP) down to the femtosecond range have become established on an industrial scale. They could advance some applications with the much-lauded “cold ablation” – if that meant they would then achieve more throughput. A new generation of process engineering that will address this issue in particular will be discussed at the “4th UKP Workshop – Ultrafast Laser Technology” in April 2017.
Even back in the 1990s, scientists were comparing materials processing with nanosecond, picosecond and femtosesecond pulses. The result was surprising:...
Have you ever wondered how you see the world? Vision is about photons of light, which are packets of energy, interacting with the atoms or molecules in what...
A multi-institutional research collaboration has created a novel approach for fabricating three-dimensional micro-optics through the shape-defined formation of porous silicon (PSi), with broad impacts in integrated optoelectronics, imaging, and photovoltaics.
Working with colleagues at Stanford and The Dow Chemical Company, researchers at the University of Illinois at Urbana-Champaign fabricated 3-D birefringent...
In experiments with magnetic atoms conducted at extremely low temperatures, scientists have demonstrated a unique phase of matter: The atoms form a new type of quantum liquid or quantum droplet state. These so called quantum droplets may preserve their form in absence of external confinement because of quantum effects. The joint team of experimental physicists from Innsbruck and theoretical physicists from Hannover report on their findings in the journal Physical Review X.
“Our Quantum droplets are in the gas phase but they still drop like a rock,” explains experimental physicist Francesca Ferlaino when talking about the...
The Max Planck Institute for Physics (MPP) is opening up a new research field. A workshop from November 21 - 22, 2016 will mark the start of activities for an innovative axion experiment. Axions are still only purely hypothetical particles. Their detection could solve two fundamental problems in particle physics: What dark matter consists of and why it has not yet been possible to directly observe a CP violation for the strong interaction.
The “MADMAX” project is the MPP’s commitment to axion research. Axions are so far only a theoretical prediction and are difficult to detect: on the one hand,...
16.11.2016 | Event News
01.11.2016 | Event News
14.10.2016 | Event News
07.12.2016 | Health and Medicine
07.12.2016 | Life Sciences
07.12.2016 | Health and Medicine