Optimisation of production activities on individual agricultural holdings in the frame of different direct payments options

Authors

  • Jaka ŽGAJNAR Univ. of Ljubljana, Biotehnical Fac., Dept. of Animal Science, Groblje 3, SI-1230 Domžale, Slovenia
  • Emil ERJAVEC Univ. of Ljubljana, Biotehnical Fac., Dept. of Animal Science, Groblje 3, SI-1230 Domžale, Slovenia
  • Stane KAVČIČ Univ. of Ljubljana, Biotehnical Fac., Dept. of Animal Science, Groblje 3, SI-1230 Domžale, Slovenia

DOI:

https://doi.org/10.14720/aas.2007.90.1.14969

Keywords:

agriculture, linear programming, CAP reform, direct payments, Slovenia

Abstract

Linear programming model has been developed and applied to the hypothetical agricultural holding in the hilly part of Slovenia in order to find optimal production plans by maximizing total gross margins. The model covers especially those sectors of Slovenian agriculture, for which the most drastic changes due to the actual reform of CAP in the field of direct payments – in Slovenia implemented in 2007 – are anticipated. On the basis of developed model the economic impacts of CAP reform and importance of agri-environmental measures have been evaluated. Model results lead to the conclusion that the reform will have the most unfavorable impacts for agricultural holdings with intensive production practice, especially those with animal production activities which are under the standard scheme eligible for relatively high production coupled direct payments (up to 70% of achieved total gross margin). Negative impacts of the reform can be mitigated by combining different production activities and technologies. Economic results markedly improve (up to 28%) if farming management complies with agri-environmental measures.

Downloads

Published

15. 11. 2007

Issue

Section

Original Scientific Article

How to Cite

ŽGAJNAR, J., ERJAVEC, E., & KAVČIČ, S. (2007). Optimisation of production activities on individual agricultural holdings in the frame of different direct payments options. Acta Agriculturae Slovenica, 90(1), 45–56. https://doi.org/10.14720/aas.2007.90.1.14969

Similar Articles

1-10 of 753

You may also start an advanced similarity search for this article.

Most read articles by the same author(s)

1 2 3 > >>