Environmental Engineering Reference
In-Depth Information
Table 5.3
Policy instruments implemented in FSSIM-MP
Instrument
Modelling
Data source
CAP compensation payment
(including Single Farm
Payment)
Linked to agricultural activities
and included in the objective
function
CMOs
Milk and sugar
beet quotas
Constraints; upper bounds on sales
CMOs
Compulsory set-aside
Constraints; restrict set-aside to
minimum 10% of COP (cereals,
oilseeds and protein) crops
CMOs
Voluntary set-aside
Constraints; restrict total set-aside
to 33% of COP crops
CMOs
Environmental condition/
cross-compliance
Constraints; controlled by
binary-variables
CMOs + specific
national and regional
implementation
Agri-environmental
measures
Constraints; controlled by
binary-variables
CMOs+ specific
national and regional
implementation
Modulation of payment
Constraints; controlled by
binary-variables
CMOs
Member State (national)
compensation payment
Linked to agricultural activities
and included in the objective
function
Specific national
and regional
implementation
CMO: Common Market Organisation
percentage of COP crops). Table 5.
3
gives a brief description of how the different
policy instruments are modelled in FSSIM-MP. In case of a non-EU application
these policy instruments can be de-activated.
Modelling all these instruments was an important challenge for FSSIM-MP,
as even if some of them are implemented in an identical way everywhere in
the EU25 (e.g. direct payment), others such as environmental measures have
quite different national/regional implementations. In addition, the information
on the administrative implementation of these specific measures is usually
scarce, and often not systematically monitored, not published or even not open to
the public.
The implementation of these instruments depends on the analysed policy in dif-
ferent scenario assumptions which are the Agenda 2000 for the base year scenario
and the 2003 CAP reform for the baseline scenario.
Using a time horizon of 2013, the baseline scenario is interpreted as a projection
in time covering the most probable future development of the European agricultural
policy, with the Luxemburg Agreements on Common Agricultural Policy Reform as
the core, and including all future changes already foreseen in the current domestic,
EU and international legislation (e.g. sugar market reform). Taken as reference run,
the baseline scenario is used for the interpretation and analysis of different policy
scenarios.
