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Home arrow Economics arrow Disaggregated impacts of CAP reforms : proceedings of an OECD workshop.

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The constraints

Regarding the farm structure, the model incorporates the agricultural area, the milk quota and the available labour resources. As regards building constraints, we assume that the number of cows can increase by 10% in comparison to the base year: the implementation of the programme to control pollution of agricultural origin has motivated many dairy farmers to construct new buildings with more places than required. Regarding crops, the model meets the requirements for rotation frequency and cropping pattern (Mosnier et al., 2009).

We also include three environmental measures as constraints in the model: 1) the Nitrate Directive No. 91/676/EEC requires that farmers cannot exceed organic nitrogen application rates of 170 kg per hectare (slurry and manure); 2) farmers have to keep grasslands aged over five years; 3) in addition to the CAP premiums, a premium for the maintenance of extensive livestock systems or “premium for grassland” is attributed (EUR75/ha), if there is at least 75% of grass in the total farm area and if the stocking rate is below 1.4 “livestock units” per hectare of grass.

 
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