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Outline

Outline. Overview of conceptual change Implementation Examples: MTR simulations. Old versus New approach. Old approach. New approach. Many premiums per activity. 1 premium per activity. Ceilings per activity group. Many activities per premium. 1 ceiling per premium.

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Outline

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  1. Outline • Overview of conceptual change • Implementation • Examples: MTR simulations

  2. Old versus New approach Old approach New approach Many premiums per activity 1 premium per activity Ceilings per activity group Many activities per premium 1 ceiling per premium + Fits into database - Storage in GAMS files - Far from regulation + Definition close to regulation - Difficult to change policy

  3. New concept, definition of premiums Activity group Activity Premium name region activity group value ceiling level ceiling uncut amount application type

  4. Processing of premiums Manually edited policy file in\capri\gams\policy\ \capri\gams\policy\policy.gms Policy.gms Parameters PP_EPAY()and PPDATA() Expandedpolicydefinition \capri\gams\policy\prmcut.gms In DATA-parameter, row PRME Effectivepayments/activity Prmcut.gms Supplymodels Reports Initialisation: Break down tolower regional leveland individual activities Policy definition Iterative adjustment: Cut individual premiumsto fit into tightest ceilingbefore each iteration

  5. Definition, detail Base level for premium defined per MS Paymentname DPGRCU Apptype can be: 1: per level2: per slaughtered head3: per main output4: per historic yield Specification of payment per crop group

  6. Reports Sum of payments per activity Composition of payments per activity Cut factors (premium right shortage) Cost of premiums per region (MS-EU)

  7. € (MS) - DPMTR The MTR decoupled payment Direct payments in MTR • DPGRCU Direct payment to cereals • DPPULS Specific payment for pulses • DPDWHETR Traditional durum wheat premium • DPDWHEES Established payment to durum wheat • DPNONF Direct payment for non food crop • DPPARI Specific rice premium remaining after MTR policy • DPPARI_fa Farm income rice premiums • DPSCOW Suckler cow premium • DPBULF Special premium to bulls and steers • DPDCOW Direct income support to dairy cows • DPSHGM Direct payment for sheep and goat • DPNE_SHGM National envelope for sheep and goat • DPNE_DCOW National envelope dairy cows • DPNE_MEAT National envelope bovine meat cattle • DPSL_ADCT Slaughter premium for adult cattle • DPSL_CALV Slaughter premium for calves • DPNATMILK National dairy premium in northern Sweden and Finland

  8. Drawbacks? Full complexity not accounted for Premium rights depend on farm characteristics Alternative use of land for fodder area OR area payments No trade of premium rights No cross compliance Requires manual edition of policy files

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