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

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...

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Main Authors: Jaka ŽGAJNAR, Emil ERJAVEC, Stane KAVČIČ
Format: Article
Language:English
Published: University of Ljubljana Press (Založba Univerze v Ljubljani) 2007-11-01
Series:Acta Agriculturae Slovenica
Subjects:
Online Access:https://journals.uni-lj.si/aas/article/view/14969
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author Jaka ŽGAJNAR
Emil ERJAVEC
Stane KAVČIČ
author_facet Jaka ŽGAJNAR
Emil ERJAVEC
Stane KAVČIČ
author_sort Jaka ŽGAJNAR
collection DOAJ
description 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.
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spelling doaj.art-df3e33a1a6c8462488f5734b72ba56eb2023-12-14T22:15:16ZengUniversity of Ljubljana Press (Založba Univerze v Ljubljani)Acta Agriculturae Slovenica1854-19412007-11-01901Optimisation of production activities on individual agricultural holdings in the frame of different direct payments optionsJaka ŽGAJNAR0Emil ERJAVEC1Stane KAVČIČ2Univ. of Ljubljana, Biotehnical Fac., Dept. of Animal Science, Groblje 3, SI-1230 DomžaleUniv. of Ljubljana, Biotehnical Fac., Dept. of Animal Science, Groblje 3, SI-1230 DomžaleUniv. of Ljubljana, Biotehnical Fac., Dept. of Animal Science, Groblje 3, SI-1230 Domžale 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. https://journals.uni-lj.si/aas/article/view/14969agriculturelinear programmingCAP reformdirect paymentsSlovenia
spellingShingle Jaka ŽGAJNAR
Emil ERJAVEC
Stane KAVČIČ
Optimisation of production activities on individual agricultural holdings in the frame of different direct payments options
Acta Agriculturae Slovenica
agriculture
linear programming
CAP reform
direct payments
Slovenia
title Optimisation of production activities on individual agricultural holdings in the frame of different direct payments options
title_full Optimisation of production activities on individual agricultural holdings in the frame of different direct payments options
title_fullStr Optimisation of production activities on individual agricultural holdings in the frame of different direct payments options
title_full_unstemmed Optimisation of production activities on individual agricultural holdings in the frame of different direct payments options
title_short Optimisation of production activities on individual agricultural holdings in the frame of different direct payments options
title_sort optimisation of production activities on individual agricultural holdings in the frame of different direct payments options
topic agriculture
linear programming
CAP reform
direct payments
Slovenia
url https://journals.uni-lj.si/aas/article/view/14969
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AT emilerjavec optimisationofproductionactivitiesonindividualagriculturalholdingsintheframeofdifferentdirectpaymentsoptions
AT stanekavcic optimisationofproductionactivitiesonindividualagriculturalholdingsintheframeofdifferentdirectpaymentsoptions