• The effect of decoupling on farming in Ireland: A regional analysis

      Shrestha, Shailesh; Hennessy, Thia; Hynes, Stephen (Teagasc, Oak Park, Carlow, Ireland, 2007)
      Data from the Irish National Farm Survey and Census of Agriculture were used to analyse the regional implications of the decoupling of direct payments for farmers in Ireland. A mathematical programming model was used to estimate the regional effects of decoupling while a micro-simulation model was exploited to map the geographic distribution of decoupled payments. The results show that under the historical decoupling scheme, milk quota will shift from less efficient to larger more efficient farms in all regions. Beef cattle numbers are projected to decrease on all farms, with the exception of the Mideast and Southeast regions where numbers are projected to increase. The regional effect of decoupling on sheep farming was marginal with all regions projected to benefit from the policy change. The analysis also shows, using a static micro-simulation model that a shift to a flat rate national calculation of the decoupled payment would result in a significant movement of revenues from the southern regions to the northwestern regions of the country. In particular, large beef and dairy farmers in the southern regions would lose out while small dairy and sheep farmers in the western and northern regions would be most likely to gain.
    • An Examination of the Implications of Milk Quota Reform on the Viability and Productivity of Dairy Farming in Ireland

      Hennessy, Thia; Shrestha, Shailesh; Shalloo, Laurence; Wallace, Michael; Butler, Anne Marie; Smyth, Paul (Teagasc, 31/12/2008)
      The aim of the project was to produce quality, scientific based policy advice on the most efficient means for the transfer of milk quota between dairy farmers. The main objective of the project was to identify milk quota transfer mechanisms that would ensure the viability of the maximum number of farmers in Ireland while still supporting an internationally competitive agricultural sector. During the course of the project the Irish Department of Agriculture introduced a new milk quota transfer scheme. The milk quota exchange scheme was launched in November 2006. At this stage the objectives of the project were altered to be more policy relevant. Rather than exploring the efficiency of various milk quota transfer models, the aim of the project was redirected to explore the efficiency of the scheme as it was operated in Ireland. The rationale for this change was to provide relevant and timely feedback to policy makers on the operation of the new scheme. While the MTR agreement guaranteed the continuation of the EU milk quota regime until 2014/15, it also made provisions for a review of the milk quota system to be conducted in 2008. Clearly any changes to EU milk quota policy would have implications for farmers in Ireland. A second objective of this project was to explore some policy scenarios that may transpire from the milk quota review and to estimate the implications for farmers in Ireland.