The MacSharry Challenge: A Farm Simulation Study
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A mathematical programming model is used to investigate the effects of the MacSharry Common Agricultural Policy (CAP) reform on crop yields, rotations, and tillage systems of a representative Italian farm. Both professional and small producer regimes are evaluated. The results of the simulation show the profound impact of the policy changes on farm income and land value. No-tillage is introduced to compensate for lower returns, with a strong reductive effect on crop yields. Overall, farm returns are maximized under the professional support regime.