Farm growth and exit: consequences of EU dairy policy reform for Dutch dairy farming

The purpose of this paper is to analyse farm growth and exit and its interaction in Dutch dairy farming as consequences of the 2003 CAP reform and 2008 CAP Health Check. Results indicate that the decision to exit dairy farming is largely determined by household characteristics as age and the size of the household. Farm growth is strongly influenced by the availability of labour, capital and land. Simulation results show that the dairy policy reforms reduce farm growth and exit. This is mainly caused by the quota increases.