Farm-household investment behaviour and the CAP decoupling: Methodological issues in assessing policy impacts.

This report synthesises the findings from the workshop on “Developments and Prospects of Farm Level Modelling for post 2013 CAP impact analysis” organised jointly by the IPTS-JRC and the Directorate-General for Agriculture and Rural Development in Brussels, 6-7 June 2012. The report constitutes a comprehensive overview of the state of approaches and modelling platforms currently employed for micro-level policy analysis at farm-level, representing a specific response to, and consideration of, recent policy developments within the evolving CAP context. Particular attention was given to the methodologies and approaches applied for policy impact assessment, from the general perspective to specific impact of policy reforms, not least structural change and risk/uncertainty, as well as financial and dynamic investment behaviour and technological choice, to market and biophysical inter-linkages. An important part of the report represents conclusions and recommendations towards developing a generic farm level modelling approach able to capture impacts of future CAP developments.