Modelling diversified production systems: a case study of dairy farms combined with agroforestry orchards

Abstract

In the context of the new CAP, the environmental conditionality of direct payments is likely to induce important changes in the technical pathway of the farms. In this paper we focus our analysis of the conditions for development of extensive orchards by modelling mixed crop livestock farms which incorporate orchards. We construct a mathematical programming model enabling us to simulate various intensification levels characterizing the techniques adopted within the different farm production units (cattle breeding, forage fields, arboriculture). This model also enables us to take into account some environmental indicators relative to the use of these techniques. Moreover, the method used allows us to illustrate technical complementarities existing within the diversified systems, which results in joint production through non allocable inputs instead of joint production through allocable inputs. The MP model is notably used to calculate the level of the minimum premium, which could incite the farmer to fulfil some environmental requirements, through increasing the proportion of agro forestry orchards on the farm system.