Production and Markets in Agriculture

Production and Markets in Agriculture (PMA)

Group leaders: Elodie Letort et Carole Ropars-Collet

Secretary: Françoise Auffray

The work in this research axis follows a double ambition:  (1) analyzing the choices made by farmers and actors on markets related to the agricultural production sector, and (2) assessing the effects of public policies (including the EU CAP) impacting this sector.  A particular attention is given to the evolution of the structure, incomes, and economic and environmental performance of farms, to the effects of agricultural, agri-environmental, and trade policies on this performance and the equilibria on the markets for agricultural goods and land, and to price volatility of agricultural products.  The main tools of analysis are economic modeling and statistical analysis. The applications contribute to the economics of agricultural production and environmental economics.  An exception is the research analyzing environmental law and its application to the agricultural sector from a legal point of view.

The research is structured in three areas:

Microeconomic and microeconometric modeling of agricultural producers’ choices

The work in this area contributes to the economics of agricultural production (microeconometric models or mathematical programming).  Based on multidisciplinary collaborations, one of our objectives is to formalize the notion of technical itineraries, the effects of crop rotation, cropping systems, or the linkages between breeding activities and vegetable production, using usual microeconomic models.  This work allows us to better analyze the effects of policy instruments, which are increasingly tailored toward agricultural practices and their specific characteristics. We consider both the short- and long-term effects of agricultural policies.  We seek to use microeconometric modeling as far as possible, so as to infer the parameters of agricultural producers’ choices statistically.  Some research studies farmers’ attitudes toward production and price risks and their effect on farmer choices (crop rotation, crop protection, investment, saving, insurance, pesticide use, change of production techniques).

Land and agricultural commodity markets

The land market is crucial role for the agricultural sector.  We investigate several aspects: (i) the capitalization of agricultural subsidies in the price of land, (ii) the role of land market regulation and environmental regulation for land exchanges, (iii) the demographic evolution of farms accounting for entries and exits, and (iv) the measuring and evolution of agricultural income.  We approach these phenomena using econometric analysis, partial equilibrium models, and, more originally, multi-agent modeling.  Studies on agricultural commodity markets complement this research.  They aim to explain the volatility of agricultural prices and to study the efficiency of private and public instruments which may influence it (storage, financial markets). Part of this research uses macroeconomic data and dynamic and stochastic econometric market equilibrium models. Other work builds on simulation exercises using general or partial market equilibrium models.

Agricultural policy, modeling, and global aspects

This area seek to better understand global challenges to the agricultural sector, such as food security and climate change.  We approach this topic in two ways: (i) econometric analysis of specific markets and countries, and (ii) calibration and simulation exercises using general or partial equilibrium models to study the redistribution effects of policies.  In particular, we develop at our institute agricultural market models (for human and animal nutrition and energy production) at the level of large world regions.  This research specially accounts for the important roles of land use and international trade.  We use those models to analyze agricultural and energy policy effects (especially for the US and the EU) and the macroeconomic effects of changes of agricultural practices.

Key publications

• Bareille F., Gohin A. (2020).
  "Simulating the market and environmental impacts of French pesticide policies: a macroeconomic assessment."
  Annals of Economics and Statistics, 139, 1-28.

• Chatellier V. (2020).
  "Le paiement redistributif et le plafonnement des aides directes : deux outils de la PAC favorables aux petites exploitations agricoles françaises?"
  Economie rurale, n°372, 137-151.

• Chatellier V. (2020).
  "La dépendance de l’Afrique de l’Ouest aux importations de produits laitiers."
  INRAE Productions Animales, 33: 2, 95-110.

• Cornée S., Le Guernic M., Rousselière D. (2020).
  "Governing Common-Property Assets: Theory and Evidence from Agriculture."
  Journal of Business Ethics, 166, 691-710.

• Gohin A., Zheng Y. (2020).
  "Reforming the European Common Agricultural Policy: From price & income support to risk management."
  Journal of Policy Modelling, 42: 3, 712-727.

• Guyomard H., Détang-Dessendre C., Dupraz P., Gohin A., Requillart V., Soler L.G., Chatellier V., Brennetot C., Dedieu B., Delaby L., Pellerin S., Peyraud J.L., Schmitt B. (2020).
  "La PAC de l’après 2020 : éclairages de la recherche."
  Economie rurale, n° 372, 11-30.

• Hassan M., Oueslati W., Rousseliere D. (2020).
  "Environmental taxes, reforms and economic growth: An empirical analysis of panel data."
  Economic Systems, 44: 3, 100806.

• Jouan J., De Graeuwe M., Carof M., Baccar R, Bareille N., Bastian S., Brogna D., Burgio G, Couvreur S., Cupiał M, Dumont B, Jacquot A-L, Magagnoli S., Makulska J., Maréchal K., Pérès G, Ridier A., Salou T., Tombarkiewicz B., Sgolastra F., Godinot O., (2020).
  "Learning interdisciplinarity and systems approaches in agroecology: experience with the serious game SEGAE."
  Sustainability, 12: 11, 4351.

• Jouan J., Ridier A., Carof M. (2020).
  "Legume production and use in feed: Analysis of levers to improve protein self-sufficiency from foresight scenarios."
  Journal of Cleaner Production, 274, 123085.

• Koutchade O.P., Carpentier A., Femenia F. (2020).
  "Modeling corners, kinks and jumps in crop acreage choices: impacts of the UE support to protein crops. American."
   Journal of Agricultural Economics. In press.

• Osseni A.F., Bareille F., Dupraz P. (2020).
  "Hedonic valuation of harmful algal bloom pollution: Why econometrics matters?"
  Land Use Policy, in Press.

• Paroissien E., Visser M. (2020).
  "The Causal Impact of Medals on Wine Producers' Prices and the Gains from Participating in Contests."
  American Journal of Agricultural Economics, 102(4), 1135-1153.

• Piet L., Melot R., Diop S. (2020).
  "What drives competition on the farmland market? A case study in Brittany (France)."
  European Review of Agricultural Economics, in Press.

• Voltaire L., Koutchade O.P. (2020).
  "Public acceptance of and heterogeneity in behavioral beach trip responses to offshore wind farm development in Catalonia (Spain)."
  Resource and Energy Economics, 60, 101152.

• Ait Sidhoum A., Serra T., Latruffe L. (2020).
  "Measuring sustainability efficiency at farm level: a data envelopment analysis approach."
  European Review of Agricultural Economics, 47:1, 200-225.

• Bareille F., Dupraz P. (2020).
  "Productive capacity of biodiversity: crop diversity and permanent grasslands in Northwestern France."
  Environmental and Resource Economics, 77, 365-399.

• Davoudkhani M., Mahé F., Dourmad J.Y., Gohin A., Darrigrand E., Garcia-Launay F. (2020).
  "Economic optimization of feeding and shipping strategies in pig-fattening using an individual-based model."
  Agricultural systems, 184: 102899.

• Etrillard C. (2020).
  "Favoriser la biodiversité sous les lignes électriques."
  Energie - Environnement - Infrastructures, 1: Etude 4.

• Gohin A. (2020).
  "The Land Use Impacts of the EUBiodiesel Policy: Assessing the Direct, Indirect and Induced Effects."
  Journal of Agricultural Economics, 71: 2, 305-329.

• Hassan M., Oueslati W., Rousselière D. (2020).
  "Exploring the link between energy based taxes and economic growth."
  Environmental Economics and Policy Studies, 22: 1, 60-87.

• Jouan J., Ridier A., Carof M. (2020).
  "SYNERGY: A regional bio-economic model analyzing farm-to-farm exchanges and legume production to enhance agricultural sustainability."
  Ecological Economics, 175, 106688.

• Mora O., Le Mouël C., de Lattre-Gasquet M., Donnars C., Dumas P., Réchauchère O., Brunelle T., Manceron S., Marajo-Petitzon E., Moreau C., Barzman M., Forslund A., Marty P. (2020).
  "Exploring the future of land use and food security: A new set of global scenarios."
  PLoS ONE 15(7): e0235597.

• Paroissien E. (2020).
  "Forecasting bulk prices of Bordeaux wines using leading indicators."
  International Journal of Forecasting, 36: 2, 292-309.

• Rousselière S., Barry I., Belhaj M., Coisnon T., Musson A., Rousseliere D. (2020).
  "Quels leviers pour une transition vers une économie plus durable? Une note de recherche sur les déterminants de l’éco-innovation en Europe."
  Revue d'Economie Industrielle, 167, 69-102.

• Bagnarosa G., Gohin A. (2019).
  "La diversité des instruments innovants à la disposition des agriculteurs."
  Innovations Agronomiques, 77, 61-74.

• Carof M., Godinot O., Ridier A. (2019).
  "Diversity of protein-crop management in western France."
  Agronomy for Sustainable Development, 39: 2, 1-11.

• Chatellier V. (2019).
  "L’internationalisation des marchés en productions animales."
  INRA Productions Animales, 32: 2, 111-130.

• Chatellier V., Dupraz P. (2019).
  "Les performances économiques de l’élevage européen : de la "compétitivité coût "à la "compétitivité hors coût"."
  INRA Productions Animales, 32: 2, 171-188.

• Cordier J., Santeramo F. (2019).
  "Mutual Funds and the Income Stabilisation Tool in the EU: Retrospect and Prospects."
  EuroChoices, 18: 1, 1-6.

• Dakpo K.H., Desjeux Y., Jeanneaux P., Latruffe L. (2019).
  "Productivity, technical efficiency and technological change in French agriculture during 2002-2015: a Färe-Primont index decomposition using group frontiers and meta-frontier."
  Applied Economics, 51: 11, 1166-1182.

• Dakpo K.H., Jeanneaux P., Latruffe L. (2019).
  "Pollution-adjusted productivity changes: extending the Färe–Primont index with an illustration with french suckler cow farms."
  Environmental Modeling and Assessment, 24, 625-639.

• Dumont B., Ryschawy J., Duru M., Benoit M., Chatellier V., Delaby L., Donnars C., Dupraz P., Lavenant S., Méda B., Vollet D., Sabatier R. (2019).
  "Associations among goods, impacts and ecosystem services provided by livestock farming."
  Animal, 13: 8, 1773-1784.

• Dupraz P., Guyomard H. (2019).
  "Environment and Climate in the Common Agricultural Policy."
  Eurochoices, 18: 1, 18-25.

• Etrillard C. (2019).
  "Berges de cours d'eau français : quelles marges de manœuvre juridiques pour y mener des actions écologiques?"
  Droit de la Voirie et du Domaine Public, 206, 9-15.

• Etrillard C. (2019).
  "Abeilles et pollinisation : investigations juridiques pour une meilleure protection."
  Droit de l'Environnement, 283, 423-429.

• Femenia F. (2019).
  "A Meta-Analysis of the Price and Income Elasticities of Food Demand."
  German Journal of Agricultural Economics, 68: 2, 77-98.

• Issanchou A., Daniel K., Dupraz P., Ropars-Collet C. (2019).
  "Intertemporal soil management: revisiting the shape of the crop production function."
  Journal of Environmental Planning and Management, 62: 11, 1845-1863.

• Jouan J., Ridier A., Carof M. (2019).
  "Economic Drivers of Legume Production: Approached via Opportunity Costs and Transaction Costs."
  Sustainability, 11: 3, 705.

• Lecompte F., Goillon C., Gard B., Raynal C., Vaud E., Barriere V., Maisonneuve B., Rousselière D., Garnodier J., Nicot P. (2019)
  "Limitation de l’usage des pesticides sur des cultures de laitue d’abri : bilan du projet DEPHY EXPE LILLA."
  Innovations Agronomiques, 76, 35-50.

• Legrand N. (2019).
  "The Empirical Merit of Structural Explanations of Commodity Price Volatility: Review and Perspectives."
  Journal of Economic Surveys, 33: 2, 639-664.

• Le Mouel M., Gascuel-Odoux C., Ménesguen A., Souchon Y., Etrillard C., Levain A., Moatar F., Pannard A., Souchu P., Lefebvre A., Pinay G. (2019).
  "Eutrophication: A new wine in an old bottle?"
  Science of the Total Environment, 651: 1, 1-11.

• Le Mouel, C., Milford A.B., Bodirsky B.L., Rolinski S. (2019).
  "Drivers of meat consumption."
  Appetite, 141, 104313.

• Le Mouel C., Mora O. (2019).
  "Productions animales, usage des terres et sécurité alimentaire en 2050 : L’éclairage de la prospective Agrimonde-Terra."
  INRA Productions Animales, 32: 2, 95-110.

• Mitter H., Techene A.K., Sinabell F., Helming K., Kok K., Priess J.A., Schmid E., Bodirsky B.L., Holman I., Lehtonen H., Leip A., Le Mouel C., Mathijs E., Mehdi B., Michetti M., Mittenzwei K., Mora O., Øygarden L., Reidsma P., Schaldach R., Schönhart M. (2019).
  "A protocol to develop Shared Socio-economic Pathways for European agriculture."
  Journal of Environmental Management, 252, 109701.

• Peyraud J.L., Aubin J., Barbier M., Baumont R., Berri C., Bidanel J.P., Citti C., Cotinot C., Ducrot C., Dupraz P., Faverdin P., Friggens N., Houot S., Nozières-Petit M.O., Rogel-Gaillard C., Sante-Lhoutellier V. (2019).
  "Quelle science pour les élevages de demain? Une réflexion prospective conduite à l’INRA."
  INRA Productions Animales, 32: 2, 323-338.

• Salou T., Le Mouel C., Levert F., Forslund A., Van Der Werf H. (2019).
  "Combining life cycle assessment and economic modelling to assess environmental impacts of agricultural policies."
  International Journal of Life Cycle Assessment, 24: 3, 566-580.

• Saint-Cyr L.D.F., Storm H., Heckelei T., Piet L. (2019).
  "Heterogeneous impacts of neighbouring farm size on the decision to exit evidence from Brittany."
  European Review of Agricultural Economics, 46: 2, 237-266.

• Saint-Cyr L.D.F., Piet L. (2019).
  "Mixmcm: A community-contributed command for fitting mixtures of Markov chain models using maximum likelihood and the EM algorithm."
  Stata Journal, 19: 2, 294-334.

• Srairi M.T., Chatellier V., Corniaux C., Faye B., Aubron C., Hostiou N., Safa A., Bouhallab S., Lortal S. (2019).
  "Réflexions sur le développement du secteur laitier et sa durabilité dans différentes parties du monde."
  INRA Productions Animales, 32: 3, 339-358.

• Uthes S., Heyer I., Kaiser A., Zander P., Bockstaller C., Desjeux Y., Keszthelyi S., Kis-Csatári E., Molnar A., Wrzaszcz W., Juchniewicz M. (2019).
  "Costs, quantity and toxicity: Comparison of pesticide indicators collected from FADN farms in four EU-countries."
  Ecological Indicators, 104, 695-703.

• Von Asseldonk M., Jongeneel R., von Kooten C., Cordier J. (2019).
  "Agricultural risk management in the European Union: A proposal to facilitate precautionary savings."
  EuroChoices, 18: 2, 40-46.

• Bareille F., Letort E. (2018).
  "How do farmers manage crop biodiversity? A dynamic acreage model with productive feedback."
  European Review of Agricultural Economics, 45: 4, 617-639.

• Baritaux V., Chatellier V., Trouvé A. (2018).
  "La libéralisation des marchés laitiers : quelles réponses des acteurs économiques et des politiques?"
  Economie Rurale, 364, 7-12.

• Bostian A.A., Heinzel C. (2018).
  "Comparative precautionary saving under higher-order risk and recursive utility."
  Geneva Risk and Insurance Review, 43: 1, 95-114.

• Chatellier, V., Pouch, T., Le Roy, C., Mathieu, Q. (2018).
  Les relations commerciales agroalimentaires et la Russie avec l’Union européenne, l’embargo russe et les productions animales.
  INRA Productions Animales, 31: 2, 83-103.

• Cullen P., Dupraz P., Moran J., Murphy P., O’Flaherty R., O’Donoghue C., O’Shea R., Ryan M. (2018).
  "Agri-Environment Scheme Design: Past Lessons and Future Suggestions."
  EuroChoices, 17: 3, 26-30.

• Dakpo, K.H., Jeanneaux, P., Latruffe, L., Mosnier, C., Veysset, P. (2018).
  "Three decades of productivity change in French beef production: a Färe-Primont index decomposition."
  Australian Journal of Agricultural and Resource Economics, 62, 352-372.

• Dronne Y. (2018).
  "Les matières premières agricoles pour l’alimentation humaine et animale : le monde."
  INRA Productions Animales, 31: 3, 165-180.

• Dronne Y. (2018).
  "Les matières premières agricoles pour l’alimentation humaine et animale : l'UE et la France."
  INRA Productions Animales, 31: 3, 181-200.

• Dumont B., Ryschawy J., Duru M., Benoit M., Chatellier V., Delaby L., Donnars C., Dupraz P., Lavenant S., Méda B., Vollet D., Sabatier R. (2018).
  "Review: Associations among goods, impacts and ecosystem services provided by livestock farming."
  Animal, 1-14.

• Etrillard C. (2018).
  "Le droit face aux marées vertes en Bretagne."
  Energie - Environnement - Infrastructures, 4, 23-31.

• Kelly E., Latruffe L., Desjeux Y., Ryan M., Uthes S., Diazabakana A., Dillon Finn J. (2018).
  "Sustainability indicators for improved assessment of the effects of agricultural policy across the EU."
  Ecological Indicators, 89, 903-911.

• Koutchade O.P., Carpentier A., Femenia F. (2018).
  "Modeling heterogeneous farm responses to European Union biofuel support with a random parameter multicrop model."
  American Journal of Agricultural Economics, 100: 2, 434-455.

• Laroche-Dupraz C., Piet L. (2018).
  "Les choix français en matière de convergence des aides découplées de la PAC à l’horizon 2019."
  Economie Rurale, 366, 21-39.

• Minviel J.J., Sipiläinen T. (2018).
  "Dynamic stochastic analysis of the farm subsidy-efficiency link: evidence from France."
  Journal of Productivity Analysis, 50: 1-2, 41-54.

• Perrot C., Chatellier V., Mercier Gouhin D., Richard M., You G. (2018).
  "Le secteur laitier français est-il compétitif face à la concurrence européenne et mondiale ?"
  Economie Rurale, 364, 109-127.

• Piet L., Saint-Cyr L.D.F. (2018).
  "Projection de la population des exploitations agricoles françaises à l’horizon 2025‪."
  Economie Rurale, 365, 119-133.

• Ropars-Collet C., Le Goffe P., Rieusset F. (2018).
  "Pollutions accidentelles des eaux de surface : une application des modèles de comptage."
  Economie et Prévision, 213: 1, 1-18.

• Roussy C., Ridier A., Chaib K., Boyet M. (2018).
  "Marketing contracts and risk management for cereal producer.
  Agribusiness, 34: 3, 616-630.