Model Collaboration between Farm Level Models with Application on Dutch Dairy and Arable Farms Regarding Circular Agricultural Policy

Abstract

The ambition of the Dutch Ministry of Agriculture is to stimulate the transition to circular agriculture. The objective of this paper is to develop and apply a farm level model toolbox for circular-agriculture policy assessment. Transition to circular agriculture affects farm management practices and outcome in the field of finance and economics, soil quality, use of finite resources, emissions, and biodiversity. Based on this, there is a need for an integrated assessment at farm level. Therefore, Bio Economic Farm Models should be at the core of the model toolbox. Model collaboration enables answering more complex questions and enlarges the scope of the analysis. Challenges of model collaboration are among others overlapping modules, different approaches (optimisation versus simulation), and existence of different networks of model developers and users. It is argued that a governance structure and networking will foster model collaboration. To stimulate transition to more circular agriculture practices and as a demonstration, the model toolbox was applied to assess the economic and environmental impacts of a tax on N from mineral fertiliser on a representative dairy and arable farm in a region in the Netherlands. It was found that a tax on N from mineral fertiliser has relatively large income effects, while the impacts on various environmental indicators are relatively limited.