Agent-Based Modeling of Farming Behavior: A Dutch Case Study on Milk Quota Abolishment and Sustainable Dairying

Gaining insight on the effect of policies upon the agricultural domain is essential for policy makers, famers and the agribusiness sector. A variety of models have therefore been developed that enable a prediction of agricultural development under different policies. Most models do however not make predictions on a fine grained level and are weak in accounting for specific factor market and resource constraints farmers (agents) face at farm level. The paper presents an agent-based model where each farm is modeled by means of an agent and studies the effect of milk quota abolishment. Two simulations policy simulations are made: 1) abolition of the milk quota; and 2) land-tied sustainable dairy scenario. Outcomes are analyzed and compared with the predictions of sector models.