Keywords: Bio-economic model Integrated assessment Environmental policy Market liberalizationThe disciplinary nature of most existing farm models as well as the issue specific orientation of most of the studies in agricultural systems research are main reasons for the limited use and re-use of bio-economic modelling for the ex-ante integrated assessment of policy decisions. The objective of this article is to present a bio-economic farm model that is generic and re-usable for different bio-physical and socio-economic contexts, facilitating the linking of micro and macro analysis or to provide detailed analysis of farming systems in a specific región. Model use is illustrated in this paper with an analysis of the impaets of the CAP reform of 2003 for arable and livestock farms in a context of market liberalization. Results from the application of the model to representative farms in Flevoland (the Netherlands) and Midi-Pyrenees (France) shows that CAP reform 2003 under market liberalization will cause substantial substitution of root crops and durum wheat by vegetables and oilseed crops. Much of the set-aside área will be put into production intensifying the existing farming systems. Abolishment of the milk quota system will cause an increase of the average herd size. The average total gross margin of farm types in Flevoland decreases while the average total gross margin of farms in Midi-Pyrenees increases. The results show that the model can simúlate arable and livestock farm types of two regions different from a biophysical and socio-economic point of view and it can deal with a variety of policy instruments. The examples show that the model can be (re-)used as a basis for future research and as a comprehensive tool for future policy analysis.

[1] Water resources will face increasing competition and higher environmental concerns during this century. To meet these challenges, the new Water Framework Directive has drawn up an integrated framework and established the basic principles for a sustainable water policy in the European Union. The introduction of water prices reflecting the true cost of irrigation is one of its most innovative components. In this paper, a positive mathematical programming model is developed to assess the environmental and socioeconomic impacts of water pricing policies in Spanish irrigated lands. The model interface allows friendly use and easy replication in a large number of irrigation districts, selected throughout the Spanish territory. The model results show the impact on environmental indicators, water consumption, cropping patterns, technology adoption, labor, farmers' income, and the water agency revenues when different scenarios of cost recovery are considered. It is argued that this modeling approach may be used as a management tool to assist in the implementation of the cost recovery approach of the new Water Framework Directive.Citation: Iglesias, E., and M. Blanco (2008), New directions in water resources management: The role of water pricing policies, Water Resour. Res., 44, W06417,

Water, energy and food are essential resources for economic development and social well-being. Framing integrated policies that improve their efficient use requires understanding the interdependencies in the water-energy-food (WEF) nexus. Stakeholder involvement in this process is crucial to represent multiple perspectives, ensure political legitimacy and promote dialogue. In this research, we develop and apply a participatory modelling approach to identify the main interlinkages within the WEF nexus in Andalusia, as a starting point to developing a system dynamic model at a later stage. The application of fuzzy cognitive mapping enabled us to gain knowledge on the WEF nexus according to opinions from 14 decision-makers, as well as contributing to raising awareness and building consensus among stakeholders. Results show that climate change and water availability are key drivers in the WEF nexus in Andalusia. Other variables with significant interlinkages within the WEF nexus are food production, irrigated agriculture, energy cost, socio-economic factors, irrigation water use, environmental conservation, and farm performance indicators. The scenario analysis reveals the interdependencies among nexus sectors and the existence of unanticipated effects when changing variables in the system, which need to be considered to design integrated policies.

Bio-economic farm models are tools to evaluate ex-post or to assess ex-ante the impact of policy and technology change on agriculture, economics and environment. Recently, various BEFMs have been developed, often for one purpose or location, but hardly any of these models are re-used later for other purposes or locations. The Farm System Simulator (FSSIM) provides a generic framework enabling the application of BEFMs under various situations and for different purposes (generating supply response functions and detailed regional or farm type assessments). FSSIM is set up as a component-based framework with components representing farmer objectives, risk, calibration, policies, current activities, alternative activities and different types of activities (e.g., annual and perennial cropping and livestock). The generic nature of FSSIM is evaluated using five criteria by examining its applications. FSSIM has been applied for different climate zones and soil types (criterion 1) and to a range of different farm types (criterion 2) with different specializations, intensities and sizes. In most applications FSSIM has been used to assess the effects of policy changes and in two applications to assess the impact of technological innovations (criterion 3). In the various applications, different data sources, level of detail (e.g., criterion 4) and model configurations have been used. FSSIM has been linked to an economic and several biophysical models (criterion 5). The model is available for applications to other conditions and research issues, and it is open to be further tested and to be extended with new components, indicators or linkages to other models.

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Counterfactual analysis has been recommended as a means of assessing the impacts of European Rural Development Programmes (RDP) over recent years, although its application has been scarce to date. This paper examines the use of counterfactual analysis to assess socioeconomic impacts in a set of 2007–2013 ex-post evaluations. The analysis undertaken shows that a wide variety of counterfactual approaches have been applied, although certain barriers still remain to address the estimation of RDP impacts following the EU evaluation standards. Furthermore, we noted that impacts provided by individual RDP evaluations may hardly be aggregated, making it difficult to draw clear conclusions about the effectiveness of rural development policy at the EU level.

The aim of this study was to evaluate the sustainability of farm irrigation systems in the Cébalat district in northern Tunisia. It addressed the challenging topic of sustainable agriculture through a bio-economic approach linking a biophysical model to an economic optimisation model. A crop growth simulation model (CropSyst) was used to build a database to determine the relationships between agricultural practices, crop yields and environmental effects (salt accumulation in soil and leaching of nitrates) in a context of high climatic variability. The database was then fed into a recursive stochastic model set for a 10-year plan that allowed analysing the effects of cropping patterns on farm income, salt accumulation and nitrate leaching. We assumed that the long-term sustainability of soil productivity might be in con- flict with farm profitability in the short-term. Assuming a discount rate of 10% (for the base scenario), the model closely reproduced the current system and allowed to predict the degradation of soil quality due to long-term salt accumulation. The results showed that there was more accumulation of salt in the soil for the base scenario than for the alternative scenario (discount rate of 0%). This result was induced by apply- ing a higher quantity of water per hectare for the alternative as compared to a base scenario. The results also showed that nitrogen leaching is very low for the two discount rates and all climate scenarios. In conclusion, the results show that the difference in farm income between the alternative and base scenar- ios increases over time to attain 45% after 10 years

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