A (recursive) multiple objective approach to analyse changes in the utility function of farmers due to policy reforms

Multi-criteria decision-making (MCDM) methodology is used to analyse shifts in the utility function of farmers due to policy changes. The presented ap proach is tested for a sample farm in the loamy region in Belgium. The util ity functions under the situation before and after the CAP-reform are estim ated and compared. This reveals that the change from price support to direc t income support has decreased the relative importance of the risk objectiv e, while the environmental objective, almost non-existent in the situation before 1992, is gaining importance. The example shows that the multi-object ive methodology can be a useful framework for a better understanding of far mers' reactions on policy reforms. (C) 2001 Elsevier Science Inc. All right s reserved.