Opportunities and limitations in assessing the multifunctionality of agriculture within the CAPRI model

In recent years the objectives of agricultural policy have shifted from a principal focus on production and income towards agriculture's provision of public goods summarized by the term ‘multifunctionality’. Agricultural sector models, which are important tools for policy advice, need to be adjusted in order to maintain their relevance and reliability in accordance with policy changes. This paper investigates the strengths and limitations of incorporating multifunctionality indicators in the agricultural sector model Common Agricultural Policy Regional Impact Analysis (CAPRI) by reviewing the existing literature and incorporating such indicators in the model. Multifunctionality indicators are developed and implemented for four selected aspects of multifunctionality: food security, landscape, environmental concerns and rural viability. By running different policy reform scenarios, it is shown that indicators closely related to the underlying economic variables of the sector model may provide useful to describe the effects of policy reforms on agriculture's multifunctionality. However, these indicators do not completely cover the selected aspects of multifunctionality. In order to yield a broader coverage, this paper proposes to strengthen interdisciplinary research by linking agricultural sector models with other model systems like farm-based economical–ecological models, regional economic models or landscape information systems.