Fig. 5. Evolution of average farm size over 14 simulation periods and two policies, i.e., Agenda 2000 and the decoupled policy (REGPREM) for low factor levels (-), default, and high factor levels (+). Averages of five replications and standard errors. IBC, is interest on borrowed capital, IEC, interest on equity capital, MA, cost savings due to managerial ability, and TC, for technological change.