PLURIACTIVITY,FARM STRUCTURES AND RURAL CHANGE

This paper begins by looking at some of the reasons why farm household pluriactivity, although long-standing, has now become a phenomenon of interest to European policymakers. This European concern is then compared with the current interest of UK policymakers and academics in the related concept of farm diversification. In many respects, UK policies differ significantly from those in the rest of Europe, most notably in their neglect of off-farm income-earning opportunities, and the reasons for this are discussed. Furthermore, it is argued that a preoccupation with forms of diversification or pluriactivity is likely to be less helpful analytically than a focus on underlying farm business and farm household strategies. Finally, some preliminary results of empirical work in Devon and Grampian are presented which suggest that farm household strategies may be at variance with prior expectations in some respects.     

FARM HOUSEHOLD BEHAVIOUR AND THE TRANSITION TO POST-PRODUCTIVISM

This paper proposes a theoretical framework for examining how farm households will respond to the reversal of productivist farm policies and applies this to a longitudinal study of farm households in upland Scotland over the period 1987-91. The paper argues that the actions of farm households may be understood not only in terms of their structural situation but also as an expression of the values and motivations which underlie behaviour (their disposition-to-act). A model is proposed, in which a farm household's disposition-to-act interacts with the internal resources of the farm and household, and with the external context (markets, policies, social and cultural values), in influencing behaviour. Empirically, this model is then used to explore changing farm structures, changing allocations of labour, changing sources of farm household income, and engagement with policy measures among a sample of 300 upland farm households. The results suggest that there will be considerable diversity in farm household behaviour during the transition to post-productivism, with widespread reluctance to adjust to the new imperatives.     

ECONOMIC EVALUATION OF THE FARM WOODLAND SCHEME IN SCOTLAND

This paper describes an economic evaluation of planting under the Farm Woodland Scheme in Scotland based on the calculation of the Scheme's net UK Exchequer cost (NEC) and its relationship to the benefits observed through a survey of first-year Scheme entrants. It was found that the motivation in planting was primarily for ‘environmental’ benefits such as landscape, amenity, wildlife and sport. Income and timber production were much less important. On average, payments under the Scheme under-compensated farmers for their direct and opportunity costs associated with planting. When based on agricultural savings in the year of planting, the annual NEC was #58 per ha, but this cost increases substantially if the additionality principle is applied. Anticipated benefits in terms of farm output reduction, income diversification, employment and timber production are identified but the effects are not large. Environmental benefits were not included in the evaluation and these may provide greater justification for the expenditure.     

FARM NET VALUE ADDED IN SCOTLAND AND THE DESIGNATION OF AREAS FOR RURAL DEVELOPMENT ASSISTANCE

Recent procedures for selecting disadvantaged areas for European Community rural development assistance have specified criteria including low levels of agricultural income and GDP per capita, and proportionately high levels of agricultural employment. The first of these is measured by Farm Net Value Added per Annual Work Unit (FNVA per AWU). This paper presents a methodology which estimates FNVA and AWU for Scottish parishes using data from the Farm Accounts Scheme and the June agricultural census. The ratio of FNVA to AWU is then estimated for various aggregations of parishes, such as Scottish Districts, Regions, and areas currently designated for various rural development programmes. Although only one among several important criteria for targeting rural development aid, the pattern of FNVA per AWU generally supports the current allocation of funding. The results also give some indication of priority areas for future targeting on a more local scale.     

FARM HOUSEHOLD PRODUCTION IN THE PRESENCE OF RESTRICTIONS ON DEBT: THEORY AND POLICY IMPLICATIONS

In this paper a two period life cycle model of the farm household is constructed allowing for production and restrictions on debt in which the consumption and production decisions of the farm household are simultaneous. It is shown that the farm household's production responses to exogenous changes may be qualitatively different to that predicted by the profit-maximising model when all markets are perfect. In particular, when the household is debt constrained, ‘perverse’ output effects are possible with output increasing in response to output price decreases. Further, for such households, compensation payments will have production effects. Finally, the financial situation of the farm has an impact on production for debt constrained farms.     

A CROSS-SECTION ANALYSIS OF FARM HOUSEHOLD EXPENDITURES*

Many policy problems urgently require research on rural household consumption patterns. Research implications of consumption function theory are outlined and results of a cross-section analysis of eleven expenditure categories are reported. Consumption function parameters are estimated by least squares of multiple regression of farm account data. The analysis illustrates that changes in annuitized value of assets are associated with changes in budget allocations supporting the concept of a “lifetime” income effect on consumer behaviour. Second, the farm households sampled have a low marginal as well as average propensity to consume. Third, structure explanatory variables such as age distribution and size vary in their ability to explain expenditure patterns depending upon types of commodity. Further work will help to assess the impact of additional forces upon the standard of living of farm people. UNEANAL YSE RECOUPEE DE LA CONSOMMATION DOMESTIQUE R URALE Plusieurs problèmes de politique demandent des recherches urgentes sur les tendances de la consommation domestique rurale. Les implications de la recherche sur la théorie de la fonction de la consommation sont exposées et les résultats ?une analyse recoupee des onze catégories de dépenses sont présentés. Les paramétres de la fonction de la consommation sont évalués par les moindres carrés de la régression multiple des données du compte agricole. ?analyse démontre que les changements dans la valeur viagère des biens sont associés aux change-ments dans les allocations budgétaires à?appui du concept de ?effet ?un revenu “à vie” sur la façon ?agir du consommateur. Deuxièmement, les foyers agricoles échantillonnés ont une tendance à la consommation très marginale aussi bien que moyenne. Troisièmement, les variables explicatifs de la structure, tels que la répartition par âge et la taille, valient dans leur abilité?expliquer les tendances des dépenses selon le genre de denrées. Des travaux additionnels aideront àévahier ?effet de forces supplémentaires sur le niveau de vie des agriculteurs.     

RELATIONSHIPS AMONG FARMERS' GOALS AND FARM ADJUSTMENT STRATEGIES: SOME EMPIRICS OF A MULTIDIMENSIONAL APPROACH

A knowledge of farmers' goals provides an important basis for understanding farmers' preferences for, and choices among, various farm adjustment strategies. Such information is also valuable in estimating the acceptability to farmers of various government measures to assist rural adjustment. The goals of Queensland graziers, with and without a history of farm expansion, are compared. Different adjustment strategies are analysed in terms of the ways in which they satisfy different individual goals. A dimensional analysis of relationships among goals and adjustment strategies reveals that, for those willing to expand but without a history of expansion, income and social goals are at odds with each other. For these graziers, property expansion seemed to be the strategy most likely to meet both these goals. For graziers with a history of expansion, income goals were complementary with social goals.     

FARMER AND FARM CONCEPTS IN MEASURING ADOPTION LAGS

Conventional definitions of the time to adoption of an innovation do not consider whether a potential adopter already had decision-making responsibilities at the time the innovation became available. Data from a pest management survey conducted in India are used to evaluate empirically an alternative definition that takes into account when farmers assumed decision-making responsibilities.     

AGRICULTURAL DEVELOPMENT AND FARM INCOME DISTRIBUTION IN LDCs

There were remarkable and sustained increases in agricultural and food production in the developing countries over the last three decades. But the fruits of this progress were not shared by all, and many remain in poverty. Some believe this due to the unequal distribution of benefits and accordingly claim that an agricultural strategy which focuses on reducing disparities of income, assets and access is the most important objective for agricultural development. This approach is justified by claims of wide and increasing disparities of income in the agricultural sectors of LDCs. This paper looks at the evidence for such claims and finds that they cannot be supported by hard evidence. Indeed, the few valid studies of agricultural income distribution show modest disparities. Accordingly, redistribution strategies, especially those aimed at uni-modal farm sectors, are rejected as unnecessary, undesirable and unachievable (without destroying the main spring of agricultural progress). On the contrary, it is urged that growth in productivity, output and incomes should be the dominant development objective to encourage, as many examples show, the enterprise, ability and energy of small farmers and their families. Such a strategy produces a degree of unequal distribution of benefits which reflects the distribution of personal qualities and endowments and acts as an incentive to their exercise. To keep disparities within bounds, agricultural policies relating to pricing, extension, credit, research and so on should aim at widening the number of small farmer beneficiaries of agricultural development.     

FARM INCOME POLICY IN ONTARIO: REVIEW AND ANALYSIS

This paper discusses and evaluates "The Challenge of Abundance" [l]. The recommendations of the Ontario Farm Income Committee are reviewed, the assumptions implicit in the recommendations are presented and the shortcomings of the Report discussed. The author, while finding a number of sound recommendations, ques the extreme emphasis on government intervention and control; the lack of research documentation; the failure to adequately comprehend the dependence of Ontario farmers on inputs from and sales to the rest of Canada and foreign countries; and the absence of a program to assist the majority of farmers who would no longer be allowed to produce food.
LE REVENU AGRICOLE EN ONTARIO: REVISION ET CRITIQUE — Cet article discute et évalue "The Challenge of Abundance" [l]. Les recommandations de la commission ontarienne sur le revenu agricole sont examinées, les assumptions dans les recommandations sont présentées, et les imperfections du rapport sont discutées, Tout en constatant plusieurs recommandations sérieuses, l'auteur interroge l'appuie intense donné à l'intervention et l'autorité govememental; le manque de documentation; l'incompréhension vis à vis la dépendance du fermier ontarien dans la vente au reste du Canada et à l'étranger; et l'absence d'un programme qui assisterait la majorité des fermiers qui ne sont plus permis de produire les aliments.     

CO-ORDINATION STRATEGIES AND NON-MEMBERS' TRADE IN PROCESSING CO-OPERATIVES

This paper addresses three major issues set forth by LeVay (1983). These may be summarised as (1) the conflict of interests of the individual vis-à-vis the co-operative, (2) the arrange-ments or contract provisions which may be used to increase the efficiency of the co-operative, and (3) modelling of the co-operative trade with non-members and how members can derive maximum benefit from it.     

PARTICIPATION OF FARM OWNERS IN FARM AND OFF-FARM WORK INCLUDING THE OPTION OF FULL-TIME OFF-FARM WORK

The option of working full-time off the farm is generally neglected in farmers' time allocation studies. In this paper, a generalised multinomial logit model, in which the choices are working only on the farm, allocating the time between farm and off-farm work, or working only off-farm, is estimated using Israeli data. The results show that the explanatory variables have significantly different effects on utility for off-farm workers who also work on the farm versus those who do not. There seem to be incentives to work full time rather than part time off the farm. These conclusions cannot be reached if farm owners who do not work on the farm are excluded from the estimation. The conclusions imply that policy intended to encourage pluriactivity could instead result in increased specialisation in full-time farm work or full-time off-farm work if it does not target the right incentives.     

STABILITY IN FARM INCOMES

The primary aim of this study has been to measure the extent of income variability in United Kingdom agriculture; to determine whether variability has been diminished; to compare the incidence of variability on various types of farm; to consider to what extent individual farm have consistent or divergent experience of income variation; and to determine whether net incomes generally move in the same direction as the prices of farm products. A secondary aim has been to determine whether income variation in agriculture is greater or less than in other sectors within the United Kingdom and within the United States. Income variation has been found to be roughly twice as large in the farm sector as in other sectors and in all sectors variation was less in the second half of the period studied.