Measuring and causes of inequality in farm sizes in the United States

This article examines the notion of farm size inequality expressed as sales inequality in the United States. The farm size index (FSI) is developed as a measure of farm size inequality. FSIs are calculated for the farming sector in all 50 states and large variation in farm size across the states and over time is determined. The largest FSIs are calculated for a number of Southern, Southwestern, and Pacific states. Increasing FSIs over time are observed in all states as well. The spatial and temporal (between 1987 and 1997) differences in FSIs are explained by running a pooled, cross‐sectional time‐series model. The most influential variables accounting for the differences have to do with the ownership structure, where a larger presence of individual and family farms relative to corporate farms and cooperatives leads to a lower degree of farm size inequality. Also, states and regions having relatively larger number of farms owned by minorities have higher FSIs. Shrinking opportunities in the agricultural sector relative to the rest of the economy, primarily services, are reflected in a declining share of agricultural sector state income in total gross state product (GSP). This in turn leads to an increase in the farming sector's FSI suggesting that only larger, more profitable operations are the likely candidates to pursue farming activities. Finally, grains farming regions have all lower degree of farm size inequality than livestock or fruits and vegetables regions. Profitable grains farming requires relatively large farm size and equipment investments, which leads to a relatively homogeneous structure of grains farms. A larger variation in the size of profitable farm operations is possible in fruits and vegetables and livestock. This leads to the existence of a large number of very small but still sustainable farms, and a relatively small number of large farms that capture most of market sales share.     

Driving Forces behind Exiting from Farming in Western Europe

This study examines the exit process of Western European farmers. Using a simple theoretical model of structural change, we examine empirically the impact of farm characteristics, macroeconomic conditions and policy intervention on farm exits during the 1990s. Econometric estimates using regional data for 110 regions in Western Europe indicate that exits from farming are strongly influenced by farm characteristics and policy conditions. In particular, exit rates are higher in regions with smaller farms and are closely related to production structures. Exit rates are lower in regions with more part‐time farming, high subsidy payments and high relative price increases for agricultural outputs, indicating that off‐farm income and government intervention slow down structural change in European agriculture.     

The impact of agricultural policy on farm income concentration: the case of regional implementation of the CAP direct payments in Italy

One of the objectives of agricultural policy worldwide concerns the support of farm income. Common Agricultural Policy direct payments (DPs) are the main instruments to support farm income in the European Union. This article addresses their role in the concentration of farm income. This is done by calculating the Gini coefficient and its disaggregation in a large sample of Italian farms in the period between 2006 and 2007. Although this approach has been used to develop ex‐post analysis in previous studies, this article is innovative given that it is used here in an ex ante analysis aimed at evaluating the likely impact of a recent reform proposal. This latter requests changing the current model to a regional model of DPs application to make payment rates (i.e., payment per hectare) homogeneous among farms in the same region. The analysis shows that DPs and farm incomes are both very concentrated but that DPs allow for an income concentration reduction in Italian farms. The shift to a regional implementation reduces DPs concentration and, to a limited extent, farm income concentration. Of the considered regionalization scenarios, those that redistribute DPs among regions are the most effective in reducing concentration. The extension of the Gini considered approach to an ex ante setting seems effective because it provides insights that could feed the policy debate regarding the forthcoming reform.     

Farm succession,occupational choice and farm adaptation at the rural-urban interface: The case of Italian horticultural farms

The survival of family farming in Europe is a crucial issue, as it assures landscape maintenance in marginal areas and provides transmission and accumulation of site-specific knowledge in agricultural activity. Using data from a sample of Italian horticultural farms, we explored the multiple forces driving farm succession in a high value added sector. In addition to the traditional factors examined in the literature (farm, farmer and family features), we treated the farm transfer choice as the complement of the decision to migrate out of the agricultural sector, testing the effects of local labour market conditions (employment, income gap between farm and non-farm sector) and population density around the farm, as a proxy of rural-urban interface relationships. It has been shown that both traditional factors and territorial and labour market conditions influence the probability of farm succession. Interestingly labour market conditions exerted an effect in line with occupational choice theory only in less inhabited areas; in more densely populated regions a rural-urban linkage effect seems to prevail, creating an environment that fosters succession of young horticultural farmers. Peri-urban areas may thus be a favourable location for professional and specialised horticultural farms, as well as multifunctional and de-specialised ones, if their assets are properly protected against farmland subtraction. More generally, these findings confirm the validity of a more comprehensive approach toward farm succession, which takes occupational choice theory and rural-urban farm adaptation strategies into account.     

The Effects of Direct Payments on Technical Efficiency of Irish Beef Farms: A Stochastic Frontier Analysis

The 2003 Mid‐Term Review of the CAP sought to refocus the EU's farm support policy to foster a more competitive and market‐orientated agricultural sector. The foundation of this reform comprised the introduction of decoupled payments to farmers, replacing the EU's previous system of supports that were directly linked to production of designated crops and livestock. This paper explores the effect of coupled payments and their subsequent replacement by decoupled support, on the technical efficiency of specialist beef farms in Ireland. Given the high reliance of beef farmers in Ireland on CAP payments, the decoupling of payments has been especially important for the sector. A stochastic production frontier is estimated using a panel dataset comprising detailed accountancy data for Irish beef farms between the years 2000 and 2013. Our results indicate that technical efficiency in the beef farming sector has been consistently poor, with an average efficiency score of only 0.53 during the period analysed. However, we found that direct income received in the form of coupled payments had a positive impact on farm efficiency, and that this positive effect was maintained after their replacement with decoupled income support.     

Farm-based modelling of the EU sugar reform: impact on Belgian sugar beet suppliers

A mathematical programming model, calibrated on individual farmdata, is used to analyse the reform of the common market organisation(CMO) in the sugar sector of the European Union. The model includesa precautionary farm supply function for out-of-quota sugarbeet that is estimated as part of a simultaneous system of first-orderconditions. Simulation results from a sample of Belgian sugarbeet farms show that the sugar CMO reform induces differentsupply and income effects across farms depending on their shareof out-of-quota sugar beet relative to their total beet supplyand their quota rent. A further cut in the minimum price ofsugar beet initiates structural change in the farm sector.     

Unconventional adjustment strategies for rural households in the less developed areas in Greece

International competition in agricultural production is intensifying following the implementation of the 1993 accord of the General Agreement on Tariffs and Trade. The production of conventional farm products in surplus is being discouraged by means of indirect economic disincentives. The Common Agricultural Policy has already adjusted to unprotected national markets within the European Union and greater market orientation is being achieved mainly through price reductions. Farmers in the less developed areas in Greece, where agricultural activity is still the main source of income and employment, have been responding to policy reforms by seeking part-time employment and income in non-farm enterprises. The adoption of alternative, unconventional farm enterprises that use farm resources in an innovative and quantitatively different way does have the potential for bringing in a new source of income to farm business. For the purpose of this research three adjustment strategies were recognised. The ‘conventional’ (no change) pathway is based on traditional, region-specific products, production methods and services. The adoption of the ‘new crop’ pathway refers to the redeployment of resources into new agricultural products, whereas farms on the market integration Pathway redeploy resources into new marketing services and agricultural product processing on the farm. The new crop and the market integration pathways are identified as unconventional adjustment strategies. Results derived from multinomial logit analysis highlight the major constraints and opportunities associated with the adoption of new crops and market integration practices. Farmers who have adopted unconventional practices are influenced by factors external to the farm. such as contacts with institutions, and have a high probability of having higher debts. These farmers are likely to depend heavily on seasonal labour and rented land. The fact that market integration activities are associated with smaller farms in conjunction with off-farm work signifies the importance of establishing an integrated rural development policy approach. Public policy involvement in enhancing dissemination of information concerning unconventional enterprises is emphasised.     

Is there a future for small farms in developed countries? Evidence from the French case

This research aims to identify the specific characteristics of small farms in developed countries and the factors that influence their survival and growth. Using the case of France, we employ statistical and econometric analysis of data from the Farm Structure Survey (N = 70,000) for the period 2000–2007. The principal findings suggest that small farms are no more likely than other farms to employ “alternative” strategies to the predominant model of increasing farm size, nor are they more likely to diversify on‐farm activities or operate under quality‐labeled production systems, with the notable exception of organic agriculture. However, where small farms do adopt or practice these activities, they are seen to have a favorable effect in ensuring their survival and growth. In contrast, we are unable to conclude that pluriactivity of farm households has a positive impact on the survival of small enterprises. The effect of geographical location on small farms is largely expressed in their concentration in mountainous or disadvantaged regions. Overall, the trajectory of small farms is marked by farm exit, principally as the result of farmers retiring at the end of their careers. The small farm sector is also revitalized by both larger farms declining and thus being reclassified as small farms, as well as the progressive entry into agriculture of small farm holders whose income was previously derived largely off‐farm.     

Micro insights on the pathways to agricultural transformation: Comparative evidence from Southeast Asia and Sub-Saharan Africa

Most studies of agricultural transformation document the impact of agricultural income growth on macroeconomic indicators of development. Much less is known about the micro-scale changes within the farming sector that signal a transformation precipitated by agricultural income growth. This study provides a comparative analysis of the patterns of micro-level changes that occur among small-holder farmers in Uganda and Malawi in Sub-Saharan Africa (SSA), and Thailand and Vietnam in Southeast Asia (SEA). Our analysis provides several important insights on agricultural transformation in these two regions. First, agricultural income in all examined countries is vulnerable to changes in precipitation and temperature, an effect that is nonlinear and asymmetric. SSA countries are more vulnerable to these weather changes. Second, exogenous increases in agricultural income in previous years improve non-farm income and trigger a change in labor allocation within the rural sector in SEA. However, this is the opposite in SSA where the increase in agricultural income reduces non-farm income, indicating a substitution effect between farm and non-farm sectors. These findings reveal clear agricultural transformation driven by agricultural income in SEA but no similar evidence in SSA.     

Developing farm-specific marginal abatement cost curves: Cost-effective greenhouse gas mitigation opportunities in sheep farming systems

Growing demand for agricultural produce, coupled with ambitious targets for greenhouse gas emissions reduction present the scientific, policy and agricultural sectors with a substantial mitigation challenge. Identification and implementation of suitable mitigation measures is driven by both the measures’ effectiveness and cost of implementation. Marginal abatement cost curves (MACCs) provide a simple graphical representation of the abatement potential and cost-effectiveness of mitigation measures to aid policy decision-making. Accounting for heterogeneity in farm conditions and subsequent abatement potentials in mitigation policy is problematic, and may be aided by the development of tailored MACCs. Robust MACC development is currently lacking for mitigation measures appropriate to sheep systems. This study constructed farm-specific MACCs for a lowland, upland and hill sheep farm in the UK. The stand-alone mitigation potential of six measures was modelled, against real farm baselines, according to assumed impacts on emissions and productivity. The MACCs revealed the potential for negative cost emissions’ abatement in the sheep industry. Improving ewe nutrition to increase lamb survival offered considerable abatement potential at a negative cost to the farmers across all farms while, lambing as yearlings offered negative cost abatement potential on lowland and upland farms. The results broadly advocate maximising lamb output from existing inputs on all farm categories, and highlight the importance of productivity and efficiency as influential drivers of emissions abatement in the sector. The abatement potentials and marginal costs of other measures (e.g. reducing mineral fertiliser use and selecting pasture plants bred to minimise dietary nitrogen losses) varied between farms, and this heterogeneity was more frequently attributable to differences in individual farm management than land classification. This has important implications for the high level policy sector as no two farms are likely to benefit from a generic one size fits all approach to mitigation. The construction of further case-study farm MACCs under varying farm conditions is required to define the biophysical and management conditions that each measure is most suited to, generating a more tailored set of sector-specific mitigation parameters.     

Synergies between Farming and Rural Tourism: Evidence from Flanders

Support for rural development and agri-environment measures is often defended on the basis of the contribution of farming to the attractiveness of rural areas and the growing rural tourism sector. Farmers may benefit from the presence of tourism by offering accommodation or selling farm products to tourists. We analyse rural tourism data for Flanders to determine whether agricultural amenities contribute to the price rural tourists are willing to pay for lodging at a farm. We find that farming practices do indeed influence the attractiveness of an area for tourism and have an impact on the prices that can be charged for accommodation. Amenities from agriculture such as permanent grassland have a positive influence on rental prices. However, the presence of intensive agricultural and livestock farming and associated polluting activities decrease the attractiveness of rural regions for tourism. Farm tourism is found to make an important contribution to the farm income and economy of a rural region. Farm tourism constituted more than 30 per cent of the farm income of certain farms. Overall, our findings support the idea of major synergies between farming and rural tourism. Strengthening this relationship may therefore be a good strategy for countryside management and rural development.     

Context matters: Oil palm production and women's dietary diversity in the tropical forest of Cameroon

Oil palm is one of the most rapidly expanding food and cash crops in many tropical regions with significant environmental implications, but also economic gains. Previous analyses have established that this expansion is associated with changing gender roles and time allocation for women. Time allocation is an important determinant of maternal and child nutrition as well as well-being. We use a rich farm household survey from a native oil palm production hotspot, Cameroon, to examine the associations between oil palm production and women's dietary diversity. Using different estimation and identification strategies with some sensitivity checks, we show that oil palm is associated with lower dietary diversity for women, measured as the minimum dietary diversity for women and the minimum adequacy diversity diet. We explore heterogeneity in the various food groups consumed by women and show that oil palm production is associated with lower consumption of mainly pulses, fruits and vegetables. These findings contrast with the literature that has established some positive dietary diversity implications of oil palm expansion in Southeast Asia. We carefully discuss these findings and argue that context matters and may explain these differences. Particularly, we show that oil palm production is negatively associated with farm production diversity in Cameroon. Notwithstanding, we also confirm previous findings that highlight that oil palm production is associated with higher income. These insights add to the debate on the implications of oil palm expansion in tropical environments. Moreover, they can guide policy in designing more tailored interventions that address nutrition issues and improve rural development.     

PART TIME FARMING—IMPLICATIONS FOR FARM FAMILY INCOME

The Common Agricultural Policy has been more successful at securing food supplies than at providing adequate incomes for small farmers. Among proposals for resolving the problem, part time farming is a promising option. To date, agricultural policy has at best ignored farms below the ‘full time’ threshold, at worst discriminated against them. The new Agricultural Structures policy embodies a more positive approach, however. Robson's paper calls for better information on farm households with other gainful activities. Statistics from the 1983 Farm Structure Survey provide insight into the nature and extent of part time farming in the European Community. Neglect of part time farming in the UK up to now may have stemmed from its perceived irrelevance for agricultural policy. Now that it is being viewed in a more favourable light, policy makers need to be appraised of the facts. Currently about one third of main agricultural holdings in England and Wales are part time farms in the sense that farmer or spouse combines another paid job with farming. Gasson's paper explores the nature of these other jobs and features of their distribution. Following trends in other developed countries, non-farm activities are becoming increasingly important for UK farming families. Growth in part time farming has obvious implications for income support, widely agreed to be the fundamental objective of agricultural policy in western Europe. Existing farm income measures are not adequate for assessing the extent of the income problem in agriculture. Data from the Inland Revenue's Survey of Personal Incomes and the Wye College part time farming survey fill some of the gaps left in official measurements. Non-farming earnings, pensions and investment income contribute significantly to farm household incomes. A majority of part time farming families in England and Wales make more from other sources than from farming. Although average incomes of part time farmers may exceed those of full timers, Hill's paper identifies a section of part time farming families with inadequate incomes from all sources.     

The Dynamics of Farm Incomes: Panel data analysis using the Farm Accounts Survey

This paper uses longitudinal information from the Scottish Farm Accounts Survey to explore the dynamics of Scottish farm incomes between 1988/89 and 1999/2000. Both the Net Farm Income and Cash Income of farms are considered. The results show high levels of income variability and income mobility within Scottish agriculture. Although exit rates from the lowest income groups remain relatively high even when spells of low income have lasted a number of years, there is evidence of farms with persistent low farm income and farms experiencing repeated spells of low‐income. Smaller farm size and having a farmer aged over 65 increase both the probability that a farm will fall into the lowest income group and the length of time spent in that income group. Further the results suggest that the impact of the post‐1997 agricultural recession on income mobility depended on the income status of the farm when the recession began.     

Brexit: How Will UK Agriculture Fare?

There is little doubt that Brexit would have significant implications for UK agriculture, a sector with strong trade links to the EU and strong reliance on CAP income support. This article reports preliminary results from employing a Computable General Equilibrium Model, a Partial Equilibrium Model and Farm Level Models to explore selected trade and domestic policy scenarios post‐Brexit. These allow for the estimation of changes in producer prices, production and farm incomes against a baseline scenario of continued EU membership. Under a Free Trade Agreement with the EU, agricultural impacts are relatively modest. By contrast, unilateral removal of import tariffs has significant negative impacts on prices, production and incomes. Adoption of the EU's WTO tariff schedule for all imports favours net importers (e.g. dairy) and harms net exporters (e.g. sheep). Given the strong dependence of most UK farms on direct payments, their removal worsens negative impacts of new trade arrangements and offsets positive impacts. Impacts vary across different types and sizes of farm, but also regionally. However, the period of adjustment to new trade and domestic policy conditions may prove very challenging for a large number of farm businesses.     

国有林场改革成效评价——职工获得感的统计分析

利用国有林场职工监测数据,基于物质维度和精神维度,从改革后职工自身的收益情况、职工对林场的整体评价、职工对林场管理方式的评价等方面,采用比较分析法和主成分分析法对国有林场改革职工获得感进行分析。研究结果表明:国有林场改革后职工获得感有所提升,改革进程与职工获得感呈强正相关性,改革促进了林场的可持续发展。但林场整体基础设施环境一般,场部相对较好,管护站点则较差。同时,在领导班子建设方面应注重自主、公平,仍需提高领导水平。     

我国家庭农场发展现状及其对策研究

家庭农场是在我国农村现有基础上建立的,是新型的农业生产主体,是实行农业现代化的金钥匙。家庭农场的出现,既增加农民的收入,又可以实现农业生产的产业化。文章运用文献分析和实地调研相结合的研究方法,分析了当前我国家庭农场的发展现状,即我国家庭农场呈现出经营规模不同、经营品种不同、经营效益较好、具有市场竞争力等明显特征。家庭农场的发展面临大好机遇,但是也存在土地产权认识不明晰、资金短缺、劳动力缺乏等瓶颈问题。并提出明确家庭农场认定标准、引导土地向家庭农场流转、农民的技术培训、完善农业保险、政府给予一定的资金政策等建议,旨在为各地区制定发展家庭农场政策提供参考。     

Catching Up or Falling Behind in European Agriculture: The Case of Milk Production

The paper explores and analyses the catching up and falling behind processes in the European dairy sector over the period 2004–2011, using a stochastic metafrontier multiple output distance function for 24 EU Member States. The metafrontier estimates reveal considerable productivity differences in milk production across the EU at the regional (NUTS‐2) level. Milk yield per cow is the highest in the old Member States, especially in those regions located in the northwest of the EU, while the lowest productivity is observed in Eastern Europe. The same structure was found for both the TFP (Total Factor Productivity) levels and TFP growth. Moreover, the results for technical change suggest that farm sizes are not optimal in many regions in Central and Eastern Europe from a dynamic perspective. The comparative analysis suggests that in the new compared to the old Member States, fewer farms could benefit from the movement of the frontier. Moreover, there are no signs that poorly performing farms are catching up with the best performing farms in the EU regions/countries.     

Policy drivers of farm succession and inheritance

Farm succession and inheritance is increasingly considered a complex phenomenon which not only affects core dimensions of farm family life but also the agricultural sector more widely. Intergenerational farm transfer in particular is increasingly viewed as fundamental to the sustainability and development of global agriculture. In the majority of EU countries, the average age of farmers is increasing, while the number of farmers under 40 years of age is decreasing. There is growing concern that this demographic trend may have negative impacts on the agricultural industry because it is younger and not older farmers who are associated with more efficient and effective production practices. The question of what motivates decisions to transfer farms is a complex one, and research to date has not apparently enlightened agricultural policy to the extent that current trends towards an ageing farm population are being managed. This research aims to investigate economic and financial aspects of the policy drivers of farm succession and inheritance in Ireland to understand what it is about the policy environment that is failing to stimulate higher levels of farm transfer. It draws on the Teagasc National Farm Survey data which provides Irish data to the Farm Accountancy Data Network in the European Commission. A hypothetical microsimulation model is used to investigate economic factors of farm transfers, with scenarios created to test these factors and their impacts on the transfer process. The Net Present Value (NPV) of income streams for farmers and their successors are calculated to assess which scenarios have the highest/lowest financial effects. The findings illustrate a range of possible scenarios for farm succession/inheritance, with some results indicating that under current policy retaining a farm until death may be more economically beneficial to a farmer than transferring land before death.     

Analysing behavioural differences of farm households: An example of income diversification strategies based on European farm survey data

Different forms of income diversification represent important strategies of farmers to either cope with the changing economic framework conditions or to valorise given territorial potentialities. Nevertheless, the decision to diversify economic activities on or off the farm will heavily depend on the agricultural business and household characteristics. Our study used a survey of 2154 farms from eleven European regions to identify distinct farm types in order to investigate differences regarding the willingness to diversify in the future. Two scenario situations with continuation (baseline) and without any market intervention (“No CAP”) were tested. A factor and cluster analysis depicted six farm types both previously described and novel. The typology proved validity across all case studies, whereas single types occurred more frequently under specific site conditions. The six farm types showed strong variations in the stated future diversification behaviour. Young farm households with organic production are most likely to diversify activities particularly on-farm, whereas farm types characterised by intensive livestock holding and also already diversified and part-time farm households are least likely to apply this strategy. Results have further shown that under hypothetical conditions of termination of economic support by the Common Agricultural Policy (CAP) an increasing share of farmers – throughout all types – would apply income diversification, mainly off-farm diversification, as a survival strategy.