The Effect of Off-farm Work on the Intensity of Agricultural Production |
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Authors: | E Phimister D Roberts |
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Institution: | (1) Department of Economics, University of Aberdeen, Scotland, UK;(2) University of Aberdeen Business School, Edward Wright Building, Aberdeen, AB24 3UF, Scotland, UK |
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Abstract: | Changes in agricultural production methods have been associated with environmental pressure and a loss of natural habitats. This paper explores the extent to which farmer participation in off-farm work (an increasing phenomenon in most developed countries) changes the intensity of agricultural input use focusing, in particular, on fertilizer and crop protection product use. A sample selection model that accounts for both unobserved heterogeneity between farms and the potential simultaneity between farm operations and hours worked off-farm is estimated for 2,419 farms in England and Wales. The econometric evidence indicates that the input intensity of products which have well-established links to environmental damage can increase as well as decrease. The results suggest that that fertilizer intensity may decline as off-farm labor increases while the use of crop protection per hectare increases as off-farm work increases. |
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Keywords: | crop protection farm household model fertilizer input intensity multifunctionality off-farm work panel |
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