Can technology help achieve sustainable intensification? Evidence from milk recording on Irish dairy farms

This article explores the potential of a farm technology to simultaneously improve farm efficiency and provide wider environmental and social benefits. Identifying these ‘win-win-win’ strategies and encouraging their widespread adoption is critical to achieve sustainable intensification. Using a nationally representative sample of 296 Irish dairy farms from 2015, propensity score matching is applied to measure the impact of milk recording on a broad set of farm sustainability indicators. The findings reveal that the technology enhances economic sustainability by increasing dairy gross margin and milk yield per cow. Furthermore, social sustainability is improved through a reduction in milk bulk tank somatic cell count (an indicator of animal health and welfare status). Conversely, milk recording (as it is currently implemented) does not impact farm environmental sustainability, represented by greenhouse gas emission efficiency. While the study shows that milk recording is a ‘win-win’ strategy, ways of improving current levels of utilisation are discussed so that milk recording achieves its ‘win-win-win’ potential in the future.     

Assessing the sustainability of Irish agriculture

Indicators encompassing the multidimensional nature of sustainability (economic, environmental and social) are developed here using Irish National Farm Survey data over an 11-year period (1996–2006). This is the first such study undertaken for Ireland, and the results show significant change over the decade in all three areas examined. The general concept of sustainability is discussed and the development of agricultural sustainability indicators in an Irish context is described. Individual indicators are dealt with in turn, and the RERC SMILE model is used to demonstrate how these indicators can be derived at a spatial level below the national scale. Economic viability was found to be generally in decline over the 10-year period examined. However, when individual farming systems were taken into account, some were found to perform better than others. From an environmental perspective, the more intensive farming systems (primarily dairy) were found to pollute more on average, while in more general terms the levels of methane emissions produced per hectare have been falling over the reference period. Results also indicate that rural Ireland is experiencing a period of fundamental change in terms of the demographic viability of its farming community.     

Farm technical and environmental efficiency and subsidy redistribution in Ireland: A simulation approach of possible performance and equity effects

We investigate the relationship between EU Common Agricultural Policy environmental payments, and dairy and beef farm level competitiveness and environmental performance. We use an Irish panel of farm level financial data for the years 2000–2017 and apply stochastic frontier analysis. Our estimates identify a positive relationship between technical efficiency and the Green, Low-Carbon, Agri-Environment Scheme for dairy farms, in contrast with the negative relation identified for previous payments of this kind such as the Rural Environment Protection Scheme for both beef and dairy. We then simulate increases in the first type of environmental payments financed through reductions in decoupled payments. We use alternative scenarios for payment redistribution such as flat allocation, allocation to farms with low stocking rates or proportional reallocation of payments. We find that under the second scenario, marginal environmental gains can potentially be achieved for dairy farms. For beef farms, the proportional allocation performs best regarding environmental gains. We also find that under this scenario, the impacts on income inequality can be smoothed for both farm types.     

The factors influencing the profitability of leased land on dairy farms in Ireland

The Republic of Ireland possesses a land market that is constrained by minimal sales each year, less than 1%. In an effort to capitalise on milk quota abolition and to increase dairy production, a suite of tax incentives has recently been introduced in the Republic of Ireland to encourage land mobility and long-term leasing among Irish dairy farmers. Using Irish Farm Accountancy Database Network (FADN) data from 2011–2017 to examine this, a Heckman sample selection model explores two aspects; (i) the factors that influence a farmer’s decision to rent, or continue renting, land and (ii) the profitability of dairy farmers renting in land. We find self-selection into the rental market is driven by farm traits that include a high level of hired labour, the presence of a successor, intensive farming practices and dairy discussion group membership. The results show that rental agreements assist farms in achieving economies of scale. The findings provide evidence to support government intervention such as tax incentives for renting out land and knowledge sharing discussion groups.     

A meta-analysis examining the nature of trade-offs in microfinance

This meta-analysis reviews existing evidence on the ability of microfinance institutions (MFI) to achieve social and financial goals simultaneously. Through an initial screen of 3088 articles covering empirical tests on microfinance performance trade-offs, I synthesize 623 empirical findings from 61 studies to identify the dimensions of MFI performance, and study characteristics associated with trade-offs between financial and social objectives Overall, findings suggest that depth of outreach, cost of outreach, and efficiency indicators increase the prevalence of trade-offs, while risk indicators are associated with fewer trade-offs. Profitability indicators and outreach to women are found to have no significant effect on performance trade-offs. Additionally, study characteristics suggest that using an economic frontier methodology or publishing in development journals increases the incidence of trade-offs, while time trends reveal that trade-offs become less acute as the industry matures. Consequently, MFIs face difficult decisions in relation to the possibility that social goals need be sacrificed to achieve financial sustainability.     

Economic Analysis of the Policy for Accreditation of Dairy Farms Free of Bovine Brucellosis and Tuberculosis: Challenges for Small and Large Producers in Brazil

One of the cornerstones of the National Program for Control and Eradication of Bovine Brucellosis and Tuberculosis in Brazil is the voluntary accreditation of free herds. We developed a stochastic cost–benefit analysis model for two types of dairy herds (high yield Holstein‐Zebu crossbred females and lower productivity smaller scale herds) to identify the technical and economic constraints of this process. The initial prevalence of infected animals and the impact of the disease in the structure and performance of the herd were derived from secondary data. Information on the costs and benefits of herd sanitation were compiled into a cost–benefit model at the herd level. The last step consisted of a scenario simulation to evaluate the impact of alternative policies to the certification process. For each scenario, we calculate the probability over time of a Benefit–Cost Ratio greater than 1 and of an Internal Rate of Return above 1% (the discount rate used in the model). Results show that larger and more intensive dairy farms, and also herds affected by brucellosis compared with tuberculosis‐positive herds, are more likely to achieve financial gains from the certification investment. The compensation for culled animals is important in the initial phase of herd sanitation and the premium payment on milk would help farmers to achieve a return on the investment over time. The model can be adapted to different and dynamic production, epidemiological and economic settings.     

The novelty of simple and known technologies and the rhythm of farmer-centred innovation in family dairy farming in Brazil

Family dairy farming is under threat from the expansion of the sugarcane economy in south-eastern Brazil. This paper analyses an intervention programme which aimed to intensify dairy production and make family dairy farming sustainable in this competitive context. The case study of the ‘Balde Cheio’ Programme (Full Bucket) can be seen as an alternative method of knowledge generation to that of the dominant research approach which prioritizes cutting-edge technologies. This paper characterizes this farmer-oriented innovation programme for dairy farming systems, in which research, development and extension are seen as a long-term learning process. It analyses how the programme has been adapted to fit the diversity of situations found amongst farmers and to heterogeneous production conditions. The study relates the circulation of knowledge, the search for innovation by recombining apparently simple and known technologies, the use of experiments on the farm and the adaptation of the rhythm of innovation to the specific situation of the farm as the critical issues to achieve sustainable production systems.     

Internal and contextual drivers of dairy restructuring: evidence from French mountainous areas and post‐quota prospects

The end of the milk quota system in Europe has resulted in substantial structural changes to the dairy industry, calling its future into question, especially in mountainous areas. This study analyzes the internal and contextual factors that influence dairy restructuring in French mountainous areas. Three complementary logit models are used to specify farmer decisions (e.g., dairy production exit, stability, and growth). Original and exhaustive geo‐located administrative datasets are combined to create a farm longitudinal dataset and characterize farm‐restructuring patterns on a fine geographical scale. Farm size, corporate legal status, and specialization are positively associated with farm growth. Viable diversification strategies through either farm processing or agro‐environmental scheme contracting are also highlighted. Farm sustainability is supported by the economic success of the local industry and the propensity to adopt extensive practices. With respect to public policy, dairy policy appears to have the strongest impact. Thus, the liberalization of dairy policy threatens the future of dairy farming, particularly in areas with low milk density and no production under labels. This work calls for a policy that promotes the collective dimension of dairy farm performance. The current rural development policy alone may be insufficient to support farms’ long‐term sustainability.     

传统要素、创新要素与农业科技园区经济增长*——基于106个园区的实证分析

［目的］加强农业科技园区建设是我国未来农业科技创新工作的重要内容。通过理清创新类生产要素对农业园区经济增长的作用机制,提出园区吸引创新要素、提升创新能力的政策建议,为破解增长瓶颈提供参考。［方法］利用106个国家级农业科技园区2001—2016年要素投入与产出数据,估算创新要素与传统要素的产出贡献度,并分别使用年度均值和随机收取的11家分属于不同区域的园区个体数据,对东部、中部和西部园区的要素贡献度差异进行比较。［结果］三大区域创新要素产出占总产出的比重成倍高于同区域传统要素产出所占比重,对总产出的贡献显著; 西部地区创新要素投入对总产出的贡献率高于东部地区,中部地区创新要素投入对总产出的贡献率接近东部地区。［结论］以创新引领为特征的新经济增长不依赖于传统经济优势,加大创新要素投入是实现赶超、破解农业经济发展瓶颈的重要手段之一; 塑造园区成为农业科技创新平台和科技孵化培育载体,就能够通过创新要素的微观作用机制,以正外部经济效应带动农业及其周边产业快速增长。     

Urban greening: A new paradox of economic or social sustainability?

Cities globally have incorporated sustainable development into their planning, and led the way in responding to the world’s ecological crisis by “going green”. Urban green space accessibility is considered as the key to urban sustainability progress, not only environmentally, but also economically and socially. However, previous research rarely considers the latter two dimensions together. This study therefore joins the sustainability discussion from a new perspective, in particular the debate concerning the value of urban green spaces and whether and how they contribute to the variegated sustainability agenda? Based on data for 76,595 residential housing units in New York City, measuring the economic gains and equity losses from current urban green space accessibility reveals a paradox in sustainable development where the economic and social benefits of urban green space accessibility are seldom compatible, tending to involve a trade-off of some kind. In response, it is proposed that the spatial patterns of land use can represent a step towards multifaceted aspects of sustainability, with the provision of numerous small green areas that are “affordable and accessible” throughout the city being a more appropriate policy agenda than a few vast parks. Such a policy approach, it is argued, will provide a ‘win-win’ situation in terms of simultaneously contributing to both economic prosperity and the social justice of sustainability. This research also provided evidence for the institutional-driven countries such as China on how to learn from western experiences on planning land use patterns that are sustainable for individuals.     

Gains and structural effects of exploiting scale-economies in Norwegian dairy production

In this paper, we present calculations of the economic gains in terms of reduced costs by exploiting scale‐economies in dairy production in Norway, and the effect this would have had on the number of farms. We also explore whether or not optimal scale and unexploited scale‐economies change over time due to scale‐augmenting technical change. The analysis is based on homothetic cost functions estimated by means of data for individual dairy farms for the period 1972–1996. For 1972, we find that, by full exploitation of scale‐economies, the costs could have been reduced by almost 40%, while the number of farms would have been reduced by more than 85%. The number of small farms has been substantially reduced in the period considered. This fact, combined with small scale‐augmenting technical change, implies that the gains and structural effects of exploiting scale‐economies have decreased over time. In 1996, costs could have been reduced by close to 30% by full exploitation of scale‐economies, while the number of farms would have been reduced by slightly more than 70%. Thus, both gains and structural effects are substantially less than in 1972. Nevertheless, the calculated gains for 1996 make almost 5 billion NOK. This corresponds almost exactly to the total public support to the dairy farms in 1996. The unexploited scale‐economies are largely due to the agricultural policy. Thus, a substantial share of the same can be considered as part of the‘price’ the Norwegian society has to pay for this policy. In addition, there are likely to be large hidden costs of this policy due in particular to the quota system and other direct production regulations. They imply that technical innovations and other efficiency‐improving investments requiring increased production to be profitable are not carried out. This is the more likely explanation for the extremely poor efficiency development in Norwegian dairy production in the period studied.     

Measuring progress in agricultural sustainability to support policy-making

The concept of sustainability is one of the forefront issues in discussions of the challenges facing global agriculture, given the mounting pressure to increase food production in both socially responsible and environmentally friendly ways. From the perspective of Irish agriculture, sustainable intensification is of particular relevance, given ambitious targets to increase milk production in the context of European Union (EU) milk quota removal in 2015. A series of farm-level sustainability indicators are developed here using the Teagasc National Farm Survey FADN (Farm Accountancy Data Network) data for Ireland from 2012. Three dimensions, reflecting the multifaceted nature of sustainability (environmental, economic and social) are considered. Given the environmental challenges inherent in the sustainable intensification of agriculture, it is encouraging to observe that the more intensive, top performing farms (in an economic sense) emit relatively less greenhouse gases when compared to their less intensive counterparts. Conversely, the better performing farms in economic terms tend to have a higher nitrogen surplus per hectare on average. This is consistent with their higher rates of production intensity, but poses a challenge in terms of sustainable intensification and expansion. That said this analysis demonstrates that the nitrogen use efficiency of milk production is positively correlated with economic performance, with more intensive farms producing relatively more milk per kilogram of nitrogen surplus. From the perspective of social sustainability, demographic traits also tend to be positively correlated with economic performance. Given a growing recognition of the need for interconnected policy in the area of sustainability, this research should help inform policy debates and provides a guide for the undertaking of similar assessments elsewhere.     

Assessing a farm's sustainability: insights from resilience thinking

Research on sustainability in agriculture often focuses on reducing the environmental impacts of production systems. However, environmentally friendly production methods may not be sufficient to ensure the long-term economic and social sustainability of a farm. Taking a systems approach to sustainable farming, we turn to resilience thinking with its focus on the interdependence of social and ecological systems. We apply this approach to farming by conceptualizing a farm as being part of a set of systems spanning several spatial scales and including agro-ecological, economic and political-social domains. These subsystems interact and are subjected to their own complex dynamics. Within such a complex adaptive system, farm sustainability can only be achieved through adaptability and change. To be ready for the inevitable periods of turbulent change, a farmer needs to retain diversity and redundancy to ensure adaptability. Resilience is thus more likely to emerge when farmers hone the capacity to transform the farm, when farm production is attuned to the local ecological carrying capacity, and when learning and innovation are targeted outcomes. This article shows how resilience theory applied to farming may provide a more comprehensive route to achieving sustainability and offers rules of thumb as guides to building farm resilience.     

Interrogating sustainable productivism: Lessons from the ‘Almerían miracle’

Many have suggested that a new form of sustainable agricultural productivism is needed in response to the challenges to food security posed by climate change and population growth. This paper employs elements of ecological modernisation theory and focusses on sustainability challenges and solutions, as well as the knowledge networks and production rationale to assess whether the intensive horticultural industry located in the Spanish province of Almería represents sustainable productivism. The Almerían horticultural industry, lauded as an example of neo-endogenous growth, manifests a range of sustainable technologies addressing environmental impacts. Yet, we argue that Almerían horticulture represents ‘weak ecological modernisation’ and its main sustainability challenges are posed by water scarcity, a demand led production rationale and the precarious situation of family farms that at present provide a degree of economic embeddedness in this highly industrialised production model. A competitive imperative yields marketing organisations huge sway in production decision-making, and while a cost-price squeeze has driven efficiency in the use of farm inputs and product innovation, it has paradoxically made further advances in sustainable water management very difficult to achieve. Transforming the Almerían horticultural industry into a truly sustainable model of productivism would require the concerted efforts of individual farmers and marketing organisations as well as regional and local water governance institutions and land use planning. A significant obstacle to this remains the dominant normative perception that justifies groundwater abstraction on the grounds of its high economic returns and the perceived inability of small farmers to invest in desalinated water or further technological solutions.     

Ranking farms with a composite indicator of sustainability

The assessment of sustainability at farm level has been growing in popularity over the last few years. This article contributes to this line of research by building up composite indicators for different facets—social, economic, environmental, and global—of farm sustainability using a methodological approach that combines data envelopment analysis (DEA) and multicriteria decision making (MCDM) methods, and assigns common weights to each individual sustainability indicator. This approach is applied to a database of 163 farms located in the Campos County, a region belonging to the dry lands of the Spanish Northern Plateau, using 12 individual indicators of sustainability. Our findings show that both economic and environmental composite sustainability indicators are positively correlated, but that this is not the case for the social indicator. We also check the influence of a set of variables on farm sustainability using bootstrapping statistical techniques, and showing that increasing farm size, membership in agricultural cooperatives and farmers’ medium and upper agricultural‐specific technical education, all exert a significant positive influence on sustainability. These results provide clues for policy makers that intend to design sustainability‐increasing structural agricultural policies.     

Green infrastructure planning: Unveiling meaningful spaces through Foursquare users’ preferences

The design of efficient Green Infrastructure —GI— systems is a key issue to achieve sustainable development city planning goals in the twenty-first century. This study’s main contribution is the identification of potential GI elements to better align the environmental, social and economic perspectives in the GI design by including information about the use, activities, preferences and presence of people. To achieve this, user generated content from Location Based Social Network —LBSN— Foursquare is used as a complementary data source. This involved the construction of an interdisciplinary correlation framework, between the Landscape Ecology principles and the GI elements, that included the classification of Foursquare data into grouping types. The classification considered the potential role of Foursquare venues in the GI network. Valencia City in Spain served as an illustrative case study to test the validity of the proposed method. The results suggest that Foursquare can provide a valuable insight on user perceptions of potential GI elements. Moreover, the findings indicate that user generated content from LBSNs like Foursquare can serve as a complementary tool for analysing the dynamics of urban outdoor spaces to assess GI network, thereby facilitating more effective urban planning and contributing to the social sustainability of the city.     

Delivering on the Potential of the New CAP

Recent discussions on the CAP have focused on the budget. However, in the public debate the policy itself is often still a caricature of the old CAP that existed until the early 1990s. The CAP has changed fundamentally over the past decade. The recent direction of the CAP – markets and rural development – was set by the European Council in Göteborg and Lisbon. Strong economic performance must go hand in hand with the sustainable use of natural resources. The key elements of the new CAP are a market policy where intervention is a safety net, income stabilisation is delivered through decoupled aids subject to cross-compliance, and a reinforced rural development policy that focuses on jobs, growth and sustainability. We must use the new CAP to unlock the potential for growth, jobs and innovation and put good ideas into practice. We need to work in partnership with farmers, foresters, the agrifood business, NGOs, the population of rural areas, the research community and of course public authorities. But to achieve all of this we need a stable budgetary environment, in which farmers and businesses can plan. In short, we need the resources to deliver on the potential of the new CAP.     

THE FUTURE OF EEC DAIRY EXPORTS TO THE LESS-DEVELOPED COUNTRIES: AGRICULTURAL ECONOMICS OF LONG-RANGE PROJECTIONS AND MODEL STUDIES

From recent projection studies it can be concluded that future dairy exports by the EEC to the Less Developed Countries (LDCs) will increase. The self-sufficiency ratio for dairy products in the EEC will increase because of strong, technologically induced, growth of production potential. On the one hand, surplus production in the EEC will be difficult to curtail as the unfavourable conditions of the general economy will impede outmigration of inputs. Import demand, on the other hand, is projected to increase as many populations will be moving into stages of higher growth of income. Thus, input restrictions of agriculture in industrialised countries may be unnecessary. In this paper some agricultural economic aspects of the implied trade relationships are discussed. It is concluded that LDCs are not likely to benefit from gains of trade as predicted by theory of free trade and international specialisation. From projections by model studies, however, no consensus emerged. Projection and model studies seem hardly suited to provide insight in the effects of international trade under conditions of imperfect competition.     

‘Good’ farm management employment: Emerging values in the contemporary Irish dairy sector

The number of Irish dairy farms with herds greater than 100 cows has increased from 4.5 % in 2005 to 23 % in 2016. The abolition of the dairy quota in 2015 has led to predictions that this trend will continue and that an additional 6000 people will be required to work on dairy farms by 2025. Ownership of farms is esteemed, with farm employment perceived as a poor second option, so it is necessary to identify possible routes towards creating 'good' farm employment relationships. This paper explores the social, cultural and economic values of employers and employees in the context of early experiences of farm employment in post-quota Ireland. Using narrative analysis, this study found that employees gained esteem and pride from acquiring managerial responsibilities and receiving recognition for their abilities and accomplishments from their employers. Greater social recognition of employ’ abilities by peer groups and in networks (social capital) cemented ‘good employee’ status. Employers, in a context of unprecedented dairy production expansion, emphasised the need for and demonstrated changing of power structures to open up the farm to new forms of influence. However, employers’ reflexivity in support of employment relationships was undermined overall by what the management literature calls a weak ‘rewards system’ for employees. Without the supportive scaffolding of a formalised rewards system, relational gestures of responsibility-devolution and employ’ appreciation of employees may be insufficient to sustain quality farm management employment in the long term. Inevitably, this diminishes the attractiveness of farm employment, limiting the drawing of talent not only into farm employment but into associated capacity-building programmes.     

Farmers in a deregulated dairy regime: Insights from Ireland's New Entrants Scheme

While the impending review of the European Union (EU) Common Agricultural Policy (CAP) is set to have an impact on all farming sectors across Europe, particularly transformative change is sought by policies relating to dairy farmers. EU milk quota abolition in 2015 will fundamentally revise the terms of dairy production, transitioning from policies of subsidy and protection to a scenario where farmers will produce milk on the open market. Dairy quota abolition essentially represents an economic but also socio-cultural disruption for a sizeable cohort of farmers, requiring adaptation to more market-driven production strategies. Agricultural policy-makers in EU member states are demonstrably preparing for this imminent change and dairy farmers are considering and strategising their responses at farm-level. Our focus in this paper is the interplay between quota abolition and farm-level decision-making in the pre-abolition period. Drawing from a broader mixed-methodological and multi-disciplinary research project, this paper uses qualitative narrative analysis to identify the key determinants arising in dairy farmers’ decision-making processes. How are farmers currently strategising their responses to dairy quota deregulation? Using the qualitative Biographic Narrative Interpretive Method (BNIM), we examine the range of factors determining how a particular group of dairy farmers are strategising their positions on the impending open dairy market. Our analysis highlights how, in the advent of a deregulated dairy production regime, dairy farmers are carefully deliberating their responses at farm level, drawing from policy and market related information, their own personal speculations, and conventional wisdom shared with other members of the farming community. We find that the dairy farmers are influenced not only by motivations to increase productivity and scale but by a tenacious approach to farm sustainability and resilience that is informed by past experiences of farming and seeks to preserve and promote socio-cultural farming values. The paper is of particular interest to policy makers and academics interested in the interchange between policy and farmer behaviour, particularly in the context of current CAP reform.