Recreational demand for farm commonage in Ireland: A contingent valuation assessment

This paper measures willingness to pay (WTP) for public access and trail improvements on commonage farmland for recreational walking in upland and lowland areas of Connemara region in the West of Ireland using the contingent valuation method (CVM). Common to both upland and lowland commonage sites was the much higher ranking for infrastructural features by those WTP for scenario implementation compared to those preferring the status quo. Results for those expressing a positive WTP reveal a median willingness to pay (MWTP) for formal access with improved trail infrastructure of €12.22 for the lowlands compared with €9.08 for the uplands.     

On-farm computers for farm management in Sweden: potentials and problems

The potential uses of on-farm computers in management and the problems in these uses are analyzed. The analysis is based on a study of present uses of on-farm computers in Sweden. The results are compared with experiences from other countries. On-farm computer owners use almost the same management methods as before the computer investment. The main difference is that they used to hire service organizations to do some of the management tasks and now they are doing it by themselves with the aid of the computer. Thus, the on-farm computer owners have to have the same knowledge level as the service agents and advisers. The use of on-farm computers has so far affected the processing and storage of data for farm management purposes. A potential next step is communication of data from external computer systems at suppliers, customers, advisers and other farmers as well as automated data capture within the farm. One hindrance for this development is the lack of standardization of data and concept definitions. If this potential was realized the marginal costs of data and information would decrease. It would be profitable to use more information in the farm management, i.e. to develop the farm management functions. When farmers develop their management methods they will need still more knowledge. Service agents and advisers would have to change from doing management tasks for farmers to teaching farmers how to do these tasks and supporting farmers in the interpretation and analysis of information.     

Where's the economics? The core discipline of farm management has gone missing!*

Economic illiteracy is abundant in farm management analysis. Failure to understand that economics is the core discipline of farm‐management analysis and failure to apply the whole‐farm approach leads to wrong questions being asked and wrong answers being given. The power of economic thinking is in making sense of resource allocation questions in farm systems characterised by much complexity and powerful dynamics. The challenge for those who continue to work in farm management economics is to re‐establish theoretically sound farm‐management analysis based on economics as the core discipline.     

Crop genetic diversity, farm productivity and the management of environmental risk in rainfed agriculture

This paper presents an assessment of the linkages between cropgenetic diversity, farm productivity and risk management. Aflexible moment-based approach is used to analyse the impactof crop genetic diversity on the mean, variance and skewnessof yield. Using farm-level data from Sicily (Italy), econometricevidence shows how crop genetic diversity can increase farmproductivity and reduce risk exposure. The empirical resultsindicate that crop genetic diversity can reduce variance, butonly if pesticide use is low. Furthermore, high diversity levelscan reduce downside risk exposure (e.g. the risk of crop failure).This provides useful insights on the linkages between resilienceand crop genetic diversity.     

Land tenure and farm management efficiency: the case of paddy and cinnamon production in customary land areas of Sumatra

This study attempts to identify the impacts of land tenure institutions on the efficiency of farm management based on a case study of lowland paddy (rice) and upland cinnamon production in customary land areas of Sumatra. While the traditional joint-family ownership system is found to exist in paddy land, more individualised ownership systems are widely observed in upland areas. Yet, we found no statistical evidence that residual profit per unit of land is affected by land tenure institutions in either the lowlands or uplands, indicating that the prevailing land tenure institutions are equally conducive to efficient farm management.     

Seasonality and unit roots: the demand for fruits

We apply seasonal unit root tests to apple and pear price and quality data. We then develop a method for testing shifts in amplitude and/or phase of the seasonal cycles. The results have implications to speifications of models which use short-run data (quarterly, monthly).     

Building knowledge systems for sustainable agriculture: supporting private advisors to adequately address sustainable farm management in regular service contacts

Advisory service provisioning on sustainability issues such as environmental care and food safety is considered suboptimal in privatized extension systems, which comprise a diverse set of private advisors. Apart from funding dedicated ‘public good’ projects, government also relies on these advisors to address sustainability issues in their regular service contacts with farmers. Policy measures have hence been proposed to stimulate farmer demand for such sustainable farm management (SFM) advice (pull measures) and to build capacity among advisors (push measures). This paper assesses two interventions, in nutrient management and mastitis prevention, that integrate pull measures (awareness building and economic incentives) and push measures (promoting facilitative advisory styles and optimizing knowledge system linkages) to stimulate advisory service provisioning on SFM. Results indicate that effectiveness appears to depend on an adequate mix of, and balance between, push and pull measures. Awareness building is a prerequisite to creating demand for such services and appears more important than economic incentives. However, awareness is not built by the interventions alone; indeed, a lack of awareness may not be the main problem: the broader institutional context may not be conducive to a proactive approach to addressing SFM if regulatory frameworks are unclear and inconsistent. The main conclusion is that, despite interventions having an impact, it is uncertain whether the demand for, and supply of, SFM advice will be sustained after interventions are withdrawn.     

Evaluating the effects of farm programmes: results from propensity score matching

The paper applies a semi-parametric propensity score matchingapproach to evaluate the effects of agri-environment (AE) programmeson input use and farm output of individual farms in Germany.The analysis reveals a positive and significant treatment effectof AE programmes on the area under cultivation, in particulargrassland, resulting in a decrease of cattle livestock densities.Furthermore, participation significantly reduced the purchaseof farm chemicals (fertiliser, pesticide). We also find differencesin the treatment effect among individual farms (heterogeneoustreatment effects). Farms that can generate the largest benefitfrom the programme are most likely to participate.     

Neural Networks for Forecasting: An Introduction

Neural networks are nonlinear mapping structures based on the study of the human brain. They have been shown to be universal and highly flexible junction approximators to any data-generating process. Therefore, they are powerful models for forecasting purposes, especially when the underlying data-generating processes are unknown. However, the appropriate design of the network's architecture and learning rules are crucial for obtaining satisfactory results. This study discusses the scope and limitations of neural networks for forecasting problems and provides an example by designing a neural network for forecasting. It is argued that statistical theory can offer some suggestions for designing an optimal network architecture. An example comparing a neural network and ARIM model for forecasting weekly corn prices 1974 through 1993 is provided. Results show the neural network model to be more accurate than the ARIMA.     

Determinants of farm diversification in the Netherlands

Farm diversification has been prominently supported by agricultural policy makers aiming to support rural development. To increase the understanding of determinants influencing diversification and hence to increase the efficiency of policies aiming to support farm diversification this paper presents the results of an analysis of diversification determinants. The research investigates Dutch farms diversification strategies using Farm Structural Survey (FSS) data of 2011 including 70,392 farms. The study uses a binary logit model to determine the characteristics influencing the diversification decision in general. Furthermore, an in-depth analysis for six diversification strategies was conducted. Additionally the study categorised the specific diversification activities in order to estimate a multinomial probit model, analysing three choice categories simultaneously. This enables us to compare determinants of farm diversification in general with determinants of specific activities. The analysis includes socio- demographic, economic and geophysical farm characteristics assumed to influence the diversification decision. Even though diversification is largely influenced by similar determinants, we find differences that are most pronounced for the adoption of nature conservation strategies. Consequently, it is important for policy makers to target policies at specific diversification activities in order to increase efficiency.     

Interlinked credit and farm intensification: evidence from Kenya

This paper addresses the potential for interlinked credit/input/output marketing arrangements for particular cash crops to promote food crop intensification. Using panel survey data from Kenya, we estimate a household fixed-effects model of fertiliser use per hectare of food crops, using an instrumental variables approach for addressing the endogeneity of participation in interlinked credit arrangements. Results indicate that households engaging in interlinked marketing programs for selected cash crops applied considerably greater fertiliser on other crops (primarily cereals) not directly purchased by the cash crop trading firm. These findings suggest that, in addition to the direct stimulus that interlinked cash crop marketing arrangements can have on small farmer incomes, these institutional arrangements may provide spill-over benefits for the productivity of farmers' other activities such as food cropping.     

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.