Part-time farming in the Federal Republic of Germany

Part-time farming is playing a growing role In the agricultural sector's response to changes In the economic structures of the Federal Republic of Germany (FRG) and other western industrialized nations. The implications and fundamental reasons behind this trend have however been largely ignored by agricultural economists. This article sets out to discuss the relative importance of part-time farming in the FRG and the reasons for Its growth. The factors affecting demand for non-agricultural employment by former full-time farmers in a situation of overall underemployment are dealt with, along with the economic implications of this trend. The effects of these new sources of income on the agrarian population are outlined and the author suggests that the growth of part-time farming is yet another indication of the integration of the agricultural sector into the industrial economy.     

Net capital outflows and the viability of family farms

Abstract

The importance of the family farm in EC agriculture is undisputed. This paper focuses upon the potential impact on family farms of capital outflows which arise from the Napoleonic Code inheritance system which is in place in many continental countries. This system implies that the transfer of ownership of the farm between generations is typically associated with a requirement for the successor to buy out the non‐succeeding heirs. The potential effects of these capital outflows on the family farm's current consumption and ability to pass on a viable unit to the next generation is illustrated using two versions of a life cycle simulation model using two definitions of what constitutes future family farm viability. The numerical results give some indication of the extra burden imposed by the Napoleonic Code inheritance system relative to primogeniture.     

The growth of family farms in Hungary

The article investigates the validity of Gibrat's Law for Hungarian family farms using FADN data collected between 2001 and 2007. Gibrat's Law states that the growth rate of firms will be independent of their initial size. Regression results allow us to reject Gibrat's Law for all quantiles. Evidence suggests that smaller farms tend to grow faster than larger ones. Results do not support the hypothesis of “disappearing middle” in Hungarian agriculture. We study a number of socio‐economic factors that can help to explain farm growth. We find that total subsidies received by a farm and the farm operator's age are the most significant factors correlated with farm growth.     

Adoption of organic farming in Germany and Austria: an integrative dynamic investment perspective

Farm‐level adaptation to changing economic environments is often slower than expected. Technological innovations, for instance, are frequently adopted at a later date than the net present value of investment suggests. This can be explained by a model of “investment under uncertainty,” which consistently accounts for uncertainty, sunk costs, and the flexibility of investment timing. Its essential conclusion is that, due to temporal opportunity costs, critical incremental cash flows that trigger investments might be higher than those needed for simple cost recovery. This accounts for an ostensible reluctance to invest (economic hysteresis). In this article, we demonstrate how slow conversion to organic farming in general, and the different rates of conversion in Germany and Austria in particular, can be explained by the new investment theory.     

Input subsidies and crop diversity on family farms in Burkina Faso

Since their independence, many countries in sub-Saharan Africa have used input subsidies to increase agricultural productivity and improve food security. We analyse the effects of both a fertiliser and a seed subsidy on farming households' land allocation among crops and crop diversity in Burkina Faso. Although previous studies investigated either the impact of a fertiliser or a seed subsidy on targeted crops, few examined the effects of both subsidies combined. Applying a correlated random-effects model with a control function approach to nationally representative, 2-year panel data collected from farming households, we find that those with access to the fertiliser subsidy allocate more land to the crops it targets (rice, maize and cotton) than non-targeted crops. Focusing on a minor crop with key agronomic and nutritional attributes, we conclude that land allocation to cowpea as the primary crop and intercrop declined with the fertiliser subsidy. The fertiliser subsidy also negatively affects crop diversity. However, we find that the cowpea seed subsidy offsets the bias of fertiliser subsidy toward fertiliser-targeted crops and enhances diversity.     

韩国和德国保障粮食安全的经验值得借鉴——韩国、德国粮食安全考察报告

本文系统介绍了韩国和德国保障粮食安全的经验:目标明确、政府高额补贴、发展科技和规模经营、粮食储备、国际贸易调控;认为国际粮源偏紧,粮价将保持高位运行;建议我国坚持基本的粮食安全原则,既要保障粮食产量又要保障粮农收入,把粮食作为基础性公共品,注重科技进步和规模经营,尽情研究制定<国家粮食安全法>.     

The effect of nonfarm income on investment in Bulgarian family farming

This article documents a relationship between nonfarm income (primarily earnings and pensions) and agricultural investment in Bulgaria, specifically, expenditures on working capital (variable inputs such as feed, seed, and herbicides) and investment in livestock. Among those with positive spending on farm inputs, the estimated elasticity of these expenditures with respect to nonfarm income is 0.14. Nonfarm income also has an effect on the number of households that purchase farm animals, with an estimated elasticity of 0.35. The use of nonfarm income for farm investment is consistent with the presence of credit constraints, as is the fact that less than one percent of farmers report outstanding debts for agricultural purposes. Yet many farm households take out large unsecured loans for other purposes, primarily to cover consumption expenditures, implying that credit is available, but that farmers prefer not to use borrowed funds to finance agricultural investment. This would suggest that increases in the availability of agricultural credit may have little effect on farm outcomes, whereas increases in nondebt-financed sources of liquidity, such as subsidies or transfers, may better stimulate investment.     

The contribution of organic farming to rural development: An exploration of the socio-economic linkages of organic and non-organic farms in England

Organic farming has experienced considerable growth in recent years. Proponents of organic farming point to the environmental and nutritional benefits of organic systems, although these are contested by some. More recently, it has been argued that organic farming can provide rural development benefits through enhanced employment and through closer connections with the local economy, reconnecting consumers with producers and stimulating positive economic multipliers. Against the background of claims made for the rural development potential of organic farming, this paper considers the generation and retention of income, purchasing patterns, and direct employment impacts of a large sample of organic and non-organic farmers in England. The paper reveals some important distinctions between the characteristics of organic and non-organic farms and farmers. It is argued that most of these differences do not stem directly from differences in farming systems but, rather, reflect considerable differences in the people who operate organic farms as well as the distinctive business configurations they frequently adopt.     

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.     

Management of drinking water catchment areas in cooperation with agriculture and the specific role of organic farming. Experiences from Germany and France

Many problems with nitrate and pesticide contamination from agriculture exist in European drinking water catchments, and quite different management options are presently searched for. Among them, organic farming is considered as an important option to conciliate agricultural activities and water preservation. Based on different type of interviews, literature and documentation analysis, and participation in a steering committee, we compare the construction of agreements between city water utilities and farmers for the preservation of drinking water quality in three drinking water catchment areas (Munich and Augsburg in Germany, Lons-le-Saunier in France). The main differences found are the delimitation of the city's field of action, compensation payments for farmers for certain practices, involvement of the city council in the acquisition of land, and importance granted to organic farming. Successful city-farmer coordination is based on the presence of a facilitator as an intermediary, technical support, dialogue, contracts that span sufficiently long periods, and participation of farmers in elaboration of contracts. In this frame, organic farming did not appear as the major solution and was not systematically developed.     

Using an analytic hierarchy process approach to prioritize public policies addressing family farming in Brazil

In Brazil, some see intensive, large-scale production of sugarcane-based ethanol, based on a model of capital and land concentration, as a threat to the survival of family farming. Family farmers are increasingly under pressure to sell or rent land to mills where sugarcane monoculture is expanding. In this context, the government is working to formulate or change public policies in order to support farmer livelihoods in sugarcane growing regions. The present study is based on research conducted in the municipality of Ipiranga de Goiás, Goiás State, Brazil. It employs the analytic hierarchy process (AHP) method, with participation of stakeholders at federal, state and municipal levels, to support public policy decision-making addressing family farming. The stakeholders prioritize environmental and economic benefits as the most important criteria requiring the attention of policy makers. Also, stakeholders agree that diversification of production is the most appropriate alternative for strengthening family farming. The AHP approach can be the starting point in the formulation of public policies. The approach helps ensure transparency, and it purposefully includes family farmer points of view. Policies derived from this process, therefore, may have a higher likelihood of being supported and accepted by farmers.     

Factors affecting farm growth intentions of family farms in mountain regions: Empirical evidence for Central Switzerland

Family farms in mountain regions are undergoing a progressive structural change and an ongoing shift in the allocation of production factors land, capital and labor. In Switzerland, various policy measures influence the re-allocation of these production factors. To understand the effectiveness of these schemes and to assess future farm structural change, it is useful to analyze the underlying drivers which support and hinder the emergence of individual farm growth strategies. We study the family farms’ growth intentions using a logistic regression model based on a combination of census and survey data on family characteristics from two mountain case study regions in Central Switzerland. Factors supporting farm growth intentions are the relative change in farm size in recent years, farm related sunk costs, farm diversification and farm size. We found no support for the hypothesis that farm growth intention is also influenced by the perceived personal situation represented by indicators for the perceived workload, psychological stress and financial problems. In addition, off-farm labor did not prevent farmers from stating growth intentions. Our empirical findings suggest that (i) the most important factors which support farm growth intentions correspond with factors driving observed patterns of structural change; (ii) limited availability of family labor may result in a new critical threshold for farm growth strategies; (iii) aims and non-pecuniary preferences of farmers will impede a rapid structural change in the near future.