How limiting is finance for Dutch dairy farms? A dynamic profit analysis

Accessibility to financial resources is considered a prevalent problem in the agricultural sector. We develop an approach to quantify the long-term opportunity costs of financial constraints in relation to peers who do not face any financial constraints. Using data on past financial performance, we assess creditworthiness and the size of an additional accessible bank loan to farmers. Combining this with data on reported expenditure, we determine the accessible finance. We quantify the opportunity cost as the forgone dynamic profit (intertemporal profit in current-value terms) from financial constraints. Using data envelopment analysis, we apply our approach to 264 specialised Dutch dairy farms for the years 2006–2017 and explore the potential impact of changes in finance provision for several scenarios. Our results show an increasing gap between frontrunners and other farmers, as the latter generate progressively less dynamic profit in comparison to their best peers. The gap between the dynamic profit of the average farm and that of its best peers from their production and investment decisions made over the span of 1 year grew from €40,040 in 2009 to €114,548 in 2017. However, the growth is not driven by insufficient access to finance. Financial constraints can only explain 6% of the forgone dynamic profit in 2009 and as little as 1% for 2017. The number of farms classified as financially constrained in comparison to their peers decreases in our sample from 44% in 2009 to 8% in 2017. This suggests that non-financial factors are driving the growing gap.     

Do fertilizer subsidies crowd out organic manures? The case of Malawi

We assess the impacts of the Malawian Farm Input Subsidy Program on manure use at the farm plot level using more than 3,000 farm plot observations from six districts in central and southern Malawi over three years (2006, 2007, and 2009). The probabilities and intensities of manure use were investigated with the correlated random effects (CRE) probit and tobit models. The endogeneity of access to fertilizer subsidies and fertilizer use intensity was controlled for with a control function approach. Both the probability of manure use and intensity of manure use were positively correlated with the intensity of fertilizer use. A 1% increase in fertilizer use intensity is associated with a 1.94%–1.96% increase in the intensity of manure use outside the subsidy program and a 0.62%–1.66% increase in manure use with the subsidy program. A 1% increase in average fertilizer price was associated with a 0.43%–0.76% increase in the probability of manure use and a 3.5%–5.3% increase in the intensity of manure use.     

Does organic farming (OF) work in favour of protecting the natural environment? A case study from Poland

Organic farming (OF) is a management system that is closely linked with the quality of the natural environment since it should, besides producing organic food, constitutes a protective factor for all components of that natural environment. Therefore, the objective of this paper was to answer the following question: Does organic farming (OF) protect the natural environment? In order to achieve this goal it was essential to determine what kinds of natural and non-environmental factors have the largest influence on the development of OF in Poland, and to assess the significance of these factors in the spatial diversification of the regional density of organic farms. The analysis was carried out on the basis of data from 2012 comprising 2074 communes, including both rural communes (1563) and urban-rural ones (511). The research results indicated the weaknesses of the organic farming policy (OFP) with respect to the functioning of OF in Poland in the years 2007–2013. The results also show that the development of OF in Poland mainly depends on the system of financial support, i.e. one that either encourages farmers to change the manner of production to a more environmentally friendly one, or one that has an impact on their decision to resign from production using ecological methods. Moreover, as our research has proved, OF is not always developed in places where it should be a priority because of the suitable conditions of the natural environment.     

Perceptions of public land governance from two Canadian provinces: How is the social agenda being met through sustainable forest management?

This article presents a comparative assessment of current spaces for public involvement in Crown (public) land management in the Canadian provinces of New Brunswick and Nova Scotia. More specifically, it addresses the barriers to public participation by examining the agency-client relationship – specifically, through the theoretical lens of capture – as an impediment to the inclusion of values that are outside the traditional, technocratic management realm of public forest management. Without public input, the public’s needs, values, and desires are not articulated and the social side of sustainable forest management is likely to be neglected. Low levels of trust in public land management agencies in New Brunswick and Nova Scotia, coupled with minimal space for public involvement, have created the perception of a policy network that is dominated by industry and/or government and provides minimal space for other interests. The primary research method is an online survey informed by forty-two interviews. The survey was administered to 89 key forestry stakeholders in New Brunswick and Nova Scotia. Participation observation and a document analysis are utilized to complement the survey. This research finds that (1) although survey participants come from diverse affiliations and two provinces with different forest policy and unique approaches to public participation, there is essential consensus of the need for an improvement of public involvement processes for public land; (2) trust in the forest industry and the Department of Natural Resources (DNR) is extremely low in both provinces. Even with recent participatory efforts in Nova Scotia, the trust level is lower than in the neighboring province of New Brunswick. Some participants connect this distrust to privileged access for certain interest groups and a closed policy network; (3) barriers to participatory processes differ between provinces, especially a fear of retribution, which is specific to New Brunswick; and (4) key stakeholders identify barriers to engagement that they perceive to be different for themselves and the general public.     

Values of rural landscape: The case study Chlum u Třeboně (Bohemia)

Natural, historical, man-made and spiritual values of the rural landscape were investigated on the example of the rural municipality Chlum u Třeboně in Southern Bohemia (the Czech Republic). It shows that the rural landscape contains a set of values – such as substance, origin, size, and importance – many of which have negative connotations. Some of these values are protected, others are not. The set of values forms genius loci of the place which is an important part of the local identity. The landscape of the area under the study was monitored and analyzed from both macro-structural and micro-structural points of view. As the evaluation of values mainly depends on stakeholders (local residents, tourists, municipalities, entrepreneurs, landscape protection bodies, etc.), in the past, the values of the rural landscape were connected predominantly with its productive function. Based on the results it is possible to say that in relation to the transition towards the post-industrial society, values related to the landscape are gaining new importance such as wetlands or swamps to combat drought. It is necessary to pay higher attention to the dynamic and multi-functional aspects of the landscape values in the near future.     

(How) Do Prerequisites Matter? Analysis of Intermediate Microeconomics and Agricultural Economics Grades

Success in intermediate economics and agricultural economics classes with respect to course prerequisites was evaluated. Prerequisites were statistically important for both intermediate microeconomics and in two of the three agricultural economics courses evaluated. The primary finding was that—for three of the four courses evaluated—the higher the proportion of students who completed the listed prerequisite, ceteris paribus, the lower the grade for any given student. Results also indicate that students with higher ex ante GPAs and to some extent higher math equivalent SAT scores, received higher grades.     

Impact of the Fast Track Land Reform Programme (FTLRP) on agricultural production: A tobacco success story in Zimbabwe?

The study ascertained the impact of the Fast Track Land Reform Programme (FTLRP) in Zimbabwe on tobacco production. The Chow Test, Vector Error Correction Model (VECM) and the Vector Error Granger-Causality Test were applied. The results reveal that there was a structural break in tobacco sales in the year 2000. Furthermore, in the long-run, area under tobacco production had a positive impact whilst number of tobacco producers had a negative impact on tobacco sold pre-FTLRP. Post-FTLRP, area of tobacco and number of tobacco producers had negative impact. In addition, the FTLRP induced an 8.94 % increase in the speed of adjustment in correcting the long-run equilibrium in tobacco sales. In the short-run, the FTLRP caused a percentage increase in the area of tobacco production and number of tobacco producers to induce a 0.65 % and 0.76 % increase in the tobacco sales, respectively. Area of tobacco production and number of tobacco producers Granger-caused tobacco sales in the pre-FTLRP period. Post-FTLRP, the number of tobacco growers Granger-caused tobacco sales. It is concluded that the FTLRP had an impact on tobacco sales, mainly through the number of tobacco growers. The study recommends the specialisation and training of the new farmers to improve productivity.     

Climate adaptation in ‘new world’ cultural landscapes: The case of Bay of Fundy agricultural dykelands (Nova Scotia,Canada)

North America has few cultural agricultural landscapes, and often commensurately poor governance arrangements for managing change in such settings. This research uses the Acadian dykelands of Nova Scotia, Canada, as an opportunity to explore the social and governance limits to coastal climate adaptation in ‘new world’ cultural agricultural landscapes, as well as inform local decision-making. Approximately half of Nova Scotia’s coastal wetlands were converted to dykeland in the 1600s, lowering local resilience to the increased frequency and storm severity anticipated with climate change. Today, dykelands protect a diversity of public and private interests, meanings and values, yet are controlled by the agricultural sector, which can no longer afford to maintain them all to 2050 climate projections. We report here on a representative online Q-methodology survey of 183 adult Nova Scotians in the spring of 2015. Respondents sorted 34 statements along a normal distribution about whether they prefer dykeland maintenance or wetland restoration, and under what governance arrangements. Four factors were derived: the dominant discourse was local, female and strongly pro-dykeland, indicating the likelihood for local resistance to dykeland removal on for cultural, recreational and farming reasons. The second factor was supportive of wetland restoration for reasons of efficiency, not wetland affinity, but characterized by those in positions of management power. The two minority viewpoints were less informed about dykelands, characteristic of outsiders, and concerned more with governance. More education is needed about the challenges facing dykelands, the benefits of coastal wetlands, and the management options, but this research shows proposals to change landscape should emphasize flood mitigation over cost-saving. Cultural values and status quo bias are clearly barriers to adaptation planning, even when discussing the removal of man-made structures. The factors were surprisingly polarized, suggesting the forced-normal distribution affects the space available to convey nuanced perspectives. Large p-set Q-method of this kind is likely most useful for characterizing the emergent discourses demographically, and understanding their prevalence; the same discourses had emerged within a much smaller pilot study.     

Will future land based food and fibre production be in family or corporate hands? An analysis of farm land ownership and governance considering farmer characteristics as choice drivers. The New Zealand case

Family farming in various guises has been the dominant ownership and governance system in primary production over recorded history. This outcome has been controlled by farmers and their families, possibly due to tradition, opportunities, personal characteristics, skill sets and the nature of primary production. Of these, it is hypothesised that the farmers’ personal characteristics play a major part in the choice, and continuance, of current ownership and governance systems. Equally as important, they, and therefore the land ownership system, play a part in the efficiency of production systems and improvement of the biological and production environment.The benefits and difficulties of commonly used ownership systems in Western society are reviewed. Using a sample of New Zealand (NZ) farms, a comparison of the managers’ features for owner/operator, partnership and corporate based systems is presented. There were significant differences in many variables including the farmers’ age, education, number of children, asset levels, years on the current farm, and similar, but more importantly, the farmers in the ownership system groups had differing personal characteristics. Significantly, despite the corporate based farms employing more professional assistance, the profit levels were similar across ownership systems leaving the farmers’ characteristics the main factors correlating with system choice. However, governance systems per se are only marginally correlated with production systems and efficiency.As successive generations of farmers are unlikely to have different characteristics, and corporate based systems continue to exhibit similar profit levels, relatively simple family based systems will continue to dominate farm land ownership and control. The trends suggest family farms will increase in size and involve family conglomerates facilitating the management of larger, and in many cases multiple, farms. While currently there are few differences in biological efficiency between ownership systems, given the efficiency benefits of size and scale, this could well change with the increase of family conglomerates. Relative to increasing corporatisation, the continuance of family based ownership and governance will also be of benefit to the environment. When developing land policies, these highlighted relationships should be taken into account. This study is a first to consider personal characteristics relative to ownership.     

Ecological networks: Are they enough for connectivity conservation? A case study in the Barcelona Metropolitan Region (NE Spain)

This paper extends the debate on corridor effectiveness at regional planning scale, by exploring the contribution to landscape connectivity of a proposed ecological network and the remaining non-urbanized matrix in the Barcelona Metropolitan Region (BMR). Using the Ecological Connectivity Index, we evaluated the expected connectivity loss after the development of the approved urban plans in the region. Thus, we compared the baseline (present-day) and the projected (after planned urban development) connectivity scenarios for total, forest and agricultural habitats. Then, we estimated the mitigation in connectivity loss when successively removing from plans those development sectors included in protected sites, first order corridors, and second-order corridors of the ecological network, and in the rest of land matrix. Estimations were done for all the BMR and for inside versus outside the set of sites currently protected.The ecological network and the rest of matrix contributed equally to mitigating the expected connectivity loss, but while the former was more effective for forest habitats, the latter was especially constructive for croplands. This was due to a heterogeneous distribution of habitats, protected reserves and urban development areas. Still, connectivity preservation within protected sites appeared to be highly dependent on what is going on outside the ecological network, as we observed in particular for agricultural habitats. This result extends at regional scale the statement that no park is an island, but is highly affected by the land use and land cover dynamics of its surroundings.     

Heterogeneity in male and female farmers’ preference for a profit-enhancing and labor-saving technology: The case of Direct-Seeded Rice (DSR) in India

Labor-saving and income-increasing technologies may affect women farmers differently from men. However, very few studies explicitly account for women's preferences for new technologies. We carried out a discrete choice experiment with 337 female and 329 male farmers in Maharashtra, India, to measure their willingness to pay (WTP) for direct-seeded rice (DSR) with drum seeder and to understand the gender differences in marginal valuations of key attributes. We used the Women's Empowerment in Agriculture Index (WEAI) to collect self-reported data on the role and say of women in different domains of decision making. The respective gender roles of women and men in the family and on the farm are aligned with their preferences. Men have a greater say over how the family spends the cash. Accordingly, men tend to have a higher WTP for attributes that increase income (increase in yield) or reduce cash costs (reduction in seed rate). Women contribute a large share of the labor for transplanting rice, much of which is unpaid work on family farms. Women, therefore, seem to value labor saving more. Women in our sample were more interested in the new technology and had a higher WTP for it.     

Transdisciplinary landscape planning: Does the public have aspirations? Experiences from a case study in Ghent (Flanders,Belgium)

Since the end of the last century, the focus in landscape policy is shifting from traditional top-down perspectives into a bottom-up and integrated approach involving participation of local stakeholders. Keywords in the European Landscape Convention (ELC) include participation and awareness-raising: the public should be involved and their aspirations towards landscape should be assessed. This evolution in policy went with a new paradigm in landscape research: transdisciplinarity. Despite this evolution, literature indicates the necessity of a more general use of methods for public participation in landscape planning to meet the objectives of the Convention. The present paper explores ways to involve ‘the local people’ and to grasp their aspirations with regard to the landscape features of their surroundings. Point of departure is a questionnaire combining questions on landscape preference, environmental worldview and behaviour in the landscape. The questionnaire was distributed in a spatially stratified sample amongst inhabitants of the city of Ghent. The survey was set up without any connection to a concrete operational project that could convince respondents to participate. The response rate was relatively large despite a rather demanding questionnaire. More isolated target groups such as people with lower income, lower education level, and retired people were included, but foreigners, despite being a substantial part of the urban population, did not respond. The respondents appeared to be rather homogeneous as regards environmental worldview and aspirations in the landscape. It appeared that environment and landscape were not clearly distinguished between by the respondents. These results yield some suggestions for transdisciplinary landscape policy. A careful design of the sampling can enhance number and diversity of the respondents. Yet, it is equally important to develop a common language to communicate about landscape so that the question items can be clearly phrased and understood. Aspirations towards landscape should be defined more unambiguously so that they can be assessed alike. Awareness-raising for landscape may help to increase the number of local people that feel addressed when talking about landscape. When public support for landscape policy and management is taken seriously, more factors than only landscape should be taken into consideration.     

Can we avoid overdevelopment of river floodplains by economic policies?: A case study of the Ouse catchment (Yorkshire) in the UK

River floodplains are significant environmental resources in that they provide multiple ecosystem services. However, river floodplains are/tend to be overdeveloped because indirect-use values linked with ecosystem services are overlooked by private landowners. In a case study of the Ouse catchment, it turns out that river floodplains tend to be overdeveloped in upstream areas because of a unidirectional spatial externality. We set a simple model that considers both direct- and indirect-use values to analyse the social optimisation. The essential point is that we must consider two types of environmental externalities related to the ecosystem services of river floodplains to make decisions on floodplain development. First, the development of river floodplains has opportunity costs in terms of lost ecosystem services. Second, the development of floodplains increases flood risks to people downstream (imposes a unidirectional spatial external costs). Theoretically, we can easily deal with the problem by zonal economic policies: zonal taxes or subsidies (price policies) and zonal marketable permits or transferable development rights (quantity policies). On the practical side, however, there are so many problems. Then, such approaches are too complex to use. First of all, we have to specify real complicated economic and physical systems which show non-linearity, irreversibility, site-specific relationships, and inter-dependency between systems and sites. Secondly such policies should be ‘zonal’, which might impose substantial transaction costs. In order to apply them to real situations, we have to determine the appropriate number of zones, their sizes and geographical shapes, and then set appropriate rates or amounts of permits in each zone. Furthermore, the determination of zones is difficult because of the trade-off between the internalisation of externalities and implementation costs of policies, which are also related to political frictions and market failure.     

Deforestation and timber production in Congo after implementation of sustainable management policy: A reaction to the article by J.S. Brandt,C. Nolte and A. Agrawal (Land Use Policy 52:15–22)

This viewpoint paper presents a reaction to the article by Brandt et al. (2016). It highlights the complexities inherent to the attribution of deforestation impacts to policy interventions when using remote-sensing data. This critique argues that in the context of the Congo a suite of factors (i.e., population density in particular) other than those considered by Brandt et al. (e.g., type of forest, distance from roads and markets) play essential roles in determining the fates of forests. It also contends that care is needed when making decisions regarding which units will be included in the comparison group so that contextual factors and on-the-ground information are properly considered (e.g., when logging operations are inactive or when a concession is used for ‘conservation’ purposes). Finally, it proposes that a focus on an analysis of deforestation rates for a given level of timber production might be a metric that more accurately represents one aspect of the consequences of forest management, which should also consider the appraisal of trade-offs associated with a larger set of social, financial and ecological objectives.     

How does ‘Free,Prior and Informed Consent’ (FPIC) impact social equity? Lessons from mining and forestry and their implications for REDD+

The principle of “Free, Prior and Informed Consent” (FPIC) is promoted through international agreements and safeguards in order to strengthen social equity in resource management by requiring consent from indigenous and/or local communities prior to actions that affect their land and resource rights. Based on early experiences with implementing FPIC standards in mining and forestry, we examine how FPIC has impacted social equity and why. In both sectors FPIC was first operationalized through non-governmental standards that revealed ambiguities surrounding its definition and implementation. In mining, FPIC was first codified in the standards of financial investors, while in forestry FPIC emerged within competing market-based certification schemes, resulting in contrasting definitions. In both sectors, contextual factors such as government laws and policies, the socio-political environment and the overall distribution of rights and resources strongly shape the impacts of FPIC on equity particularly for actors without strong legal rights. These findings are significant for emerging arenas such as REDD+, where there is much debate around the role of governments, financial institutions and market-based actors in applying FPIC for social equity outcomes.