Analysing the provision of agricultural public goods: The case of irrigated olive groves in Southern Spain

Analysis of the joint production of private and public goods (PGs) by farming activities is a fertile research field. These joint production processes are typically characterised by a high level of complexity derived from the intense relationship between the production of both kinds of outputs. An integrated approach is strongly recommended for the study of the provision of agricultural PGs and the design of public intervention in this sector. Here, we propose a theoretical framework to apply an integrated approach using the analytic network process (ANP) to analyse the production of PGs by agricultural systems to support public decision-making concerning the design and implementation of agricultural policies. We introduce a novel approach in applying ANP along both directions of the influences among elements, allowing us to identify the most influenced PGs and the farmers’ most influential decisions. This methodological approach is empirically applied to a particular farming system: the irrigated olive groves (IOG) of Southern Spain. Results show that the PGs most influenced by olive growers’ decisions are soil fertility, the visual quality of agricultural landscapes and farmland biodiversity. In addition, the most influential factors affecting the provision of PGs are the structural ones, namely farm size and tree density, and, to a lesser extent, management factors dealing with fertilisation, soil and irrigation management. These results are useful for supporting agricultural policy decision-making to enhance adequate management of this farming system regarding PGs production.     

The effect of decoupling on marginal agricultural systems: Implications for farm incomes,land use and upland ecology

In many parts of Europe, decades of production subsidies led to the steady intensification of agriculture in marginal areas. The recent decoupling of subsidies from production decisions means that the future of farming in these areas is uncertain. For example, in the uplands of the United Kingdom, an area important both for biodiversity conservation and ecosystem service provision, hill farmers steadily increased stocking densities in response to headage payments but must now reconfigure farm businesses to account for the shift to the Single Farm Payment scheme. We examined hill farming in the Peak District National Park as a case study into the future of marginal agriculture after decoupling. We surveyed 44 farm businesses and from this identified six representative farm types based on enterprise mix and land holdings. We developed linear programming models of production decisions for each farm type to examine the impacts of policy changes, comparing the effects of decoupling with and without agri-environment and hill farm support, and evaluating the effects of removal of the Single Farm Payment. The main effects of decoupling are to reduce stocking rates, and to change the mix of livestock activities. Agri-environmental schemes mediate the income losses from decoupling, and farmers are predicted to maximise take up of new Environmental Stewardship programmes, which have both positive and negative feedback effects on livestock numbers. Finally, removal of the Single Farm Payment leads to negative net farm incomes, and some land abandonment. These changes have important implications for ongoing debates about how ecological service flows can be maintained from upland areas, and how marginal upland farming communities can be sustained.     

EU‐wide Economic and Environmental Impacts of CAP Greening with High Spatial and Farm‐type Detail

In this paper we analyse the economic and environmental impacts of CAP greening introduced by the 2013 CAP reform using the CAPRI model. CAPRI captures the farm heterogeneity across the EU and it allows to depict the implementation of the greening measures in high detail while integrating the environmental effects and the market feedback of the simulated policy changes. The simulated results reveal that the economic impacts (land use, production, price and income) of CAP greening are rather small, although some farm types, crops (fallow land and pulses) and Member States may be affected more significantly. The CAP greening will lead simultaneously to a small increase in prices and a small decrease in production. Farm income slightly increases because the price effects offset the production decline. Similarly to economic effects, the environmental impacts (GHG emissions, N surplus, ammonia emissions, soil erosion, and biodiversity‐friendly farming practices) of CAP greening are small, although some regions may see greater effects than others. In general, the environmental effects at EU level are positive on a per hectare basis, but the increase in UAA can reverse the sign for total impacts. Overall, simulated GHG and ammonia emissions decrease in the EU, while the total N surplus, soil erosion and biodiversity‐friendly farming practices indicator slightly increase due to the CAP greening.     

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.     

新型合作农场：经济发达地区农地规模经营的逻辑与实践

目的 当前,“谁来种地”成为农业发展面临的重要问题。近年来部分经济发达地区出现的、由村级集体经济组织主导的新型合作农场成为创新农业经营组织形式、发展农地规模经营的新探索,对其实践与逻辑进行探讨有一定的必要性和现实意义。方法 文章运用案例分析法,以海门新型合作农场为例,从新制度经济学视角对新型合作农场的农业经营体制创新特征进行分析,并与其他新型农业经营主体进行对比,指出新型合作农场在联农带农、壮大村集体经济方面的优势。结果 新型合作农场将村集体经济组织实体化为农地经营主体,整合土地、劳动力、资本、技术等资源要素,并将现代经营管理制度引入农业生产,在土地规模经营的同时有效实现了产权明晰、交易成本降低、风险分担和外部性内部化,有效促进了农民和村集体的双增收,实现了农业生产的帕累托改进。结论 新型合作农场充分做实了村集体“统”的功能,其合作化、一体化、企业化的经营模式可以为我国其他地区农地适度规模经营提供一种思路和参照。     

AGGREGATION OF MICRO-FUNCTIONS TO OBTAIN A WHOLE-FARM PRODUCTION FUNCTION*

In this paper, a re-assessment of the aggregation problem in farm production functions is attempted. Aggregation starts from measurable farm management entities such as the milking cow, breeding ewe etc., and appropriate whole farm production functions are derived that are consistent with these biological units of farming, or as they will be called, the micro-functions of agriculture. The aggregate function, as derived, is based on the geometric means of micro outputs and inputs and could appropriately be said to 'represent' all the micro-functions. It is thus called, later in the paper, the representative production function for the farm firm.     

国有林场改革成效评价——职工获得感的统计分析

利用国有林场职工监测数据,基于物质维度和精神维度,从改革后职工自身的收益情况、职工对林场的整体评价、职工对林场管理方式的评价等方面,采用比较分析法和主成分分析法对国有林场改革职工获得感进行分析。研究结果表明:国有林场改革后职工获得感有所提升,改革进程与职工获得感呈强正相关性,改革促进了林场的可持续发展。但林场整体基础设施环境一般,场部相对较好,管护站点则较差。同时,在领导班子建设方面应注重自主、公平,仍需提高领导水平。     

How to define and study farmers' management capacity: theory and use in agricultural economics

Textbooks and articles on farm management stress the importance of the management capacity of the farmer with respect to his farm results. However, explicit definitions together with an elaboration of this concept are hard to find. In this article, aspects of management capacity are grouped into: (1) personal aspects, consisting of fanner's drives and motivations, fanner's abilities and capabilities and his biographical facts such as age and education; and (2) aspects of the decision-making process, consisting of practices and procedures with respect to planning, implementation and control of decisions at the farm. Empirical studies on the role of management capacity in relation to farm results are reviewed. Frontier production functions are widely used in recent literature to estimate technical and economic efficiency of farms. However, in explaining differences in efficiency most studies do not go further than adding a biographical variabk (e.g., level of education). This study concludes that a next step would be to include aspects of the decision-making process. Longitudinal on-farm observations, which give possibilities for studying the dynamic aspects of the decision-making, are suggested to further analyze the concept of management capacity.     

Farm Business and Household Expenditure Patterns and Local Communities: Evidence from a National Farm Survey

Farm operators are an integral part of some rural economies. The businesses they operate support jobs and purchase goods and services from local implement and input suppliers. Farm household spending on food, furniture and appliances, trucks and automobiles, and a range of consumer goods also supports local jobs and retail businesses. Based on the 2004 Agricultural Resource Management Survey, the linkages between farm household and business expenditures and communities are explored. Farms in urban areas purchase household goods in markets closest to the farmstead, but traveled further to purchase farm business items. The opposite pattern was observed in rural locations.     

The influence of farming styles on the management of the Iveragh uplands,southwest Ireland

The links between farming practices and biodiversity is well established. This paper develops a farm typology based on eighty hill sheep farmers on the biodiversity rich uplands of the Iveragh peninsula, SW Ireland. Despite outward appearances considerable diversity was found to exist within their livelihood strategies and farming styles. Using a combination of a detailed farm management survey and grazing state evaluation, the farms were classified into four distinct types – environmental stewards, support optimisers, traditionalists and production maximisers. Our results suggest that knowledge of the different farming styles is critical for more effective biodiversity conservation and for the design of more targeted agricultural and agri-environment policies. We suggest the need to move away from the ‘one size fits all’ approach, which on the Iveragh currently rewards the most overgrazed farms with the highest agri-environment payments.     

CHANGES IN FARM PRODUCTION UNDER INTENSIVE FARM MANAGEMENT ADVICE*

This investigation examines the impact of intensive farm management advice on levels and productivities of resource use on samples of farms. A total of 60 members of 13 farm management advisory services and 60 non-members, matched by locality, were studied in two farming regions of Western Australia. A production model has been formulated and analysed which discriminates between effects of differences and changes in resource use and productivity over time and between members and non-members. Major differences between members and non-members over time have been rates of growth of inputs and outputs rather than systematic changes of production relationships.     

Financial Reporting in Agriculture: In Need of A Reliable System

Farm managers and lenders are becoming increasingly aware of the need for thorough and accurate farm financial management.1 The current extended agricultural recession magnifies this need. Increased current loan losses and the increasing financial stress of farm operators have prompted lending institutions, government agencies and farmers to determine what has gone wrong in the area of farm financial management and, more importantly, to search out ways to reduce the frequency of farm business failure. The use of inadequate financial reporting systems is viewed as one source of the problem.     

Profit efficiency and habitat biodiversity: The case of upland livestock farmers in Ireland

This study evaluates the private economic value of biodiversity using original farm habitat data and farm household survey data from livestock farms in the hills and uplands of Ireland. Profit efficiency and biodiversity efficiency are estimated using a stochastic translog production frontier model. Results indicate that biodiversity plays a beneficial role in farm profitability but the effect is non-linear. Stocking rate and the perimeter to area ratio are found to have a negative effect on biodiversity while the number of plots per farm has a positive effect. Biodiversity efficiency is influenced by the number of livestock, habitat quality, spatial habitat patterns and arrangement, perimeter to area ratio, the number of plots, profit efficiency and farmer's education and age.     

Environmental grants and regulations in strategic farm business decision-making: A case study of attitudinal behaviour in Scotland

This paper addresses the question of farmer responses to agri-environmental programming in light of the Single Farm Payment, focusing on the role of environmental regulations and grant schemes in strategic farm decision-making. Utilising Ajzen's theory of planned behaviour in a qualitative case study of farmers in Upper Deeside, Scotland, it was found that farmer respondents actively consider environmental regulations and grant opportunities as part of their decision rationale in making investments in farm development, such as agro-industrial building construction or securing additional land. Fulfilling agri-environmental regulations is constructed by respondents as being part of ensuring farm viability, while eligibility for agri-environmental schemes is impacting on how tenanted land is valued. The author identifies three mechanisms facilitating farmer up-take of environmental schemes, and makes a case for consideration of farmers as experts in producing environmental outcomes while maintaining economic sustainability of farming operations.     

Profitability and Efficiency of High Nature Value Marginal Farming in England

The UK Brexit vote triggered a new wave of policy developments for a future outside the EU. In this context, we analyse the business performance of English hill and upland farms, characterised by marginal economic conditions but also high nature value (HNV). The analysis aims to help identify farm-level management and policy options for greater economic, environmental and social sustainability. Business performance is measured as technical efficiency and the occurrence and persistence of abnormal profits, estimated through stochastic frontier analysis and static and dynamic panel-data methods. The results help indicate rationales for recent trends including farm enlargement, farm family diversification, and agri-environment scheme entry. The single farm payment is found to be negatively associated with farm technical efficiency while agri-environmental subsidies were positively associated to short-term farm profitability. Farm adaptation and resilience during a period of likely turbulence in external circumstances is discussed in light of these findings, as well as potential parallels with marginal HNV areas across Europe.     

The influence of farm input subsidies on the adoption of natural resource management technologies

Farm input subsidies are often criticised on economic and ecological grounds. The promotion of natural resource management (NRM) technologies is widely seen as more sustainable to increase agricultural productivity and food security. Relatively little is known about how input subsidies affect farmers’ decisions to adopt NRM technologies. There are concerns of incompatibility, because NRM technologies are one strategy to reduce the use of external inputs in intensive production systems. However, in smallholder systems of Africa, where the average use of external inputs is low, there may possibly be interesting complementarities. Here, we analyse the situation of Malawi's Farm Input Subsidy Program (FISP). Using panel data from smallholder farm households, we develop a multivariate probit model and examine how FISP participation affects farmers’ decisions to adopt various NRM technologies, such as intercropping of maize with legumes, use of organic manure, water conservation practices and vegetative strips. As expected, FISP increases the use of inorganic fertilizer and improved maize seeds. Yet, we also observe a positive association between FISP and the adoption of certain NRM technologies. For other NRM technologies, we find no significant effect. We conclude that input subsidies and the promotion of NRM technologies can be compatible strategies.     

An assessment of the impact of watershed programmes on agricultural sustainability in Hamedan province,Iran

This paper assessed the effects of watershed programmes (WPs) on the sustainability of agro-ecosystems in Hamedan province, western Iran. This research was a causal–comparative study, and various techniques were used to collect data, such as survey data, archival data, observations, and face-to-face interviews with key informants. The causal–comparative method requires a comparison of agro-ecosystems with and without WPs. Therefore, a survey was conducted using a stratified random sampling to select 136 households in agro-ecosystems with and without WPs. Nine indicators were selected to evaluate sustainability. Significant differences were found between the two agro-ecosystems in biodiversity, soil quality management, hydrological processes, energy-use efficiency (EUE), access to public services, farm management practices, and social capital. No significant variation was found in the indicator of quality of life, even though that indicator was found to be slightly higher in the agro-ecosystem that had WPs. Results revealed that the agro-ecosystem with WPs, with the exception of the social capital, productivity, biodiversity, soil quality, EUE, farm management, and hydrological processes as well as access to public services had significantly higher values than the agro-ecosystem without WPs. Therefore, it can be concluded that despite WPs' positive impact on biodiversity, soil quality, hydrological processes, EUE, farm management, productivity, and access to public services, it had a negative impact on social capital. The findings suggest that WPs affected the agro-ecosystem by increasing the stability and economic viability of the agro-ecosystem and decreasing social dimensions. A new approach, including demand-driven WPs rather than supply-driven ones to cater to the specific needs of local people, was recommended for the promotion of the social acceptability of WPs.     

CAP payments and spatial diversity in cereal crops: An analysis of Italian farms

Agricultural biodiversity conservation has been recognized as a fundamental resource for the maintenance of ecological and economic functions. In this paper, we test the hypothesis that the Common Agricultural Policy (CAP) has an impact on crop diversity decisions of farm managers. In so doing, we allow the diversity decision to depend on a rich set of economic and agro-ecological variables, such as prices of the most common cereal varieties, and agro-ecological and socio-economic characteristics at farm and regional level. Using a panel dataset over the period 2004–2010, we compare the results obtained from pooled-OLS and dynamic panel GMM estimators. The empirical analysis shows the existence of a positive relationship between CAP payments and diversity. In addition, decoupling subsidies from production seems to have a positive effect on biodiversity.     

A Market-Forces Policy for the New Farm Economy?

This paper first discusses the changes that are bringing about the New Farm Economy. A wave of consolidation has shifted agricultural production to larger, lower cost producers in almost all sectors of agriculture. At the same time, supply chains represent a new form of ownership and control that is replacing commodity markets as the preferred way to market farm output. Both consolidation and the development of supply chains offer the possibility of producing a greater variety of safer, cheaper food. The paper argues that farm policy, crafted for the agriculture of the 1930s, is no longer necessary to raise or stabilize farm incomes, and is largely ineffective anyway. Moreover, farm policy impedes the market forces driving innovation and efficiency in the farm economy. Letting market forces guide the evolution of the farm economy, unfettered by outdated government programs and unnecessary farm subsidies, is the best way to harness the benefits of the New Farm Economy. Getting rid of government subsidies and control will lead to dramatically fewer farmers in agriculture: a policy to deal explicitly with those who will leave agriculture is needed. A transition policy is described that focuses on helping reduce the number of farmers by offering a buyout to farm producers which subsidizes their exit from farming and prevents reentry.