Developing farm-specific marginal abatement cost curves: Cost-effective greenhouse gas mitigation opportunities in sheep farming systems

Growing demand for agricultural produce, coupled with ambitious targets for greenhouse gas emissions reduction present the scientific, policy and agricultural sectors with a substantial mitigation challenge. Identification and implementation of suitable mitigation measures is driven by both the measures’ effectiveness and cost of implementation. Marginal abatement cost curves (MACCs) provide a simple graphical representation of the abatement potential and cost-effectiveness of mitigation measures to aid policy decision-making. Accounting for heterogeneity in farm conditions and subsequent abatement potentials in mitigation policy is problematic, and may be aided by the development of tailored MACCs. Robust MACC development is currently lacking for mitigation measures appropriate to sheep systems. This study constructed farm-specific MACCs for a lowland, upland and hill sheep farm in the UK. The stand-alone mitigation potential of six measures was modelled, against real farm baselines, according to assumed impacts on emissions and productivity. The MACCs revealed the potential for negative cost emissions’ abatement in the sheep industry. Improving ewe nutrition to increase lamb survival offered considerable abatement potential at a negative cost to the farmers across all farms while, lambing as yearlings offered negative cost abatement potential on lowland and upland farms. The results broadly advocate maximising lamb output from existing inputs on all farm categories, and highlight the importance of productivity and efficiency as influential drivers of emissions abatement in the sector. The abatement potentials and marginal costs of other measures (e.g. reducing mineral fertiliser use and selecting pasture plants bred to minimise dietary nitrogen losses) varied between farms, and this heterogeneity was more frequently attributable to differences in individual farm management than land classification. This has important implications for the high level policy sector as no two farms are likely to benefit from a generic one size fits all approach to mitigation. The construction of further case-study farm MACCs under varying farm conditions is required to define the biophysical and management conditions that each measure is most suited to, generating a more tailored set of sector-specific mitigation parameters.     

Assessing the effectiveness of rural credit policy on the adoption of integrated crop-livestock systems in Brazil

This study analyzes the effectiveness of rural credit policy to increase the adoption of ICLS. Analyzes are based on a survey with 175 farmers in the State of São Paulo, Brazil. Our estimates suggest that rural credit has positive and relevant impacts on the adoption of ICLS. In turn, the adoption of these systems may also involve investments in fixed capital and increases in operational costs, which create additional demand for rural credit. Other factors, such as access to extension policy, production scale, ex-ante perceptions, and market infrastructure also explain ICLS adoption. The access to rural credit policy is also determined by dependence on farm income, farmer’s perception of transaction costs, and supply of credit in the municipality. The study finally discusses important implications for the devising of rural credit policies and the diffusion of sustainable production systems in developing countries.     

Farmers’ perception of effective drought policy implementation: A case study of 2009–2010 drought in Yunnan province,China

Using a qualitative social research method at the local administrative level, this paper provides insight into the policy process in China and farmers’ perceptions of the effectiveness of policies implemented to deal with drought. Two villages in rural South-West Yunnan were purposefully selected for the study. The research started with the general assumption that China has a strong top-down hierarchal approach to policy processes and that funding dispersal is prioritised by the central government. However, the study found that funding proposals are prioritised for selection in a bottom-up, participatory manner from the local level. The study also found that farmers’ perceptions of the effectiveness of policy implementation were directly related to their past experience. Among the nine indicators used to measure the effectiveness of policy implementation at the local level, the farmers in the study area perceived access to roads as highly effective; water use efficiency projects, market demand, human mobility for jobs, and government funds as moderately effective; drought knowledge, community participation in planning, and governance structures as least effective; and the role of leadership as not effective. The study found that farmers’ adaptation at the local level is oriented towards short-term market rewards and income diversification. Farmers’ local-level adaptation is guided by government priorities and driven by their perception of tangible benefits. To ensure the effectiveness of policy implementation, long-term adaptation strategies, such as awareness raising, capacity building, watershed management, and source conservation need to be strengthened at the local level.     

乡村内生型农机服务市场形成机理及其运行机制研究

大国小农是我国的基本农情.未来相当一段时间,小规模兼业农户仍将是我国农业经营的主要微观主体.内生型农机服务市场能够有效连接小农户与农机服务提供者,有助于解决因土地细碎化而产生的高交易成本问题,为此,本文重点揭示了内生型农机服务市场的形成机理,设计了其运行机制.研究发现,小农户分散且多元的农机服务需求是内生型农机服务市场...     

农业机械化发展及其服务外包的原因分析——源自冀豫鲁3省问卷调查数据的证明

[目的]在统计描述华北平原农民的机械采纳率和机械采纳方式的基础上,分析农民的机械化需求和农机手的机械服务供给行为及其内在逻辑,从理论和实证两个维度对华北平原地区农业机械技术的特殊实现形式——服务外包做出解释。[方法]运用描述性统计分析和成本收益核算等方法,利用冀豫鲁3省779个农户和45个农机手的实地调研数据分别对农业机械化发展的前提条件和实现方式做出解释。[结果]农业劳动力成本上升与农机购置成本下降,共同刺激了农民的机械技术需求,是华北平原农业机械化快速发展的前提条件;持有农业机械的农民基于理性选择而向其他农民提供农机作业服务,是推动华北平原农业机械化以服务形式实现的主要原因。[结论]相关部门应继续探索高效的农机补贴模式,刺激农民的机械技术需求;农业机械支持政策可适当向农机合作社倾斜,提高农机手的组织化程度和服务数量与质量。     

Combining management plans and payment schemes for targeted grassland conservation within the Habitats Directive in Saxony,Eastern Germany

As central policies for biodiversity conservation in agricultural landscapes in the European Union (EU), the Habitats Directive and Agri-environmental programmes (AEP) have largely failed to halt biodiversity loss. In response, the German federal state of Saxony combined the instrument of management plans with AEPs to support the implementation of the Habitat Directive. In this study, we investigate the determinants of a farmers’ decisions to adjust their farming practices. Our data set consists of a quantitative survey with 131 farmers conducted between 2004 and 2011, complemented by implementation data from 333 grassland-plots. Determinants of farmers’ decisions to conserve grassland were estimated using a multinomial logit model. Our results show that a combination of management plans and AEPs can increase farmers’ disposition to adopt nature conservation measures. As central determinants, structural and location factors as well as the complementary provisiion of specifically designed AEPs increase farmers’ willingness to adopt conservation practices for grassland management. It can be concluded that additional costs are a major barrier to farmers’ adoption, particularly to those farms directing their farm management towards the optimisation of productivity and profitability . The findings highlight the complementary potential of integrated policy packages to incentivise specific measures of nature conservation within the framework of the Habitats Directive.     

Farm demand for quality potato seed in Indonesia

Seed is the one of the most costly components of potato production in developing countries. Since potato is a vegetatively reproduced crop, diseases such as viruses build up and yield declines as tubers are saved from one harvest for use as seed the next season. Replacing farm‐saved seed with clean seed is one means to increase yield, but information asymmetry between buyers and sellers on seed quality may restrict market supply of this input. In this article we develop a model of the seed market in which clean seed is treated as a capital good providing benefits over several seasons. To determine farm demand for clean seed, we conducted a survey of 182 potato farmers in the major potato growing areas of Indonesia to elicit their perceptions of seed quality from different sources, and derive farmers' “willingness‐to‐pay” for quality potato seed. Results indicate that the effects of information asymmetry on seed supply may be partially offset by the “reputation” of specialized seed producers. Nevertheless, marginal returns to disease‐free seed appear to significantly exceed marginal costs, indicating that improving supply of quality seed will contribute strongly to productivity growth in potato. We discuss several policy options to encourage supply and utilization of quality potato seed.     

Short supply chain participation and market performance for vegetable farmers in China

The fresh food supply chain in China has begun to reduce the number of intermediaries that connect producers and consumers. Using farm‐level data, this paper investigates the impacts of short supply chain participation on vegetable farmers’ market performance, including profits, productivity, production cost, price and price risk. The results show that the participation in a short supply chain is a profit‐maximising strategy and risk management tool for farmers. The increase in profit is attributed to productivity advantages, farm size expansion, and risk reduction rather than because of price premiums or cost savings. A policy implication is that short supply chain promotion has many benefits, but the government should be more concerned about the sustainability of short supply chains.     

基于系统动力学的区域林业碳汇市场中三方主体利益行为演化博弈分析

分析影响三者策略行为的作用因素,构建区域林业碳汇市场的演化博弈模型。在此基础上,结合系统动力学理论,对广东省的碳汇发展状况进行仿真模拟,找出影响市场均衡发展的关键因素。结果表明:政府部门趋向于选择投入策略,其中提高市场碳交易额对拉动市场需求有显著影响,而增强对林农碳汇林的补贴力度难以解决市场当前供需问题。     

基层农技服务供给模式的变迁与小农的技术获取困境

在农业转型的背景下,小农户存在修正既有生产方式和获取日常性生产指导的技术刚需.但基层农技服务供给却呈现了“行政上移与市场主导”的双重特征.农业部门不再建设基层服务力量,县级提供的公益性技术服务以回应国家农业政策导向为核心,而彻底偏离了农民的生产技术需求.以技术为辅助性销售手段的农资经销体系成为了乡村社会的技术主导.这种...     

Forecasting the Adoption of GM Oilseed Rape: Evidence from a Discrete Choice Experiment in Germany

This paper explores farmers’ willingness to adopt genetically modified (GM) oilseed rape prior to its commercial release and estimates the ‘demand’ for the new technology. The analysis is based upon choice experiments with 202 German arable farmers. A multinomial probit estimation reveals that GM attributes such as gross margin, expected liability from cross pollination, or flexibility in returning to conventional oilseed rape significantly affect the likelihood of adoption. Neighbouring farmers’ attitudes towards GM cropping and a number of farmer and farm characteristics were also found to be significant determinants of prospective adoption. Demand simulations suggest that adoption rates are very sensitive to the profit difference between GM and non‐GM rape varieties. A monopolistic seed price would substantially reduce demand for the new technology. A monopolistic seed supplier would reap between 45% and 80% of the GM rent, and the deadweight loss of the monopoly would range between 15% and 30% of that rent. The remaining rent for farmers may be too small to outweigh possible producer price discounts resulting from the costs of segregating GM and non‐GM oilseed rape along the supply chain.     

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.     

Metamodelling phosphorus best management practices for policy use: a frontier approach

This article presents a modelling system for synthesising heterogeneous productivity and nutrient loading potentials inherent in agricultural cropland for policy use. Phosphorus abatement cost functions for cropland farmers in a southeastern Minnesota watershed are metamodelled using frontier analysis. These functions are used to evaluate policies aimed at reducing nonpoint phosphorus discharges into the Minnesota River. Results indicate an efficiently targeted policy to reduce phosphorus discharge by 40% would cost US$167,700 or 844 per farm.     

Factors affecting entry and intensity in informal rental land markets in Southern Ethiopian highlands

Informal land transactions, particularly rental land markets, are emerging in rural Ethiopia in response to the inadequacies of the administratively based land distribution system to meet the growing demand for land and correct imbalances in factor proportions at the farm level. These informal land markets provide a vehicle to equalise factor proportions at the farm level and to improve productivity and hence households' welfare. Among the farmers who lease out land, those who live in the highland‐areas, where land is scarce and unequal, are more likely to engage in these markets. Increases in the size of land holdings relative to labour and livestock ownership, the number of non‐working household members and pressure for subsistence increase the likelihood of leasing out land. On the other hand, increases in the number of working adults, improved nutritional status and greater wealth affect negatively the supply of land into these markets. The potential exists for these markets to improve factor equalisation, reduce inequality in land holdings, and shift the income position of participating households. However, success depends on whether other factor markets are functioning to thwart forced disposal of land to meet subsistence. Public policy has pivotal role in fostering the growth of these markets and their land transfer and factor equalisation functions by ensuring their legally enforceable status, and removing legal restrictions that constrain choices of contracts and trading over greater distances. In addition, both long and short‐term policy measures are needed to reduce the extent to which poor farmers engage in distress transactions.     

Fiddling while carbon burns: why climate policy needs pervasive emission pricing as well as technology promotion*

Effective climate policy requires global emissions of greenhouse gases to be cut substantially, which can be achieved by energy supply technologies with lower emissions, greater energy use efficiency and substitution in demand. For policy to be efficient requires at least fairly uniform, fairly pervasive emission pricing from taxes, permit trading or combinations of the two; and significant government support for low‐emission technologies. We compare the technology‐focused climate policies adopted by Australia and the ‘Asia–Pacific Partnership on Clean Development and Climate’ (AP6), against this policy yardstick. We find that such policies omit the need for emission pricing to achieve abatement effectively and efficiently; they over‐prescribe which abatement actions should be used most; they make unrealistic assumptions about how much progress can be achieved by voluntarism and cooperation, in the absence of either adequate funding or mandatory policies; and they unjustifiably contrast technology‐focused policy and the Kyoto Protocol approach as the only two policies worth considering, and thus ignore important policy combinations.     

The EU’s ecological focus areas – How experts explain farmers’ choices in Germany

Ecological Focus Areas (EFAs) have recently been introduced as key element in the greening of the EU’s Common Agricultural Policy. In 2015, farmers across the EU have implemented EFAs for the first time. Data for German federal states indicate a strong variance in EFA decisions with an overall dominance of catch crops, nitrogen fixing crops and fallow land – two of which bear limited benefits for biodiversity conservation. This article explores how experts explain EFA choices. We conducted 35 qualitative, semi-structured interviews with representatives from the Ministry for Agriculture, farm advisory services, and farmers’ associations in each federal state. Applying content analysis we clustered the factors mentioned as determinants for farmers’ EFA choices into the categories administrative considerations, economic considerations, local factors, ecosystem considerations and policy incentives. According to the interviewed experts, farmers have primarily registered measures that already existed on their farms. Administrative considerations dominate the identified determinants for farmers’ EFA decisions, and together with economic considerations appear to function as a negative incentive for EFA options that are beneficial for biodiversity, such as landscape elements and buffer strips. We conclude that conditions for EFA implementation were found to not effectively incentivise a higher share of biodiversity supporting characteristics in German agricultural landscapes. Based on a detailed discussion we extract recommendations on how to improve EFA implementation.     

Unconventional adjustment strategies for rural households in the less developed areas in Greece

International competition in agricultural production is intensifying following the implementation of the 1993 accord of the General Agreement on Tariffs and Trade. The production of conventional farm products in surplus is being discouraged by means of indirect economic disincentives. The Common Agricultural Policy has already adjusted to unprotected national markets within the European Union and greater market orientation is being achieved mainly through price reductions. Farmers in the less developed areas in Greece, where agricultural activity is still the main source of income and employment, have been responding to policy reforms by seeking part-time employment and income in non-farm enterprises. The adoption of alternative, unconventional farm enterprises that use farm resources in an innovative and quantitatively different way does have the potential for bringing in a new source of income to farm business. For the purpose of this research three adjustment strategies were recognised. The ‘conventional’ (no change) pathway is based on traditional, region-specific products, production methods and services. The adoption of the ‘new crop’ pathway refers to the redeployment of resources into new agricultural products, whereas farms on the market integration Pathway redeploy resources into new marketing services and agricultural product processing on the farm. The new crop and the market integration pathways are identified as unconventional adjustment strategies. Results derived from multinomial logit analysis highlight the major constraints and opportunities associated with the adoption of new crops and market integration practices. Farmers who have adopted unconventional practices are influenced by factors external to the farm. such as contacts with institutions, and have a high probability of having higher debts. These farmers are likely to depend heavily on seasonal labour and rented land. The fact that market integration activities are associated with smaller farms in conjunction with off-farm work signifies the importance of establishing an integrated rural development policy approach. Public policy involvement in enhancing dissemination of information concerning unconventional enterprises is emphasised.     

土地流转中农业规模经营组织类型的经济分析——基于农户与规模经营组织双向层面的分析

本文从农户与规模经营组织双向层面分析农业规模经营组织与农户土地流转的供求决策准则,用以解释不同农业规模经营组织存在的原因。研究表明,农户劳动力的机会成本、转出土地的租金决定土地转出;农户劳动力要素的总收益、农村社会的特征决定农户对规模经营组织的有效需求。规模报酬与技术进步所要求的最低规模决定规模经营组织的土地转入需求;规模报酬预期,包括土地租金在内的交易费用小于土地转入的纯收益,以及技术进步的资金充足,决定规模经营组织类型的有效供给。     

Who trades water allocations? Evidence of the characteristics of early adopters in the Goulburn–Murray Irrigation District,Australia 1998–1999**

This article applies a model of innovation to analyze the characteristics of irrigators within the Goulburn–Murray Irrigation District in Australia and examines the efficiency of the early water market in the late 1990s. Using multinominal and binary logit analyses we identify the factors associated with irrigators who sold or bought water allocations during 1998–1999 and irrigators who at that time had never participated in any kind of water trading. Contrary to expectations we find that early adopters of water trading were older farmers with low farm productivity, but that in line with theory they had higher levels of education, had spent less time farming, had larger irrigated area, farm operating surplus and farm assets, owned farms that were more intensively farmed, and were more progressive in their planning. There was only weak evidence to suggest that water moved from lower value uses to higher value uses, suggesting the water allocation market had limited efficiency in its’ initial years.     

Economics of Quota Allocation Within Supply Managemnt Analysis of the Present Procedures for Quota Allocation

The institution of supply management has evolved to deal with a farm income problem and to achieve social objectives such as the maintenance of the family farm. In many respects, the institutions have developed in response to significant technological and market development that had potentially profound impacts on the number, size and profitability of farm operations. Supply management has proven successful in transfer— ring income, partially stabilizing prices and production and arresting the spread of vertical integration and maintaining the "family farm." Although the institution has had its failures, more specifically, income transfers have been capitalized into asset values. Second generation farmers will face higher costs and will benefit only if they too can "short the market" and extract monopoly profits from the marketplace. Further, the rigidities in quota allocation methods have inhibited resource allocation, necessary structural adjustments and imposed real costs to consumers. These negative results are incongruent to an otherwise viable and dynamic Canadian agriculture.
Is It North It
One may argue that the consequences of regulation, which are reduced efficiency/competitiveness and lost opportunities, are acceptable if it is felt a transfer of benefits to a disadvantaged group of society is needed. However, can it be held that those farmers operating under supply management remain disadvantaged? If not, regulatory reform and/or adjustments are needed. Otherwise, the tendency towards deregulation in the general economy, widening price gaps, consumer resistance, and the like will lead to imposed changes by regulatory authorities.
Supply management is an acceptable regulatory tool that should be employed to achieve a myriad of policy objectives.