Productivity Growth in German Dairy Farming using a Flexible Modelling Approach

A random‐coefficients specification of an output distance function is used to measure and decompose productivity growth in German dairy farming. This specification can accommodate heterogeneity with respect to the technology employed by dairy farms, allowing for specialised and non‐specialised farms to be included in the analysis. The proposed modelling approach is favoured by the data when compared with the conventional translog specification of distance functions. The average total factor productivity growth rate for German dairy farms is estimated at 1.1%, with the technical progress component contributing most of this growth.     

CAP Reform in the Dairy Sector: Remove Export Subsidies and Retain Milk Quota

CAP Reform in the Dairy Sector: Remove Export Subsidies and Retain Milk Quota The reforms of the Common Agricultural Policy of June 2003 introduced major policy changes, In the dairy sector the aim is to decrease price distortions between the EU and world dairy markets through successive reductions in milk intervention prices. However, the milk quota system is still in place and successive increases in milk quotas are planned. The question is whether these dairy reforms are going in the right direction given the three main characteristics of the EU dairy sector. First the price inelasticity of both milk supply (due to quota) and domestic demand means that price distortion mainly affects the distribution of economic surplus between consumers and producers but does not generate significant net losses in economic welfare. Second, the ‘large country’ position of the EU on the world market means that the EU should remove all export subsidies, which will reduce EU exports and increase world prices. Third, the projected increase in EU aggregate demand for milk favours a reduction in all subsidies. The CAP is going in the right direction in the dairy sector. But to reduce price distortions all subsidies should be removed as soon as possible and the milk production quota should be retained. La réforme de la PAC laitiére: supprimer les subventions aux exportations et conserver les quotas La réforme de la PAC en juin 2003 est un changement majeur. En ce qui concerne le secteur laitier, l'idée consiste à diminuer les distorsions entre les prix européens et ceux du marché mondial par une série de réductions progressives du prix d'intervention. En même temps, le système des quotas reste en place et des accroissements progressifs sont envisageés pour les droits à produire. La question. est alors de savoir si une telle politique est bien orientée, compte tenu des trois caractéristiques principales du secteur laitier européen. En premier lieu, la faible élasticité-prix aussi bien de l'offre (à cause des quotas) que de la demande, implique que les distorsions, si elies affectent la répartition des bénéfices entre producteurs et consommateurs, ne génèrent pas de très grandes pertes sociales au niveau du bien-être global. Ensuite, l'importance de l'Union européenne sur les marchés mondiaux implique que l'UE doive réduire ses subventions à l'exportation, ce qui diminuera le volume des exportations et en fera remonter le prix, Enfin, l'accroissement prévisible de la demande globale européenne en produits laitiers devrait conduire G une réduction des subventions de toute sorte. La PAC est done sur la bonne voie en matière laitière. Mais pour réduire les distorsions, il faut le plus vite possible supprimer les subventions et conserver les quotas laitiers. Reform der GAP im Milchsektor: Abschaffung der Exportsubventionen und Beibehaltung der Milchquoten Die Reform der Gemeinsamen Agrarpolitik vom Juni 2003 führt zu erheblichen Politikänderungen. Im Milchsektor ist das Ziel, die Preisverzerrungen zwischen der EU und den Weltmärkten für Milchprodukte durch eine sukzessive Reduzierung der Milchinterventionspreise zu verringern. Das Milchquotensystem bleibt jedoch weiter bestehen und sukzessive Erhöhungen der Milchquoten sind geplant. Es ergibt sich die Frage, ob die Reform bei den vorhandenen drei Charakteristika im EU Milchsektor in die richtige Richtung geht. Erstens bedeuten das gegebene preisunelastische Angebot von Milch (wegen der Quotierung) und die Nachfrage im Inland, dass die Preisverzerrung sich vomehmlich auf die Verteilung der ökonomischen Rente zwischen Konsumenten und Produzenten auswirkt, nicht aber zu bedeutenden Wohlfahrtsverlusten führt. Zweitens fuhrt die Abschaffung aller Exporterstattungen für Milch und Milchprodukte dazu, dass die EU Exporte sinken und damit wegen der EU als relative großes Land die Weltmarktpreise für Milch steigen werden. Drittens begünstigt die vorausgesagte Zunahme in der aggregierten Milchnachfrage in der EU eine Reduzierung aller Subventionen. Die GAP entwickelt sich im Milchsektor in die richtige Richtung. Es sollten aber alle Subventionen so schnell wie möglich abgebaut und die Milchquote sollte aufrechterhalten werden, um Preisverzerrungen zu reduzieren.     

Household Production and Capitalist Development in Contemporary Russia

This essay reviews four recent books based on research on the development of capitalism and the position of household‐based farming in post‐Soviet Russia. Each of the books represents a different set of conceptual assumptions and is based on different methods of enquiry. It is argued that a problematic feature of much of the literature on this topic is that it begins from the assumption that successful capitalist development in Russian agriculture should be based on the development of small‐scale family farming. This tends to obscure the variety of forms of production that have emerged so far and the range of different relationships between them.     

Strategic Role of Trade Credit in Chain Coordination for the Traditional Farm Business Enterprises in Punjab,India

Abstract

Rice being a staple cereal, government purchases paddy (unhusked rice) from the primary wholesale markets in the surplus agrarian Punjab State and milled rice is distributed through the public distribution system in rice deficit States. Commission agents (CAs) in the primary wholesale markets that operate on a fixed commission basis constitute a strategic link between farmers and the procurement agencies/millers. To ensure adequate supplies of paddy for their own businesses CAs advance trade credit to the client farmers who need a regular flow of credit (during both the seasons annually that is not always possible to raise from the formal sources) for the purchase of operational inputs, on farm investments and various consumption purposes. So mutual interdependences, hereditary characters of the business enterprises and close proximities have enabled the chain partners to build up close personal relationships in the repeat business transactions. Farmers sell paddy through the preferred CAs during the post-harvest period, and personal relationships play a pivotal role in chain coordination while captive relationships ensure timely payments. For advancing trade credit, CAs' preferred choices are the medium and large sized farmers due to lower risks while the small sized farmers are less preferred because of their weak asset positions and payment uncertainties that increase the operational costs of trade credit. CAs make amicable adjustments to the utmost so that farmers do not shift away from their preferred CAs. CAs do not share any market risk, however, when paddy payments from the government to farmers get delayed they at their personal levels meet the requirements for cash contingencies of the client farmers. Knowledge gained from this study provides managerial and policy insights on the supply chain management mechanisms for the supplies of an essential input and its timely recoveries.     

Diversification, Vertical Integration, and the Regional Pattern of Dairy Farm Size

Dairy farm size differs considerably across the United States. We analyze patterns of dairy farm size to determine how differences in vertical integration and diversification relate to farm size. We find that diversification accounts for little size variation. For vertical integration, the partial correlation with dairy herd size is strongly negative. Dairy value-added size measures vary less across regions than herd size, indicating that an important part of herd size variation relates to vertical integration. Nonetheless, dairy farms in the Pacific and South regions remain much larger than farms in the traditional dairy regions, even when accounting for vertical integration.     

Markups,organic agriculture and downstream concentration at the example of European dairy farmers

A competitive environment, highly concentrated processing and retailing sectors as well as increasing decoupling of direct payments from production volumes and the area under cultivation incentivizes farmers to find alternative ways to improve their bargaining position towards downstream companies. This article explores the possibilities of organic agriculture to enhance the bargaining power of farmers along with the role of concentration in downstream industries. Using a dataset with more than 200,000 observations from approximately 40,000 dairy farms, I estimate markups of price over marginal cost in dairy farming as a measure of market power in the EU. The results show that organic farmers achieve a significant markup premium over conventional farmers. With increasing market shares of organic milk in total milk production markups of conventional farmers diminish whereas those of organic farmers are unaffected. Farm-level markups decrease with increasing market shares of medium-sized dairy processors and increase with increasing market shares of large processors. The presence of large multinational retail chains shows an adverse impact on farmers’ markups.     

Impact of CAP Subsidies on Technical Efficiency of Crop Farms in Germany,the Netherlands and Sweden

This paper analyses the impacts of CAP reforms, particularly subsidies on technical efficiency of crop farms. An output distance function is employed and estimated together with an inefficiency effects model to capture the effects of CAP subsidies and farmer characteristics on farm efficiency. The model is applied to FADN data (period 1995–2004) of crop farms in Germany, the Netherlands and Sweden. The study shows that the 10‐year average technical efficiency is 64% in Germany, 76% in the Netherlands and 71% in Sweden. The average annual changes in technical efficiency are 0.1%, 0.4% and 2.3%, respectively. The share of crop subsidies in total subsidies has a negative impact on technical efficiency in Germany but a positive impact in Sweden, although insignificant in the Netherlands. The share of total subsidies in total farm revenues has negative impacts on technical efficiency in all three countries, consistent with income and insurance effects. Positive (negative) change in technical efficiency is mainly attributable to farm size (degree of specialisation) in Germany, and degree of specialisation (degree of subsidy dependence) in the Netherlands and Sweden.     

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.     

Entry, Exit, and Farm Size: Assessing an Experiment in Dairy Price Policy

This article models and estimates the forces behind farm exits and changes in herd-size among Connecticut dairy farms under the New England Dairy Compact. A model of sunk costs and farm capital investment is used to specify two econometric estimations: a random effects probit model of farm entry and exit and an autocorrelated generalized least squares panel data model of farm size. The Dairy Compact's price strategy reduced farm exits and moderately increased cow numbers. In contrast, development pressures and historically low unemployment rates increased farm exits.     

Subsidies and agricultural productivity in the EU

This paper investigates the relationship between EU agricultural subsidies and agricultural labor productivity growth by estimating a conditional convergence growth model. We use more representative subsidy indicators and a wider coverage (panel data from 213 EU regions over the period 2004–2014) than have been used before. We find that, on average, EU's Common Agricultural Policy (CAP) subsidies increase agricultural labor productivity growth, but this aggregate effect hides important heterogeneity of effects of different types of subsidies. The positive effect on productivity comes from decoupled subsidies, that is, Pillar I decoupled payments and some Pillar II payments. Coupled Pillar I subsidies have the opposite effect: they slow down productivity growth.     

The Political Economy of Agricultural Statistics and Input Subsidies: Evidence from India,Nigeria and Malawi

The political economy of agricultural policies – why certain interventions may be preferred by political leaders rather than others – is well recognized. This paper explores a perspective that has previously been neglected: the political economy of the agricultural statistics. In developing economies, the data on agricultural production are weak. Because these data are assembled using competing methods and assumptions, the final series are subject to political pressure, particularly when the government is subsidizing agricultural inputs. This paper draws on debates on the evidence of a Green Revolution in India and the arguments on the effect of withdrawing fertilizer subsidies during structural adjustment in Nigeria, and finally the paper presents new data on the effect of crop data subsidies in Malawi. The recent agricultural census (2006/7) indicates a maize output of 2.1 million metric tonnes, compared to the previously widely circulated figures of 3.4 million metric tonnes. The paper suggests that ‘data’ are themselves a product of agricultural policies.     

乳业上市公司资本结构与经营绩效关系的实证分析

选用我国乳品行业上市公司2011—2020年的各项财务数据,探究营运资本结构和经营绩效之间相关性。研究证明:应收账款在流动资产之中的占比、存货在流动资产之中的占比与公司绩效呈反向变化关系,应付账款在流动负债之中的占比、总资产对数以及营业利润增长率与公司绩效呈同向变化关系。最后,提出了乳制品行业上市公司必须合理控制其流动资产,确保必要的流动性,并适当调整负债比例,提升生产经营活动效率的建议。     

Environmental Regulation and the Spatial Structure of the U.S. Dairy Sector

Substantial public scrutiny about adverse environmental impacts of the dairy sector has resulted in increased environmental regulations. A behavioral model of location and production is developed to examine the impacts of environmental regulations, traditional location factors, and agglomeration economies on the spatial structure and geographical location of dairy production. The results show that counties in the states with more stringent environmental regulations tend to lose dairy inventories to those with less stringent policies. There are substantially meaningful spatial patterns of dairy production. Current dairy production levels are positively correlated while changes in production levels are negatively correlated across counties.     

Farm Size Growth and Participation in Agri‐environmental Schemes: A Configural Frequency Analysis of the Swiss Case

This paper examines the relationship between farm growth and participation in agri‐environmental schemes, using the example of meadow extensification schemes in Switzerland. As a result of small farm sizes in Swiss agriculture, theory would suggest that economies of scale are considerable for market production activities, so that for growing farms it would be rational to intensify. Configural frequency analysis is used to identify and describe combinations of farm size development and proportion of meadows placed under agri‐environmental schemes. In the Swiss case, growing farms are likely to reduce their participation, whereas shrinking farms have a growing share of their meadows under extensification schemes.     

An Analysis of Standards‐based Regulation in the EU Organic Sector, 1991–2007

Against the background of a discussion of recent analyses of capitalist subsumption of agriculture and of neo‐liberalism, the paper uses a ‘liberal governmentality’ framework to trace the development of the EU Regulation on organic agriculture from its adoption in 1991 to its recent repeal and replacement in 2007. The central argument is that regulatory development took the form of a cycle of elaboration, tightening, increasing deviation and finally a ‘return to principles’ in order to reduce deviation. At different stages in this cycle, different groups of ‘stakeholders’, including experts, were influential. Likewise, different forms of expertise became dominant or were sidelined. Meanwhile, ‘capital’ in its different incarnations remained marginal throughout. The paper leaves open the questions of the generalizability of this analysis to regulatory arenas other than the EU, as well as to regulatory objects more central than organic agriculture to capitalist accumulation.     

枸杞种植户参与紧密纵向协作的意愿及影响因素分析

运用二元Logistic回归模型分析了枸杞种植户参与假定的纵向协作形式的意愿及相关影响因素。研究表明:枸杞收入占家庭总收入比例较高和生产规模大的枸杞种植户倾向于参加紧密纵向协作形式,枸杞种植户乐意参与紧密的纵向协作,与紧密纵向协作链接市场及技术、资金支持等方面的优势也是分不开的。     

The Welfare Economics of a Biofuel Tax Credit and the Interaction Effects with Price Contingent Farm Subsidies

A framework is developed to analyze the effects of a biofuel consumer tax exemption and the interaction effects with a price contingent farm subsidy. Ethanol prices rise above the gasoline price by the amount of the tax credit. Corn farmers gain directly while gasoline consumers only gain from any reduction in world oil prices due to the extra ethanol production. Domestic oil producers lose. Historically, the intercept of the ethanol supply curve is above the gasoline price. Hence, part of the tax credit is redundant and represents "rectangular" deadweight costs that dwarf triangular deadweight cost measures of traditional farm subsidies.