Assessing policy tools for encouraging farm afforestation in Ireland

To encourage Irish farmers to afforest agricultural land, a premium scheme supporting such planting was implemented in 1989 and afforestation targets outlined in 1996. In the period from 1996 to 2009, however, only half of the targeted area was planted although the income of many farmers would have improved on joining the scheme. A multi-method study was undertaken looking at farmers’ decision-making with regard to afforestation under the scheme. In this paper we focus on one particular element of the study, which is about identifying policy tools that best match farmers’ behaviour with regard to afforestation. Based on previous work, which we undertook on farmers’ goals and values with regard to afforestation and which was presented in this journal, a postal survey was designed and distributed in spring 2012 to farmers all over Ireland. The results indicate that the majority of those surveyed do not make their decision to afforest based on profit maximisation goals. Offering only an incentive tool – such as the current premium scheme – will not be sufficient to encourage those farmers to plant trees. Additionally capacity tools such as group plantings of neighbouring fields and symbolic tools such as information and PR- or image-building campaigns should be deployed to further encourage afforestation by farmers.     

我国谷子种植户持续种植意愿的影响因素研究

文章通过对3个省(自治区)、5个市,268户谷子种植户的问卷调查,采用logit模型,使用逐步回归分析的方法,对影响谷子种植户持续种植谷子意愿的因素进行了分析。从户主个人基本情况、农户家庭情况、农户农业生产情况、谷子生产情况等4个方面共选择13项调查内容作为解释变量,以第2年是否持续种植谷子作为被解释变量,逐步回归分析结果表明:种植户种植业收入占家庭总收入的比重、种植户家庭耕地面积、谷子种植补贴通过了显著性检验。种植业收入占家庭总收入的比重与谷子持续种植呈显著负相关,比重越高持续种植意愿越低。谷子产量受自然因素影响大,农户从减小风险的角度出发,收入对种植业越依赖谷子的种植意愿越弱。家庭耕地面积与谷子持续种植呈显著正相关,家庭耕地面积越大,谷子被选择种植的机会也就越大,规模效应越明显,持续种植意愿越强。补贴对持续种植意愿呈显著正相关关系,种植补贴意味着更多的收益,积极性就越高。依据分析结果提出了要进一步提升对种植谷子的重视,加大科研投入力度,做好科技成果的转化与推广工作;要加大谷子种植补贴的力度、范围及内容,在良种、农膜、资金等方面对种植户给予支持与补贴,调动农户谷子种植的积极性;推进土地流转,在农户种植规模扩大过程中提高土地规模效益的政策建议。     

Farm size and smallholders’ use of intercropping in Northwest China

Intercropping, i.e. the cultivation of crop species mixtures, can potentially reduce pressure on land resources by generating higher yields through exploitation of complementarities between crop species. Although intercropping is practiced on a non-negligible proportion of China’s arable land, little is known about the factors that influence farmers’ decisions to use intercropping. In this study we develop a theoretical framework that distinguishes exogenous factors from endogenous factors in farmers’ activity choices in general and the use of intercropping in particular. We apply this framework in an empirical analysis of socio-economic factors affecting the use of traditional and novel relay intercropping systems, with a special focus on the impact of farm size, using primary data collected among 299 farmers in Gaotai County, northwest China. We find that large farms do no not plant more land with the traditional wheat/maize intercrop as compared to small farms, while land planted with the two novel intercrops is significantly larger on large farms. Availability of machinery has no negative effect on the area under intercropping, and has a significant positive effect on the use of one novel intercrop type. Our results confirm that risk considerations do not play a role in relay intercropping use decisions of Chinese farmers. We conclude that positive yield and natural resource effects of intercropping can still be realized if the ongoing farm scale enlargement policy is combined with a policy promoting novel intercropping types, particularly those types that can make use of already available machinery.     

Policy drivers of farm succession and inheritance

Farm succession and inheritance is increasingly considered a complex phenomenon which not only affects core dimensions of farm family life but also the agricultural sector more widely. Intergenerational farm transfer in particular is increasingly viewed as fundamental to the sustainability and development of global agriculture. In the majority of EU countries, the average age of farmers is increasing, while the number of farmers under 40 years of age is decreasing. There is growing concern that this demographic trend may have negative impacts on the agricultural industry because it is younger and not older farmers who are associated with more efficient and effective production practices. The question of what motivates decisions to transfer farms is a complex one, and research to date has not apparently enlightened agricultural policy to the extent that current trends towards an ageing farm population are being managed. This research aims to investigate economic and financial aspects of the policy drivers of farm succession and inheritance in Ireland to understand what it is about the policy environment that is failing to stimulate higher levels of farm transfer. It draws on the Teagasc National Farm Survey data which provides Irish data to the Farm Accountancy Data Network in the European Commission. A hypothetical microsimulation model is used to investigate economic factors of farm transfers, with scenarios created to test these factors and their impacts on the transfer process. The Net Present Value (NPV) of income streams for farmers and their successors are calculated to assess which scenarios have the highest/lowest financial effects. The findings illustrate a range of possible scenarios for farm succession/inheritance, with some results indicating that under current policy retaining a farm until death may be more economically beneficial to a farmer than transferring land before death.     

Farm productivity in Rwanda: effects of farm size,erosion, and soil conservation investments

This paper examines the effects of farm size, soil erosion, and soil conservation investments on land and labor productivity and allocative efficiency in Rwanda. There were several key results. First, there is a strong inverse relationship between farm size and land productivity, and the opposite for labor productivity. For smaller farms, there is evidence of allocative inefficiency in use of land and labor, probably due to factor market access constraints. Second, farms with greater investment in soil conservation have much better land productivity than average. Those with very eroded soils do much worse than average. Smaller farms are not more eroded than larger farms, but have twice the soil conservation investments. Third, land productivity benefits substantially from perennial cash crops, and the gains to shifting to cash crops are highest for those with low erosion and high use of fertilizer and organic matter. Program and policy effort to encourage and enable farmers to make soil conservation investments, to use fertilizer and organic matter, and to participate in cash cropping of perennials will have big payoffs in productivity. Land markets that allow smaller farmers to buy land could also increase aggregate productivity.     

Do farmers or governments make better land conservation choices? Evidence from China's Sloping Land Conversion Program

In developing countries with small holdings, targeting payments-for-environmental-services prices to site-specific environmental benefits becomes administratively impractical. Instead, governments fix price and either dictate parcel enrollment or let farmers decide, which might be expected to maximize environmental benefits and minimize opportunity costs, respectively. No paper has actually tested such hypotheses in a developing-country setting. This paper examines China's Sloping Land Conversion Program, with 32 million planting forests, using a unique dataset on 3397 parcels, including farmer-choice and government-choice parcels. Farmers consider similar criteria to local governments but weight land characteristics within the farm (not the landscape) and household characteristics.     

Spatial Targeting of Conservation Tillage to Improve Water Quality and Carbon Retention Benefits

This paper develops a GIS-based modeling framework that integrates a farm model, a hydrologic model, and a soil organic matter model to examine spatial targeting of conservation tillage to jointly improve water quality and carbon retention benefits in agricultural watersheds. Previous studies have examined the targeting of conservation tillage, land retirement, and riparian buffers at watershed scale to achieve water quality benefits but not considered carbon retention benefits. An empirical application of the framework in the Fairchild Creek watershed in Ontario shows that targeting conservation tillage based on sediment abatement goal can also achieve comparable carbon retention benefits in terms of percentage reduction of its base carbon losses. The targeted subcatchments for conservation tillage vary across the watershed based on benefit to cost ratios. The pattern of conservation tillage targeted based on carbon retention goal is similar to that with a sediment abatement goal but slight differences are found because of different carbon content in the soils. The modeling results have important policy implications for the design of conservation stewardship programs such as setting sediment abatement goal as an indicator to achieve joint environmental benefits and direct public fund to locations that can achieve environmental goals at least costs.     

Assessing the Impact of Financial Incentives in Extension Programmes: Evidence From Ireland

We evaluate whether the effectiveness of a participatory extension programme changes when an incentive is introduced that financially rewards farmers for participation. Using data from a dairy farm extension programme operated in Ireland, the evaluation assesses whether farmers who joined before the financial incentive was introduced receive larger benefits from the extension programme than farmers who joined after the financial incentive. The results from a propensity score matching analysis reveal that farmers who joined before the incentive significantly improved their farm performance, as measured in gross margins and yields, while farmers who joined after the incentive did not significantly benefit from the extension programme. This implies that the incentive to participate is a windfall gain to these later participants.     

Managing increasing environmental risks through agrobiodiversity and agrienvironmental policies

Agrobiodiversity can provide natural insurance to risk‐averse farmers by reducing the variance of crop yield, and to society at large by reducing the uncertainty in the provision of public‐good ecosystem services, for example, CO₂ storage. We analyze the choice of agrobiodiversity by risk‐averse farmers who have access to financial insurance, and study the implications for agrienvironmental policy design when on‐farm agrobiodiversity generates a positive risk externality. While increasing environmental risk leads private farmers to increase their level of on‐farm agrobiodiversity, the level of agrobiodiversity in the laissez‐faire equilibrium remains inefficiently low. We show how either one of the two agrienvironmental policy instruments can cure this risk‐related market failure: an ex ante Pigouvian subsidy on on‐farm agrobiodiversity and an ex post payment‐by‐result for the actual provision of public environmental benefits. In the absence of regulation, welfare may increase rather than decrease with increasing environmental risk, if the agroecosystem is characterized by a high natural insurance function, low costs, and large external benefits of agrobiodiversity.     

Impact of farmland characteristics on grain costs and benefits in the North China Plain

Land characteristics in general and socio-economic characteristics in particular are assumed to play important roles in the determination of grain costs and benefits. This study explores the effects of farmland characteristics on grain costs and benefits using a multilevel linear model. The data refer to 1282 grain plots of 566 grain producers in the provinces of Henan, Shandong, and Anhui in the North China Plain. The results show that the coefficients of the variables used to measure plot size and tenure insecurity have different values and signs for households with different grain planted areas. It can be concluded that the effects of plot size and ratio of rented land are closely related to farmers’ total grain planted area, and only farmers with grain areas below 1.33 ha can achieve economies of scale. The effects of tenure insecurity of rented land on grain costs and benefits were negative, but the values became smaller and insignificant when farmers’ total grain area was sufficiently large. Regarding farmland bio-physical characteristics, farmers obtain more profit from plots with water conservancy facilities and have to invest more in poor land, with no output increments.     

Editorial - Decision rules, government rules, and the costs of vegetation protection in New South Wales

Governments regularly spend public funds to purchase environmental amenities. They might purchase land to add to the public estate, pay to fence stock out of endangered native forest, or offer stewardship payments as incentives to conservation. Governments also regularly introduce policies to achieve environmental goals, even though these policies impose costs on firms, households or farms. The basic decision rule, to maximise environmental benefits from a given budget, in all these cases is received wisdom within the economics profession. In the case of purchase of land to add to the public estate:Maximise environmental benefits by purchasing land in descending order of the ratio of benefit to cost until the budget is exhausted.More generally, funds should be allocated to individual activities within a programme in order of the decreasing ratio of benefits to costs until the budget is exhausted. This rule can be applied when benefits can be measured in any monetary or non-monetary quantitative index. In the case of conservation of vegetation, it can be applied relatively simply in the field when vegetation types and land values can be mapped jointly through GIS techniques.This simple decision rule is not always followed by government agencies that manage environmental programmes. Consider the protection of native vegetation, which is defined to include native forest, native woodland and native grassland. To meet international obligations to protect this kind of environment, most countries must involve private landholders in conservation because there are insufficient government reserves to meet the international commitments. Indeed, most countries have already introduced many policies to encourage private landholders to protect native vegetation on their forests and farms.The New South Wales state government, in Australia, has introduced the Native Vegetation Conservation Act (1998) to ensure that private landholders protect vegetation. The Act constrains farmers to retain all the native forest, native woodland, and native grassland, on their land irrespective of the costs to them. Farmers can then apply for consent to clear and crop this land, but consent is rarely granted in full and often not at all. The Act is consistent with a decision rule of “maximise-benefits-only” - protect all vegetation irrespective of the costs to those who have to conserve it.Constraints of this kind will inevitably lead to a loss of income and land value when they restrict the farm enterprises, and so will impose opportunity costs on the farmer. There is already ample published evidence on the sizes of these costs - from publications of the relevant state agency itself, consultants' reports, farmer submissions and independent research. For example, in a large region in the northwest of New South Wales, where land could be cropped very productively:- some farmers bear only small losses (a quarter lose less than five per cent of their potential income),- some farmers bear very large losses (another quarter lose more than half of their potential income),- the overall losses of income per farm are high (an average loss of almost 30 per cent of potential income across the region), and- the losses are highest for those who have already conserved most woodland.Consider now the problem of reducing these costs by applying the benefit-cost rule as opposed to the maximise-benefits-only rule that has led to this position. There are three economic decision rules that might be used to rank projects or activities.The benefit-cost rule: Impose the constraint on the farm with the highest ratio of environmental benefit per dollar of opportunity cost first, then on the farm with the next highest ratio, etc., until the environmental goal is met. And so maximise the ratio of benefits to opportunity costs.The benefit-only rule: Impose the constraint on the farm with the highest environmental benefits first, then on the farm with the next highest benefits, etc., until the environmental goal is met. And so maximise benefits.The cost-only rule: Impose the constraint on the farm with the lowest opportunity costs first, then the next lowest cost, etc, until the environmental goal is met. And so minimise opportunity costs.But do these rules normally lead to different outcomes? If the “budget” or willingness to impose opportunity costs were large enough, all three would lead to the same outcome because constraints would be imposed on all suitable land. Otherwise the outcomes differ - that is the different rules lead to different levels of environmental benefit from the imposition of a given level of opportunity cost (or from the expenditure of a given budget).Both the benefit-only and cost-only rules lead to inefficiencies (see Babcock et al (1997) and Wu et al (2000) for a discussion of the associated statistical issues). Benefit-only targeting leads to the retirement of highly-productive land from agricultural uses - which is a major reason why opportunity costs are often high when native vegetation is conserved under the Act in New South Wales. The cost-only rule can lead to the reservation or purchase of land with few environmental benefits, even though expenditure or opportunity cost is minimised.A comparison of the benefit-cost rule and the benefit-only rule in the northwest of New South Wales illustrates the problem. The region is potentially highly-productive crop land but large areas of it are presently covered by native forest and woodland which cannot now be cleared. Much of this vegetation is under various degrees of threat even though it is not rare or endangered. The farm is the unit of assessment under the Act, so is used in the example. Benefits are measured as the percentages of species that are saved on each farm when its vegetation is protected rather than cleared to crops. The total benefit is the aggregate of percentage species saved across the farms - again following the present administration of the Act. The opportunity costs are measured as the losses in land value because land cannot now be cleared due to the Act.The comparison of the two rules indicates substantial savings with the benefit-cost rule. For example, 90 per cent of the total benefits can be obtained by imposing 93 per cent of the total opportunity costs with the benefit-only rule, and by imposing only 54 per cent of the total opportunity costs with the benefit-cost rule. The benefit-cost rule saves 39 per cent of the total costs at this level of benefits. Again, 80 cent of the total benefits can be obtained by imposing 86 per cent of the total opportunity costs with the benefit-only rule, but by imposing only 46 per cent of the total opportunity costs with the benefit-cost rule. The benefit-cost rule saves 40 per cent of costs at this level of benefits.While such results can only be indicative of the magnitudes, they do serve to highlight the inefficiencies of decision rules used by government agencies. In New South Wales, the Native Vegetation Conservation Act imposes high opportunity costs on farmers, partly because it is implemented through a high-cost decision rule. Now that suitable GIS technology, vegetation maps, and spatial land value data, are becoming available, these costs can be lowered with a more rational decision rule to guide choices in the field.The environmental goal is not at issue, but the cost of achieving it is. We can identify who bears the opportunity costs of environmental conservation, and often value the magnitude of these costs. Now we can also reduce the levels of these costs with the use of the benefit-cost decision rule.Jack SindenAgricultural and Resource EconomicsUniversity of New EnglandArmidale, New South WalesReferencesBabcock Bruce A, Lackshminarayan PG, Wu JunJie and Silberman D (1997) “Targeting Tools for the Purchase of Environmental Amenities”, Land Economics, 73, 325-339.Wu JunJie, Adams Richard M., Zilberman David, and Bruce Babcock (2000) “Targeting Resource Conservation Expenditures”, Choices, Second Quarter, 2000, 3-8.     

Retirement farming or sustainable growth – land transfer choices for farmers without a successor

Ireland’s agriculture is characterised by an ageing farmer population and small average farm sizes. These structural issues are shared by a number of European countries and have been identified as barriers to sustainable growth in the sector. While farms with an identified successor usually enter a path of expansion and growth, farms without a successor at some point follow a route of winding down and extensification. Such retirement farming could potentially become an issue for food security and sustainable land use. Understanding the retirement decisions of farmers without a successor is key to address this issue. To this end a survey was conducted with Irish farmers including questions surrounding succession and retirement. About half of the surveyed farmers did not have a successor and two thirds of those did not intend to fully retire from active farming in the future. A logistic regression analysis of the collected data showed that placing a high value on family tradition in farming and only receiving a state pension had a negative effect on the intention to retire, while being aware of changing pension ages had a positive effect. A follow up qualitative study explored the perceptions of farmers without a successor regarding various land transfer options. The participants mainly anticipated negative consequences arising from selling the farm and full retirement such as the loss of land and the end of the farming activity. Other options such as the long-term leasing of part of the land or entering into a partnership with a younger farmer were regarded as having more positive consequences. These included a lowering of the workload, allowing a continuing involvement in farm work, and the ability to be able to stay on the farm.     

Evaluation of a dairy agri-environmental programme for restoring woody green infrastructure

Pastoral landscape woody vegetation provides ecosystem services, but potentially competes for space, light and nutrients that could provide additional farm production. A questionnaire determined the values and behaviours of New Zealand dairy farmers to evaluate voluntary agri-environmental programmes for restoring woody vegetation. Findings indicate the area is increasing, while the composition and configuration of networks are changing and redistributing. Farms with little are losing more, and those with more are gaining. Farmers are planting new areas to increase their public ecosystem services, but may not provide these services through planting and management. Barriers include insufficient private woody vegetation ecosystem services, and low rates of growth of native plants. Government incentive programmes are ineffective in overcoming barriers. Farmers may be motivated by stronger evidence of valued ecosystem services, information about their benefits and drawbacks and how to support services through planting and management. However, a targeted environmental stewardship scheme is required to overcome barriers to planting, with government and the dairy industry working together to develop and maintain a landscape-scaled woody vegetation network on private and public land. Such networks would build sustainability and resilience into dairy farming, leading to an equitably sharing of benefits and costs of their public ecosystem services.     

Cost-effective Targeting of Riparian Buffers

This paper develops an integrated economic, hydrologic and GIS modeling framework to examine the cost-effective targeting of land retirement for establishing riparian buffers in agricultural watersheds. Previous studies have examined the efficiency of targeting large land parcels for retirement or targeting management practices such as conservation tillage but have not considered narrow variable buffer strips. An empirical application of the framework in the Canagagigue Creek watershed in Ontario shows that average and marginal costs of sediment abatement increase at an increasing rate as the environmental goal becomes more stringent. The locations of the buffer strips vary across the watershed and are not necessarily located on those sites with greatest slope or those adjacent to visible streams. Cost effectiveness is further increased if the targeting is extended to allow for the width of the buffer strip to vary by location rather than assume a uniform width. The modeling results have important policy implications for the design of conservation stewardship programs such as setting appropriate environmental health goals based on marginal abatement costs relative to marginal benefits, and setting physical characteristics of the riparian buffers for selection along the drainage network in targeted sub-catchments.     

家庭农场与农户小规模农地对农业技术服务需求行为差异及影响因素

［目的］在农业的发展过程中,以集约化土地种植为主的新型经营主体将极大地促进农业的现代化发展,这是新型的农业经营主体追求效益的最大化的选择性行为,也是政府主导和扶持的新型农民的政策缩影。文章探讨现代农业发展的背景下不同种植规模经营主体对于农业技术服务的需求行为差异和影响因素。［方法］以新疆棉区的1 043户小规模种植农户和683户家庭农场主的调查数据为例,对以家庭农场（种植面积267hm2及以上）为例的新型农业经营主体与传统农户小规模农地对农业技术服务需求行为运用二元Logistic模型进行实证分析。［结果］(1)家庭耕地面积是影响家庭农场对农业技术服务需求行为的主要因素; 而文化程度、是否参加农业合作社、村里是否有农业合作社是家庭农场对农业技术服务需求行为的影响程度最大的。(2)而参加农业技术培训次数是影响农户小规模农地对农业技术服务需求行为的主要因素; 是否参加农业技术培训是农户小规模农地对农业技术服务需求行为的影响程度最大的。［结论］（1）农业技术服供给机构应根据农户经营种植的耕地面积,对用户进行分类管理。（2）农业技术服务机构应协同基层部门加大对农业技术服务的宣传力度,全面提升种植农户的认知程度。（3）培育新型农业经营主体,为农业技术服务培育不同规模需求的优良农户。     

The impact of soil conservation and output diversification on farm income in Central American hillside farming

This article analyzes the determinants of farm income among hillside farmers participating in natural resource management projects in El Salvador and Honduras. The farm income function was evaluated using a system of equations in which income is determined simultaneously by the farmer's decision to adopt soil conservation technologies and by the level of diversification (number of agricultural activities) on the farm. The database used comes from surveys administered to 678 beneficiaries of these projects during 2002. The econometric results suggest that all the variables related directly to land use (i.e., output diversification, soil conservation practices and structures, and the adoption of forestry systems) have a positive and statistically significant association with farm income. Also, farmers who own land enjoy higher farm incomes than those who do not. The results indicate that when investing in natural resource management projects, governments and multilateral development agencies should pay close attention to output diversification, land tenure, and human capital formation as effective instruments in increasing farm income.     

Stop and Go Agricultural Policies with a Land Market

This article studies the design of farm policy in the presence of asymmetric information about farmers' productivity, a government objective to insure farmers a minimum "parity" income, an endogenous land rent, and diminishing returns on alternative (nonprogram crop) land uses. In this setting, acreage set asides are never part of an optimal farm policy, although compensated acreage limits are. When there are new farmer entrants who cannot be excluded from farm programs, optimal policy takes the form of a pure voluntary acreage limitation—or "buyout"—program in which high-cost producers participate and low-cost producers do not.     

林地经营权流转行为羊群效应研究

基于羊群行为理论,依据在福建省林地经营权流转推广力度较强的4个县开展调研获得的344份问卷调查数据,采用Binary Logistic方法分析林农林地经营权流转行为中的羊群效应。结果表明:羊群效应对林农林地经营权流转行为具有正向影响;林地流转政策信息可得性正向影响林农林地经营权流转行为;林地流转政策信息可得性在羊群效应对林农林地经营权流转行为影响中具有负向调节作用。因此,要增强林地流转政策信息可得性,实现林地资源效益的最大化;充分利用林地经营权流转中的羊群效应,确保流转政策得以稳步实施;提高林农的信息辨别能力,减少其流转决策的盲目性。     

An economic analysis of farm forestry as a means of controlling dryland salinity

Large areas of agricultural land under conventional crops and pastures are at risk of dryland salinisation in Australia. The salinisation problem can be controlled by strategic and large-scale planting of trees; however, farm forestry enterprises evaluated with conventional discounting techniques do not generally rank as an attractive alternative to annual crops on productive land. In this article, an optimal control model that explicitly accounts for decline or improvement in land quality over a period of 40 years is presented. The optimal area planted to trees and the optimal groundwater-table trajectory through time are determined under a variety of scenarios. Implications of the results for policy design are discussed.     

GM crop technology and trade restraints: economic implications for Australia and New Zealand*

How much might the potential economic benefit from enhanced farm productivity associated with crop biotechnology adoption by Australia and New Zealand (ANZ) be offset by a loss of market access abroad for crops that may contain genetically modified (GM) organisms? This paper uses the Global Trade Analysis Project (GTAP) model to estimate effects of other countries' GM policies without and with ANZ farmers adopting GM varieties of various grains and oilseeds. The gross economic benefits to ANZ from adopting GM crops under a variety of scenarios could be positive even if the strict controls on imports from GM‐adopting countries by the European Union are maintained, but not if North‐East Asia also applied such trade restaints. From those gross economic effects would need to be subtracted society's evaluation of any new food safety concerns and negative environmental externalities (net of any new environmental and occupational health benefits), as well as any extra costs of segregation, identity preservation and consumer search.