Agricultural Economics and Rural Development: Marriage or Divorce? Presidential Address

Rural development is a growing field of interest, both in policy and conceptual terms. However, it is sometimes loosely defined, and statistical information is therefore often confusing. This paper attempts to clarify some of the concepts involved, and then to explore the relationship between the study of rural development and that of agricultural economics. It is argued that much would be gained by a clearer separation between the economics of land, covering its environmental aspects as well as food production, and that of the rural population and economy. Links between the two certainly exist, but are better recognised individually, by analysts and policymakers alike.     

Agricultural mechanization and reduced tillage: antagonism or synergy?

This paper reviews agricultural mechanization and reduced tillage use in the context of sustainable intensification in developing country agriculture. The scoping review includes selected and contrasting cases – including Zimbabwe (manual systems), Bangladesh (2-wheel – single axle tractor systems), India (4-wheel – i.e. 2 axles tractor systems), Kazakhstan (mechanized systems) and Brazil (diverse systems). The expansion of reduced tillage appears strongly associated with the level of agricultural mechanization – facilitated by a number of common drivers and contextualized by the prevailing farm power and intensity of tillage. Soil conservation, timely planting and farm power savings in crop establishment are important drivers for the expansion of reduced tillage across the world, facilitated by conducive markets, institutional and policy environments and the integration of diverse actors to introduce, adapt and promote the necessary components.     

Grain marketing and National Competition Policy: Reform or Reaction?

Grain marketing arrangements in Australia have been controversial for many years. Following an account of the historical background to grain marketing, this article concentrates on more recent debates. The most interesting technical economic argument concerns the validity of claims that statutory marketing authorities with export monopoly powers can obtain higher prices. The article also discusses how marketing in Australia has been affected by Commonwealth and State Government policies with respect to microeconomic reform and privatization. Although major changes appear to have been made in grain marketing and its institutions, there are inherent economic problems with the current approach to deregulation.     

Migrant Agricultural Workers in Local and Global Contexts: Toward a Better Life?

Four books published between 2013 and 2014 make a vital contribution towards understanding the political and ideological tools by which states and employers construct hyper‐exploitable agricultural workers. In this review essay, we provide an assessment of how these books have advanced our understandings of migrant farm labour regimes in local and international perspectives. After presenting a synopsis of each text, we critically reflect on key lessons learned, offer questions that merit further attention, and suggest directions for future research. Our review finds that despite wide differences in geopolitical and legal contexts in which migrant agricultural workers cross borders, live and work, there are remarkable resemblances in the ways in which states use (and abuse) migrant labour. Likewise, there are glaring similarities in the consequent vulnerabilities migrants experience. While each author provides compelling and empirically rich observations based on local fields of study, generally lacking are broader global connections and policy discussions about how the problems raised can be meaningfully addressed. Given the seeming ubiquity of exploitative migrant agricultural worker regimes, the fundamental question left largely unanswered is: Must ‘local’ agricultural systems depend on vulnerable imported workers in order to provide affordable food for consumers, or are there workable alternatives to this arrangement?     

The introduction of Entry Level Stewardship in England: Extension or dilution in agri-environment policy?

Agri-environment schemes were introduced in the mid-1980s. Their primary objectives have developed from initially aiming to hold back intensification towards stimulating environmental enhancement. The introduction of Entry Level Stewardship (ELS) in England represents a third stage in seeking to extend the coverage of schemes across the majority of agricultural land. This aims to influence land use along the whole of the intensive margin. The ELS offers a wide range of options for which farmers are awarded points. Selection of options equivalent to 30 points per ha in lowland areas entitles farmers to a payment of £30 per ha. By September 2007, 4.4 million ha had been entered into the scheme, equivalent to 47% of the agricultural area. From amongst the options on offer, 34% of points were for boundary options, 20% for intensive grass options, 16% for management plans and 13% for options taking arable land out of production. The choice of options varies across the country with a higher proportion of the agricultural area entered in the East. Entry into the scheme is associated with total agricultural area, cereals farming, larger farms, a lower proportion of area in Environmentally Sensitive Area and Countryside Stewardship schemes and grazing livestock numbers. While the ELS has introduced a large number of new entrants into agri-environment schemes, the extent of the environmental impact is uncertain. Given the large number of options available, it is likely that farmers will have chosen options that involve relatively little change and incur limited cost. At the same time, it would be surprising if the environmental gains were of the types most valued within local areas. The ELS approach implies that public goods provided from agricultural land should be paid for irrespective of what would have happened in the absence of the scheme. While this may be a fairer approach, it may also undermine the idea of land stewardship and imply that payments will continue to be required in the long term in order to sustain provision. The ELS does establish a framework within which incentives could be targeted to deliver specific benefits within particular contexts and suggestions are made as to how policy might be developed for this.     

Levelling the playing field for European Union agriculture: Does the Common Agricultural Policy impact homogeneously on farm productivity and efficiency?

Originally conceived as a post-war policy vehicle for ensuring agricultural self-sufficiency, the Common Agricultural Policy (CAP) has evolved into a multifunctional instrument designed to satisfy a diverse portfolio of European Union (EU) policy objectives including nature protection. Notwithstanding, whilst the CAP has become more environmental and socially responsible, it is still expected to deliver an efficient farm production system capable of competing on world markets. The current paper combines a farm business panel dataset for 98 EU territories with a Stochastic Frontier Analysis (SFA) approach, to assess the impact of four contemporary broad categories of CAP subsidy programs on efficiency and environmental sustainability. In accordance with the literature, this study more correctly defines inputs as “facilitating”, whilst following recent methodological developments, crop-subsidies are treated as an endogenous strategic variable in the production function. Comparing between two discrete time periods, further tests are conducted to examine the hypothesis of technical efficiency convergence across european territories. The results suggest that first pillar crop subsidies and pillar two environmental programs generate a disincentive effect on productivity, whilst in general, the CAP promotes technical efficiency convergence within Europe.     

Biodiversity and Green Infrastructure in Europe: Boundary object or ecological trap?

The concept of green infrastructure is widely used in environmental planning, but so far it has no standard definition. Planners, conservationists and scientists tend to welcome the term because it can serve as a boundary object, providing links among policy makers, developers and different academic disciplines. However, the concept of green infrastructure creates risks for biodiversity conservation in its adoption. It can be used to water down biodiversity conservation aims and objectives as easily as it can be used to further them because of the different ideas associated with it and the multiple interests pursued. In this paper, we address such risks by looking, among others, at the European Union’s Green Infrastructure Strategy and we suggest how planners and conservationists might deal with its growing importance in environmental policy and planning to enhance its value for biodiversity conservation.     

Specialization or diversification? The situation and transition of households’ livelihood in agricultural heritage systems

Zhagana Agriculture-Forest-Animal Husbandry Composite System (ZCS) is the first Globally Important Agricultural Heritage Systems site in the Tibetan Plateau. Similar to many traditional agricultural regions, with the development of tourism and leisure agriculture, the peasant households in ZCS have gradually changed their livelihood strategies and livelihood activities in the past 10 years, resulting in the disappearance of some traditional farming methods and agricultural landscapes with a long history. By taking livelihood assets as the entry point and livelihood strategies as the core, this paper analyzed the basic situation of households’ livelihood and the transition mechanism of different livelihood strategies in order to offer suggestions for the dynamic conservation and sustainable development of Agricultural Heritage Systems (AHS). (1) The livelihood strategies of peasant households in ZCS can be divided into two major categories: specialized strategies and diversified strategies. (2) According to the empirical calculation of the livelihood asset accounting framework of AHS, the average livelihood asset value of peasant households in ZCS is 2.040, showing that the situation of peasant households’ livelihood is inadequate. (3) The transition of peasant households’ livelihood strategies from traditional strategy to specialized or diversified livelihood strategies is mainly influenced by natural assets, human assets, cultural assets, social assets and informational assets. In order to meet the growing material and spiritual needs of peasant households and achieve the sustainable development of ZCS simultaneously, it is suggested that the agriculture-forestry-animal husbandry-tourism composite strategies shall be taken as the development direction of peasant households’ livelihood strategies.     

The application of the Habitats Directive in the UK: Compliance or gold plating?

The implementation of the Birds and Habitats Directives in the UK has caused considerable unease within some parts of industry. Ports in particular have voiced concerns and have argued that the UK Government's interpretation of the Directives is more comprehensive than strictly necessary, likening it to ‘gold plating’. They have argued that this has placed the UK at a disadvantage to other European competitors. This paper explores these contentions and examines case histories to establish the veracity of the arguments.     

The public R&D and productivity growth in Australia's broadacre agriculture: is there a link?

This paper investigates the dynamic relationships between research and development (R&D) expenditure and productivity growth in Australian broadacre agriculture using aggregate time series data for the period 1953 to 2009. The results show a cointegrating relationship between R&D and productivity growth and a unidirectional causality from R&D to TFP (total factor productivity) growth in Australian broadacre agriculture. Using the dynamic properties of the model, data from beyond the sample period are analysed by employing the variance decomposition and the impulse response function. The findings reveal that R&D can be readily linked to the variation in productivity growth beyond the sample period. Furthermore, the forecasting results indicate that a significant out‐of‐sample relationship exists between public R&D and productivity in broadacre agriculture.     

Balancing productivity and trade objectives in a competing environment: should India commercialize GM rice with or without China?

India is considering approving genetically modified (GM) rice, but it fears losing rice exports to sensitive countries with import regulations on GM food, and may wait for China to lead the way. Using a multiregion, computable general equilibrium (CGE) model, we simulate the economic effects of introducing GM rice in India with or without China in the presence of labeling and import approval regulations of GM food in GM sensitive importing countries. We find that the welfare gains with GM rice in India would largely exceed any potential export loss, and that the segregation of non-GM rice could help reduce these minor losses. We also find no significant first mover advantage for India or China on GM rice. The opportunity cost of segregation of non-GM rice is much larger for sensitive importers than for India, which suggests that these importers would have the incentive to pay for the cost of segregation.     

Crisis or continuity?: Framing land disputes and local conflict resolution in Burundi

This article is about the importance of framing in conflict situations, and how this informs peacebuilding interventions. It discusses the consequences of understanding land disputes in Burundi as a short-term problem, resulting from the massive return of refugees and displaced to their former homes. This framing of land disputes urged international and local organizations to initiate programmes for strengthening the capacities of local conflict resolving institutions. The case material shows that, though the return of refugees was a factor in disputes about land, there was a lot of continuity between conflict-related and regular land disputes. Many disputes required first and foremost solutions at the national, political level, rather than at the local level. Further, the predisposition towards local institutions failed to take account of the weaknesses of those institutions. The article further points out some of the practices that played a role in this framing of conflict and the intervention strategies based on it.     

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

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

Protester or non‐protester: a binary state? On the use (and non‐use) of latent class models to analyse protesting in economic valuation*

In the analysis of stated preferences studies, it is often assumed that protesting is a discretely measured item only occurring among those who are not willing to pay. However, various studies have recently shown that protest beliefs are as well held by respondents who state a positive willingness to pay (WTP). Using latent class (LC) models, we investigate the extent of heterogeneity with respect to protest beliefs among all respondents of two contingent valuation studies. The advantage of LC models is that classes of individuals are endogenously identified and no selection bias is introduced by ad hoc definitions of protesters. Further we investigate whether it is possible to identify a class of non‐protesters. Finding a group of pure non‐protesters could indicate how strongly stated WTP in the whole sample is affected by protest beliefs. For both samples, we find a class with strong protest beliefs but no pure non‐protest class. Overall, our results suggest that LC models might not be the first choice to determine unbiased WTP measures, but they provide valuable insights into the degree of protesting expressed by different groups and corresponding determinants of group membership.