A New System of Labour Management in African Large‐Scale Agriculture?

This paper applies a convention theory (CT) approach to the analysis of labour management systems in African large‐scale farming. The reconstruction of previous analyses of high‐value crop production on large‐scale farms in Africa in terms of CT suggests that, since 1980–95, labour management has moved from a ‘domestic’ to a ‘market’ system. However, data collected by the authors from a sample of 11 large‐scale rose farms in Kenya in 2011 (covering around 20% of national output) points to the adoption of systems that, in CT terms, combine ‘industrial’ and ‘civic’ elements. The paper concludes by suggesting a series of hypotheses that might explain this trend.     

Herd Growth,Farm Organisation and Subsidies in the Dairy Sector of Russia and Kazakhstan

Initially taken as a template for farm restructuring after the demise of collective agriculture, the ‘Western family farm model’ has taken root in the former Soviet countries only belatedly and incompletely. We examine dairy structures in Russia and Kazakhstan and analyse the drivers of recent herd growth. We are specifically interested in the role of farm management and organisation, vertical integration, and the role of policy. Regression analysis based on a sample of 180 randomly selected commercial dairy farms, using an innovative simultaneous equation framework, shows that better herd management and access to milk marketing contracts were more effective in stimulating herd growth than current subsidy payments. We do not find evidence that milking plants belonging to corporate entities or even supra‐regional agroholdings grow more substantially than medium‐sized individual farms. Twenty‐five years after the end of central planning, structural change among commercial dairy farms in Russia and Kazakhstan appears similar in many ways to the patterns observed in the West more recently: smaller farms catch up in terms of herd growth and classical family‐run operations coexist with or even emulate vertically integrated agribusinesses based on hired labour. In moving toward this ‘new normal’ of farming structures, commercial dairy farms in Russia may even be a few steps ahead of their Western counterparts. At the same time, the still sizeable but stagnating group of subsistence producers in rural households finds no equivalent in the West.     

Gains and structural effects of exploiting scale-economies in Norwegian dairy production

In this paper, we present calculations of the economic gains in terms of reduced costs by exploiting scale‐economies in dairy production in Norway, and the effect this would have had on the number of farms. We also explore whether or not optimal scale and unexploited scale‐economies change over time due to scale‐augmenting technical change. The analysis is based on homothetic cost functions estimated by means of data for individual dairy farms for the period 1972–1996. For 1972, we find that, by full exploitation of scale‐economies, the costs could have been reduced by almost 40%, while the number of farms would have been reduced by more than 85%. The number of small farms has been substantially reduced in the period considered. This fact, combined with small scale‐augmenting technical change, implies that the gains and structural effects of exploiting scale‐economies have decreased over time. In 1996, costs could have been reduced by close to 30% by full exploitation of scale‐economies, while the number of farms would have been reduced by slightly more than 70%. Thus, both gains and structural effects are substantially less than in 1972. Nevertheless, the calculated gains for 1996 make almost 5 billion NOK. This corresponds almost exactly to the total public support to the dairy farms in 1996. The unexploited scale‐economies are largely due to the agricultural policy. Thus, a substantial share of the same can be considered as part of the‘price’ the Norwegian society has to pay for this policy. In addition, there are likely to be large hidden costs of this policy due in particular to the quota system and other direct production regulations. They imply that technical innovations and other efficiency‐improving investments requiring increased production to be profitable are not carried out. This is the more likely explanation for the extremely poor efficiency development in Norwegian dairy production in the period studied.     

Small U.S. dairy farms: can they compete?

The U.S. dairy industry is undergoing rapid structural change, evolving from a structure including many small farmers in the Upper Midwest and Northeast to one that includes very large farms in new production regions. Small farms are struggling to retain competitiveness via improved management and low‐input systems. Using data from USDA's Agricultural Resource Management Survey, we determine the extent of U.S. conventional and pasture‐based milk production during 2003–2007, and estimate net returns, scale efficiency, and technical efficiency associated with the systems across different operation sizes. We compare the financial performance of small conventional and pasture‐based producers with one another and with large‐scale producers. A stochastic production frontier is used to analyze performance over the period for conventional and pasture technologies identified using a binomial logit model. Large conventional farms generally outperformed smaller farms using most economic measures—technical efficiency, various profitability measures, and returns to scale.     

Capturing social network effects in technology adoption: the spatial diffusion of hybrid rice in Bangladesh

In this paper, we demonstrate a method for measuring the effect of spatial interactions on the use of hybrid rice using a unique, nationally representative data set from Bangladesh. In order to circumvent the ‘reflection problem’, we consider an identification and estimation strategy employing a generalised spatial two‐stage least squares procedure with near‐ideal instruments to effectively identify causal influences. Results indicate that neighbour effects are a significant determinant of hybrid rice use. Further, using two specifications of spatial network systems, one based on same‐village membership (irrespective of distance) and the other based on geographical distance (irrespective of village boundary), we demonstrate that a network including nearby hybrid rice adopters is more influential than a network of more distant hybrid rice adopters, and merely having a network with a large number of adopters may be relatively meaningless if they are far away. Furthermore, we show that these network effects are much more important to hybrid cultivation than interactions with agricultural extension officers.     

Comparative Efficiency of Family and Corporate Farms: Does Family Labour Matter?

We examine the comparative efficiency of family relative to corporate farms, using FADN data for the Czech Republic, Hungary, Romania and Spain. We estimate a non‐parametric non‐separable farm production function, and derive efficiency scores for both family and corporate farms. We decompose efficiency into two distinct sources – organisational differences and management capabilities. We find evidence for organisational efficiency gains from family farming, relative to corporate farming, and these appear to increase with family involvement. However, with regard to management capabilities, family farms do not compare so favourably. Furthermore, family involvement does not seem to have any systematic effect on the efficiency derived from management capabilities. Our findings suggest that further investigation of the way family farms employ and build management capabilities is needed to substantiate any ‘superiority’ claims.     

Patterns in Technical Efficiency and Technical Change at the Farm‐level in England and Wales, 1982–2002

English and Welsh farm‐level survey data are employed to estimate stochastic frontier production functions for eight different farm types (cereal, dairy, sheep, beef, poultry, pigs, general cropping and mixed) for the period 1982 to 2002. Differences in the relative efficiency of farms are explored by the simultaneous estimation of a model of technical inefficiency effects. The analysis shows that, generally, farms of all types are relatively efficient with a large proportion of farms operating close to the production frontier. However, whilst the frontier farms of all types are becoming more efficient through time because of technical change, it is also the case that the efficiency of the average farm for most farm types is increasing at a slower rate. In addition, annual mean levels of efficiency for most farm types have declined between 1982 and 2002. The factors that consistently appear to have a statistically significant effect on differences in efficiency between farms are: farm or herd size, farm debt ratios, farmer age, levels of specialisation and ownership status.     

Identifying agroecological mixed farming strategies for local conditions in San Antonio de Los Baños,Cuba

Building on previous research at the experimental and national scales, this study was carried out at the local scale over a four-year period on three farms of reference: one specialized dairy farm ‘Vaquería 10’ (33.7 ha) and two mixed farms, ‘Remedio’ (9.4 ha) and ‘La Sarita’ (47 ha). All three farms are located in the San Antonio de Los Baños municipality, Havana, Cuba. This study illustrates the application of the Ecological Framework for the Assessment of Sustainability (ECOFAS). This methodology consists of a cyclical structure of six steps, aimed at guiding the process of implementing innovative mixed (crop–livestock) farming strategies. Local stakeholders (farmers, researchers, extension officers and representatives of the ministry of agriculture in the municipality) identified alternative strategies for agriculture in the region, based on the critical technological, environmental and socio-economic factors constraining the current performance of farming systems. The results show that implementation of ‘best practice’ mixed farming systems management strategies in the region potentially can lead to a strong positive impact on land productivity, food self-sufficiency as well as improve socio-economic performance.     

Effects of European Union agricultural policies on the sustainability of grazingland use in a typical Greek rural area

Recent changes in the Common Agricultural Policy (CAP) introduced different definitions regarding the eligibility of various types of land used by grazing animals. In particular, shrublands and other low-quality areas which have traditionally been used as grazinglands are now not eligible for European Union income support payments. Subject to these changes, a large part of livestock farms will be affected, being partially or fully deprived of EU income support. In addition to these policy-driven changes, pasture-fed livestock farms in Greece are faced with a unique system of grazingland allocation, as all grazing areas in the country are state-owned. These areas are allocated for a short period either directly to farmers who are permanent residents of the Municipalities or to other livestock farmers through an auction system, which does not take into account the grazing capacity thus bringing about environmental degradation. This paper investigates the effects of CAP changes and of this communal land allocation system based on the findings of a typological analysis. The study focuses on a typical Greek territory in terms of land uses, economic activities and sociodemographic developments. Data from a questionnaire survey are used to build a typology of local livestock farms in terms of their nutritional management and land use characteristics and then the profile of each type is investigated through the estimation of a Multinomial Logit Model where the dependent variable is the cluster participation. Three distinct types of farms (clusters) are determined. Cluster 1 includes traditional farms which rear sheep and goats and bovine for meat, which are highly dependent on grazingland uses and EU income support. Cluster 2 farms – mainly sheep and goat – have evolved a ‘double’ dependency on land in the form of grazingland but also of cropland for feedstuff production, which renders them more resilient to policy changes. Finally, Cluster 3 farms are intensive dairy cattle farms and use artificial (cultivated) privately-owned grazinglands and cropland for feedstuff production. Market-oriented measures are proposed for each type and suggestions for an integrated land use plan are made, including long-term leasing of land and the consideration of environmental criteria for land allocation, thus rendering farmers responsible for keeping their land in a good production state.     

浅议管理信息系统开发的一项基础性工作

管理信息系统(MIS)的开发常遇到一些困难 ,这些问题的产生是与缺乏科学管理分不开的。本文从人员构成、系统设计、开发规范、开发进度、开发方法、程序设计和系统保障等几个方面论述了MIS开发中的管理问题。     

Economic analysis of the impact of adopting herd health control programs on smallholder dairy farms in Central Thailand

The economic impact of adopting herd health programs for mastitis and reproduction by small-scale dairy producers of Central Thailand was assessed using a policy analysis matrix (PAM). Following a reduction in the incidence of bovine disease on adopter farms, an increase in private net profits is observed. More importantly the social costs of supporting dairy farmers is reduced; the PAM effective protection coefficient was reduced by 35% for mastitis program adopters and by 44% for reproductive program adopters, indicating improved social efficiency of dairy policy. Other indicators of efficiency and policy implications are discussed.     

Impact of farm management diversity on the environmental and economic performance of the wheat–maize cropping system in the North China Plain

To assess the attainable greenhouse gas (GHG) mitigation potential from crop production in China's most important grain production region, the North China Plain (NCP), single farm environmental and economic performances of 65 winter wheat–summer maize (WW–SM) producing households were determined. The results revealed a huge heterogeneity among farms, with up to five times higher environmental impact of worst compared to best performing farms. Astonishingly no trade-off between productivity and sustainability could be identified in the region, with high-yield farms emitting no different amounts of GHGs per hectare compared to low-yield farms. Building on cluster analysis, with farms grouped according to their economic and environmental performance into ‘poor’, ‘fair' and ‘good’ producers, the regional GHG mitigation potential was estimated. Under the scenario assumption that all grain in the NCP is produced under ‘good’ production conditions, 21% and 7% of GHG could be mitigated in wheat and maize production, respectively. The study shows that in the NCP, exemplary for China's rapidly developing agricultural sector, the crop management skills of a substantial share of farmers could obviously not keep pace with the massive input intensification. Among others, farmer–farmer trainings are recommended to close the gap in crop production performance among producers.     

Feed use intensification and technical efficiency of dairy farms in New Zealand

In recent years, the traditionally pasture‐based dairy farms in New Zealand have become more intensive by using higher proportions of supplementary feed. This trend has been attributed to a range of factors, such as productivity enhancement, overcoming pasture deficits and the improvement of body condition scores. However, there is a lack of knowledge as to how feed use intensification affects the technical efficiency of dairy farms in New Zealand. This paper addresses the research gap by estimating the impact of feed use intensification on the technical efficiency of New Zealand dairy farms, using a fixed effects stochastic production frontier model and a balanced panel of 257 farms from 2010 to 2013. The empirical results show that technical efficiency on New Zealand dairy farms is positively and significantly influenced by feed use intensification, herd size and milking frequency.     

Productivity and farm size in Australian agriculture: reinvestigating the returns to scale

A positive relationship between farm size and farm productivity is often considered to be largely due to increasing returns to scale in farm production. However, using farm‐level data for the Australian broadacre industry, we found that constant or mildly decreasing returns to scale is the more typical scenario. In this study, the marginal returns to various farm inputs are compared across farms with different sizes. We found that large farms achieved higher productivity by changing production technology rather than increasing scale alone. The results highlight the disparity between ‘returns to scale’ and ‘returns to size’ in the industry, suggesting that productivity improvement among smaller farms can be made through increasing their ability to access advanced technologies, rather than simply expanding their scale.     

Efficacitè technique et coûts de production dans les secteurs laitiers du Québec et de l'Ontario

This study aims to estimate the level of technical efficiency in milk production and to analyze the relationship between the costs of production, the level of technical efficiency and farm size. Furthermore, the socio-economic variables that characterize the most efficient farms and those producing at lower cost are identified. The results indicate that in Quebec, the level of technical efficiency increases with herd size, but this increase is very small. In Ontario, herd size is not significant to explain technical efficiency. The level of education, the participation in milk recording programs, expenditures per cow fort are and artificial insemination, the quality of hay and the number of years as member of a management club are a11 variables that characterize efficient farms.     

Technology choice and efficiency on Australian dairy farms*

Deregulation of the Australian dairy industry, specifically the removal of price subsidies to ‘market milk’, as well as ongoing drought in many dairy regions, has placed considerable pressure on farm cash income and a search for ways in which dairy farms can be made to operate more efficiently. Using traditional farm survey data and a unique biannual data set on farm technology use, this paper estimates a stochastic production frontier and technical efficiency model for dairy farms in New South Wales and Victoria, determining the relative importance of each input in dairy production, the effects of key technology variables on farm efficiency, and overall farm profiles based on the efficiency rankings of dairy producers. Results show that production exhibits constant returns to scale and although feed concentration and the number of cows milked at peak season matter, the key determinants of differences in dairy farm efficiency are the type of dairy shed used and the proportion of irrigated farm area. Overall farm profiles indicate that those in the ‘high efficiency group’ largely employ either rotary or swing‐over dairy shed technology and have almost three times the proportional amount of land under irrigation.     

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.     

O‐Ring production on U.S. hog farms: joint choices of farm size,technology, and compensation

We hypothesize that hog production can be characterized by complementarities between new technologies, worker skills, and farms size. Such production processes are consistent with Kremer's O‐ring production theory in which a single mistake in any one of several complementary tasks in a firm's production process can lead to catastrophic failure of the product's value. In hog production, mistakes that introduce disease or pathogens into the production facility can cause a total loss of the herd. Consistent with predictions derived from the O‐ring theory, we provide evidence that the most skilled workers concentrate in the largest and most technologically advanced farms and are paid more than comparable workers on smaller farms. These findings suggest that worker skills, new technologies, and farm size are complements in production. The complementarities create returns to scale to large hog confinements, consistent with the dramatic increase in market share of very large farms over the past 20 years.     

Calculating environmental cost indicators of apple farm practices indicates large differences between growers

This study evaluates the environmental impact of current apple cultivation practices in Flanders, Belgium. It evaluates integrated production, the most common practice, and it compares this production method with conventional and organic production. The assessment was based on Farm Accountancy Data Network data from 2010 to 2012 for 64 farms in the region and a life cycle approach was used. The findings showed no significant improvement in environmental impacts for integrated farms compared to conventional farms and, even more, the former showed significantly higher average impacts per hectare for the categories ‘acidification’, and ‘non-renewable energy use’ in comparison with the latter. The organic production group showed higher average impacts per kilogram due to lower yields. Secondly, impacts related to the categories ‘acidification’, ‘eutrophication’ and ‘global warming potential’ were monetized based on the shadow price method in order to obtain external costs. Results show that external costs increase the production costs for integrated farming at least with 5%, both when these costs are expressed per kilogram and per hectare. However, the findings show a large variability in impacts and costs per farm. Farm-specific practices have therefore an important influence on the total environmental cost rather than production group-specific practices.     

The extent of resource use inefficiencies in cotton production in Pakistan's Punjab: an application of Data Envelopment Analysis

This paper attempts to identify sources of resource use inefficiency for cotton production in Pakistan's Punjab. The use of a non‐parametric method, Data Envelopment Analysis (DEA), is developed to study the relative technical and allocative efficiencies of individual farms which use similar inputs, produce the same product and operate under comparable circumstances. In the ‘cotton‐wheat’ system of Pakistan, there are a considerable number of farms that are both technically and allocatively inefficient. The use of DEA shows that the technique provides a clear identification of both the extent and the sources of technical and allocative inefficiencies in cotton production. However, both the interpretation of the farm level results generated and the projection of these results to a higher level require care, given the technical nature of the agricultural production processes.