Policy review of water reform in the Murray–Darling Basin,Australia: the “do's” and “do'nots”

The water reforms undertaken in the Murray–Darling Basin, Australia since 2007 have been viewed as a model for other countries seeking to respond to water insecurity. Here, a policy review is provided of this water reform and whether it delivers on key environmental objectives in the 2007 Water Act (the Act). The evaluation includes a review of the 2012 Basin Plan, a key instrument of the Act, and complementary policies associated with the acquisition of water entitlements for the environment via direct (reverse tenders) and indirect (infrastructure subsidies) means. Using the objects of the Act as a benchmark, an evaluation is provided of the following: (i) planned reductions in irrigation water extractions in the 2012 Basin Plan; (ii) risks associated with the 2018 amendments to the Basin Plan that, collectively, allow for an increase in irrigation water extractions of some 22 per cent, relative to the sustainable diversion limits specified in the 2012 Basin Plan; (iii) Basin‐scale environmental outcomes achieved, as of the end of 2018; and (iv) economic effects of direct and indirect methods of acquiring water for the environment. Findings from the review generate the “Do's” and “Do Nots” of water reform for Australia, and possibly other countries, when managing the trade‐offs between water for irrigation and the environment.     

“The enchantment of property”: Arthur Young,enclosure, and the cottage economy in England, 1770–1840

English agricultural practice changed dramatically in the late 18th and early 19th centuries as enclosure, the dominance of commercial short‐term leases for tenant farmers, and the proletarianization of the agricultural labour force completed what has been called an agricultural revolution. A less often noted aspect of this change was what was called “a war on cottages” and cottage gardens. The Board of Agriculture and Arthur Young were important cheerleaders for this process. Yet many of the most prominent members of the Board of Agriculture made impassioned appeals for the provision of land for English cottagers as a way to reduce poverty and stressed that cottagers produced remarkable returns from their small farms. Arthur Young became the most vocal proponent of land for cottagers. This article suggests that their appeals for land for cottagers were limited by both farmers' desire for easily controlled labour and misplaced concerns about the supposed inevitability of the poverty inherent in very small farms.     

Risk Management for Grain Processors and “Copulas”

The importance of calibrating hedging strategies for processors has escalated primarily due to the sharply increased volatility of futures, product, and by‐product prices. The purpose of this paper is to analyze price risk‐management strategies for wheat flour milling using copula distributions. While the application is for flour milling, it has similarities with other processing industries which confront one or more ingredients, one or more outputs, and futures for one of the commodities and/or products. The paper develops utility maximizing models encompassing expected return and risk. Alternative scenarios are evaluated. First, the models were used to derive optimal hedge ratios, as well as various measures of risk and return under alternative scenarios, and hedge durations. The results indicated hedge ratios are typically less than 1. The hedge ratios for the Mean‐value‐at‐risk (M‐VaR)‐Copula model increased with greater durations. Second, the VaR for the M‐VaR‐Copula was in most cases less than the noncopula specifications. Thus, noncopula models may over state risk as represented by VaR.     

The “left behind”: Smallholders in contemporary Russian agriculture

Smallholder production in Russia has been in decline for more than a decade. The likelihood is for continued marginalization. Smallholders confront four obstacles. First, path dependencies, which includes the fact that smallholders' production remains traditional and subsistence oriented. Second, institutions in the form of state policy restrict land and animals. Third, Russia's role in the third food regime means that smallholders are unable to help Russia's emergence as a global food superpower. Fourth, smallholders are being left behind in the ongoing technological revolution led by agroholdings. As technological advancement expands in scope, the gap between large farms and smallholders will widen.     

Afterword: Reflections on “Capitalist development in hostile environments”

This afterword places the long essay “Capitalist Development in Hostile Environments” in the context of Giovanni Arrighi's overall intellectual trajectory. It highlights several crucial theoretical and methodological contributions to debates, including on the relationship between proletarianization and capitalist development, and between labour migration, class formation, and class conflict; on the interrelationship between “internal” and “external” processes in the explanation of social change; and on the distinction between economic progress, “catching‐up” development, and popular welfare. It concludes with a brief discussion of ways in which Arrighi's later theorization of the longue durée evolution of historical capitalism provides a robust conceptual framework for ongoing studies of proletarianization and capitalist development.     

Introduction to the special issue “small farms: decline or persistence?”

This issue of Agricultural Economics contains articles from a seminar entitled “Small Farms: Decline or Persistence?” held at the University of Kent. This issue includes nine papers selected from more than 50 papers presented at the seminar. Articles published use a range of econometric and simulation methods to provide a suite of case studies. Topics studied range from such fundamental issues as what constitutes a small farm to recent trends in the diversification of small farms and their integration into modern globalized food chains. Several papers emphasize the link between agricultural policy development and the future of small farms.     

“Such elements do not belong in an ordered society”: Managing rural–urban resettlement in democratic South Africa

In South Africa, the scale of rural–urban resettlement after apartheid continues to overwhelm the capacity of the government to house city dwellers in need of shelter. But the legitimacy of the postapartheid government rests on its ability to secure the rights of citizens who enjoy constitutional guarantees, including the right to housing. Because the government cannot simply repress this unhoused surplus population, it seeks instead to delegitimize some portion of it. It does so by developing a number of moralizing discourses, the subject of this paper, which distinguish between patient, deserving citizens, and unruly queue jumpers perceived to threaten the democratic project itself. Housing officials misrecognize squatters as a cause, rather than a consequence, of the state's failure to deliver, policing new land occupations with a draconian severity. They justify such repression in the name of protecting the democratic order, which is assumed to require waiting instead of improvisation.     

Collaborative growth management in metropolitan Denver: “Fig leaf or valiant effort?”

Metro Vision 2020 is a collaborative effort to manage growth in metropolitan Denver. Based on interviews, surveys and document analysis, an evaluation revealed that it was a well-managed process that raised awareness about growth problems. The efforts also resulted in an approved regional plan that initiated an innovative urban growth boundary policy. However, the lack of broad-based participation, limited understanding of policy effects, and inadequate implementation tools raised doubts about long-term effectiveness. The broader implications are that collaboration at the metropolitan scale needs to explore more participatory models, stronger implementation tools, and institutional structures that will support consensus.     

Evaluating alternative “countermeasures” against food contamination resulting from nuclear accidents

Nuclear accidents such as Chernobyl have far reaching impacts on ecological systems. Likewise they have major implications for agricultural systems, since crops and livestock can become contaminated and rendered unfit for human consumption. A range of “countermeasures” exists, however, which can mitigate these impacts and allow food products to be saved. The CESER project has been concerned with the development of a system to assess the environmental side‐effects of such countermeasures. Estimates of the economic costs of these environmental side‐effects have been made for a number of case study sites in the UK, using environmental models and an original contingent valuation study. Estimates of farm level (private) costs are also included.     

Land administration “best practice” providing the infrastructure for land policy implementation

Land administration systems, and particularly their core cadastral components, are an important infrastructure which facilitates the implementation of land use policies. While most land administration systems traditionally have a primary objective of supporting the operation of land markets, they are increasingly evolving into a broader land information infrastructure which supports economic development, environmental management and social stability in both developed and developing countries. While a great deal of attention is given to land use policies worldwide concerned with such areas as forest management, coastal zone management, environmental sustainability and managing the urban environment, less attention is given to the infrastructures which facilitate the implementation of the associated policies and programmes. Importantly, all these activities rely on some form of land administration infrastructure which permits the complex range of rights, restrictions and responsibilities in land to be identified, mapped and managed as a basis for policy formulation and implementation. As a result, there is an increasing interest in the concept of land administration infrastructures and their core cadastres, in the principles and policies concerned with establishing such infrastructures and in “best practices”. In addressing this need, this paper attempts to explain the evolving concept of land administration infrastructures, the concept of “best practice” and the concept of a land administration “tool box” of principles, policies, laws and technologies which are useful in reforming or re-engineering land administration systems in support of a broader land policy agenda.     

Applying economic sociology to understand the meaning of “Quality” in food markets

This article reviews the concept of the “market” and questions the standard view of the “market” developed by orthodox economic theory. The article highlights how Economic Sociology and Convention Theory is more useful in understanding markets and appreciating markets as social constructs, which are governed by institutions and social orders. This adjustment in the analytical framework to study markets and especially food markets, is useful in unpacking the various dimensions of “quality” in food products and illustrating that “quality” is an institution that is shaped by society and by culture.     

Evaluating the long‐term impacts of promoting “green” agriculture in the Amazon

Frontier development in the Brazilian Amazon has created vast areas of largely deforested landscapes. Conservation efforts in these post‐frontier zones seek to protect the remaining forest fragments and promote sustainable agricultural practices that absorb labor, meet market demand, and generate ecosystem services. Assessments of these efforts often find that rates of sustained uptake are disappointingly low and that impacts are difficult to discern, but this could be due to the short‐time frames of both the efforts themselves and their evaluation. We investigate the impacts of participation in an internationally sponsored farmer association that for 15 years promoted sustainable agricultural practices in the heavily deforested state of Rondônia, Brazil. Using data from a georeferenced four‐period panel survey of farmers in combination with remote sensing data on land use spanning the life of the association, we apply matching methods to estimate the impacts of participation. We find that membership resulted in more diversified production systems, including more land allocated to agroforestry. Members also deforested less of their farms, but this difference is not statistically significant after we control for selection bias in membership.     

Information and consumer perception of the “organic” attribute in fresh fruits and vegetables

Using a double hurdle model on panel data from 3,200 Danish households (monthly observations for 2002–2007), we study the effects of health‐related media information on the demand for organic fruit and vegetables. We find that “negative” information about pesticides contained in conventional fruit and vegetables mainly influences the probability of a consumer entering the organic market, not the quantities consumed by households that are already active on the organic market. “Positive” information that links health and the consumption of organic food influences both steps of the decision process. Our dataset includes information about consumers’ media habits, which allows us to disentangle the direct effects of media information from the indirect effects of this information as it is disseminated through the population. Our results suggest that directly obtained information is the main type of information influencing consumers, while information loadings by dissemination through the population have almost no effect on consumption.     

What farmers want: the “gustibus multiplier” and other behavioral insights on agricultural development

Behavioral economic experiments have not only identified realms where human behavior systematically deviates from the predictions of the standard neoclassical model, they have also devised way to measure individuals’ deep preferences concerning risk and time. Preference measurement has in turn opened the door to two area of inquiries: preference heterogeneity as an explanation of fundamental choices concerning savings and investment; and endogenous preference mutations as an explanation for the surprising success or failure of policies and interventions. These new insights and measures allow economics to expand beyond its traditional reliance on variation in prices and incomes as the primary explanators of economic behavior. Drawing on recent work on technology adoption in the face of risk and uncertainty, as well as work on the evolution of hope and aspirations that shape what farmers want, this article articulates frontier issues in agricultural development economics where the tools and perspectives of behavioral economics promise new and important insights.     

Rural Economies and Transitions to Capitalism: Germany and England Compared (c.1200–c.1800)

Based on a synthesis of the empirical scholarship on England and Germany, this paper demonstrates that in both regions, rural socio‐economic developments from c.1200 to c.1800 are similar: this period witnesses the rise to numerical predominance and growing economic significance of the ‘sub‐peasant classes’, which had a growing impact on the market as a result of their increasing market dependence, and from which – towards the end of the period – a rural proletariat emerged. Against the influential theory of Robert Brenner, it is argued that the period c.1200–c.1400 cannot really be categorized as ‘feudal’ according to Brenner's definition; and ‘agrarian capitalism’ does not adequately describe the socio‐economic system that obtained by the end of the sixteenth century. A genuine transition to capitalism is only evident from after c.1750, and can be found in Germany as well as in England; it is predicated both on ideological shifts and on the evolution of the rural proletariat, which is only found in large numbers by or after c.1800.