An accelerating treadmill and an overlooked contradiction in industrial agriculture: Climate change and nitrogen fertilizer

In this article, we explore if and why farmers are responding to the impacts of climate change with practices that increase greenhouse gas emissions. Our examination focuses on heavy rainfall events and Midwestern corn farmers' nitrogen fertilizer management. Due to climate change, the frequency and intensity of heavy rain events is increasing across the Midwest. These events increase nitrogen loss to the environment and introduces economic risks to farmers. Drawing from a theoretical framework that merges O'Connor's second contradiction of capitalism and Schnaiberg's treadmill of production, we argue farmers' responses to these events reflect the second contradiction, increasing contributions to climate change, and are shaped by treadmill‐like political‐economic pressures. We examine this using a qualitative sample of 154 farmers across Indiana, Iowa, and Michigan. Given profit imperatives, adapting farmers in our sample primarily used increased nitrogen application rates to reduce their vulnerability to heavy rains. As nitrogen rate is directly associated with nitrous oxide emissions, this adaptive strategy is effective but increases agricultural contributions to climate change. This preliminarily suggests that the political‐economic structure encourages farmers to respond to climate change in ways that accelerate the environmental contradictions of industrial agriculture.     

Uncertain monitoring and modeling in a watershed nonpoint pollution program

Performance-based programs governing land use rely on environmental measurement, prediction, and assessment. Yet complex, nonlinear social and environmental change can lead to uncertainties in quantification and forecasting and create challenges for operationalizing programs. This research examines the roles that environmental monitoring and modeling uncertainty play in experimental land and water governance through an analysis of a regulatory water quality program in Wisconsin, USA. The case demonstrates how uncertainties in measurement and prediction of pollution runoff shape program design and participant perceptions. We draw on interviews, a survey, participant observation, and policy document analysis to illustrate how regulators and participants (including municipalities, sewerage treatment plants, farmers and nonprofit organizations) perceive and react to uncertainty. Because current and future water quality data are based largely on model estimates, but regulatory compliance will likely be based on measured in-stream outcomes, participants must evaluate potential risks of involvement. Stakeholders have relied on partnership building and legal modifications such as extended compliance timelines to reduce the risks associated with uncertainty. Experimentation under uncertainty led to sustained stakeholder dialogue, and an iterative process of deciding how monitoring and modeling should be used to track and prove program progress.     

Does participation in the sloping land conversion program reduce the sensitivity of Chinese farmers to climate change?

Over the last two decades, extensive literature has examined the socioeconomic and environmental impacts of China's Sloping Land Conversion Program (SLCP), a program that was launched in late 1990s to mitigate the environmental effects of agricultural production and reduce rural poverty. However, little empirical evidence exists with regard to the impact of SLCP on rural households' sensitivity to nature-induced changes and environmental challenges. In this study, household-level data covering the period 1995–2010 from five Chinese provinces were used to examine the effect of SLCP on farmers' sensitivity to climate change. The empirical results show that participation in SLCP significantly reduced farmers' sensitivity to climate change by reducing their dependency on land and natural resources for income, and by diversifying their livelihood options. Spatially, the results reveal that the effect of SLCP on farmers' sensitivity vary across regions. Specifically, SLCP was found to have a ‘rate effect’ on farmers in the Northern regions and a ‘level effect’ on farmers in the Southern regions. Likewise, we found that the effect of SLCP differs considerably across income groups, with the effect on low- and middle-income groups being most significant. The results indicate that subsidy is the main pathway through which SLCP reduces farmers' sensitivity to climate change. In contrast, we found inclusive evidence about the indirect effect of SLCP farmers' sensitivity through the promotion of non-agricultural employment. These results carry major implications with regard to the effectiveness of ecological conservation programs and their mitigation potential through building farmers' resilience in China and ecologically fragile environments.     

A Partial Adjustment Model of Federal Direct Payments in Canadian Agriculture

Delays in direct payments to Canadian farmers reduce the income loss protection that is provided by federal income stabilization and related programs. This issue is examined using Statistics Canada federal direct payment and net farm income data from 1981 to 2010. An estimate of the reduced protection against farm income loss that can be attributed to payment delays is obtained using a simple partial adjustment model, first with and then without the assumption of a constant rate of adjustment over time. The results point to a highly significant reduction in program effectiveness that can be attributed to delays in direct payments. There is no evidence to support the common belief that payment delays have significantly increased since the introduction of the Canadian Agricultural Income Stabilization program in 2003.     

农产品市场化对农户土地流入行为的影响研究——以江西省农户调查为例

随着中国市场经济的繁荣发展,农产品市场化程度不断提高,土地资源作为农业生产最重要的物质基础,农业经营者在一定的制度环境约束下将土地围绕外部利润进行博弈,选择更加有利的土地经营方式,成为土地流转的主要驱动力。文章利用江西省834份农户调查样本数据,运用Heckman两阶段模型实证分析了农产品市场化对农户土地流入行为的影响。研究结果表明农产品市场化对农户土地流入行为存在显著的影响,主要表现在离农贸市场距离、农产品销售比例等变量上。另外,农业劳动时间比、土地细碎化与户主年龄、性别、教育年限、务农年限及5年内担任村干部亲属的人数、参加农村合作社等因素均对农户土地流入行为产生不同程度影响。基于此,该文对如何有效引导与推进农村土地市场化流转提出了加快农贸市场超市化改造,完善农产品流通模式;建立健全农村社会保障体系,替代土地的社会保障功能;大力发展农村教育,提高农业经营者的文化素质与受教育水平;鼓励农户在自愿基础上成立土地股份型农民专业合作社,引导农民由传统的产销合作向新型的产权合作方向发展等政策建议。     

The Potential for Cross‐Compliance in Canadian Agricultural Policy: Linking Environmental Goals with Business Risk Management Programs

Environmental cross‐compliance links agricultural program payments to producer commitments to achieve agri‐environmental policy goals. The objective of this study is to determine the feasibility of using cross‐compliance to achieve environmental goals in a Canadian policy context. While Canadian policy makers have flirted with cross‐compliance, with the exception of phosphorus regulations for Quebec hog farms, they have never adopted this approach. The potential for effective cross‐compliance depends on producer participation, producer compliance with regulations, environmental performance, and overall welfare implications. This study reviews the application of cross‐compliance in the United States and EU with regard to the potential application to Canadian agriculture. Policy options are considered which link current business risk management (BRM) programs to alternative environmental regulations (wildlife habitat preservation, nutrient management plans, and beneficial management practices for nutrient management). In general, individual Canadian agricultural support program do not provide sufficient incentives for farmers to participate in cross‐compliance. However, if support programs are combined, it is better to link programs that redistribute income with environmental programs than to link agriculture programs that already address specific market failures.     

美国以自然资源保护为宗旨的土地休耕经验

美国土地休耕制度包括一系列水土保持计划和以土壤侵蚀度为主要指标的水土保持评价标准,它通过一系列耕地保护计划来推行。回顾美国农业耕作土地采取休耕政策及其实施情况,讨论了值得我国学习和借鉴的土地休耕计划的政策的成本费用等问题。     

IMPACTS OF TAXES TO REDUCE AGRICHEMICAL USE WHEN FARM POLICY IS ENDOGENOUS

The economic impacts of policies to reduce water pollution from agriculture have been explored in a number of studies. A standard assumption in this literature is that farm income support policies are given. However, the modern public choice view of agricultural policy suggests that significant environmental initiatives in agriculture would likely be accompanied by changes in farm income policies to protect those with a significant stake in agriculture. We explore the potential effects of such compensating adjustments on the costs and effectiveness of taxes on polluting chemical inputs in US corn production. We find that compensating farm policy adjustments can greatly increase the costs and reduce the effectiveness of the environmental protection measure. The results also indicate the potentially high costs of poor policy co-ordination.     

Social dimensions of market-based instruments: Introduction

This themed issue of Land Use Policy builds on the papers presented at an international symposium entitled Social Dimensions of Market-based Instruments, convened by the Charles Darwin University in Darwin, Australia, in November 2010. The symposium set out to review the extent to which market-based instruments were being employed as social policy tools in various contexts, what challenges achieving relevant social policy objectives posed, what trade-offs arose between environmental, social and economic objectives, and whether and how tensions could be resolved. The contributions to this themed issue provide conceptual-theoretical and empirical takes on the topic. They consider poverty, property rights and equality perspectives of participation and quantify social implications at the program, regional and national levels. They reveal converging messages, e.g. in relation to treatment of poverty, common property rights and nesting across scales. In combination, the papers make a compelling case that social implications of MBIs cannot be ignored and ought to be considered in design and evaluation even if programs do no pursue social objectives, as social dimensions can enhance or affect program effectiveness and efficiency. In doing so, the contributions expand the role that MBIs can play in ensuring sustainable resource use and offer considerations for policy design.     

Abstracts of Award-Winning Theses

Costa Rica has long been a leader among developing countries in the design of and experimentation with innovative environmental programs. Since 1997, Costa Rica's "Pagos de Servicios Ambientales" (Payments for Environmental Services) Program has provided payments to more than 4,400 farmers and forest owners for reforestation, forest conservation, and sustainable forest management activities. The econometric analysis of a survey of farmers and forest owners, including both PSA participants and nonparticipants, shows that farm size, human capital and household economic factors, and information variables significantly influence participation in PSA program alternatives. Large farmers and forest owners are disproportionately represented among program participants.     

关于森林认证本质的探讨

探讨森林认证的本质对我国森林认证发展具有现实意义。森林认证的本质主要体现在市场机制、信息传递机制、学习机制3个方面。森林认证作为市场机制的含义是指森林认证是林产品生产和消费者的外部性通过市场内部化的一个过程,同时森林认证是以市场为驱动的机制;森林认证还是一种减少信息不对称的信息传递机制;森林认证作为一种学习机制是指生态知识、技术、经营实践等可以在不同的参与方之间转移。从森林认证这3种本质出发,对我国森林认证体系的建设和政府在森林认证中的作用等提出了相应的建议。     

农户参与市场化生态补偿意愿及影响因素分析

[目的]与参与政府主导的生态补偿项目不同,农户参与市场化生态补偿有更大的自主性,因此在"建立市场化、多元化生态补偿"背景下,加强农户参与市场化生态补偿意愿的研究具有重要意义。探究农户参与市场化生态补偿的意愿,并识别出影响因素,寻求提高农户市场化生态补偿参与意愿的发力点。[方法]文章基于贵州省仁怀市208户农户问卷调查数据,运用二元Logistic回归从农户个体特征、家庭特征、农业经营特征和农户行为态度四个方面研究农户参与市场化生态补偿意愿及其影响因素。[结果]农户参与市场化生态补偿意愿整体较高,81.25%的农户表示愿意参与市场化生态补偿。家庭务农人数越多、家中有村干部、平地数量越多、坡地数量越少、对坡耕地经济收益越不满意、认为水质下降对作物产量影响越严重、越认同参与生态补偿可获得荣誉感的农户,越愿意参与市场化生态补偿。[结论]增强农户参与市场化生态补偿意愿要从以下三个方面发力:保障和提高农户参与市场化生态补偿后的经济收益;降低农户对土地的依赖程度;增强农户参与市场化生态补偿的荣誉感和参与感。     

Demand for area crop insurance among litchi producers in northern Vietnam

This study examines the need for crop insurance for litchi production in northern Vietnam and how farmers might participate in such a program. Hypothetical insurance programs were developed which proposed all‐risk coverage based on area yields. This coverage was offered to farmers to determine both their interest in the program and how insurance features and farmer characteristics affected their decision to buy insurance. Farmers were also surveyed regarding their production practices, price and yield expectations, and financial and personal characteristics. Even before considering other program costs and government budget constraints, there is not a strong case for establishing a crop insurance program here. Results indicate that while farmer participation would be significant, crop insurance is not needed to achieve policy goals like raising farmer income or guaranteeing subsistence levels of income. Crop insurance is not needed to promote litchi production, which is already expanding rapidly due to its high profitability relative to other farm enterprises. In their choice of coverages, farmers preferred higher yield guarantee levels and lower indemnity prices. Estimated premiums were quite low when expressed as a percent of expected revenue, and farmers were not responsive to changes in premiums. Econometric analysis indicated that high income farmers were more likely to participate, but other farmer characteristics seemed to matter little. Anecdotal evidence suggested that farmers believed the expected area yields used to set insurance coverage levels were too low. Because litchi productivity varies significantly by tree age and the litchi planted area is expanding rapidly, determining appropriate values for expected area yields and insurance coverage levels appeared to be the biggest challenge in program design. It is hypothesized that additional farmer education about the relationship between area and farm yields and other aspects of area insurance could improve such a program's operation. Published by Elsevier Science B.V.     

MALLEE WHEAT FARMERS' DEMAND FOR CROP AND RAINFALL INSURANCE

Producers' demand for a crop insurance program with indemnities based on their actual yields and a rainfall insurance program with indemnities based on area rainfall is analysed. Actuarial costs of these hypothetical programs are estimated. Tobit procedures are used to analyse factors influencing the amount which farmers would be willing to pay for the alternative insurance programs. Factors related to the absolute size of risk and capacity to bear risk, as well as personal characteristics and risk attitudes of producers, have effects on the demand for insurance as hypothesised. Problems of adverse selection are associated with the area yield-based program, while both crop and rainfall insurance programs may involve some moral hazard. Producer participation in either program would be limited.     

Farmers’ intrinsic motivations,barriers to the adoption of conservation practices and effectiveness of policy instruments: Empirical evidence from northern Australia

The rate and extent of adoption of conservation practices by farmers is influenced, in principle, by characteristics of the practices and those of the farmers. Governments use policy instruments to increase the rate of adoption of practices which generate public benefits if it is deemed that privately optimal adoption rates will not lead to publicly optimal conservation outcomes. Recent nation-wide conservation programs in Australia have attracted criticism for low levels of effectiveness and efficiency. Could it be that program design has ignored key adoption factors, in particular characteristics of the target audience? If adoption is subject to personal factors, such as the motivations for farming, then it is likely that so are farmers’ responses to policy approaches and instruments. In this case study, surveys were conducted of farmers in three regions within the tropical savannas of northern Australia, where land-use systems are characterized by large-scale broad-acre beef grazing enterprises. Inter alia, these surveys collected data on graziers’ motivations, impediments to adoption of conservation practices, and perceived effectiveness of policy instruments in overcoming impediments. The research found that graziers had a very high level of conservation and lifestyle motivation and were motivated to lesser extents by financial/economic and social considerations, pointing to a strong stewardship ethic of graziers, or altruistic motif. Motivational profiles were significantly correlated with farmers’ perceptions about what constrained them from implementing conservation based management systems. Motivational profiles also explained differences in farmers’ perceptions of and stated propensity to interact with policy instruments, particularly at a regional scale and in the context of historical government interventions. On the basis of the empirical evidence presented, governments would be well advised to harness the diverse set of aspirations and motivations of farmers when designing conservation programs rather than. In particular, conservation programs need to take advantage of farmers’ stewardship ethic for maximum effectiveness and efficiency, and minimize the risk of crowding out intrinsic motivation and altruistic behaviours.     

Factors influencing participation in the Nova Scotia Environmental Farm Plan Program

There is growing interest in Nova Scotia's Environmental Farm Plan (NS EFP) program among farmers and policy makers because of several reasons. First, effectiveness of standardized or uniform beneficial management practices in mitigating the negative environmental impacts from agriculture is limited by inherent heterogeneities in agricultural production systems. In addition, there is heightened interest in farmers generating ecological goods and services to society. This study investigates the determinants of participation in the NS EFP program. A discrete choice model of NS EFP participation was applied to a sample of 83 farmers (representing a 31% response rate). To increase relevance of the study to program administrators, the study also examined farmers’ use of various channels and sources of information on farm conservation practices. The most used sources of information on farm conservation practices include a mix of interpersonal sources and government agencies. Although online information (especially those available for free) appears to be gaining popularity in usage, overall, electronic and computer channels of information (especially radio and television) were used less compared with traditional channels of communicating farm conservation information (such as newsletters and agricultural magazines). Regression analysis suggests that farm characteristics (i.e., farm type, farm size, farm income) and farmer capacity variables (i.e., specialized training and knowledge from EFP program information sessions and workshops, and on-farm stewardship demonstrations) were significant determinants of environmental farm planning.     

Implications of CAP reform for land management and runoff control in England and Wales

WTO negotiations, as well as problems associated with intensive agriculture, such as overproduction, dependency on high levels of subsidies, diffuse pollution, soil degradation and loss of wildlife, have led to a reconsideration of agricultural policies in Europe. In April 2005, the new common agricultural policy (CAP)-reform came into force in the United Kingdom, decoupling financial support to farmers from agricultural production. Farm income support payments are now linked to compliance with standards (cross-compliance rules) which protect the environment, animal health and welfare. In the light of these policy changes, semi-structured interviews were carried out with 36 farmers in five catchments in the UK to explore interrelationships between CAP-reform, agricultural land management and runoff-related problems. Results from three catchments are specifically highlighted because of their relevance for soil policy.The CAP-reform appears to facilitate and accelerate changes in the agricultural sector that were already happening. It is likely that upland livestock farms will extensify further, which will reduce environmental burdens such as diffuse pollution, soil compaction and runoff. The uptake of agri-environment schemes by individual farmers has increased since the CAP-reform. However, additional impacts are limited as there is a tendency among participants to enter these schemes based on existing features and practices.Although most farmers interviewed for this study appear to recognise the need to reduce soil erosion and diffuse pollution, they are less convinced they should be held responsible for controlling storm-water runoff from farmland that might contribute to flooding downstream. However, there are opportunities to achieve several objectives simultaneously, including improved soil management, runoff control and reduced pollution. Lessons can be learned from farmers’ opinions about CAP-reform, from successful interventions that aimed to reduce soil erosion and diffuse pollution, and also from failures. Recommendations are made for improvements to the current agri-environment schemes and to promote land management practices with less environmental burden.     

Farm Poverty and Safety Nets

Farm families with incomes below the poverty line are far less likely than wealthier farmers to receive farm support payments. Using data from the 1989–2004 Current Population Survey, we find that poor farm families are also not participating in other assistance programs. Controlling for other factors, eligible farm families have substantially lower participation rates in the Food Stamp Program and in Medicaid than eligible nonfarm families. Removing farm safety net program payments would increase the number of farmers eligible for these programs but, in the absence of behavioral changes, would only lead to small increases in the number of recipients.     

Are preserved farms actively engaged in agriculture and conservation?

This study addresses the question of whether farms enrolled in land preservation programs are actively engaged in agricultural or conservation activities. Data are drawn from an original survey administered to preserved farm owners in the states of New Jersey, Maryland, and Delaware in 2011. “Actively engaged” is defined as investment in conservation projects, buildings, equipment, or irrigation since the land was preserved. Affirmative answers to the survey's investment questions range from a low of 19% for irrigation to a high of 69% for equipment. Special attention was paid to differences between lifestyle farmers and small and large commercial farmers, which are classified using the USDA typology developed in 2000. Regression analysis estimates differences in investment behavior across these groups as well as farm tenure categories, controlling for farm size, program/state location, and demographic variables. Only owners who employ tenants or managers exclusively on their land were found to invest significantly less than the largest professional farmers, and they did so across all four types of investment.This study's findings support preservation goals articulated by legislators and program administrators, because (1) agricultural and land stewardship investments appear to be widespread on preserved farms, partly due to administrators’ preference for larger parcels, (2) there is no evidence that “hobby farmers” are disproportionately attracted to farmland preservation programs – in fact the opposite seems to be true – while those that exist in our sample behave similarly to the largest commercial farmers, (3) although tenant farming is associated in the sample with lower rates of investment, it is less common on preserved farms than on all farms in the three study states. The matter of land tenure, highlighted in this as in other studies, has not yet become a primary focus of either farm-behavioral research or state agricultural policy.     

Designing afforestation subsidies that account for the benefits of carbon sequestration: A case study using data from China's Loess Plateau

This paper presents a method for determining the subsidy required to motivate farmers to participate in timber afforestation programs designed to maximize social well-being. The method incorporates a carbon sequestration benefit function into the land expected value model in order to quantify the social benefit arising from carbon sequestration by the planted trees. This is used to calculate the optimal rotation age for newly planted forests that maximizes social utility. The minimum subsidy required to motivate farmers to participate in the afforestation program was calculated using a modified decision model that accounts for the subsidy's impact. The maximum subsidy offered by the government was taken to be the NPV of the carbon sequestration achieved by afforestation. Data on Robinia pseudoacacia L. trees planted on the Loess Plateau were used in an empirical test of the model, which in this case predicts an optimal subsidy of 254.38 yuan/ha over 40 years. This would guarantee the maintenance of forest on land designated for afforestation until they reached the socially optimal rotation age. The method presented herein offers a new framework for designing afforestation subsidy programs that account for the environmental service (specially, the carbon sequestration) provided by forests.