Crop biodiversity repercussions of subsidized organic farming

This paper analyses the impact that the CAP financial support on selected organic crops has on agrobiodiversity under production uncertainty. A stochastic production function is employed and estimated to assess whether risk-averse farmers hedge risk by diversifying their portfolio of crops. The model is applied to farm-level data of organic crop farms in Greece. Organic farming financial support, in the form of agricultural subsidies for the cultivation of organic crops, poses a double-edged sword: on one side, organic farming is considered an agrobiodiversity enhancing cultivation method; on the other side, financial support may reduce agrobiodiversity if farmers decide it is optimal to cultivate only the few, supported crops. The study shows that risk aversion leads to agrobiodiversity conservation. However, the existence of CAP financial support on selected crops decreases the relationship between revenue risk management and agrobiodiversity, indirectly leading to agrobiodiversity loss.     

The viability of cotton-based organic farming systems in India

Cotton farmers in many developing countries are facing decreasing marginal returns due to stagnating yields and high input costs. Conversion to organic management could offer an alternative. In a two year comparative study in central India covering 170 cotton fields, organic farms achieved cotton yields that were on par with those in conventional farms, whereby nutrient inputs and input costs per crop unit were reduced by half. Due to 10–20% lower total production costs and a 20% organic price premium, average gross margins from organic cotton fields were 30–40% higher than in the conventional system. Although the crops grown in rotation with cotton were sold without premium, organic farms achieved 10–20% higher incomes from agriculture. In addition to these economic benefits, the organic farming system does not burden soil and groundwater with synthetic fertilizers and pesticides. However, in this study only minor differences were detected in soil fertility parameters of organic and conventional fields. Altogether, the results suggest that conversion to organic farming can improve livelihoods of smallholders while protecting natural resources. Income loss due to reduced yields in initial years of transition, however, constitutes a major hurdle, especially for poorer farmers. It is thus important to support farmers in overcoming the obstacles of the conversion period.     

Status and financial performance of organic vegetable farming in northeast Thailand

In line with the national sustainable agriculture development policy of the Government of Thailand, organic vegetable farming (OVF) promotion projects have been implemented in several provinces of the country. Based on data collected through a questionnaire survey of 172 sample vegetable farmers in Mahasarakham Province of northeast Thailand, this study firstly assessed the status of OVF and then, analyzed the financial performance of three main vegetables cultivated, namely: morning glory, green onion and Chinese kale. Finally, sensitivity analyses of the financial performances for all three vegetables were conducted under four assumed scenarios with respect to price of synthetic fertilizers and pesticides, and yield and price of organic vegetables. The findings of the analysis on the status of OVF revealed that organic vegetable farms accounted for very small percentage of the total area used for all vegetables in the study area. Results of the financial analysis also showed that OVF was much less financially attractive than conventional vegetable farming due to low yield which usually does not come with premium price of the vegetables. Still farmers are growing organic vegetables on small scale primarily for household consumption. The findings of the sensitivity analyses indicated that the removal of direct or indirect subsidies for synthetic fertilizers and pesticides, and appreciation in the yield and price of organic vegetables can enhance the financial performance of OVF. In view of the possible rejection of radical policies that encourage OVF by discouraging conventional vegetable farming, this study suggests appropriate policy measures that could directly provide incentives for organic vegetable production and consumption.     

Exploring the motivations and problems of farmers for conversion to organic farming in Iran

Identifying and understanding the heterogeneity of the motivations and problems of farmers is critical for designing better strategies as societies strive to convert towards agricultural approaches such as organic farming and sustainable intensification. The objective of this research is to explore the motivations and problems for conversion to organic farming in Iran. Survey data of Iranian organic producers were collected during the first half of 2015. These data were used to find the statistical determinants of motivations and problems for organic production. Results suggest that economic motivations, health, safety concerns and environmental issues are the predominant motives for conversion, while social and ethical motives are of lesser importance. Problems experienced during conversion relate to marketing, agronomic issues, lack of governmental and institutional support, negative pressure from other farmers and farm groups, and lack of physical and financial capital. To prosper, the Iranian organic sector must overcome fundamental economic problems and challenges. Some of the strategies recommended include the development and scaling up of sustainable intensification, strategies that encourage farmers’ markets and community-supported agriculture (CSA) initiatives, and sustainable procurement.     

Econometric analysis of noncompliance with organic farming standards in Switzerland

Applying the economics of crime theory, we model the decision of an opportunistic and/or careless organic farmer and derive hypotheses to explain noncompliance. Where empirical data are available, hypotheses are tested. We use data for the years 2007 through 2009 of organic farms certified by Bio Suisse. Imposed sanctions are used as a proxy variable for noncompliance and farm characteristics as explanatory variables. Random effects logit models show that processing activities and livestock diversity significantly increase a farm's sanction probability. Past noncompliances also indicate a higher present sanction probability. Finally, we discuss some methodological issues and suggest a way to organize risk‐based inspections more effectively.     

Stimulating organic farming via publicly provided services and an auction-based subsidy

Governments generally use a mix of temporary hectare paymentsand provision of public services to stimulate the organic cropsector. In this paper, a conceptual model is developed for determininga socially optimal hectare payment for any given level of publicservices. Farm heterogeneity, due to the variability of soilquality and management skills, is explicitly taken into account.Using an nth price auction mechanism, farmers indicate whattheir reservation subsidy is for a given level of public inputprovision. The results of this auction are used to determinethe government's optimal policy choices.     

Risk and risk management in organic and conventional cash crop farming in Norway

This study presents empirical insight into organic and conventional cash crop farmers' perceptions of risk and risk management strategies, and identifies socio-economic variables linked to these perceptions. The data originate from a questionnaire survey of farmers in Norway. The results indicate that organic farmers perceived themselves to be less risk averse than conventional farmers. For both groups, crop prices and yield variability were the two top rated sources of risk, followed by institutional risks. The two groups evaluated risk management strategies quite similarly; favoured strategies were good liquidity and to prevent and reduce crop diseases and pests. The farmers' evaluation of sources of risk and choice of risk strategies depended on various socio-economic variables. The importance of institutional risks implies that policy makers should be cautious about changing policy capriciously and they should consider strategic policy initiatives that give farmers more long-term reliability.     

The contribution of organic farming to rural development: An exploration of the socio-economic linkages of organic and non-organic farms in England

Organic farming has experienced considerable growth in recent years. Proponents of organic farming point to the environmental and nutritional benefits of organic systems, although these are contested by some. More recently, it has been argued that organic farming can provide rural development benefits through enhanced employment and through closer connections with the local economy, reconnecting consumers with producers and stimulating positive economic multipliers. Against the background of claims made for the rural development potential of organic farming, this paper considers the generation and retention of income, purchasing patterns, and direct employment impacts of a large sample of organic and non-organic farmers in England. The paper reveals some important distinctions between the characteristics of organic and non-organic farms and farmers. It is argued that most of these differences do not stem directly from differences in farming systems but, rather, reflect considerable differences in the people who operate organic farms as well as the distinctive business configurations they frequently adopt.     

Adoption of organic farming in Germany and Austria: an integrative dynamic investment perspective

Farm‐level adaptation to changing economic environments is often slower than expected. Technological innovations, for instance, are frequently adopted at a later date than the net present value of investment suggests. This can be explained by a model of “investment under uncertainty,” which consistently accounts for uncertainty, sunk costs, and the flexibility of investment timing. Its essential conclusion is that, due to temporal opportunity costs, critical incremental cash flows that trigger investments might be higher than those needed for simple cost recovery. This accounts for an ostensible reluctance to invest (economic hysteresis). In this article, we demonstrate how slow conversion to organic farming in general, and the different rates of conversion in Germany and Austria in particular, can be explained by the new investment theory.     

Effect of yield and price risk on conversion from conventional to organic farming*

Although the benefits of organic farming are already well known, the conversion to organic farming does not proceed as the Dutch government expected. In order to investigate the conversion decisions of Dutch arable farms, a discrete stochastic dynamic utility‐efficient programming (DUEP) model is developed with special attention for yield and price risk of conventional, conversion and organic crops. The model maximizes the expected utility of the farmer depending on the farmer’s risk attitude. The DUEP model is an extension of a dynamic linear programming model that maximized the labour income of conversion from conventional to organic farming over a 10 year planning horizon. The DUEP model was used to model a typical farm for the central clay region in the Netherlands. The results show that for a risk‐neutral farmer it is optimal to convert to organic farming. However, for a more risk‐averse farmer it is only optimal to fully convert if policy incentives are applied such as taxes on pesticides or subsidies on conversion, or if the market for the organic products becomes more stable.     

Comparing support for organic and conventional farming in the European Union using an adjusted Producer Support Estimate

This paper compares support for organic and conventional farmingin 2001, using the methodology of the Producer Support Estimate(PSE). Although market price support for organic products isdifficult to determine, our case study-based estimates indicatethat the PSE for organic farming ranged between 41 and 44 percent in the EU, compared with 35 per cent for conventional farming.However, the structure of support for the different commoditiesis similar between organic and conventional farming, althoughdirect payments are generally higher for organic farming. Noclear link between the level of support and the share of organicfarming in Member States could be detected. An annual calculationof separate PSEs for both forms of farming could provide usefulinformation about developments in support.     

Farmers’ objectives as determinants of organic farming adoption: the case of Catalonian vineyard production

This article assesses the decision to adopt organic farming practices. We use Duration Analysis (DA) to determine why farmers adopt organic farming practices and what influences the timing of adoption. We extend previous studies by including farmers’ objectives, risk preferences, and agricultural policies as covariates in the DA model. The Analytical Hierarchy Process is used as a multicriteria decision‐making methodology to measure farmers’ objectives. The empirical analysis uses farm‐level data from a sample of vineyard farms in the Spanish region of Catalonia. Farmers’ objectives are found to influence the conversion decision. Moreover, farmers who are not risk averse are more likely to adopt organic farming. Results point to the policy changes that have been most relevant in motivating adoption of organic practices.     

Market access,organic farming and productivity: the effects of Fair Trade affiliation on Thai farmer producer groups*

The study analyses the impact of Fair Trade (FT) and organic farming on a sample of FT rice producers in Thailand. It finds that per capita income from agriculture is positively and significantly affected by years of organic certification and FT affiliation. The estimated FT and organic certification contributions to producers’ economic well‐being are higher when account is taken of the relatively higher proportion of self‐consumption among affiliated farmers. But the per capita income effect does not translate into higher productivity owing to a concurrent increase in hours worked.     

Feasibility of risk‐based inspections in organic farming: results from a probabilistic model

A risk‐based inspection system might improve the efficiency of the organic farming certification system and ultimately provide a basis for increased competitiveness of this sector. This requires the definition of an effective inspection procedure that allows statistical evaluation of critical risk factors for noncompliance. In this article, we present a study based on data from selected control bodies in five European countries that is aimed at determining the feasibility of risk‐based inspections in the organic sector according to the data that are currently routinely recorded. Bayesian networks are used for identification of the factors that can affect the risk of noncompliance. The results show that previous/concurrent noncompliant behavior explains most of the risk, and that the risk increases with farm size and the complexity of their operations. The data currently recorded by control bodies appear to be insufficient to establish an effective risk‐based approach to these inspections.     

Management of drinking water catchment areas in cooperation with agriculture and the specific role of organic farming. Experiences from Germany and France

Many problems with nitrate and pesticide contamination from agriculture exist in European drinking water catchments, and quite different management options are presently searched for. Among them, organic farming is considered as an important option to conciliate agricultural activities and water preservation. Based on different type of interviews, literature and documentation analysis, and participation in a steering committee, we compare the construction of agreements between city water utilities and farmers for the preservation of drinking water quality in three drinking water catchment areas (Munich and Augsburg in Germany, Lons-le-Saunier in France). The main differences found are the delimitation of the city's field of action, compensation payments for farmers for certain practices, involvement of the city council in the acquisition of land, and importance granted to organic farming. Successful city-farmer coordination is based on the presence of a facilitator as an intermediary, technical support, dialogue, contracts that span sufficiently long periods, and participation of farmers in elaboration of contracts. In this frame, organic farming did not appear as the major solution and was not systematically developed.     

集体林业企业代理成本及其治理对策

阐述了我国集体林业企业代理的监督成本高、约束成本高、代理人行为不当导致的代理成本高,分析了代理成本高的原因在于政企不分、产权主体缺位,缺乏有效的绩效评价和激励机制,缺乏合理有效的监督制约机制,代理人缺位等,提出通过改革集体林业企业产权制度、建立有效的绩效评价与激励机制、建立有效的监督制约机制、建立竞争性的企业家(代理人)市场等降低我国集体林业企业代理成本的对策。     

Crop management,labour organization,and marketing: three key issues for improving sustainability in organic vegetable farming

Most market-garden farms that have converted to organic farming (OF) in the last few decades in France are small and diversified. Larger farms usually specialize in a few vegetable species and frequently face technical and economic problems when they convert to organics. Diversifying production may be a means of increasing sustainability due to larger crop rotations and varied marketing outlets, but it has various implications on farm management, especially labour organization and marketing. In the present study, we examined how an acceptable degree of species diversification can act as a lever to develop organic vegetable production by combining sociologist and agronomist points of view. Multidisciplinary surveys of 30 market-garden farms varying in usable surface area and degrees of crop diversification were carried out. Consequences on crop management, labour organization and skills, and marketing implications were described, and farm sustainability was assessed. Specialized farms of the sample had a rather industrial organization of labour and marketing and benefited from economy of scale to produce vegetables. But in the long term, they may suffer from low agronomical sustainability because of narrow crop rotations and intensive crop management. Diversified farms were more sustainable according the criteria studied, but they suffered from the extremely complex management of cropping systems. These results are discussed on both the farm and territorial levels. Collective marketing initiatives and social networks might help reach an acceptable degree of species diversification at the farm level. Potential innovative organizations are identified, which could facilitate the transition to OF.     

Co-production of forestry science and society: Evolving interpretations of economic sustainability in Finnish forestry textbooks

In this article, we explore how forestry scientists have promoted and defended particular definitions of economic sustainability as a response to socio-economic challenges. Drawing on an analysis of Finnish forestry textbooks, we discuss the evolving conceptualizations in terms of co-production of scientific ideas and social orders. We argue that to fully understand what economic sustainability means in forestry one has to analyze the choices and preferences concerning the components of scientific ideas, and to identify links between these choices and the evolving societal discourses, social norms, rules of authority, power relations and partnerships, as well as historical events.