Agriculture's 'multifunctionality' and the WTO

Are the agricultural policy reforms embodied in the Uruguay Round consistent with meeting domestic policy objectives such as providing adequate food security, environmental protection and viability of rural areas? This article examines the claim that agriculture deserves more price support and import protection than other sectors because of the non‐marketed externalities and public goods it produces jointly with marketable food and fibre (agriculture’s so‐called ‘multifunctionality’). Do these unrewarded positive externalities exceed the negative externalities from farming by more than the net positive externalities produced by other sectors? To what extent are those farmer‐produced spillovers under‐supplied, and what are the most efficient ways to boost their production to the socially optimal levels? The article concludes that there is little trade‐off required to meet domestic policy objectives on the one hand and agricultural protection reform objectives as embodied in WTO rules on the other.     

Cuban agricultural policy in the last 25 years. From conventional to organic agriculture

Political, social, economic and environmental changes undergone in Cuba in recent decades have led to several well-differentiated production models or systems, and have led to profound transformation of Cuban farmland. This article analyses those changes and transformations in three key stages or chronological periods of Cuban agricultural policy, the Green Revolution, the Special Period and Economic Reanimation. The analysis emphasizes the environmental, social and economic effects of each period, and especially, the change from a conventional intensive to an alternative or organic farming system, which has become an example to be followed.     

Do farmers really like farming? Indian farmers in transition

Few studies of agrarian transition examine what farmers themselves feel about farming. Are they cultivating out of choice or a lack of options? What distinguishes farmers who like farming from those who do not: their personal/household characteristics and endowments? The local ecology and regional economy? Or a mix of these and other factors? Understanding farmer satisfaction is important not only for assessing citizen wellbeing but also for agricultural productivity, since occupational satisfaction can affect a farmer’s incentive to invest and reveal production constraints. Using a unique all-India data-set which asked farmers, ‘Do you like farming?’ this paper provides answers and policy pointers, contributing a little-studied dimension to debates on the smallholder’s future and subjective wellbeing.     

Governing the transformation towards ‘nature-inclusive’ agriculture: insights from the Netherlands

It is becoming increasingly difficult to combine nature conservation by farmers with intensive and large-scale farming. The Dutch government recently adopted the new policy concept of ‘nature-inclusive’ farming, which aims at promoting more sustainable agricultural practices that minimizes negative ecological impacts, maximizes positive ones and at the same time benefits from natural processes. A transformation towards ‘nature-inclusive’ farming faces three key governance challenges that are elaborated upon in this paper. First, agri-environment schemes and other conservation arrangements need to become more effective. At the same time, nature conservation should be mainstreamed in agricultural policies and in agri-food chains. Second, we need shared meanings about nature-inclusive farming. Third, other forms of knowledge production for nature-inclusive farming are required that focus more on farmers’ knowledge needs.     

Climate change reduces the mitigation obtainable from sequestration in an Australian farming system

Agricultural research on climate change generally follows two themes: (i) impact and adaptation or (ii) mitigation and emissions. Despite both being simultaneously relevant to future agricultural systems, the two are usually studied separately. By contrast, this study jointly compares the potential impacts of climate change and the effects of mitigation policy on farming systems in the central region of Western Australia’s grainbelt, using the results of several biophysical models integrated into a whole‐farm bioeconomic model. In particular, we focus on the potential for interactions between climate impacts and mitigation activities. Results suggest that, in the study area, farm profitability is much more sensitive to changes in climate than to a mitigation policy involving a carbon price on agricultural emissions. Climate change reduces the profitability of agricultural production and, as a result, reduces the opportunity cost of reforesting land for carbon sequestration. Nonetheless, the financial attractiveness of reforestation does not necessarily improve because climate change also reduces tree growth and, therefore, the income from sequestration. Consequently, at least for the study area, climate change has the potential to reduce the amount of abatement obtainable from sequestration – a result potentially relevant to the debate about the desirability of sequestration as a mitigation option.     

Managing complexity in modern farming*

Modern farming in Australia is no longer simple. Farms are large, multi‐enterprise businesses underpinned by expensive capital investments, changing production technologies, volatile markets and social challenges. The complexity of modern broadacre farming leads to the question: what is the nature of the relationship between farm business complexity and farm profitability? This study uses bioeconomic farm modelling and employs eight measures of complexity to examine the profitability and complexity of a wide range of broadacre farming systems in Australia. Rank order correlations between farm profitability and each measure of complexity show inconsistent relationships, although the most profitable farming systems are found to be reasonably complex on several criteria. Among the set of highly profitable systems are found some characterised by less complexity. A commonly acknowledged feature of farm business complexity is the annual workload of the farmer, yet the trade‐off between farm profit and this workload is found not to be large. A case is outlined where the farmer’s annual hours worked could be reduced by 9 per cent for a 3 per cent reduction in farm profit. If farmers’ workloads are proving problematic now, and in the future, then agricultural R&D, service delivery and policy development will need to focus more on being highly attractive to increasingly time‐poor farm managers.     

SOME DEVELOPMENTS IN SCOTTISH FARMING SINCE THE WAR

The paper takes a panoramic view of Scottish farming since the war and considers in turn developments in the three major sectors, namely of livestock rearing in the hills and uplands and of dairying and arable farming in the lowlands. During this period, hill and upland farming has operated within a consistent long-term policy framework designed to achieve comprehensive rehabilitation of these areas. The reasons why this policy has not so far succeeded are examined. The more recent changes in policy for these areas are referred to, which at one and the same time have enlarged the agricultural role of the hills and uplands and greatly increased the need for adjustment and innovation in their farming practices. Turning to lowland farming, the paper refers particularly to developments in the case of milk and beef production and in arable farming and makes some contrasts of administrative and policy significance with corresponding English farming. The last part of the paper discusses some of the dificulties in achieving a balance between stability and efficiency in agricultural policy.     

Analysing the provision of agricultural public goods: The case of irrigated olive groves in Southern Spain

Analysis of the joint production of private and public goods (PGs) by farming activities is a fertile research field. These joint production processes are typically characterised by a high level of complexity derived from the intense relationship between the production of both kinds of outputs. An integrated approach is strongly recommended for the study of the provision of agricultural PGs and the design of public intervention in this sector. Here, we propose a theoretical framework to apply an integrated approach using the analytic network process (ANP) to analyse the production of PGs by agricultural systems to support public decision-making concerning the design and implementation of agricultural policies. We introduce a novel approach in applying ANP along both directions of the influences among elements, allowing us to identify the most influenced PGs and the farmers’ most influential decisions. This methodological approach is empirically applied to a particular farming system: the irrigated olive groves (IOG) of Southern Spain. Results show that the PGs most influenced by olive growers’ decisions are soil fertility, the visual quality of agricultural landscapes and farmland biodiversity. In addition, the most influential factors affecting the provision of PGs are the structural ones, namely farm size and tree density, and, to a lesser extent, management factors dealing with fertilisation, soil and irrigation management. These results are useful for supporting agricultural policy decision-making to enhance adequate management of this farming system regarding PGs production.     

Publicly-funded UK agricultural R&D and 'social' total factor productivity

Most studies concerned with measuring the rate of return to publicly‐funded agricultural R&D investment have found high returns, suggesting under‐investment, and calls for increased expenditure have been common. However, the evaluation of returns tends to measure the effect of research expenditure against growth in total factor productivity (TFP), based on market inputs and outputs. When compared against growing public unease over the environmental effects of pursuing agricultural productivity growth, TFP indices become a misleading measure of growth. This paper integrates some non‐market components into the TFP index. The costs of two specific externalities of agricultural production, namely fertiliser and pesticide pollution, are integrated in a TFP index constructed for the period 1948–1995. This adjusted, or ‘social’, TFP index is measured against UK public R&D expenditures. The rates of return to agricultural R&D are reduced by using the ‘social’ as opposed to the traditional TFP index. Whilst both remain at justifiable levels, previous studies appear to have over‐estimated the effect of agricultural R&D expenditures. Furthermore, with changes in policy towards more socially acceptable but non‐productivity enhancing outcomes, such as animal welfare, rural diversification and organic farming, the future framework for analysing returns to agricultural R&D should not be so dependent on productivity growth as an indicator of research effectiveness.     

Sustainability dimensions related to agricultural-based development: the experience of 50 years of intensive farming in Almería (Spain)

In the context of the current agri-food market, several factors have made it increasingly difficult to balance the components of sustainability in agricultural-based development. These factors include increasing internationalization, tighter control of distribution and frequent changes in agricultural policies. Indeed, in the framework of European rural policy there has been considerable debate in recent years concerning the role of the agricultural sector and how it should face the following challenges: productivity-competitiveness, environmental protection and socio-economic development. There is, therefore, a growing need for practical analyses that adopt a holistic approach. This paper analyses how this sector in the province of Almería (Spain), based on horticultural family farms, has risen to the above issues over recent decades. This case study provides some insights into the different trade-offs and synergies between sustainability dimensions. In particular, the integration of ecological, social and economic components may prove useful in helping other regions to adapt their agricultural systems, especially where these are characterized by small-scale farming.     

PART TIME FARMING—IMPLICATIONS FOR FARM FAMILY INCOME

The Common Agricultural Policy has been more successful at securing food supplies than at providing adequate incomes for small farmers. Among proposals for resolving the problem, part time farming is a promising option. To date, agricultural policy has at best ignored farms below the ‘full time’ threshold, at worst discriminated against them. The new Agricultural Structures policy embodies a more positive approach, however. Robson's paper calls for better information on farm households with other gainful activities. Statistics from the 1983 Farm Structure Survey provide insight into the nature and extent of part time farming in the European Community. Neglect of part time farming in the UK up to now may have stemmed from its perceived irrelevance for agricultural policy. Now that it is being viewed in a more favourable light, policy makers need to be appraised of the facts. Currently about one third of main agricultural holdings in England and Wales are part time farms in the sense that farmer or spouse combines another paid job with farming. Gasson's paper explores the nature of these other jobs and features of their distribution. Following trends in other developed countries, non-farm activities are becoming increasingly important for UK farming families. Growth in part time farming has obvious implications for income support, widely agreed to be the fundamental objective of agricultural policy in western Europe. Existing farm income measures are not adequate for assessing the extent of the income problem in agriculture. Data from the Inland Revenue's Survey of Personal Incomes and the Wye College part time farming survey fill some of the gaps left in official measurements. Non-farming earnings, pensions and investment income contribute significantly to farm household incomes. A majority of part time farming families in England and Wales make more from other sources than from farming. Although average incomes of part time farmers may exceed those of full timers, Hill's paper identifies a section of part time farming families with inadequate incomes from all sources.     

The attitude of grassland farmers towards nature conservation and agri-environment measures—A survey-based analysis

Grasslands have a multi-layer protection function for nature, biodiversity and climate. These functions can be fostered by an adapted management on grassland farms. Promoting nature protection alongside agricultural production is an aim of European agricultural policy. However, a number of studies indicate that existing Agri-environment measures (AEM) are not as effective as assumed, mainly because they are not sufficiently used by farmers. We investigated the view of grassland farmers on nature conservation and on existing AEM in four distinct regions on a west to east gradient in the North German Plain. We conducted a survey on 82 grassland farms inquiring basic farm data and asking questions on general agricultural issues and nature protection. The results indicate that the majority of all respondents is generally interested in nature conservation and believes it to be of concern for every farmer. In contrast, only a minority of grassland farmers is using the existing AEM to the full extend on their own farm. By applying the concept of farming styles, we classified farmers into four groups, namely Traditionalist, Idealist, Modernist, and Yield Optimizer. These farming styles groups differ in farm and management parameters, general attitudes towards agricultural issues, farming objectives and economic success. We found that in our survey the farming styles groups differ in their attitude towards nature conservation. However, they do not differ in the adoption of AEM and have different reasons for not taking part. We state that for a better implementation of AEM into agricultural practice a better communication, which is adapted to the different ways that farmers manage their farm and think and feel, is needed. Consequently, AEM need to be revised as well.     

Driving Forces behind Exiting from Farming in Western Europe

This study examines the exit process of Western European farmers. Using a simple theoretical model of structural change, we examine empirically the impact of farm characteristics, macroeconomic conditions and policy intervention on farm exits during the 1990s. Econometric estimates using regional data for 110 regions in Western Europe indicate that exits from farming are strongly influenced by farm characteristics and policy conditions. In particular, exit rates are higher in regions with smaller farms and are closely related to production structures. Exit rates are lower in regions with more part‐time farming, high subsidy payments and high relative price increases for agricultural outputs, indicating that off‐farm income and government intervention slow down structural change in European agriculture.     

Modelling the impacts of policy on entry into organic farming: Evidence from Danish–UK comparisons, 1989–2007

This paper analyses organic farming entry decisions using a piece-wise linear depiction of policy. Our goal is to ascertain, from the available but limited information, whether Danish and UK policy measures toward organic agriculture have affected participation. Despite considerable interest in the growth of organic farming there has been little systematic analysis of it, although it is commonly believed that enhanced income levels have played a part. Whilst analyses of organic farming policy have provided extensive reviews of instruments applied, generally speaking, the spirit of those enquiries takes as datum that organic policies have had the desired impacts. Yet such conjectures remain mostly untested. Hence, there is a need to examine systematically if there exist relationships between the introduction of organic farming policies and the growth of organic farming, and whether particular policy measures are more effective than others. Here, we take a first step in this endeavor by undertaking an econometric analysis of the relationship between 14 organic farming policy measures and participation rates in Denmark and the UK during 1989–2007. Using two response variables – the numbers of farmers converted to organic production and the total land area under organic practice – we implement a simple, Bayesian methodology and evaluate the stepwise-linear impacts of policy. Extensions for future work are discussed. Six policy measures in the two study countries were found to be significant influences on participation, five of them direct supply-side instruments. For the UK, all of the policies are annual subsidies for organic farmers once conversion was complete. For Denmark, the policies are the introduction of organic subsidies for non-dairy farms, the extension of subsidies beyond 1997 and support for the costs of marketing services.     

In Search of Pathways out of Poverty: Mapping the Role of International Labour Migration,Agriculture and Rural Labour

The issue of rural poverty continues to shape critical academic and policy discourses in the global South. In such discourses, some scholars and policy‐makers highlight non‐agrarian pathways leading to prosperity, while others continue to emphasize the significance of land and farming for poverty reduction. However, such analyses tend not only to obscure strong linkages between agriculture, migration and rural labour, but also stay silent on how rural people interpret changes or continuities in their livelihoods. In this paper, I focus on the case of rural Nepal to unfold how some rural people, but not others, improve their livelihoods through international labour migration, farming and rural labour. This paper reveals that many poor people have experienced improved livelihoods pursuing a diverse portfolio of agricultural and non‐agricultural activities including labour migration. However, the dispossession of poor people from land and their adverse incorporation into the local and international labour markets continue to perpetuate chronic poverty.     

欧盟和美国的农业生态补偿政策及启示

目的 欧盟和美国是世界上农业生态补偿政策体系较完善、实践丰富的地区,在农业生态保护上取得了积极的成效,其制度安排对于完善我国农业生态补偿制度具有重要借鉴意义。方法 文章采用文献分析法和对比归纳法,从政策目标、政策工具和法律保障三个方面比较分析了欧盟和美国现行的农业生态补偿政策及特征,并针对我国农业生态补偿模式的不足提出了若干完善我国农业生态补偿制度的建议。结果 欧盟和美国在政策中广泛采取正向激励的政策工具,依靠完备的法律体系建立起高度市场化的农业生态补偿模式,但在政策保障和管理评估上投入巨大,正在寻求更具成本效益的补偿方案。结论 我国的农业生态补偿存在政策碎片化、市场机制保障和农民参与度不足的问题,建议借鉴欧盟和美国农业生态补偿制度中协调农业和环境政策、完善绿色金融体系和提升政策透明度的做法来改善。     

Mixed farming in Africa: the search for order, the search for sustainability

This paper examines the interest in the development and promotion of mixed farming in sub-Saharan Africa. For over 70 years mixed farming has been a dominant model for agricultural development despite the limited success of many of the programmes which have specifically promoted it. It is suggested that the establishment of mixed farming as a strong development theme is related to its promise to address a range of environmental and social concerns, and in so doing, help create order out of a ‘chaotic’ African countryside. Mixed farming is again being highlighted with the more recent interest in sustainable, environmentally friendly agricultural systems. However, there is considerable evidence that African farmers have adopted a flexible principles-based approach to the use of component technologies commonly associated with the mixed farming model. This must be fully acknowledged, and the seduction of unitary models avoided, if agricultural research is to contribute efficiently to the development of more sustainable farming systems.     

Agricultural policies and food systems: Priorities for indicator development

Existing indicators of agricultural protection and support were developed primarily to gauge the market and welfare effects of government policies. They have shed light on a wider range of impacts through their use in economic models and empirical analysis. The rising scale of support to agriculture globally, and continued reliance on market distorting policy instruments, make this work as important as ever. Deeper investments are nonetheless needed to address heightened concerns about the spill-over impacts of agricultural policies on the performance of food systems, in particular with respect to food security and nutrition, rural livelihoods, resource use and the environment, and global emissions. A first area for development is improved measures of policies to correct agriculture's externalities. A priority here is to develop a carbon tax equivalent of sectoral mitigation efforts. A second area is to provide a clearer delineation of government spending on private versus public goods. This would make a valuable contribution to a ‘repurposing’ agenda that seeks to identify how agricultural budgets can be spent more effectively, as well as the scope for transferring resources to wider social priorities, such as public health and climate action.     

Cashing in or driving development? Cross-border traders and maize contract farming in northeast Laos

Contract farming is receiving renewed attention in research and policy in the Mekong region of Southeast Asia, as countries continue to undergo varied agrarian transitions and agri-food production has become increasingly regionalized. In northeast Laos, previously isolated upland communities have experienced rapid transformations resulting from contract production of hybrid maize, mainly for industrial feed processing and livestock in Vietnam. Based on extensive qualitative fieldwork in the Lao-Vietnamese borderlands, this article explores the quasi-“developmental” functions assumed by cross-border traders, in the context of unfulfilled rural policy objectives, in which these “micro-investors” provide informal extension and infrastructure to enable agricultural commercialization. The article examines the extent to which this dynamic is adequately captured by notions of patronage, or whether subtle mutual dependencies are at work, as livelihoods are rebalanced between subsistence and commodity crops in remote border landscapes.     

Building an empirically-based framework to value multiple public goods of agriculture at broad supranational scales

Agricultural landscapes deliver multiple, highly valued goods such as cultural amenities, biodiversity conservation and climate stability. These goods are often delivered as side-effects of farmers' production decisions driven by broad-scale, supranational changes in agricultural, trade or other policies. Human well-being is thus affected in ways not taken into account in these macro-policy decisions. To avoid this policy failure, there is a growing demand for the valuation of broad-scale changes in public goods by the general public. For this purpose, context-rich valuation scenarios at this broad scale need to be developed which are empirically-based, policy-relevant and understandable by the general public. In this way, respondents are focused on actual trade-offs rather than invited to give symbolic reactions. This paper presents and discusses a valuation framework developed to fulfil these criteria. The approach is based on a typology of Macro-Regional Agri-Environmental Problems (MRAEP). Each MRAEP is defined by: (1) prevailing farming systems and agricultural landscapes; (2) current levels of public-good delivery; (3) expected direction of land-use change; and (4) expected effects of such change on public-good provision in each macro-region. Multivariate analysis of EU-wide data on agricultural landscapes and farming-systems led to identify thirteen macro-regions in the EU. Current public-good provision was described using public-good indicators. Only those public goods that are expected to change or could be improved by available policy options (core public goods) were used to generate choice alternatives for survey respondents. The paper ends by discussing innovative elements in the proposed approach, achievements, shortcomings and possible policy uses.