Farmers and their groves: Will cost inefficiency lead to land use change? |
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| Institution: | 1. Department of Production Engineering, Warsaw University of Life Sciences, ul. Nowoursynowska 164, 02-787 Warsaw, Poland;2. Department of Agricultural and Applied Economics, University of Georgia, 1109 Experiment Street, Griffin, GA 30223?1797, United States;3. Land Economy, Environment and Society Research Group, Scotland’s Rural College (SRUC), King’s Buildings, West Mains Road, Edinburgh EH9 3JG, United Kingdom;1. Arthur Rylah Institute for Environmental Research, Department of Environment and Primary Industries, 123 Brown Street, Heidelberg, VIC 3084, Australia;2. School of Botany, The University of Melbourne, Parkville, VIC 3010, Australia;3. CSIRO Ecosystem Sciences, and Sustainable Agriculture Flagship, Pvt Bag 5, PO, Wembley, WA 6913, Australia;1. Norwegian Institute of Bioeconomy Research, P.O. Box 115, NO-1431 Ås, Norway;2. Norwegian Institute of Bioeconomy Research, P.O. Box 115, NO-1431 Ås, Norway |
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| Abstract: | Increased forest areas and climate change mitigation are policy goals enhanced by expanding private forest ownership. This study shows transfer of land from farms owning forested acreage associated with low quality land and high production costs achieves such goals. Calculated cost efficiency scores show a large gap between the most and least efficient farms, and farms with forests are less cost efficient. Land reforestation through subsidy programs could replace income from agricultural production. We illustrate that farms from the applied FADN panel could reforest 45,000 hectares, binding about 0.5 mln tons of carbon annually without limiting food or feed supply. |
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| Keywords: | Cost efficiency FADN data Forest ownership Renewable energy policy Reforestation |
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