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on Agricultural Economics |
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Issue of 2009‒08‒16
37 papers chosen by |
| By: | David Mather |
| Abstract: | Crop income is the predominant source of income for most rural zambican households, accounting for 73% of rural household income on average in 2002, and greater than 80% of the total income of the poorest 40% of rural households. While the Government of Mozambique recognizes the need to improve agricultural productivity, there is little empirical evidence to date suggesting what mix of public and private investments would best foster improved agricultural productivity in rural Mozambique. This paper aims to better understand the determinants of household crop income in rural Mozambique, by using the TIA panel household survey of 2002-2005 to measure the impact of various private and public assets on crop income. We build upon Walker et al.’s (2004) analysis of TIA02 crop income by utilizing the econometric advantages of panel econometrics to obtain improved estimates of the impact of various private and public assets on crop income. Our principal focus is to measure the effect on total household net crop income of factors which are assumed to have a positive effect on crop productivity and profitability, including: private assets such as landholding; household use of improved inputs (fertilizer, animal traction) and diversification into tobacco or cotton; and access to public goods such as extension advice, market price information, and farm association membership. |
| Keywords: | income, mozabique, africa, food security |
| JEL: | D33 |
| Date: | 2009–07 |
| URL: | http://d.repec.org/n?u=RePEc:msu:icpwrk:icpw_mz_minag_wps67&r=agr |
| By: | A. Ganesh Kumar |
| Abstract: | This paper examines the efficacy of the current system of public foodgrains management and policies in promoting food security in the country. It argues that the system has outlived its usefulness, and that continuing with the same only stifles growth in foodgrains, with very little welfare benefits to the poor. The paper then presents a series of suggestions for reforming and modernizing the foodgrains management system in the country that would be welfare improving and also efficient, saving vast amounts of resources that can be used to invest in augmenting agricultural, especially foodgrains output. [IGIDR WP NO 27]. |
| Keywords: | Food grains management, Food policy, Food security, food grains, welfare, poor, agricultural, food security, fertilizer, GDP, monopoly, price support, rice, Punjab, Andhra Pradesh, buffer stock, India |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2172&r=agr |
| By: | Paudel, Pashupati; Shrestha, Arjun Kumar; Matsuoka, Atsushi |
| Abstract: | Soil fertility is considered as the most important constraint to increase maize production in Nepal. Although farmers generally apply farmyard manure available on their farms, there is increasing trend towards the use of fertilizers that is likely to augment maize production in Nepal. This study was carried out to identify the influence of socio-economic factors of the improved maize adopters on the decision to adopt fertilizers in the Chitwan district of Nepal, using the survey data collected from 117 farm households in May-June 2005. The impact of age, education, family size, farm size, extension service, credit use, manure application, off-farm income and timely irrigation availability on the adoption of fertilizers were analyzed using the Tobit regression model. The major factors having positive influence on use of fertilizer in maize production were found to be family size, farm size, credit use, off-farm income and irrigation availability. There is need of adequate irrigation facility and assured credit availability to the farmers in the study area. Further, creation of off-farm activities is crucial to obtain additional household income to fulfill cash requirements required for investment in improved technologies. The present study emphasize the provision of technical support via training, seminars, field demonstrations to increase the adoption of fertilizers to improve maize productivity and consequent food security in Nepal. |
| Keywords: | Maize, Soil fertility, Food security, Tobit model, International Development, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:51066&r=agr |
| By: | Smith Minihan, Erin |
| Abstract: | State and national policies driving ethanol production in Pennsylvania and elsewhere in the United States have elevated corn prices and subsequently the amount of land devoted to growing corn. There are concerns this may have a negative impact on water quality and other ecosystem services, especially if land is converted from forest to corn production. Pennsylvania has experienced a net increase in forested farmland in recent years, but higher corn prices may slow down or reverse such a pattern. The overall benefit from expanding ethanol production has to take into account landâuse changes that decrease forested land and therefore bear a cost of foregone carbon sequestration and water quality benefits. This paper utilizes land cover and soil maps to create spatially explicit variables to examine the pattern of forestation in a heavily corn producing region of Pennsylvania using multinomial logistic regression. Results are mainly consistent with expectations that land with the highest rents from corn production are least likely to become forested over the period, indicating that the framework developed has potential for further analyses pertaining to agricultural landâuse |
| Keywords: | Land Economics/Use, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:51064&r=agr |
| By: | Acs, Szvetlana; Dallimer, Martin; Hanley, Nick; Gaston, Kevin J.; Armsworth, Paul R. |
| Abstract: | Recent decades have witnessed substantial losses in biodiversity in Europe, partly driven by the ecological changes associated with intensification of agricultural production. These changes have particularly affected biodiversity in marginal areas, such as the uplands in UK, since habitat change has been greater than in lowland zones. Livestock farming is the main land use in these areas, and economic viability of farmers substantially relies on income coming from agricultural subsidies and agrienvironmental payments. The production decisions have an effect on biodiversity, although the precise links are subject of much debate. To assess the effects of policy changes on farm incomes and biodiversity, we developed ecological-economic models for three typical farm types in the Peak District National Park in UK. We analyse the effect of decoupling and agri-environment schemes on birds. The results show that the impact of these policies varies across farm types and across biodiversity indicator. This means that from a biodiversity point of view whatever future policy options are chosen will result in winners and losers. |
| Keywords: | decoupling, agri-environmental policy, ecological-economic model, biodiversity, Land Economics/Use, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:51056&r=agr |
| By: | Barns, S.A.; Willoughby, B.E.; Kaine, G.; Lourey, R.; Murdoch, H. |
| Abstract: | Marketing theory was applied to develop a qualitative tool to predict levels of compliance based on involvement with the issue (policy objective) and involvement with the intervention (regulation). Based on an understanding farmer decision-making, the I3 Response Framework can help identify strategies that can strongly influence compliance, providing more efficient targeting of resources for policy. We report on further testing by application to the issue of water quality and the regulations around slurry storage as part of the Nitrate Pollution Prevention Regulations 2008 as applicable to dairy farmers in the Derwent catchment of North Yorkshire, England |
| Keywords: | Policy, I3 Response Framework, involvement, water quality, slurry storage, Nitrogen Vulnerable Zone, regulation, Nitrate Pollution Prevention Regulations 2008, NPPR2008, Agricultural and Food Policy, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:50934&r=agr |
| By: | Wagner, Klaus; Neuwirth, Julia; Janetschek, Hubert |
| Abstract: | Recent extreme weather events have resulted in an ongoing discussion on the issues of land use and compensation payments within Austrian agriculture. Building on a functional evaluation system for agricultural lands as developed within the Interreg IIIB project âILUPâ, the national project âAgriculture and Floodingâ has as its goal to classify the flood-protection contribution and flood sensitivity of agricultural lands. This, in turn, enables the recommendation of targeted measures for potentially improving flood situations, as well as an estimate of their implementation costs. In addition to the digital soil map, other fundamental sources used for the project are the digital flood risk map, IACS land-use data and works by the Institute for Land and Water Management Research. Reference values and marginal returns sourced from the Federal Institute of Agricultural Economics also flow into the cost estimates for the recommended combination. The results will contribute to an understanding of the multifunctionality of agricultural lands and to the setting of priorities on a regional scale regarding packaged flood-prevention and damage-minimization. However, the results at hand can only serve as one step toward regional flood protection projects, whose development will require the cooperation of all interest groups. |
| Keywords: | Agriculture, Multifunctionality, Sustainability, Flood Risk, Resource /Energy Economics and Policy, Q24, Q25, Q54, Q56, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:50942&r=agr |
| By: | Pearson, David; Bailey, Alison |
| Abstract: | There is widespread support from Government, media and consumers for local food networks. The profile of local food buyers and their expectations has been explored and we have some knowledge of its social, economic and environmental contribution. This research contributes by exploring the structure and scope of local food activities. This paper reports on a one year scoping study that examined local food within two contrasting countries, England and Australia. It used a literature review and interviews with key stakeholders to identify the business opportunities that exist in this sector. In conclusion there are many more local food activities in England than in Australia. Further, at a national level in both countries it remains fragmented and confused. However, at a local level there are many successful businesses - farmers markets are the most successful business model in England and Australia, with box schemes also working well in England. The research priorities are to develop a clearer definition of local food as well as exploring the possibility of creating some form of consumer assurance for the âlocalnessâ of foods. |
| Keywords: | local food, business, England, Australia, Community/Rural/Urban Development, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:51067&r=agr |
| By: | Quillerou, Emmanuelle; Fraser, Rob |
| Abstract: | The Environmental Stewardship Scheme provides payments to farmers for the provision of environmental services based on agricultural foregone income. This creates a potential incentive compatibility problem which, combined with an information asymmetry on farm land heterogeneity, could lead to adverse selection of farmers into the scheme. However, the Higher Level Scheme (HLS) design includes some features that potentially reduce adverse selection. This paper studies the adverse selection problem of the HLS using a principal agent framework at the regional level. It is found that, at the regional level, the enrolment of more land from lower payment regions for a given budget constraint has led to a greater overall contracted area (and thus potential environmental benefit) which has had the effect of reducing the adverse selection problem. In addition, for landscape regions with the same payment rate (i.e. of the same agricultural value), differential weighting of the public demand for environmental goods and services provided by agriculture (measured by weighting an environmental benefit function by the distance to main cities) appears to be reflected into the regulatorâs allocation of contracts, thereby also reducing the adverse selection problem. |
| Keywords: | Adverse selection, agri-environment, Environmental Stewardship, principal-agent, contract, Environmental Economics and Policy, D78, D82, H44, Q18, Q58, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:51068&r=agr |
| By: | Tzouramani, I.; Liontakis, A.; Sintori, A.; Alexopoulos, G. |
| Abstract: | Organic farming has experienced a vast increase within the EU, despite the fact that it implies greater risk and uncertainty than that of conventional farming. This is the result of the increased environmental concern and the rising demand for quality food, which led to the implementation of the organic policy scheme. Nevertheless, the production of organic fruits, including cherries, is still limited in the EU. Farmers will adopt this alternative farming system only if the support provided by the existing policy regime out weights the increased risk and uncertainty. This study explores the effectiveness of the current policy measures for the production of organic cherries in Greece, using the real options methodology. The framework of real options analysis is an appropriate form of analysis so as to examine the investmentâs profitability under risk and uncertainty and assess the economic incentives offered to organic farmers. The results indicate that the economic incentives provided by the existing policy regime, compensate for the risk and the uncertainty that farmers are undertaking. Furthermore, this study reveals that the profitability of the economic activity explored, lies mainly on the subsidies organic farmers receive. |
| Keywords: | Keywords: organic agriculture, real options, agriculture policy, uncertainty, Agricultural and Food Policy, D81, Q14, Q18, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:51079&r=agr |
| By: | Breen, James; Donellan, Trevor |
| Abstract: | Agriculture in Ireland accounts for a higher proportion of greenhouse gas (GHG) emissions than in any other EU member state. Furthermore as part of the EUâs commitment to reduce emissions by 20 percent by 2020, Ireland is one of the few countries who will have to cuts its 2005 GHG emissions level by the full 20 percent. Given the magnitude of the cut in national emissions that is required and the size of agricultureâs contribution to Irelandâs total emissions, the agriculture sector has been identified by some parties as a sector that could make a significant contribution to achieving the national target. In order to evaluate the impact on Irish farmers of reducing GHG emissions it is necessary to first estimate the marginal cost of emissions abatement. This paper uses Irish farm-level data to construct a linear programming model which in turn is used to estimate the marginal abatement cost curve for GHG emissions on Irish farms and this is aggregated to estimate a marginal cost curve for the agriculture sector. The impact of an emissions tax in achieving targeted levels of GHG emissions will be measured under a baseline scenario of no policy change. |
| Keywords: | Keywords: Farm-Level, Greenhouse Gas Emissions, Marginal Abatement Cost Curve, Agricultural and Food Policy, Q12, Q18, Q52, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:50938&r=agr |
| By: | Moran, Dominic; MacLeod, Michael J.; Wall, Eileen; Eory, Vera; McVittie, Alistair; Barnes, Andrew; Rees, Bob; Smith, Pete; Moxey, Andrew |
| Abstract: | Greenhouse gas emissions from agriculture, land use, land use change and forestry (ALULUCF) are a significant percentage of UK industrial emissions. The UK Government is committed to ambitious targets for reducing emissions and all significant industrial sources are coming under increasing scrutiny. The task of allocating shares of future reductions falls to the newly appointed Committee on Climate Change (CCC), which needs to consider efficient mitigation potential across a range of sectors. Marginal abatement cost curves are derived for a range of mitigation measures in the agriculture and forestry sectors over a range of adoption scenarios and for the years 2012, 2017 and 2022. The results indicate that in 2022 around 6.36 MtCO2e could be abated at negative or zero cost. Further, in same year over 17% of agricultural GHG emissions (7.85MtCO2e) could be abated at a cost of less than the 2022 Shadow Price of Carbon (£34tCO2e). |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:51065&r=agr |
| By: | Hediger, Werner |
| Abstract: | Carbon sequestration in agricultural soils is considered as an option of greenhouse gas mitigation in many countries. But, the economic potential is limited by the dynamic process of saturation and the opportunity cost of land use change. In addition, this article shows that permanence cannot, in general, be achieved in the strict sense of maintaining the soil carbon stock on an increased equilibrium level. Rather, a cyclical pattern with periodical release of sequestered carbon can be economically optimal from both the farmersâ and societal point of view. |
| Keywords: | Agriculture, Climate policy, Carbon sequestration, Land use change, Economic analysis., Land Economics/Use, Q15, Q24, Q54., |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:51057&r=agr |
| By: | Sauer, Johannes; Davidova, Sophia; Latruffe, Laure |
| Abstract: | The key question of this paper is why farmers in Kosovo leave land fallow when the total land of their farms is rather small and households are rather large. In order to elicit some barriers to land utilisation in Kosovo, the paper is based on a comprehensive survey carried out in 2005 investigating agricultural householdsâ perceptions of production and market conditions, and employs several households and farm characteristics to empirically approximate the significance of different factors for leaving land fallow and not using it for production purposes. Three different econometric models are used expected to fit the data distribution. All estimated model specifications show a statistical significance at a satisfactory level and no severe signs of misspecification. The main determinants of the share of land left fallow by farmers in Kosovo are economic: low profitability of farming and difficulty to access inputs. The increase in incentives to farmers by improving market institutions up- and downstream is one measure which could alleviate the barriers to land use. Larger arable areas decrease the probability for fallow land. This emphasizes the need for land consolidation. |
| Keywords: | fallow land decision, Kosovo, Tobit regression, Fractional response regression, Zero-inflated binomial regression, Land Economics/Use, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:51072&r=agr |
| By: | Tey, (John) Yeong Sheng |
| Abstract: | This study intends to determine the farm-retail price transmission behaviors of pork in Malaysia to serve as a good implication for pork pricing system in Malaysia. Using data from January 1997 to December 2008, both the Houck and ECM approaches were found symmetric where a change in farm price of pork was observed to have similar change in retail price of pork in Malaysia. The price setting system of pork can therefore be further described by the estimated price transmission elasticities where retail price is very sensitive to the changes in farm price. A change in farm price is expected to result in a bigger change in retail price of pork while other things remain unchanged. |
| Keywords: | symmetry, pork, elasticity of price transmission |
| JEL: | Q11 Q13 |
| Date: | 2009–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:16693&r=agr |
| By: | Elizabeth Anne Wilman |
| Abstract: | Carbon sequestration in agricultural soils can be promoted by practices such as no-tillage. Farmers’ decisions, related to tillage, are affected by its costs and benefits, and in turn influence changes in soil carbon. There has been research which models the farmer’s no-tillage adoption decision. It is recognized that the longer no-till is continued the greater the amount of carbon sequestered. But, the decision of how long to continue no-till has not received much attention. A model which the farmer chooses tillage frequency is presented. Payment policies, and other ways to encourage long term sequestration, are considered. |
| JEL: | Q15 Q27 Q54 Q57 |
| Date: | 2009–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:clg:wpaper:2009-09&r=agr |
| By: | Jonathan Zinman (Dartmouth College & Innovations for Poverty Action); Dean Karlan (Economic Growth Center, Yale University, Innovations for Poverty Action, MIT Jameel Poverty Action Lab) |
| Abstract: | Microcredit seeks to promote business growth and improve well-being by expanding access to credit. We use a field experiment and follow-up survey to measure impacts of a credit expansion for microentrepreneurs in Manila. The effects are diffuse, heterogeneous, and surprising. Although there is some evidence that profits increase, the mechanism seems to be that businesses shrink by shedding unproductive workers. Overall, borrowing households substitute away from labor (in both family and outside businesses), and into education. We also find substitution away from formal insurance, along with increases in access to informal risk-sharing mechanisms. Our treatment effects are stronger for groups that are not typically targeted by microlenders: male and higher-income entrepreneurs. In all, our results suggest that microcredit works broadly through risk management and investment at the household level, rather than directly through the targeted businesses. |
| Keywords: | microfinance, microcredit, microentreprenuership, risk sharing, formal and informal finance |
| JEL: | O1 D1 D2 G2 |
| Date: | 2009–07 |
| URL: | http://d.repec.org/n?u=RePEc:egc:wpaper:976&r=agr |
| By: | Donnellan, Trevor; Gillespie, Patrick; Hanrahan, Kevin |
| Abstract: | As part of its continuing commitment to address the causes of climate change, the EU has agreed reduction targets for greenhouse gas (GHG) emissions to be achieved by 2020. In the case of Ireland the target is a reduction of 20 percent relative to the 2005 level. Agriculture is a major source of GHG emissions in Ireland, comprising 26.8 percent of total GHG emissions in 2007. Understanding the scale and cost of the decrease in agricultural production required to achieve this reduction in GHG emissions is particularly important, as is the comparison of the cost of this approach with a range of possible other means of achieving emissions reductions in the sector. This study finds that, even with reduced fertiliser usage and more extensive production practices, a very substantial decrease in the livestock population is required to meet the emission reduction targets by 2020. The paper concludes that a solution involving a mix of measures may ultimately be required |
| Keywords: | agriculture, policy analysis, partial equilibrium modelling, baseline, scenario analysis, GHG, Kyoto, climate, Ireland, FAPRI, EU Gold Model, abatements, Environmental Economics and Policy, Q11, Q17, Q18, Q54, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:51050&r=agr |
| By: | Kupiec-Teahan, Beata; Leat, Philip; Revoredo-Giha, Cesar |
| Abstract: | A basic right of both a consumer and a citizen is the right to be heard, and their voiced concerns have to be taken into account when developing policies and obtaining trust for government actions. Therefore this study focuses on consumersâ interests, opinions and expectations which are identified and categorised according to subject area, degree of involvement and political agenda of a consumer. The paper draws on the responses of individual members of the public in the National Food Policy discussion initiated by the Scottish Government in 2008. Altogether 246 responses were subjected to quantitative analysis of texts, supported by text mining. A variety of interests and opinions underpinning the political agendas of individuals responding to the National Food Policy discussion document were identified and discussed in the paper in the context of political consumerism and influence citizens-consumers are likely to have on policy development and its subsequent implementation. In the broad perspective of the Scottish food supply chain, the three pillars of sustainability: economy, environment and society, are defining the nature of public concerns and expectations. Findings could be applied across many different policy areas including food production and distribution, heath education and promotion, support of small local businesses, environment protection, travel, waste management/recycling and others. |
| Keywords: | Food Policy, Scotland, Text analysis. Consumer research, Consumer/Household Economics, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:51061&r=agr |
| By: | Love, Inessa; Sanchez, Susana M. |
| Abstract: | This paper uses two recently completed surveys of individual entrepreneurs (farmers and microentrepreneurs) and registered enterprises (agricultural and nonagricultural) operating in Mexico’s rural sector to provide new evidence about the factors influencing the incidence of credit constraints and investment behavior. To measure the incidence of credit constraints, the authors use self-reported information on whether economic agents have a demand for loans, separating formal and informal markets. They define credit constraints as a situation where rural agents report an unsatisfied demand for loans (formal or informal), which originates from rural agents having projects that are too risky or from impediments hindering the ability of rural agents and lenders to reduce information asymmetries. The authors find that the self-reported demand for loans is low. Nevertheless, the incidence of credit constraints is pervasive, especially among individual entrepreneurs. The low use of loans has consequences for the amount of investments that occur in the rural economy, posing a major obstacle to Mexico’s convergence towards its NAFTA partners. The empirical analysis, which includes proxies of business prospects and creditworthiness, shows that improving the availability of loans to credit constrained agents would increase the number of agents making investments and their investment to capital ratios. |
| Keywords: | Access to Finance,,Debt Markets,Bankruptcy and Resolution of Financial Distress,Banks&Banking Reform |
| Date: | 2009–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5014&r=agr |
| By: | Carroll, J.; Greene, S.; OâDonoghue, C.; Newman, C.; Thorne, F. |
| Abstract: | The competitiveness and productivity of Irish agriculture has been at the forefront of debate in recent times given successive and impending changes to agricultural policy. This paper examines the trend in total factor productivity in Irish agriculture over the recent past and explores the effects of specific variables on relative efficiency levels. The findings of this research have shown that productivity growth was highest in the Cattle Rearing sector followed by the Dairy, Cattle Finishing, Sheep and Cereals sectors during the period 1996 to 2006. The research has also shown that efficiency levels are, in general, positively correlated with extension use soil quality, the overall size of the farm, the level of intensification and the level of specialisation. The use of artificial insemination was also positively correlated with efficiency in the Dairy sector |
| Keywords: | Production Economics, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:50941&r=agr |
| By: | Lapple, Doris; Donnellan, Trevor |
| Abstract: | The adoption and possible abandonment of organic farming has yet received little attention in the literature. As time plays an important role in explaining farming decisions, a dynamic econometric framework, namely duration analysis, is used. The probability of entry to and exit of the organic drystock sector is modeled considering a wide range of economic and nonâeconomic factors. Organic support payments emerge as important driving factor of adoption over time. The empirical results also highlight the importance of environmental and risk attitudes, farming experience as well as influence of other organic farmers on the probability to adopt organic farming; whereas decisions to abandon organic farming appear to be mainly driven by economic and structural factors. Farmers who have an offâfarm job are more likely to abandon organic farming and a more âintensiveâ farm system has a positive effect on staying organic. |
| Keywords: | adoption, abandonment, organic farming, duration analysis, economic and nonâeconomic factors., Farm Management, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:51062&r=agr |
| By: | Roeder, Norbert; Lederbogen, Dirk; Trautner, Juergen; Bergamini, Ariel; Stofer, Silvia; Scheidegger, Christoph |
| Abstract: | The following paper assesses the impact of different policy options on the land use and associated biodiversity values of jointly organized low intensity grazing systems (âAllmendeâ) in Southern Bavaria. We use an integrated economic and ecological modelling approach to compare the results of the scenarios with a reference situation that reflects the Common Agricultural Policy prior to the Fischler Reform. The economic sub model is based on single farms which alter their land use in response to economic stimuli. Within the economic part, key factors like the farmâs endowment with machinery, quota and buildings but also the farmerâs attitude are regarded. Within the rule based ecological sub model we analyze three main parameters: (a) protected habitats according to the EC Habitats Directive, (b) biodiversity for selected taxonomic groups (plants, lichens, ground beetles) and (c) habitat quality of selected target species (plants, butterflies). An overall evaluation of the scenarios leads to the conclusion that the impact of the Fischler reform will be fairly limited in the study area, since at the observed level of intensity the lower product prices will be compensated by higher direct payments. If all payments were strictly targeted to agri-environmental measures and set to a level which guarantees a low input management of the grass land, the overall public expenses could be reduced by approx. 100 to 200 ⬠ha-1. In addition this setting will provide additional habitats for the target species. However, the number of agricultural employment opportunities and the agricultural value added decline severely. Regarding all indicators but the extent of protected habitats and the public costs, a scenario of complete market liberalization performs the worst. |
| Keywords: | CAP, agent based modelling, BioAssess, impact assessment, biodiversity, agriculture, target species, EC Habitats Directive, Land Economics/Use, Q18, Q57, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:51070&r=agr |
| By: | Livanis, Grigorios T.; Salois, Matthew J.; Moss, Charles B |
| Abstract: | The issue of production function estimation has received recent attention, particularly in agricultural economics with the advent of precision farming. Yet, the evidence to date is far from unanimous on the proper form of the production function. This paper reexamines the use of the primal production function framework using nonparametric regression techniques. Specifically, the paper demonstrates how a nonparametric regression based on a kernel density estimator can be used to estimate a production function using data on corn production from Illinois and Indiana. Nonparametric results are compared to common parametric specifications using the Nadaraya-Watson kernel regression estimator. The parametric and nonparametric forms are also compared in terms of describing the true technology of the firm by obtaining measures of the elasticity of scale and the marginal physical product through nonparametric estimation of the gradient of the production surface. Finally, the elasticities of substitution are compared between both parametric and nonparametric representations. |
| Keywords: | nonparametric regression, nonparametric derivatives, Gaussian kernel, optimization techniques, production function, Production Economics, C14, C15, C16, C61, Q12, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:51063&r=agr |
| By: | Annunziata, Azzurra; Ianuario, Sara; Pascale, Paola |
| Abstract: | Increasing interest from consumers in ethical characteristics of processes and products is leading to an increase of demand for organic and FT (fair trade) products and at the same time the need for more information. Indeed, the ethical attributes are credence goods and therefore cannot be checked by consumers. Labelling plays an increasing role as an instrument of direct shopping aid allowing the consumer to evaluate that he would not otherwise be able to know. In the case of ethical food products the purpose of labelling is to help consumers make a distinction between competing product alternatives and choose the most ethical acceptable option. The object of this paper is to investigate the factors which influence consumer attitudes to use labelling information in purchasing organic and FT products and to verify if labelling is a valid tool of direct shopping aid to consumers, with a view to derive inferences that may contribute to better strategic and tactical marketing decisions. A quantitative survey with 300 consumers, living in the south of Italy, was conducted in order to explore consumers' knowledge and attitudes toward labelling of organic and FT products. The data were submitted to exploratory and segmentation analysis. The results indicate significant differences in consumer attitudes and behaviour for ethical products and show the importance of new variables, other than demographic characteristics, that can influence the purchasing behaviour and label information use |
| Keywords: | ethical consumer, labelling information, organic and fair trade products, Consumer/Household Economics, D8, D12, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:50931&r=agr |
| By: | Bojnec, Stefan; Ferto, Imre |
| Abstract: | The paper analyses the effects of communication costs for agro-food trade in OECD countries between 1995 and 2003 using gravity model. We find that the link between the communication costs and agro-food trade flows in developed countries is significantly stronger for agricultural than for food products. The improved communication services reduce trade transaction costs. The estimations also confirmed importance of the economy size, level of development in importer countries, and trade distance. The other traditional gravity variables like contiguity, language and regional free trade agreements have significant impacts in the majority of specifications |
| Keywords: | Communication costs, Agro-food trade, Gravity model, International Relations/Trade, F14, F23, Q17, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:50937&r=agr |
| By: | Agnes Quisumbing |
| Abstract: | This paper applies Carter and Barrett’s theory of assets poverty traps to a unique longitudinal survey from rural Bangladesh. Non-parametric and parametric methods are used to examine the shape of the dynamic asset frontier, the number of equilibria, and whether land and nonland assets stock converge to such equilibria. [CPRC Working Paper 143]. |
| Keywords: | Asset dynamics, poverty traps, Bangladesh, land, non land asests, stock, non-parametric, parametric methods, longitudinal survey, Rural Bangladesh, Bangladesh, asset |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2158&r=agr |
| By: | Hubner, Rico; Kantelhardt, Jochen |
| Abstract: | Agriculture is required to fulfil the needs and wants of society in a variety of fields: food supply, environmental services, landscape preservation and finally: climate mitigation. Using the example of land-use change in peatland in order to create possibilities for greenhouse-gas reduction, a survey about the intentions and future expectations of stakeholders was undertaken. The underlying network structure of these stakeholders in three representative peatland areas of Germany was determined and compared. The results show that considerable differences exist in the degree of knowledge about climate change and in the willingness to cooperate. Depending on the area studied, the most influential political entities are different and thus require different strategies for agenda setting. From the study it can be concluded, that the realisation of a political or societal goal, for example greenhouse-gas reduction, relies largely on the intentions among the stakeholders and structural differences in the stakeholder networks. Our example has shown that for these reasons, land-use change for climate protective reasons will be supported more in the study-area in the South of Germany in comparison to the case in the eastern part. |
| Keywords: | Land-use in peatland areas, network analysis, climate change mitigation., Land Economics/Use, D83, D85, L31, Q54., |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:51059&r=agr |
| By: | Rowan, Emma; Longo, Alberto |
| Abstract: | This paper provides the theoretical framework and describes the preliminary steps for combining collaborative planning and non-market valuation techniques to improve the decision making process and stakeholder involvement in land use decisions. Combining components of Collaborative Planning (CP) â a Planning theory seeking to achieve the highest level of consensus possible amongst all stakeholders â with non-market valuation techniques (Travel Cost Method and Contingent Behaviour) - widely used in environmental economics â this study attempts to elicit the preferences of the Northern Ireland population which could be affected by the proposed designation of a National Park. The CP elements of public participation are first used as an aid to design the survey instrument and then explored as a means of the validation of results analysed from the survey. In a Contingent Behaviour survey, key attributes are set at varying levels to assess how respondentsâ welfare would be affected by hypothetical changes in the management and infrastructures of a recreational area. |
| Keywords: | travel cost, contingent behaviour, revealed preferences, stated preferences, national park designation, collaborative planning, stakeholder involvement, Environmental Economics and Policy, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:51071&r=agr |
| By: | Revoredo-Giha, Cesar; Lamprinopoulou, Chrysa; Toma, Luiza; Kupiec-Teahan, Beata; Leat, Philip; Cacciolatti, Luca |
| Abstract: | The recent rise in food prices has increased concern about the choice of a healthy food basket, especially in the context of the current formulation of a National Food Policy for Scotland. This concern has revived interest in food price and expenditure demand systems as they provide information about consumersâ food decisions. The paper focuses on the consumption of brown and white bread, as they are the most typical forms of cereals use in the UK. Moreover, nutritionists recommend the consumption of wholemeal or brown bread in contraposition to white bread as part of an appropriate diet due to its health benefits. The overall purpose of the paper is to measure the impact that the increase in the price of cereals during the period 2005 to 2008 would have had on the purchase of brown and white bread. This is undertaken in two stages: the first measures the effect of changes in milling wheat prices on brown and white bread prices, and the second measures the elasticities of the purchases of brown and white bread with respect to changes in their prices through the estimation of four demand systems. The results, excluding those from the static LA/AIDS that seem to high, indicate, ceteris paribus, that the increase by 72 per cent in the price of wheat produced a decrease in brown and white bread purchases in the range of 30 to 40 per cent; however, as regards the question what type of bread decreased more, the answer depends on the demand model used. |
| Keywords: | Bread consumption models, Scotland, Food prices, Food Consumption/Nutrition/Food Safety, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:51069&r=agr |
| By: | Sintori, A.; Rozakis, S.; Tsiboukas, K. |
| Abstract: | Management strategies and performance differ among farmers, as a result of different, multiple and often conflicting goals. Many approaches to building farm level models that incorporate multiple goals have been developed over the years, most of which share a common weakness. The determination of the goals to be used as attributes in the utility function is the result of a highly interactive process with the individual farmer, often difficult to implement. In this study, we use a non-interactive methodology, described in recent literature, to elicit the utility function of selected sheep farmers in western Greece, since farmers often appear reluctant to answer straightforward questions about their goals and preferences. Τhe results indicate that sheep farmers aim at the achievement of multiple goals, and that the maximization of gross margin is an important attribute in the utility function of mainly larger farms with a commercial orientation. The minimization of purchased forage, family labor and cost of hired labor are also important goals, especially for small and less commercial family farms. The multi objective farm level model built reproduces the Greek sheep farmersâ behavior more accurately and can replace the single objective model in decision making or agricultural planning problems. |
| Keywords: | Sheep farming, mixed integer programming, multiple goals, noninteractive elicitation, Livestock Production/Industries, C61, D21, Q12, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:51075&r=agr |
| By: | Binfield, J.C.R.; Donnellan, Trevor; Hanrahan, Kevin; Westhoff, Pat |
| Abstract: | The Doha round of WTO negotiations has been ongoing since 2001. In the summer of 2008 the negotiations on the modalities for a new WTO agriculture agreement collapsed when seemingly on the verge of a successful conclusion. In this paper we present quantitative analysis of the impact of a new WTO agreement undertaken using a partial equilibrium model of Irish and EU agriculture. Results are presented on the agreementâs impact on Irish and EU-27 agriculture markets and on Irish agricultural sector incomes. Our analysis highlights the importance of the Baseline counter-factual, and will illustrate that protection afforded by the conferral of sensitive product status differs from commodity to commodity. The paper will draw conclusions concerning the economic impact of an agreement on Irish agriculture and Irelandâs likely future perspective on the conclusion of the Doha Round. |
| Keywords: | WTO, agriculture, policy analysis, partial equilibrium modelling, baseline, scenario analysis, tariffs, tariff rate quota, sensitive products, International Relations/Trade, Q11, Q17, Q18, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:50936&r=agr |
| By: | Banterle, Alessandro; Souza Monteiro, Diogo M; Stranieri, Stefanella |
| Abstract: | Traceability is helping retailers manage food safety risks and support product differentiation. This paper aims to investigate how traceability may be used to screen supplier for private labels dedicated provider pools. Retailers in the UK and Italy have several private label product lines and increasingly select dedicated suppliers. The choice of providers is a typical agency problem as retailers contract the production for their private labels, having incomplete information on types and effort of their suppliers. Different contracts must be designed for suppliers of private labels depending on position of the product line and its food safety risk. A case study, based on the second largest Italian retailer reveals that traceability and quality assurance schemes are used together to manage suppliers of private labels |
| Keywords: | Traceability, dedicated providers, food products, retailing, vertical coordination, Marketing, Q13, Q18, L81, L66, L15, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:50933&r=agr |
| By: | Smyth, Paul; Harte, Laurence; Hennessy, Thia |
| Abstract: | This paper examines the relationship between calving date and production costs on Irish dairy farms from 2000-2007. Using data from the National Farm Survey, the median calving dates of 400 dairy farms are studied each year using econometric analysis to determine the relationship between calving date and production costs. Farms are divided into five categories according to their median calving date. These categories are imputed into a panel dataset as dummy variables. Unobservable individual effects are controlled for using a fixed effect model; examples of such effects are land quality and managerial ability, Results suggest that when scale and those unobserved effects are controlled for, there was no significant difference in total cost of production per litre according to median calving date |
| Keywords: | Seasonality, Fixed effect, Calving date, Production Economics, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:51076&r=agr |
| By: | Fogarasi, Jozsef; Latruffe, Laure |
| Abstract: | The paper investigates the difference in technical efficiency and in productivity change, and the technology gaps, between French and Hungarian farms in the dairy and cereal, oilseeds and proteinseeds (COP) sectors during the period 2001-2004. The analyses are performed with national FADN data and the Data Envelopment Analysis (DEA) approach under each countryâs respective frontier and under a metafrontier. Results revealed that in both the dairy and the COP sectors, Hungarian farmsâ technology was the more productive, despite a technological deterioration. This suggests technological advantages for large-scale (Hungarian) over small-scale (French) farming in these two sectors. These findings may also be explained by the higher policy support in France. Subsidies received by farms have indeed a stronger negative impact on technical efficiency for French farms than for Hungarian farms, and a negative impact on the ability to lead the technology only for French farms. |
| Keywords: | technology gap, technical efficiency, Malmquist indices, subsidies, farms, Production Economics, P51, D24, Q12, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:51053&r=agr |
| By: | Colman, David; Beever, David E. |
| Abstract: | A majority of UK dairy herds have the potential to increase profitability by improving the ration of their cows. This paper reports that gains averaging around £100 per cow have been made within one year of adopting the Keenan Hi-Fibre ration by 239 UK herds in 2006 and 2007. Larger gains have been made by herds in France. The key performance indicator underlying these gains is Feed Conversion Efficiency, whereby the same, or even a smaller amount of Dry Matter Intake generates higher yields per cow. Importantly, the gains are associated with large improvements in animal health and reductions in greenhouse gases per litre of milk produced. |
| Keywords: | Feed conversion efficiency, cattle nutrition, greenhouse gas emissions, animal health., Livestock Production/Industries, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:51424&r=agr |
| By: | Bakucs, Lajos Zoltan; Ferto, Imre |
| Abstract: | Modern theories of sales make conflicting predictions about the temporal pattern of sales, which we test using retail chain level data. In this paper, we focus on the retail sale patterns of two retail milk prices in a New Member State (NMS), Hungary using weekly data across eight retail chain between 2005 January and 2008 June. We employ a battery of empirical tests, to try a number of sale theory hypotheses. First, we present summary statistics, histograms, and correlations of prices and sales from which we conclude that no theory of sales fully describes sale patterns and price distributions. Second, we apply vector autoregressive analysis and Granger tests of temporal ordering (âcausality testsâ) to determine whether the sale of one retail chain is followed in a predictable way by the sale of another retail chain or its own later sales. Our results suggest a dual retail market structure. Finally, we employ panel cointegration to test confirm that durable goods should have qualitatively different pricing pattern than less-durable goods. Similarly to Berck et al. (2007) we fail to see a clear difference between storable milk and boxed milk patterns. |
| Keywords: | Sales, retail prices, milk, Livestock Production/Industries, |
| Date: | 2009–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc09:50932&r=agr |