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on Agricultural Economics |
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Issue of 2012‒11‒24
63 papers chosen by |
| By: | Ostermeyer, Arlette; Schonau, Franziska |
| Abstract: | Biogas production is one of the influential innovations of recent decades in German agriculture. Due to high guaranteed energy prices biogas production led to distortions in agricultural and land markets. This paper provides insights in effects of biogas production on farms, farm structures and rural areas for the region Altmark, Germany, for the period 2012-2026 by using the agent-based simulation model AgriPoliS. AgriPoliS enables to simulate agricultural structural change and impacts of policies based on a linear programming approach. To maximize the household-income, farm agents can invest, produce and compete against each other on the land rental market. To analyse effects of biogas production, biogas plants, possible substrate mixtures and feed-in remunerations are introduced in the model. In our analyses, we focus on 1) the choice of production of farms, 2) the competition between farms, and 3) impacts on rural areas including environmental issues and labour market. Our simulation results show that biogas production provides especially for farmers with high management capabilities and large farms a profitable income opportunity. On average, biogas farms cannot increase their profitability. As result of an increased value added through biogas production and high competition among farms, rental prices increase and thus a high share of the value added is transferred to the land owners. Biogas production leads to an intensification of land use, especially to increases in cultivation of grass and maize silage instead of meadows and other crops, and in livestock production. This may cause negative environmental effects. On the other hand both, the intensification and the biogas production have positive effects on the labour market as biogas farms have an additional workforce demand. |
| Keywords: | biogas production, agricultural production, agent-based model AgriPoliS, land rental prices, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135772&r=agr |
| By: | Dries, Liesbeth; Pascucci, Stefano; Torok, Aron; Toth, Jozsef |
| Keywords: | Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135785&r=agr |
| By: | Konig, Bettina; Kuntosch, Anett; Bokelmann, Wolfgang; Doernberg, Alexandra; Schwerdtner, Wim; Busse, Maria; Siebert, Rosemarie; Koschatzky, Knut; Stahlecker, Thomas |
| Abstract: | Innovations of agricultural suppliers, producers and retailers are directly or indirectly shaping sustainability within the agro food web. If sustainable innovations targeted at the key challenges agriculture is facing worldwide, such as food security, climate change, sustainable use of natural resources etc. should be promoted, knowledge about current innovation processes is needed to reveal mechanisms that allow for promoting sustainable agricultural innovations. In this paper we present the development of an analytical framework to study agricultural innovation systems. We divide the agricultural sector into four levels and expand the innovation system approach (Malerba 2002 and 2004, Koschatzky 2009) to study innovation processes. On the example of the role of farmers and extension services in agricultural innovation processes we demonstrate the adequateness of the approach and give detailed insight into the later stages of the innovation process, where barriers occur most in the German agricultural innovation system. |
| Keywords: | innovation system, precision farming, animal monitoring, energy in horticulture, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135792&r=agr |
| By: | Bell, Brian A. |
| Abstract: | Among the green lobby and the general public there is urgency for agriculture to clean up its act on environmental issues. Increased intensification of land use and in particular dairying has led to environmental spill-overs that the public is no longer willing to tolerate. Agriculture is in danger of losing its public license to operate. Polices to ensure degraded waterways are put on a path to improvement are currently being formulated. These have the potential to rob New Zealand of its international competitive advantage in agricultural production if not implemented wisely. This paper uses two case studies to illustrate the costs and the timeframes inherent in environmental improvement for pastoral agriculture and makes recommendation on policies to ensure New Zealand has good environmental outcomes and retains its international competitive advantage. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Community/Rural/Urban Development, Environmental Economics and Policy, Farm Management, Land Economics/Use, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar12:136043&r=agr |
| By: | Schou, Jesper S.; Rygnestad, Hild |
| Abstract: | After the 1992 Common Agricultural Policy Reform, the idea of introducing cross-compliance into the European Union agricultural policy has become more and more popular. Cross-compliance can be defined as making income support conditional on farmers conforming to environmental regulations and standards imposed on agricultural production. From economic theory it is known that, in order to establish and efficient policy, there should be correspondence between the number of policy objectives and the number of instruments. This has been neglected in the case of European cross-compliance policies and, in order to discuss the effects of the Common Agricultural Policy and efficiency properties, a simulation model has been applied to analyze the effects of introducing environmentally related objectives concerning nitrate leaching as a supplement to the current aim of income support in the Common Agricultural Policy. Results suggest that combining output reduction and nitrate leaching reduction is less effective than separate policies for these two objectives. |
| Keywords: | Common Agricultural Policy, Cross-compliance, Nitrate leaching, Agricultural and Food Policy, |
| Date: | 2012–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare97:136527&r=agr |
| By: | Kravchenko, Alexey |
| Abstract: | Resource Management's Act current “first come first served” method of distributing water rights is fast becoming inadequate to handle this increasingly over-allocated factor of production. Water markets or tariffs are one way to achieve allocative efficiency. To establish such markets or tariffs, it is imperative to estimate users’ responses to having, for the first time, to pay for this currently largely unpriced input. This study seeks to provide a viable “starting point” estimate of the response curve to water price tariffs of dairy farmers – NZ’s largest fresh water consumers – using the MPI dairy monitoring dataset. This paper suggests that under the assumptions of inelastic input substitutability, the farms’ supply curves can provide an approximation of the farms’ responses to at-site (irrigation cost inclusive) changes of water costs. |
| Keywords: | water demand, dairy farms, irrigation, non-market valuation, Agribusiness, Agricultural and Food Policy, Crop Production/Industries, Demand and Price Analysis, Environmental Economics and Policy, Farm Management, Land Economics/Use, Production Economics, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar12:136048&r=agr |
| By: | Pechrova, Marie |
| Abstract: | Specific weaknesses of the Czech agriculture are “longstanding under-capitalization and credit burden on business, low level of support and market protection in comparison with other European countries prior accession to the EU and low level of financial means in the agricultural sector during the transformation process.” (Ministry of Agriculture, 2010) These factors are limiting the competitiveness of Czech farms. One of the ways how to combat these disadvantages is to invest to the modernisation of the agricultural sector, support innovations and their transmission into practice. Czech Republic can benefit from the European Agricultural Fund for Rural Development (EAFRD) under established Rural Development Programme (RDP). First priority axis of this program is devoted to increasing of competitiveness of agriculture and forestry. Measure I.1.1 Modernisation of agricultural holdings is aimed on investment promoting and improving the overall performance of the farm to increase its competitiveness. Measure I.1.2 Increasing of the economic value of forests has the same objective, but aims on forestry companies. The mid-term evaluation of the RDP evoked the question if the subsidised investments had contributed to the introduction of new products or services and technologies by the enterprises. The aim of this article is to answer the question if the subsidies on modernisation from the EU’s funds have statistically significant impact on the introduction of new technologies or products by agricultural holdings and thus enhancing their competitiveness. On the basis of performed statistical hypothesis testing, the author came to the conclusion that subsidies into modernisation of the agricultural and forestry holdings statistically significantly contributed to the introduction of new technologies and innovations. |
| Keywords: | Rural Development Program, agricultural and forestry holdings, modernisation, competitiveness, innovation, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135773&r=agr |
| By: | Kristoufek, Ladislav; Janda, Karel; Zilberman, David |
| Abstract: | In this paper, we analyze the relationships between the prices of biodiesel, ethanol and related fuels and agricultural commodities with a use of minimal spanning trees and hierarchical trees. To distinguish between short-term and medium-term effects, we construct these trees for different frequencies (weekly and monthly). We find that in short-term, both ethanol and biodiesel are very weakly connected with the other commodities. In medium-term, the biofuels network becomes more structured. The system splits into two well separated branches – a fuels part and a food part. Biodiesel tends to the fuels branch and ethanol to the food branch. As a part of this paper we also characterize the major biofuels and their agricultural feedstock and we outline their recent quantitative development. |
| Keywords: | biofuels, networks, minimal spanning tree, hierarchical tree, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135793&r=agr |
| By: | Clark, J. Stephen; Cechura, Lukas |
| Abstract: | The study re-examines the induced innovation hypothesis from 1958-2006 in Canadian agriculture for two regions in Canada: Central Canada (Provinces of Ontario and Quebec) and Western Canada (Provinces of Alberta Saskatchewan and Manitoba). There is broadly consistent support for the induced innovations hypothesis for Canadian agriculture, especially for Western Canadian Agriculture. In addition, there is support for the notion the US as well as Canadian research expenditures are important to the explanation of input ratio movements in Canadian Agriculture in the long run. This could indicate the existence of spillover effects that run from US agricultural research to Canadian Agriculture. |
| Keywords: | Induced Innovation, factor substitution, spillover effects, non-stationarity, cointegration, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135783&r=agr |
| By: | Rungsuriyawiboon, Supawat; Hockmann, Heinrich |
| Abstract: | This paper aims to understand the state of adjustment process and dynamic structure in Polish agriculture. A dynamic cost frontier model using the shadow cost approach is formulated to decompose cost efficiency into allocative and technical efficiencies. The dynamic cost efficiency model is developed into a more general context with a multiple quasi-fixed factor case. The model is implemented empirically using a panel data set of 1,143 Polish farms over the period 2004 to 2007. Due to the regional disparities and a wide variety of farm specialization, farms are categorized into two regions and five types of farm production specialization. The estimation results confirm our observation that adjustment is rather sluggish implying that adjustment cost are considerably high. It takes up to 30 years until Polish farmers reach their optimal level of capital and land input. Allocative and technical efficiency differ widely across regions. Moreover, efficiency is rather stable over time and among farm specialisations. However, their results indicate that the regions characterized by the larger farms perform slightly better. |
| Keywords: | Polish agriculture, dynamic efficiency, adjustment cost, shadow cost approach, Agribusiness, Agricultural and Food Policy, D21, D61, Q12, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135777&r=agr |
| By: | Unay Gailhard, Ilkay; Bavorova, Miroslava; Pirscher, Frauke |
| Abstract: | This study investigates previously experienced farmers’ adoption behavior of Agri-Environmental Measures (AEM) in Central Germany. We consider organic farmers as previously experienced with AEM as they already have practiced the environmental management standards for organic farming. The logit model is used to explain the influence of communication frequency on the probability of adoption of other environmental measures as a continuous innovation. Social network analysis is carried out to investigate the role of attitudes towards information sources. Our findings demonstrate the influence of communication frequency with interpersonal network actors (agricultural organizations and neighborhood farmers) on continuous innovation adoption in three ways: First, the communication frequency of organic farmers with both agricultural organizations and neighborhood farmers does not influence the original farmer’s decision to adopt AEM. Second, a higher education level of frequently communicated neighborhood farmers increases the probability of farmers’ AEM adoption, while the innovativeness of frequently communicated farmers does not. Third, inside the population of frequently communicated organic farmers, formal information sources (agricultural organizations) are considered as more important information sources about agricultural issues than are informal sources (other farmers). |
| Keywords: | Interpersonal communication network, communication frequency, innovation adoption, agri-environmental measures, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135786&r=agr |
| By: | Zagata, Lukas; Boukalova, Katerina |
| Abstract: | The paper focuses on the phenomenon farmers‘ markets in the Czech Republic. Boom of the farmers’ markets is used as an illustration for ongoing transition process within agrofood regime. The paper provides information about the incumbent regime (based on sale of food via large retail chain store) and the alternative initiative and its logic. The farmer’s markets have developed from previous marginal activities framed by the alternative food networks. Using the secondary sources and empirical material (16 interviews) there is in details described the mechanisms of anchorage that enables the initiative to gain new position in the regime. The analysis shows that the success of the initiative has been conditioned by several factors that have aligned and created a stable structure in the regime. |
| Keywords: | transition theory, niche, regime, FarmPath, food quality, retail chain stores, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135795&r=agr |
| By: | Burger, Anna |
| Abstract: | At the time of the 1990s transition in Hungary from a socialist to a capitalist economy a process of land reform took place. The land of large state and collective farms was privatized. The average size of these newly privatized land parcels was not more than about 4 ha; even now, after some concentration, it is 4.6 ha for individuals. It is obvious that farms of such a size are not viable in a modern economy. However, it is fortunate that, on average, land tenure is much more concentrated than land ownership. Thus there are larger individual farms and commercial farms which rent land from those – mainly absent – landowners who own the small plots of agricultural land. Nevertheless, there are still many small farmers. Many of them use their land to grow vegetables and fruits. Most of the individual small farmers operate on a subsistence or semi-subsistence level. But there are some, about 20%, who produce exclusively for the market, and about 20% sell a part of their products. There are small farmers who are well-specialized for open-air or covered vegetable production, mainly on the Great Hungarian Plain. Yet it is not easy for them to sell their produce. Markets are increasingly dominated by hyper-markets, super-markets and discount chains. The chains need steady supplies and standard varieties of fruits and vegetables in large quantities throughout the whole year. Obviously, these requirements can only be fulfilled by those traders who dispose of large quantities of products. That is why these suppliers are mainly large domestic farms, big cooperatives and importers. If small farmers want to fit successfully into the supply chain, considerable cooperation will be needed. |
| Keywords: | Hungary, small farmers, horticultural production, supply chain, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:miscpa:138608&r=agr |
| By: | Kirchweger, Stefan; Kantelhardt, Jochen |
| Abstract: | The heterogeneity of farms and the problem of self-selection are challenging the evaluation of treatments in agriculture. This is particularly the case for rural development measures whit voluntary participation and heterogeneous outcomes. But knowledge about the selection mechanisms for a certain treatment, in combination with econometric methods, can help to overcome these problems. One of these promising methods is the Propensity Score Matching (PSM) approach. In this paper we apply PSM in order to obtain treatment effects from the agricultural investment support programme in Austria on the farm income. We also test the robustness of the results to hidden bias with sensitivity analysis. Furthermore we split the sample in more homogenous subsamples in order to increase the robustness of the results. The results show that treatment effects differ by a large amount for the subsamples and that splitting leads to slightly more robust results. |
| Keywords: | Rural Development programmes, heterogeneity, causal effects, Propensity-Score Matching, sensitivity analysis, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135791&r=agr |
| By: | Cechura, Lukas |
| Abstract: | The paper examines the contribution of technological change to changes in technical efficiency and TFP (Total Factor Productivity). The results show that the technological change did not contribute significantly to the development of efficiency in all analyzed sector. However, the distribution of technical change suggests that the gap between the best and worst food processing companies increased within the analyzed period. On the other hand, the technological change was an important factor determining the TFP increase in all sectors. |
| Keywords: | Technological change, Technical efficiency, TFP, Czech food processing industry, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135782&r=agr |
| By: | Curtiss, Jarmila; Jelinek, Ladislav |
| Abstract: | This paper examines allocative and cost efficiency implications of adopting variable-rate fertiliser application using survey data from Czech wheat farms. Data Envelopment Analysis delivered higher efficiency scores for precision farming (PF) adopters. Correcting for selection bias using a one-step endogenous switching regression reveals that farms displaying a lower cost efficiency score are less likely to adopt PF technology. Nonadopters switching to PF technology would likely be affected by a significant decrease in cost efficiency given their production conditions and/or managerial and technical skills. In line with this, results indicate that human capital and farm size increase the likelihood of PF adoption. Cost (allocative efficiency) implications of PF-related changes in input structure only, on the other hand, are not found to have an impact on the choice of technology. A positive allocative efficiency effect of PF technology is brought about mainly by a farm's ability to better extrapolate the soil's productive potential, which is insufficiently reflected in the land rental prices. The allocative as well as cost efficiency implications of PF technology are further related to technology-specific responses to various farm characteristics and technological practices. PF technology makes farms' efficiency more responsive to production conditions, farm specialisation, legal form and other technological practices. The overall efficiency effect the PF practices is, therefore, conditioned on farm characteristics. |
| Keywords: | Precision farming, cost efficiency, technical efficiency, allocative efficiency, Czech agriculture, endogenous switching regression, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135784&r=agr |
| By: | Parsons, Oliver |
| Abstract: | The National Policy Statement on Freshwater Management now requires that water quality objectives and limits be set for all water bodies in New Zealand. Where objectives result in the development of nitrate limits for waterways and development pressure is likely to make these limits difficult to achieve, systems are needed to avoid over-allocation. This paper proposes a multi-level governance model for managing this load over time, with a focus on community self-governance and building a flexible system for managing leaching risk, given the very high levels of uncertainty in linking nutrient losses to objectives. |
| Keywords: | Diffuse pollution, risk management, market-based instruments, commons resource management, community governance., Agricultural and Food Policy, Environmental Economics and Policy, Farm Management, Land Economics/Use, Production Economics, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar12:136053&r=agr |
| By: | Ohe, Yasuo |
| Abstract: | Although the educational function in agriculture is attracting growing attention as a kind of multifunctionality in agriculture, these services are not yet provided as a viable farm product. This paper explores how the educational externality could be internalized to establish a viable market for these services. We focused on educational dairy farms in Japan and used a questionnaire survey to quantitatively evaluate the attitudes of operators toward establishing viable services. First, a conceptual framework was presented to express operators’ orientation toward an economically viable service by incorporating a stepwise internalization process of positive externalities with the help of a social learning network. Then, empirically, statistical tests were conducted and factors that determined this orientation, a viable service determinant function, were explored by the ordered logit model. The result showed that, first, the higher the number of visitors to the farm, the more operators were oriented toward a viable service while no connection with ordinary dairy production was shown. Second, social learning was effective for initiating the internalization process. Third, marketing skills became more important for upgrading the internalization level. Consequently, it is important to create opportunities for those farmers who want to provide consumers with educational services to learn a new role for agriculture and to establish a new income source in a stepwise fashion. |
| Keywords: | educational tourism, educational function in agriculture, multifunctionality, rural tourism, farm diversification, product innovation, externality, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135771&r=agr |
| By: | Revoredo-Giha, Cesar; Leat, Philip M.K.; Renwick, Alan W.; Lamprinopoulou-Kranis, Chrysa |
| Abstract: | This paper deals with innovation in supply chains and discusses the effects that its organisation (e.g., bargaining power along the chain) might bring on innovation and ultimately to the sustainability of the chain. The analysis was carried out considering the case of the UK potato sector and by comparing three case studies: the first two consider the situation of a supply chain that sells fresh potatoes to retailers (one in South England and another in Scotland), whilst the third one consists of a supply chain that produces potatoes to be further processed. The results indicate that the supply chain leader plays an important role in both in the organisation of the chain and in the initialisation, management and success of the innovation. |
| Keywords: | Innovation, agri-food supply chains, potato sector, UK agriculture, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135776&r=agr |
| By: | Laborde, David; Martin, Will |
| Abstract: | This survey concludes that including agriculture in the Doha Agenda negotiations was important both economically and politically, although the political resistance to reform is particularly strong in this sector. While agriculture accounts for less than 10 percent of merchandise trade, high and variable agricultural distortions appear to cause the majority of the cost of distortions to global merchandise trade. Within agriculture, most of the costs appear to arise from trade barriers levied on imports since these barriers tend to be high, variable across time and over products, and are levied by a wide range of countries. The negotiations faced a need for balance between discipline in reducing tariffs and hence creating the market access gains that are central to the negotiations, and flexibility in managing political pressures. While the approach of providing flexibility on a certain percentage of tariff lines is seriously flawed, the proposed Modalities still appear to provide worthwhile market access. Better ways appear to be needed to deal with developing countries'concerns about food price volatility while reducing the collective-action problems resulting from price insulation. |
| Keywords: | Agribusiness,Free Trade,Emerging Markets,Trade Policy,Economic Theory&Research |
| Date: | 2012–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6261&r=agr |
| By: | Woods, Darian |
| Abstract: | The average value of a particular class of agricultural exports varies widely across different destinations. In the event of a supply shock, such as the implementation of the Emissions Trading Scheme, can farmers offset higher costs by raising their average prices by contracting exports to lower value destinations? If the difference in value reflects different prices because producers have market power, the answer will be ―yes‖. If the difference in value reflects differences in the quality of goods exported to different destinations, the answer is ―no.‖ While not definitive, there is little support for the hypothesis that exports are curtailed. |
| Keywords: | agriculture, trade, prices, quality, market power, Agribusiness, Demand and Price Analysis, International Relations/Trade, Production Economics, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar12:136073&r=agr |
| By: | Parminter, Terry G.; Greenberg, Emily |
| Abstract: | The paper describes an innovative approach to stakeholder consultation about agricultural land uses and water quality in rural waterways. In mid-2012 the authors prepared a number of policy scenarios from published regional council planning documents, addressing sediment, nutrients and pathogens. These examples were intended to stimulate stakeholders to consider the attributes that they desired in the regional council interventions to be included in the next regional plan. Stakeholders from a range of agricultural and environmental organisations were invited to attend a one-day workshop. At the workshop they reviewed the proposed policy problem and objective, as well as the policy scenarios. Workshop participants then used post-it® notes to complete a template that described the attributes underlying the policy scenarios. The results were used to describe areas of convergence between the different stakeholder groups and areas where there were differences. These results are now being used in the next phase of the regional plan for the Wellington Region. |
| Keywords: | consultation, freshwater, policy, regional council, Agribusiness, Crop Production/Industries, Demand and Price Analysis, Environmental Economics and Policy, Farm Management, Land Economics/Use, Production Economics, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar12:136052&r=agr |
| By: | Anastasiadis, Simon |
| Abstract: | Nutrient emissions from agricultural land are now widely recognized as one of the key contributors to poor water quality in local lakes, rivers and streams. Nutrient trading has been suggested as a regulatory tool to improve and protect water quality. However, farmers’ attitudes suggest that they are resistant to making the changes required under such a scheme. This paper develops a model of farmers’ resistance to change and their adoption of new management practices under nutrient trading regulation. We specify resistance as a bound on the adoption of new practices and allow this bound to relax as farmers’ resistance to change weakens. This paper reflects current work in progress as part of the author’s Master’s Thesis. Future work will extend and build upon the material presented here. We request that readers refer to this paper only in the absence of a more recent version. This paper has been prepared for the purposes of the New Zealand Agricultural and Resource Economics Society conference August 2012. |
| Keywords: | agriculture, inertia, mitigation, nutrient trading, technology adoption, Agribusiness, Environmental Economics and Policy, Farm Management, Land Economics/Use, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar12:136038&r=agr |
| By: | Grimes, Arthur; Hyland, Sean |
| Abstract: | Producers of agricultural commodities treat world commodity prices as exogenous. Prices facing regional producers can also be considered exogenous when we aggregate producers over small districts, and even across New Zealand. Through estimation of a vector autoregressive (VAR) model, under a minimal set of restrictions and through institutional knowledge, we estimate the causal impact of exogenous commodity price innovations on a set of community outcomes. We find the conventional approach of restricting the focus to national effects is insufficient to understand such dynamics, and future analysis and policy should consider sub-national responses. By extending the framework to a VAR on panel data covering all, or a sub-sample, of New Zealand TLSs over 1991-2011, we find that an increase in commodity prices leads to a permanent increase in housing investment and house prices across the country. However there is a significant degree of spatial distribution in effects. Contrary to our hypothesis, we find that rural communities are in fact the most insulated from commodity price shocks, with small and insignificant effects in both outcomes. Instead, due to constrained short-run rural employment and indirect redistribution through increased expenditure, it is urban areas that experience the most significant increases in housing investment, and the lion’s share of house price appreciation. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Demand and Price Analysis, Environmental Economics and Policy, Land Economics/Use, Production Economics, Productivity Analysis, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar12:136046&r=agr |
| By: | Michelson, Hope C. |
| Abstract: | Despite more than a decade of NGO and government activities promoting developing world farmer participation in high-value agricultural markets, evidence regarding the household welfare effects of such initiatives is limited. This paper analyzes the geographic placement of supermarket supply chains in Nicaragua between 2000 and 2008 and uses a difference-in-difference specification on measures of supplier and non-supplier assets to estimate the welfare effects of small farmer participation. Though results indicate that selling to supermarkets increases household productive asset holdings, they also suggest that only farmers with advantageous endowments of geography and water are likely to participate. |
| Keywords: | agricultural markets; contract farming; development; Latin America; Nicaragua; supermarkets; Walmart |
| JEL: | O13 Q12 O12 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:42458&r=agr |
| By: | Belaya, Vera; Hansen, Heiko; Pinior, Beate |
| Abstract: | The food scandals and foodborne disease outbreaks in recent years have increased the demand for food safety and have led policy makers once more to tighten the safety regulations in the food supply chain. Obviously, an adequate balance between the costs of foodborne diseases and the costs and benefits of improved food safety is not static but time-varying and depends very much on specific situations. Given the complexity of an economic assessment of food safety, it is not surprising that the literature in this field mainly analyses particular stages but not the complete food supply chain from the farm to the consumer. This paper focuses on the costs of foodborne diseases and aims to review and classify the existing literature along a set of certain evaluation criteria. Our main findings are that most studies so far have been conducted in the USA and the UK. The reviewed studies consider mainly the consumption level of the supply chain, focus on tangible costs, examine budgetary costs and costs of individuals, and make use of the cost of illness approach. |
| Keywords: | food safety, food scandals, costs of foodborne diseases, food supply chain, Lebensmittelsicherheit, Lebensmittelskandale, Kosten von lebensmittelbedingten Erkrankungen, Lebensmittelwarenkette, Food Consumption/Nutrition/Food Safety, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gewi12:138195&r=agr |
| By: | Ratinger, Tomas; Medonos, Tomas; Spicka, Jindrich; Hruska, Martin; Vilhelm, Vaclav |
| Abstract: | The investment support has been considered as a principal vehicle for enhancing competitiveness of the Czech agriculture since the early days of the economic transition. However so far, little attention has been paid to the evaluation of actual effects of the corresponding support programmes. The objective of this paper is to assess economic and other effects of the measure 121 “Modernisation of Agricultural Holdings” of the RDP 2007-2013 on the Czech farms. The counterfactual approach is adopted investigating what would have happened if the supported producers did not participate in the programme and then comparing the result indicators. The quantitative analysis of programme effects is complemented by a qualitative survey on 20 farms which received the investment support between 2008 and 2010. The quantitative assessment showed significant benefits of the investment support in terms of business expansion (GVA) and productivity (GVA/labour costs) improvements. These results were confirmed by the qualitative survey. It showed that production expansion and productivity increase were primary objectives of the investment strategies on most of the farms. The public support enabled farms to achieve these strategic objectives. The respondents of the survey declared that the supported investment was important for their prosperity however, we could not prove it in the quantitative assessment in terms of profit and cost/revenue ratio. Finally, the issue of deadweight of the investment support is discussed: the figures on very low net investment relatively to the provided public support at the sector level and answers of respondents indicate possible significant deadweight, however, the insight is incomplete, since it does not take into account post accession restructuring of the sector and multiannual and multi-enterprise character of investment at the farm level. |
| Keywords: | Investment support, counterfactual analysis, propensity score matching, direct and indirect effects, Agribusiness, Agricultural and Food Policy, Q10, Q18, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135775&r=agr |
| By: | Lord, Montague J; Tangtrongjita, Pawat; Chadbunchachai, Supatra |
| Abstract: | The study describes the creation four clusters for organic vegetables along the East West Economic Corridor (EWEC) of the Greater Mekong Subregion (GMS). These clusters have three goals: (a) to foster the conversion of conventional agricultural farming to organic production, and thereby enable the generation of high value-added activities; (b) to promote linkages among micro and small scale producers, and thereby improve their competitive position within the value chain; and (c) to spur the development of agricultural activities affecting the majority of the EWEC population either directly or indirectly, and thereby enable the transformation of the EWEC transport and logistics corridor into a full-fledged economic corridor. |
| Keywords: | clusters; value-chain; East-West Economic Corridor; Greater Mekong Subregion; organic vegetables; agricultural development; networking |
| JEL: | F13 N55 F14 |
| Date: | 2011–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:42588&r=agr |
| By: | Cheptea, Angela |
| Abstract: | Recent trade evolutions credit China with a large and growing market potential, and explain the increasing attractiveness of the Chinese market to foreign producers. In 2007 one tenth of internationally traded products were shipped to China. The present paper aims to determine the countries that profit and suffer the most from the recent expansion of the Chinese market. We use an econometric shift-share methodology that permits to identify for each trade flow the share of growth arising from the capacity to target the products and markets with the highest increase in demand, and the share due exclusively to exporter's performance. Export dynamics specific to each country (exporter) are estimated for the Chinese market and compared to those of the global market, for all internationally traded products and agri-food products alone. We estimate the contribution of countries' geographical and sectoral structure, and their export performance to the evolution of their market shares, and differentiate between changes in export volumes and prices. |
| Keywords: | International trade, Export performance, Market shares, Shift-Share, China, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135788&r=agr |
| By: | Anastasiadis, Simon; Kerr, Suzi |
| Abstract: | We consider two approaches to quantify New Zealand farmers’ ability to mitigate their farm’s environmental impact: The construction of marginal abatement cost curves and improvements in farm management practices. Marginal abatement cost curves can be constructed by combining information on the effectiveness of mitigation with cost data. However, we find that the available data is not sufficient to support this approach. We consider improvements in management practices using a distribution of farm production efficiency with regard to nitrogen and greenhouse gas (kg production per unit of emissions). Where differences in production efficiency are due to factors that can be managed by farmers, targeting less efficient farmers to encourage the adoption of management practices similar to those of the more efficient farmers is a potential mitigation strategy. |
| Keywords: | Cost curves, greenhouse gas, heterogeneity, leaching, mitigation, nitrogen, production efficiency, Agribusiness, Environmental Economics and Policy, Farm Management, Land Economics/Use, Production Economics, Q53, Q57, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar12:136039&r=agr |
| By: | Kapelko, Magdalena; Oude Lansink, Alfons G.J.M.; Stefanou, Spiro E. |
| Abstract: | This paper develops a dynamic Luenberger productivity growth indicator and decomposes it to identify the contributions of technical change, technical efficiency change and scale change. The Luenberger productivity growth indicator is estimated using Data Envelopment Analysis. The empirical application focuses on panel data of Spanish meat processing firms over the period 2000-2010. The dynamic Luenberger indicator shows productivity decrease of on average -0.003 in the period under investigation, with technical regress being the main driver of change, despite technical and scale efficiency growth. |
| Keywords: | directional distance function, dynamics, Luenberger TFP, meat processing, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135789&r=agr |
| By: | Sauer, Johannes; Davidova, Sophia; Gorton, Matthew |
| Abstract: | This paper empirically measures the prevalence of heterogeneous technologies in a sample of small-scale agricultural producers as an answer to structural conditions and market risks. Such risks are closely linked to the effects of land fragmentation and the degree of market integration. We use the empirical case of Kosovo as a transition country to investigate the efficiency effects of land fragmentation by simultaneously considering the effects of market integration. Different to previous studies, we assume that land fragmentation and market integration lead to the prevalence of heterogeneous technologies allowing farm households to respond more efficiently to exogenous price and policy shocks given their fragmentation and subsistence situation. The empirical work links the latent class frontier method to the estimation of a directional output distance function. We estimate beside primal technology measures also dual Morishima type elasticities of substitution investigating changes in production decisions based on relative shadow price changes. |
| Keywords: | Land fragmentation, market integration, farm households, Landfragmentierung, Marktintegration, Farmhaushalte, Kosovo, Land Economics/Use, O13, Q12, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gewi12:137385&r=agr |
| By: | Toma, Luiza; Costa Madureira, Livia Maria; Hall, Clare; Barnes, Andrew P.; Renwick, Alan W. |
| Abstract: | The paper analyses the impact that European Union (EU) farmers’ and rural population’s awareness of biotechnology innovations and access to/trust in information on these issues (amongst other a priori determinants) have on their perceptions of risks and benefits of the applications of biotechnology innovations, and attitudes towards their implementation in practice. We employ structural equation models (SEM) with observed and latent variables. SEM is a statistical technique for testing and estimating relationships amongst variables, using a combination of statistical data and qualitative causal assumptions. We use an Eurobarometer dataset (2010) about awareness/acceptance of biotechnology innovations and run SEM models for ten EU countries, which include older and newer Member States. The variables included are sociodemographics, access to biotechnology information, trust in information sources on biotechnology innovations, attitudes towards the importance and impact of science and technology on society, perceptions of the risks and benefits of the applications of biotechnology innovations and attitudes towards their implementation in practice. Results between the different EU countries are comparable and, alongside other determinants, trust in information sources will significantly impact perceptions of risks and benefits of the applications of biotechnology innovations, and attitudes towards their implementation in practice. This underlines the importance of information and knowledge to acceptance of biotechnology innovations, which should be a key point on policy-makers’ agenda of developing the economic and environmental efficiency in the agricultural sector and rural sustainability in Europe. Increasing awareness of biotechnology innovations that safeguard people and the environment in order to enable informed debate and decisions will help enhance sustainability of rural areas. |
| Keywords: | biotechnology innovations, farmers and rural population, European Union, information and knowledge, biotechnology attitudes, structural equation models, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135780&r=agr |
| By: | Uetake, Tetsuya |
| Abstract: | Agriculture is a provider of food and, to a certain extent, public goods such as biodiversity and landscape, but it can also have negative impacts on natural assets such as biodiversity and water quality. In addition to implementing policies that target individual farmers, different approaches are needed to promote collective action. The literature review and three New Zealand case studies (Sustainable Farming Fund, East Coast Forestry Project and North Otago Irrigation Company) have identified some findings including benefits and barriers of collective action and key factors for its success. Collective action should be given serious consideration in addressing agri-environmental problems. |
| Keywords: | Collective action, public goods, agri-environmental policy, social capital, Agribusiness, Environmental Economics and Policy, Public Economics, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar12:136071&r=agr |
| By: | Latynskiy, Evgeny; Berger, Thomas |
| Abstract: | Recent empirical findings suggest that empowerment of producer organizations (POs) in agriculture requires an effective targeting and case-specific design of development interventions. By viewing PO as a socio-economic network, we develop an agent-based modeling approach for ex-ante impact assessment of PO support interventions. The paper demonstrates the application of the approach to the example of coffee producers from Uganda and analyzes one of their sub-county level networks more closely. The simulation model is implemented with stakeholder involvement through interactive net-map sessions. The simulation experiments reflect the interventions that are being implemented or considered for implementation by ongoing research of the International Food Policy Research Institute (IFPRI). The predicted effects of interventions are displayed at the levels of the producer organization and individual farming households, emphasizing the importance of careful implementation of future motivation schemes. |
| Keywords: | Producer Organizations, Multi-agent Systems, Socioeconomic Networks, Participatory Approach, Decision Support Systems, Smallholder Farmers, Rural Development, Produzentenorganisationen, Multi-Agentensysteme, Sozioökonomische Netzwerke, Partizipativer Ansatz, Entscheidungsunterstützungssysteme, Kleinbauern, Ländliche Entwicklung, Institutional and Behavioral Economics, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gewi12:137383&r=agr |
| By: | Islam, Md. Mofakkarul; Renwick, Alan W.; Lamprinopoulou-Kranis, Chrysa; Klerkx, Laurens |
| Abstract: | The application of genetic selection technologies in livestock breeding offers unique opportunities to enhance the productivity, profitability, and competitiveness of the livestock industry in Scotland. However, there is a concern that the uptake of these technologies has been slower in the sheep and beef sectors in comparison to the dairy, pig and poultry sectors. This is rather paradoxical given the fact that Scotland’s research outputs in farm animal genetics are widely perceived to be excellent. A growing body of literature, popularly known as Innovation Systems theories, suggests that technological transformations require a much broader approach that transcends formal research establishments. Accordingly, this paper reports on preliminary work exploring whether and how an agricultural innovation systems perspective could help identify the dynamics of technology uptake in the livestock sectors in Scotland. Although the work has been undertaken in dairy, sheep, and beef sectors, in this paper, we provide the preliminary results obtained from a case study of the sheep sector only. The key objectives of this work were to map the sheep genetics innovation system in Scotland and identify the barriers prevailing within the system with regard to the uptake of genetic selection technologies. Although the sheep innovation system was characterised by the presence of all key domains and actors, it was found to suffer from some crucial weaknesses relating to network integration, technological infrastructure, and policies and institutional frameworks. The implications of these findings are discussed. |
| Keywords: | Genetic Selection, Sheep, Scotland, EBV, Innovation System, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135769&r=agr |
| By: | Robinson, Ian |
| Keywords: | Environmental Economics and Policy, Farm Management, |
| Date: | 2012–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare97:136513&r=agr |
| By: | Barry, Luke E.; Yao, Richard T.; Paragahawewa, Upananda Herath; Harrison, D.R. |
| Abstract: | Understanding the economic value of avoided soil erosion in New Zealand is an important factor in policy decision making enabling the acknowledgement of the costs of erosion to the economy. This paper focuses on potential for afforestation to mitigate erosion risks on marginal agricultural hill country lands. Spatial economic modelling is undertaken to determine the net private and public benefit due to the avoided soil erosion from afforesting these areas. The study indicates that in some cases forestry is not viable and thus the public benefit from avoided erosion (and other ecosystem services) will not be forthcoming in these areas. Afforestation of these areas may therefore require positive incentives or improvements in forest and farm systems and technologies, depending on the relative weight of the public and private net benefits. |
| Keywords: | Spatial economic modelling, ecosystem services, soil erosion, public policy, Environmental Economics and Policy, Land Economics/Use, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar12:136042&r=agr |
| By: | Napasintuwong, Orachos |
| Abstract: | This paper provides situations of aromatic rice demand, and international standards. The history and recent developments of traditional and evolved aromatic rice varieties, namely Basmati rice and Jasmine rice, are reviewed. The emerging aromatic rice innovations from developed countries such as the U.S. and other Asian countries generate a threat to these traditional aromatic rice producers such as India, Pakistan, and Thailand. Under WTO Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement, Geographical Indication (GI) provides a means to protect traditional knowledge and products that are recognized as quality or reputation attributable in the geographical areas, but only if the GI is also protected in the country of origin. India and Pakistan governments still have not registered Basmati rice as GI product though the attemp has been made by NGO, and is still pending. Thailand, on the other hand, already registered GI Thung Kula Ronghai Jasmine rice to specific areas in Northeast Thailand whre the best qualtiy jasmine rice is attributable to the location. Yet, Thung Kula Ronghai Jasmine rice is not protected under GI in other countries. Economic issues realted to GI rice are reviewed and disucssed. |
| Keywords: | Aromatic Rice, Innovation, Research and Development, Breeding, Geographical Indication, Trade Related Aspects of Intellectual Property Rights, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135770&r=agr |
| By: | Volk, Alenka; Bojnec, Stefan |
| Abstract: | This paper analyses the influence of a formal and informal system of the Local Action Group (LAG) board’s performance on the perception of its members about suitability of rural development projects for LEADER funds co–financing. The unique in-depth survey data was obtained from the surveys with the 103 LAG board’s members using the written questionnaire designed for the inquiry and from existing data analysis on projects which were co–financed by the LEADER funds in Slovenia in the years 2008 and 2009. The informal system of performance of the LAG board members was found to influence significantly its members’ perception on the suitability of projects to be co–financed by the LEADER axis. The opposite was established for the formal system, which had insignificant influence on the board members’ perception on the suitability of projects. |
| Keywords: | LEADER, Rural Development Projects, Board Members, Local Action Group, Formal System, Informal System, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135781&r=agr |
| By: | Schilling, Chris; Kaye-Blake, William; Post, Elizabeth; Rains, Scott |
| Abstract: | This paper describes a multi-agent system (MAS) model, Desktop MAS, designed for New Zealand‟s pastoral industries. Desktop MAS models the strategic decisions and behaviours of individual farmers in response to changes in their operating environment. Farmer responses determine production, economic and environmental outcomes. Each farmer has a profit-maximising or cost-minimising objective that governs their decision-making, and a social network with whom they interact. Information transfer between farmers occurs through this social network. We consider a simple scenario analysis that investigates the impact of emissions prices on industry mix and farming intensity. We then investigate the importance of farmer behaviours and interaction. We find that farmer social networks and objectives impact particularly on farming intensity decisions within land-use industries. Land-use change between industries becomes more sensitive to farmer attitudes as the profitability differential between land-uses narrows. |
| Keywords: | Agribusiness, Community/Rural/Urban Development, Farm Management, Land Economics/Use, Production Economics, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar12:136070&r=agr |
| By: | Pechrova, Marie; Kolarova, Alena |
| Abstract: | Innovative approach is essential for a growth, but the understanding of the content of it is not unified. The term innovation itself is broad and can cover wide range of activities. The article deals with the projects promoting innovations in the rural areas of the Czech Republic (CR) financed from the European Agricultural Fund for Rural Development (EAFRD). Strategy Plans LEADER (SPL) submitted by Local Actions Groups (LAGs) which are operating under the LEADER1 scheme are analysed and their approach towards innovation is evaluated. The importance of the innovations in the projects is evaluated on the basis of established preferential criteria for selection of the projects and finances devoted to the measure Fiche2 which includes innovative projects. On the basis of case studies of the projects aimed on education I am coming to the conclusion that various types of projects are understood as innovative, but sometimes the term is misinterpreted. Preferential criteria for selecting projects defined by LAGs should be more precious and concrete. Despite the fact that innovations are one of the obligatory criteria for selecting projects which will be financed, its inclusion is mostly formal. Its relative weight in comparison with other criteria is quite low. Besides, the importance of innovative projects is not sufficiently underlined by finances. I argue that there is not adequate attention paid to the real contribution of the projects to innovations. I recommend the revision of the term innovation and its stronger inclusion into the preferential criteria for selection of the project in order to ensure that selected projects clearly correspond with the innovative approach. |
| Keywords: | Innovative Projects, Rural Area, Local Action Group, Strategic Plan LEADER, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135774&r=agr |
| By: | Contò, Francesco; Fiore, Mariantonietta; Antonazzo, Anna Paola; La Sala, Piermichele |
| Abstract: | The project targets the Axis 1 of the European territorial cooperation INTERREG program Greece-Italy 2007-2013. The project was born with the aim of strengthen the presence of the local agri-food SMEs on the foreign markets, enhancing innovation processes through an economic and coordinated cooperation so to ease the internationalization processes of the two targeted areas. After a literature review, we analyzed the economic context of Apulia Region; then we proceed to the definition of a model for the internationalization of SMEs Agro-food of Puglia through the constitution of scientific and technological incubators that will network to deliver innovative services for the internationalization of the agri-food system. The final aim is to develop innovative services of marketing intelligence (MI) to spread knowledge and information about the international markets and the creation and implementation of databases for the search and classification of informative sources. |
| Keywords: | Internationalization; Innovation; Marketing Intelligence; Agro-food sector |
| JEL: | O17 Q17 Q13 |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:42526&r=agr |
| By: | Kapelko, Magdalena; Oude Lansink, Alfons G.J.M.; Stefanou, Spiro E. |
| Abstract: | This paper estimates dynamic efficiency in the Spanish construction industry before and during the current financial crisis over the period 2001-2009. Static efficiency measures are biased in a context of a significant economic crisis with large investments and disinvestments as they do not account for costs in the adjustment of quasi-fixed factors. The results show that overall dynamic cost inefficiency is very high with technical inefficiency being the largest component, followed by allocative and scale inefficiency. Moreover, overall dynamic cost inefficiency is significantly larger before the beginning of the financial crisis than during the financial crisis. Results also show that larger firms are on average less technically and scale inefficient than smaller firms, but have more problems in choosing the mix of inputs that minimizes their long-term costs. Firms that went bankrupt, on average have a higher overall dynamic cost inefficiency and scale inefficiency than firms that did not go bankrupt. |
| Keywords: | dynamic efficiency, construction sector, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135790&r=agr |
| By: | Vogel, Stephen J. |
| Abstract: | Almost a third of U.S. farm households generate income by engaging in business ventures independent of commodity production, with distinctly different community and household benefits. In 2007, 686,600 farm households engaged in 791,000 income-generating activities distinct from commodity production, creating $26.7 billion in household income. Onfarm diversification activities like agritourism and off-farm business ventures each accounted for about half of these activities, but off-farm businesses generated about 80 percent of total alternative (i.e., noncommodity) business income earned by farm households, creating the largest impact on the local economy. Off-farm businesses operated by farm households contributed an estimated $54.6 billion in value-added income to the gross regional products of their local economies and paid out $24.5 billion in wages and salaries to 853,100 part-time and full-time employees. In general, the share of the local employment base accounted for by farmer-owned off-farm businesses was higher in more rural counties. |
| Keywords: | onfarm diversification, off-farm businesses, portfolio entrepreneur, farm household typology, nonfarm employment, direct sales, Community/Rural/Urban Development, |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uersib:138015&r=agr |
| By: | Jean-Marc Bourgeon (Institut National de la Recherche Agronomique - INRA, Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X); Helene Ollivier (ARE - Department of Agricultural and Resource Economics - University of California, Berkeley) |
| Abstract: | We analyze the impacts of bioenergy trade on greenhouse gas emissions using a two-good, three-factor model. Bioenergy is an agricultural good used as a substitute for fossil fuels in industry. Governments tax domestic pollution without international coordination. We assume that northern countries have higher labor productivity than southern ones and that agriculture is less pollution intensive than industry (after taxation). We show that whereas southern countries impose a lower tax rate than northern ones, they do not necessary have a competitive advantage in industry, and that compared to autarky, trade liberalization either increases or decreases worldwide emissions depending on regional comparative advantages. |
| Keywords: | Bioenergy; Intermediate product; North-South trade; Global pollution |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00750733&r=agr |
| By: | Garcia-Barrios, Fernando; Bigsby, Hugh R.; Kerr, Geoffrey N. |
| Abstract: | Forest carbon is potentially an important income stream for small land owners in Guatemala that would help to cease deforestation and forest degradation pressures. However, the temporary nature of sequestered forest carbon, the risk of environmental disturbances releasing forest sequestered carbon, and the form of international carbon markets affect the ability of small forest owners to participate in carbon trading schemes. This paper reports the results of an investigation into the stability of carbon pools formed by small forest owners in Guatemala, accounting for forest fire risk and the effects on implementation of a carbon banking approach |
| Keywords: | Agribusiness, Community/Rural/Urban Development, Environmental Economics and Policy, Land Economics/Use, Production Economics, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar12:136045&r=agr |
| By: | Schnaut, Gitta; Pollermann, Kim; Raue, Petra |
| Abstract: | The research presented is part of the evaluation of Rural Development Programmes (RDP) in seven German “Länder” (federal states).Innovation is often mentioned as an important pillar of the development of rural areas. One part of Rural Development Programmes, which explicitly addresses innovation, is LEADER: a bottom up-oriented, participatory approach with cooperation by local actors in rural areas. In LEADER, a Local Action Group (LAG) with stakeholders of different institutions and origins comes together as a kind of a public-private partnership and decides about the financial support for regional projects. The LAG can be seen as a kind of new “network of practice.” In this context it is important for the LAGs to assemble people with various backgrounds and to foster a good communication and cooperative climate. A survey of LAG-members shows positive results: there are improvements in the “cooperation beyond administrative borders” (respectively, narrow village boundaries), in the “improving of understanding views from other groups” and in the „cooperation between different groups.” Thus LEADER is an example of how an external programme can connect actors from different interest groups who would, without this programme, in part not have met. In addition, LEADER offers the possibility to try out new approaches, as the regions have access to their “own” funding budget to implement their ideas. But in practice the possibilities of funding experimental or innovative projects via LEADER depend very much on the extent to which the RDPs are able to provide a suitable framework to fund projects outside the standard menu of measures. The assessments of the LAG-managers show that the real possibilities are limited, particularly compared with the former funding period (LEADER+). But despite these limitations, we found LEADER- projects fostering innovation in very different fields. |
| Keywords: | LEADER, Innovation, Evaluation, Funding, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135779&r=agr |
| By: | Lamprinopoulou, Chrysa; Renwick, Alan W.; Klerkx, Laurens; Hermans, Frans; Islam, Md. Mofakkarul; Roep, Dirk |
| Abstract: | Innovation and knowledge exchange are receiving increased attention among policy makers as a means to address sustainable economic development challenges (European Commission, 2011). However, a range of factors such as inappropriate structures and institutional or capabilities barriers may negatively influence the spread or direction of processes of innovation and knowledge exchange (Klein-Woolthuis et al., 2005). These problems are often referred to as systemic weaknesses or failures, and highlight the need to focus on the innovation system (IS) as a whole (Smiths and Kuhlmann, 2004; Raven et al., 2010). The purpose of the paper, using a comprehensive innovation systems failure framework, is to assess and he performance of agrifood innovation systems of Scotland and the Netherlands, through analysis of the key innovation actors (organisations, networks or influential individuals), and their key functions (research provider, intermediary etc), and those mechanisms that either facilitate or hinder the operation of the IS (known as inducing and blocking mechanisms, respectively). This framework was drawn up based on literature research and a series of semi-structured interviews and/or workshops with experts involved in the agrifood innovation systems in the two countries. The findings confirm the appropriateness of considering actors, functions, inducing or blocking mechanisms and governance instruments as analytical tools to evaluate the performance of agrifood innovation systems. In both countries, blocking mechanisms in terms of actors’ interactions and competencies as well as market and incentive structure were revealed. The proposed mix of governance mechanisms in each country offers actors a better chance to influence the direction and speed of innovation in agrifood systems. |
| Keywords: | national innovation system, IS failure matrix, Dutch, Scottish, agrifood, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135794&r=agr |
| By: | Sauer, Johannes; Latacz-Lohmann, Uwe |
| Abstract: | This empirical study aims to shed light on the dynamic linkages between innovation and efficiency at individual farm level. We use a comprehensive dataset for dairy farms in Germany for the period 1995 to 2010. Based on a directional distance function framework we estimate the changes in efficiency, technical change and productivity over the period considered. In a second step we then investigate possible factors for technically efficient milk production at farm level before we finally try to identify those farms that are capable of translating investments in innovative technologies into actual efficiency gains over time applying a multinomial logit approach. Our empirical findings reveal that investments in innovative dairy technologies are only reflected in higher profitability if sufficient Know-How for the efficient use of these innovations is available. |
| Keywords: | Innovation, Efficiency, Dairy Farming, Microeconometrics, Innovation, Effizienz, Milchproduktion, Mikroökonometrie, Livestock Production/Industries, Q12, D24, C23, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gewi12:137386&r=agr |
| By: | Contò, Francesco; Fiore, Mariantonietta; La Sala, Piermichele; Papapietro, Paolo |
| Abstract: | The purpose of this proposal is to explore a new concept of 'Metadistrict' to be applied in a region of Southern Italy – Apulia - in order to analyze the impact that the activation of a special network between different sector chains and several integrated projects may have for revitalizing the local economy. The Metadistrict model stems from the LAGs and the IPFs frameworks and it may represent a crucial driver of the rural economy through the realization of sector circuits connected to the concept of multi-functionality in agriculture, that is Network of the Territorial Multi-functionality (NTM). It was formalized through a simplified model based on Matrix Organization. The adoption of the Metadistrict perspective as the territorial strategy may play a key role to revitalize the primary sector through the increase of economic and productive opportunities due to the implementation of a common and shared strategy and organization. |
| Keywords: | Network; Local Action Group; Food Chain |
| JEL: | Q10 Q18 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:42376&r=agr |
| By: | Hron, Jan; Macak, Tomas |
| Abstract: | In this paper, we develop core of an expert system for planning of innovation. The practical outcome of the paper is based on rules determination for search of perspective innovation and its distinguish from commercially unperceptive innovation. The second practical outcome of the paper is a research of interactions between factors during optimization of the product. In general, we gain process synergy, which can be a source of competitive advantage during product innovation in the presence of organizational complexity by systematically moving through the process definition, control, and improvement elements. The improvement elements can cause interactions between these elements (or factors/process parameters). First, we have to distinguish between synergistic and antagonistic interactions. For synergistic interaction can be used graphic illustration - lines on the plot do not cross each other. In contrast, for antagonistic interaction, the lines on the plot cross each other. In this case, the change in mean response for factor at low level is noticeable high compared to high level. Searching for positive interactions leading to the creation of synergies in the performances we can do at each stage of management innovations. At first, we realize only part of the possible gain, with unrealized potential remaining. Using process control, over time, we stabilize our process and obtain additional limited gain. Using process improvement, we can realize additional gain (it looks as short vertical line during the time), with some potential gain remaining. When new, feasible options develop, we can redefined our process and continue with our control and improvement efforts. Hence, each process-related issue definition, control, improvement has a distinct role to play. Confusion between roles or the omission of any of the roles creates disharmony and frustration in the production system, which ultimately limits production system effectiveness and efficiency. Sometimes, in the presence of confusion, it is possible that effectiveness and efficiency may decrease. In this situation, we hope to learn from our negative factor interactions (or failures) and subsequently improvement trends in long term with using sophisticated methods and own intuition. This paper objective is to create rules for planning innovation expert system. According to this rules will be possible to distinguish perspective innovation from commercially unperceptive innovation. The second paper objective is to explore interactions between factors during a product optimization. For this purpose will be used the methodology based on minimization of logic functions and design of experiments (analytical tools of DOE). |
| Keywords: | Innovation, expert system, multi-criteria optimization, effectiveness, efficiency, synergy, process improvement, logic function, redundancy factor, design of experiments, Agribusiness, Agricultural and Food Policy, |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa131:135787&r=agr |
| By: | Richards, Peter D. |
| Abstract: | The advancement of South America’s agro-pastoral frontier has been widely linked to losses in biodiversity and tropical forests, with particular impacts on the Brazilian cerrado, the Atlantic Forest, and the Amazon. Here I consider an important, yet largely overlooked, driver of South America’s soybean expansion, namely the devaluation of local currencies against the US dollar in the late 1990s and early 2000s. Much interest has emerged in recent years over the environmental implications of soybean production in Brazil, with evidence of both direct incursions into moist tropical forest by soybean producers and of potential indirect effects, via the displacement of existing ranching operations. In this research I utilize historical trends in soybean prices, exchange rates, and cropland dedicated to soybean production in Bolivia, Paraguay, and Brazil to estimate the impact of currency devaluations on area of production. The results suggest that approximately 80,000km2, or 31 percent of the current extent of soybean production in these countries, emerged as a supply area response to the devaluation of local currencies in the late 1990s. The results also indicate that the more recent depreciation of the dollar and appreciation of the Brazilian real have counteracted a recent rise in global soybean prices, in the process sparing an estimated nearly 90,000 km2 from new cropland, 40,000 km2 of this in the Amazon alone. |
| Keywords: | Soybeans, Amazon, Exchange Rates, Environmental Economics and Policy, International Development, Land Economics/Use, Political Economy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:midagr:138606&r=agr |
| By: | Maren M. Michaelsen; Songül Tolan |
| Abstract: | This study investigates the effect of an economic shock due to crop loss on health outcomes of children in rural Mexico. Data from the Mexican Family Life Survey for the years 2002 and 2005 off er retrospective information on economic shocks since 1997 and height-for-age z-scores (HAZ) to measure long-term effects on child health. Since crop losses are exogenous to the children, simple OLS regressions are used to estimate the effect of crop loss overall and over time. Children who were hit by crop loss have on average 0.4 standard deviations smaller HAZ two and three years after the shock than other children. For boys and children aged 25 to 60 months being hit by crop loss also increases the probability of being stunted by 20 and 27 percentage points, respectively. The findings demonstrate that, albeit its large poverty reduction programs, Mexico has to invest more to combat poverty and provide mechanisms to help households to cope with sudden economic losses. |
| Keywords: | Economic shock; crop loss; child health; Mexico |
| JEL: | I15 J13 Q12 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0376&r=agr |
| By: | Klumper, Wilhelm; Kathage, Jonas; Qaim, Matin |
| Abstract: | Die Ergebnisse einer Befragung der deutschen Öffentlichkeit zum Thema Welternährung werden in diesem Beitrag vorgestellt. Die Befragung wurde online mit 1200 Personen durchgeführt. Welternährung ist für die Mehrheit kein Top-Thema. Die Meisten nehmen das Hungerproblem vor allem dann war, wenn die Medien in akuten Krisensituationen darüber berichten. Die Bewertung von Ursachen und Maßnahmen zeigt, dass Hunger in erster Linie als Verteilungsproblem gesehen wird. Ansätze zur Produktivitätssteigerung in der Landwirtschaft werden überwiegend als nicht zentral für die Verbesserung der Welternährung eingestuft. Umweltschutz wird von der Öffentlichkeit im Vergleich zur Welternährung eine höhere Priorität eingeräumt. Hieraus ergeben sich scheinbar einige Pauschalurteile. Was als positiv (negativ) für die Umwelt wahrgenommen wird, wird auch als positiv (negativ) für die Welternährung eingestuft. Dies betrifft z.B. die Einschätzung der Rolle des Ökolandbaus, chemischer Inputs und der Gentechnik. Eine stärkere Bewusstseinsbildung für das Thema Welternährung mit seinen Herausforderungen und ein schrittweiser Abbau von Vorurteilen erfordern verbesserte öffentliche Kommunikation. |
| Keywords: | Food security, hunger, environment, Consumer/Household Economics, Food Security and Poverty, Teaching/Communication/Extension/Profession, D12, Q01, Q02, Q56, |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gagfdp:138056&r=agr |
| By: | Barbera, Mattia G. |
| Keywords: | Environmental Economics and Policy, Land Economics/Use, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar12:136041&r=agr |
| By: | Clothier, Brent; Macay, Alec; Dominati, Estelle |
| Abstract: | Quantifying natural resources as natural capital and the valuation of the ecosystem services that flow from natural capital stocks are emerging areas of science. Are these developing concepts compatible with current resource management legislation? Can these ideas be used in judicial proceedings to protect natural capital and maintain the portfolio value of nature‟s ecosystem services? We describe two recent cases in New Zealand where natural capital concepts were used in the Environment Court to protect land from peri-urban creep and to protect receiving water quality through the allocation of a nutrient discharge allowance to land. Results have been mixed, with prospects appearing good. |
| Keywords: | Environmental Economics and Policy, Land Economics/Use, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar12:136044&r=agr |
| By: | Martana, Kadim; Evison, David; Lennox, James A.; Manley, Bruce |
| Abstract: | The Government of Indonesia is committed to cut its emissions by 26% by 2020. In forestry sector, this is done through reducing emissions from deforestation and forest degradation (REDD) program. One of several pilot activities of the REDD Program is the Berau Forest Carbon Program (BFCP) which is located in the Berau District East Kalimantan Indonesia. The Program attempts to generate behavioural changes of the forests stakeholders like forest-dependent community, forestry/logging company and oil palm plantation company to contribute to the emissions reduction, which is formulated in the Program‟s strategies. Changes of these behaviours are reflected in the costs being borne by the relevant forest stakeholders as well as the incentive rewarded for engaging in the programme. This paper focuses on the dataset preparation i.e. the Berau District Social Accounting Matrix for CGE modeling analysis of the above context. A non survey method was employed to generate the regional accounts and was it combined with available data as well as experts‟ estimates. |
| Keywords: | Demand and Price Analysis, Environmental Economics and Policy, Land Economics/Use, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar12:136049&r=agr |
| By: | Staudigel, Matthias |
| Abstract: | This paper reviews the application of household production theory to health and nutrition and their determinants in the economics literature. We examine 17 recent studies applying this approach and analyse how they model utility functions, elementary goods, and production processes. Notwithstanding the valuable insights provided by these economic analyses into the phenomenon of obesity and health behaviour, the framework’s basic idea, the separation of utility generation and production technology, is not pursued consistently. The majority of the studies reviewed focus solely on health production, thereby neglecting important production processes for other elementary commodities and their related inputs and technologies. We advocate a broader application of the household production principle and discuss how such a view can guide theoretical and empirical analysis and may provide inspiration for data collection and policy design. |
| Keywords: | Household production theory, health, nutrition, obesity, economic analysis, Consumer/Household Economics, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gewi12:137389&r=agr |
| By: | Wilson, Ross |
| Abstract: | Section 32 of the Resource Management Act requires councils to evaluate the alternative options. Pure, fully monetised cost benefit analysis (“CBA”) is in theory the ideal preferred approach for evaluations, but it is at one extreme of a whole spectrum of related approaches based on the level of detail and quantification or monetisation. In practice, few if any s32 analyses are fully monetised, and in fact many if not most are either purely qualitative (descriptions or matrices) or a mix of qualitative and quantitative (numerical or scoring). However, there are other examples across the entire spectrum. |
| Keywords: | evaluation, monetised, council, cost benefit analysis, RMA section 32, Demand and Price Analysis, Environmental Economics and Policy, Land Economics/Use, Research Methods/ Statistical Methods, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar12:136072&r=agr |
| By: | Andersen, M.D; Kerr, Geoffrey N.; Lambert, Simon J. |
| Abstract: | The application of stated preference non-market valuation approaches in settings where there are strong cultural differences in environmental perspectives potentially misrepresent strengths of preferences for different groups. This paper reports on a study that measured strength of affiliation with traditional Māori identity, strength of connection with nature, and monetary measures of value derived from a choice experiment. The relationships between these three measures are explored to test the alignment of Māori identity with connection to nature, and to test the dependence of monetary valuation on cultural identity and connection with nature. The tests are applied in the context of a case study addressing water management in the Waikato Region. |
| Keywords: | cultural valuation, environmental valuation, choice modelling, cultural identity, water preservation, Māori values, connectedness to nature, Community/Rural/Urban Development, Environmental Economics and Policy, |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar12:136040&r=agr |
| By: | Marcella Nicolini (University of Pavia, and Fondazione Eni Enrico Mattei, Italy); Simona Porcheri (Fondazione Eni Enrico Mattei, Italy) |
| Abstract: | This paper describes the energy sector in the Mediterranean and MENA (Middle East and North Africa) countries. It first analyses the production of energy by fossil and renewable sources and discusses the increasing demand in the area and its consequences. It describes the policy frameworks to promote renewable energy as well as fossil-fuel subsidies, which are still abundant in the MENA area. It presents some avenues for integration across the Mediterranean and finally it discusses the implications of the Arab spring on energy production in the next future. |
| Keywords: | Energy, Mediterranean Countries, MENA Countries, Subsidies |
| JEL: | Q42 Q43 Q48 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.73&r=agr |
| By: | Schenker, Oliver; Stephan, Gunter |
| Abstract: | This paper analyses the interplay between international trade, regional adaptation and North-to-South transfers for funding adaptation within the framework of a dynamic computable gen-eral equilibrium model, where impacts of climate change depend on changes in precipitation and temperature. If all regions, even the least developed ones, own the necessary resources for adapting optimally to climate change and variability, by mid-century less than 10% of the regions' GDP would be invested for avoiding almost 40% of climate change damages. This has measurable effects on the regions' competitiveness as well as on the terms-of-trade. If, however, the developing world does not own sufficient resources for adapting optimally to climate change, as is to expected, funding of adaptation can make sense from an economic perspective. In particular the Hicks-Kaldor criterion is fulfilled as aggregated welfare gains at least compensate the costs of providing financial assistance for adaptation. -- |
| Keywords: | funding of adaptation,climate change,international trade,multi-regional dynamic CGE model |
| JEL: | C68 D58 F18 Q56 Q54 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:12056&r=agr |