Agricultural Policy Reform Research Articles

Adoption of Precision Farming Tools: The Case of Italian Farmers.

The process of adopting innovation, especially with regard to precision farming (PF), is inherently complex and social, and influenced by producers, change agents, social norms and organizational pressure. An empirical analysis was conducted among Italian farmers to measure the drivers and clarify “bottlenecks” in the adoption of agricultural innovation. The purpose of this study was to analyze the socio-structural and complexity factors that affect the probability to adopt innovations and the determinants that drive an individual’s decisions. Preliminary results found high levels of adoption among younger farmers, those that had a high level of education, those with high intensity of information, with large farm sizes, and high labor intensity. A logit model was used to understand the role played by labor intensity and perceived in the adoption process. In light of the Common Agricultural Policy Reform post 2020, the findings suggest relevant policy implications, such as the need to increase awareness of PF tools and foster dissemination of information aimed at reducing the degree of perceived complexity.

AGRICULTURE POLICY: CHALLENGES, EXPROPRIATION AND\\\\r\\\\nIMPLICATION FOR AGRICULTURAL EXTENSION IN SOUTH\\\\r\\\\nAFRICA

Ponte Academic JournalSep 2020, Volume 76, Issue 9 AGRICULTURE POLICY: CHALLENGES, EXPROPRIATION AND IMPLICATION FOR AGRICULTURAL EXTENSION IN SOUTH AFRICAAuthor(s): Agholor A. Isaac ,Lubisi Philander BongiweJ. Ponte - Sep 2020 - Volume 76 - Issue 9 doi: 10.21506/j.ponte.2020.9.16 Abstract:The existing agriculture policy approach such as land restitution, redistribution and tenure reform remain indefinite in South Africa. Therefore, there is a distinct gap in knowledge and awareness in the plan implementation process of government agricultural policies and programmes. The objective of this study was to document the experiences, challenges, and implication for agricultural extension. For the purpose of this paper, a qualitative method involving the review of government commissioned reports, working papers, key debates on agriculture policy, online sources, books, peer reviewed journals, etc. were properly reviewed. It can be argued that the main challenge of agriculture policy in South Africa is the arduous task of creating stakeholder consensus around the agriculture policy implementation. A workable policy monitoring system and coordination remained unresolved. Furthermore, modification is needed to ensure that agriculture policy reform gives rise to the advent of sustainable agriculture. Reflecting on the study, it was recommended that a harmonized policy position for agriculture must be in place. The identification of realistic and right objectives, and cautious sequencing of actions are also required. Download full text:Check if you have access through your login credentials or your institution Username Password

Do subsidies drive technical efficiency? The case of portuguese firms in the agribusiness sector

Abstract: Successive reforms in the Common Agricultural Policy (CAP), enlargements of the European Union (EU) and pressures in the public budget increase the need for empirical studies to assess the role of subsidies in shaping firms’ performance and, hence, to support policy-makers decisions and decision-making in the productive sector. This paper assesses whether subsidies affect the technical efficiency of 1,943 Portuguese agribusiness firms over 2007-2015. By applying stochastic frontier models and fixed-effects models, to calculate the average efficiency of these firms, the results show different effects of subsidies among agribusiness sectors. The stochastic frontier model revealed that the subsidies have a positive and significant impact on the technical efficiency of three sectors, animal production, manufacture of food, and manufacture of paper. Further, except for firms in the forestry and logging sector, Portuguese agribusiness firms had higher average efficiency levels when subsidised, which provides evidence that subsidies could be important and contribute positively to the technical efficiency of Portuguese firms.

Izazovi zajedničke agrarne politike Evropske unije u periodu posle 2020. godine

The aim of this paper is to investigate the directions of changes in the Common Agricultural Policy of the European Union for the period from 2021 to 2027. For the Republic of Serbia, as a candidate country for membership, it is important to monitor the changes that are taking place within the European agricultural policy. Analyzing the available literature and regulations of the European Commission, the authors look at the essence of the Common Agricultural Policy reforms in the upcoming seven-year period, with special reference to the aims, planned financial framework, "greening" of the CAP, as well as implementation of measures in rural development policy segment. Insisting on ecologically sustainable development of agriculture, along with greater institutional authority of the member states, are the key ideas that will guide the Common Agricultural Policy in the upcoming period.

Effects of redistributing policy support on farmers’ technical efficiency

AbstractThe objective of this article is twofold: first, investigating the relationship between technical efficiency and decoupled direct payments of a sample of Italian farms prior to the application of the 2014–2020 Common Agricultural Policy reform; second, evaluating possible implications of alternative scenarios about distribution of direct payments on technical efficiency. To these aims, a stochastic frontier analysis is adopted. Results indicate that direct payments produce significant effects on technical efficiency in specialized farms, which received higher levels of support. However, effects are contrasting. Moreover, results show that redistribution of policy subsidies may negatively impact on technical efficiency to an extent depending upon the criterion of redistribution applied. Finally, some policy suggestions are given.

Wachsen oder weichen!? Eine Analyse der agrarstrukturellen Debatte im Kontext der EU-Agrarpolitik nach 2020

Die Zahl landwirtschaftlicher Betriebe in Deutschland und Europa nimmt ab und ihre durchschnittliche Größe zu. Besteht Anlass für eine stärkere Unterstützung kleinerer Betriebe? Agrarpolitische Interessensgruppen deuten den Größenstrukturwandel unterschiedlich und ziehen verschiedene politische Schlussfolgerungen.Structural changes in agriculture are frequently considered problematic. Concerns are expressed about the declining number of farms and the growth of the farms that remain. A structuring content analysis of 50 position papers on the post-2020 Common Agricultural Policy (CAP) reform shows that the development of agricultural-sized structures is interpreted as a problem of both equity and multifunctionality. The respective positionings overlap when it comes to the principle of performance equity and comes together around the goal of maintaining as many (small) farms as possible. It is either assumed that small enterprises would benefit if subsidies were tied to the provision of public goods, or that promoting the existence of small farms would automatically lead to their provision. Existing studies can only partially prove or refute such connections. What remains is the need for public negotiations regarding the societal functions which agriculture should assume, and with what priority.

Quo vadis Common Agricultural Policy of the European Union?

The agricultural policy of the European Union - Common Agricultural Policy (CAP) - was introduced in the 1960s as the first EU policy. Over the next decades it constituted the largest share in the expenditure of the EU budget. Today, although cohesion policy has replaced it in the first place, it is still being prioritized by the countries of the Community. Observation of the next financial perspectives, however, allows to conclude that the nature of the CAP is changing, which is a manifestation of the evolution of views on the role of the food sector in the economic development of the European Union. The aim of the study is to indicate the directions of reforms of the Common Agricultural Policy during its sixty-year functioning, the reasons for these changes and the consequences they have had for the agricultural sector in EU countries. These outcomes were supplemented by outlining the perspectives for the development of the EU agricultural policy in the coming years. The authors focused on the basic instruments of the CAP including income-generating, environmental and rural development-related. On the basis of the analysis of objectives and instruments of the CAP, it was stated that it departed from traditional market support to create more sophisticated intervention related to the changing macroeconomic conditions and expectations of the society. The paper is a review, with elements of meta-analysis, deduction and inductive reasoning.

What Should be the Focus of Agricultural Policy Reforms in Sub-Saharan Africa? A CGE Analysis

While a lot of research has been conducted on agricultural subsidies and other forms of policy transfers in developed and developing countries alike, substantial data constraints have characterised those conducted in developing countries. For this study, we employ a novel and uniquely developed dataset on these policies in Sub-Saharan Africa (SSA), to analyse the impact of policy reforms, using the latest available GTAP 9.1 Data Base, in the widely employed GTAP framework, for the first time. We simulate the scenarios of removal of output subsidies, removal of ‘market development gaps’ within and outside the country. Our results indicate that removing market development gaps is likely to increase the agricultural output without affecting trade much, while removing the subsidies could harm output a lot by import-substitution of the costly domestic output. We conclude that governments in SSA may do well to focus on developing their markets better rather than cutting the assistance to their farmers, which could in fact be counter-productive instead of raising the efficiency of domestic farmers through competition. JEL Classification: C68, Q11, Q13, Q17, Q18

Brexit and Animal Welfare Impact Assessment: Analysis of the Opportunities Brexit Presents for Animal Protection in the UK, EU, and Internationally.

Simple SummaryThe British people voted in 2016 to leave the European Union (EU). The UK has a unique history as a leader in animal protection policy. It has a relatively large economy and significant political power on a global basis. Brexit presents both threats and opportunities to animal protection in the United Kingdom (UK), EU, and internationally. This paper assesses the opportunities Brexit presents for animal protection in terms of five criteria. These are first, the political situation; second, regulatory changes; third, economic and trade factors; fourth, institutional considerations; and fifth, EU and international impacts. Brexit provides the opportunity to reform UK farming to promote high animal welfare outside of the EU Common Agricultural Policy (CAP). Brexit means the UK can ban live animal exports and the import and sale of fur products and foie gras outside of the EU. Leaving the EU permits the UK to have stricter requirements for the Pet Travel Scheme (PETS) to control puppy smuggling. Brexit provides an opportunity for the UK Government to reform policy-making for sentient animals. New sentience legislation could establish a fully independent UK Animal Welfare Advisory body and mandate Government to use animal welfare impact assessments on all policy that affects sentient species. Despite such opportunities, the UK Government appears uncommitted to major reforms. The drafting of the Agriculture Bill does not suggest a progressive animal welfare agenda. For live exports, the Government will consult on how to improve welfare, rather than outright prohibition. Similarly, rather than ban the import and sale of fur, the Government will use its influence to improve the welfare of fur-farmed animals outside the UK. Brexit provides some opportunities for animal protection. Pre-Brexit, the Government has not demonstrated the political will and commitment to realise these opportunities.The British people voted in a 2016 referendum to leave the European Union (EU). Brexit presents threats and opportunities to animal protection in the United Kingdom (UK), the EU, and internationally. This paper discusses opportunities for animal protection in terms of five criteria. These are first, political context; second, regulatory changes; third, economic and trade factors; fourth, institutional- and capacity-related factors; and fifth, EU and international considerations. Brexit permits reform of UK agricultural policy outside of the Common Agricultural Policy (CAP) to reward high welfare as a public good. The Agriculture Bill, however, does not suggest a radical reform agenda for animal welfare. Brexit permits a ban on live exports, but the UK Government is consulting on improving welfare, not prohibition. Brexit provides an opportunity to ban the import and sale of fur, but the UK Government has signalled it will work to improve welfare in fur farming. Brexit permits the UK to prohibit the import and sale of foie gras, but the Government has stated a ban may be challenged at the World Trade Organisation (WTO). Brexit allows more stringent Pet Travel Scheme (PETS) requirements to reduce puppy smuggling. Lucy’s Law and stricter enforcement will also mitigate the problem. New sentience legislation provides the opportunity for a fully independent and properly constituted UK Animal Welfare Advisory body conducting animal welfare impact assessments and ethical appraisal. The Government has proposed sentience legislation but there is a major risk it will not be in place before the UK leaves the EU. The Government has expanded the remit of the Farm Animal Welfare Committee, which is not fully independent and is dominated by veterinary members and agricultural interests. Brexit provides some opportunities for animal protection with radical reform of agricultural policy, prohibition of live exports, and banning the import and sale of fur and foie gras. Pre-Brexit, the Government has not demonstrated the political will and commitment to realise these opportunities.

EU‐Wide Impacts of the 2013 CAP Direct Payments Reform: A Farm‐Level Analysis

AbstractThis paper analyzes the microeconomic effects of the 2013 reform of the EU's Common Agricultural Policy (CAP). This is done using the EU‐wide individual farm model (IFM‐CAP). Simulation results show that although the reform succeeded to partially harmonize direct payments (DP) among farms and Member States, relatively strong differences in the distribution still remain in place. Around 62% of the farms increase their income, whereas the remaining 38% lose from the reform. The reform benefits small farms, while large farms lose out. As measured by the Gini coefficient, the 2013‐CAP reform only partially reduces the disparity in the distribution of DP and farm income among farms. The Gini decomposition shows that subsidies (in particular decoupled payments) contribute to a decrease in the inequality of total farm income. The future CAP reform needs to have a stronger overhaul of the DP system in order to achieve a substantial reduction in inequality in the distribution of payments among farms and regions in EU.

The troubled path to food sovereignty in Nepal: ambiguities in agricultural policy reform

The food sovereignty movement arose as a challenge to neoliberal models of agriculture and food and the corporatization of agriculture, which is claimed to have undermined peasant agriculture and sustainability. However, food sovereignty is an ambiguous idea. Yet, a few countries are institutionalizing it. In this paper, we argue that food sovereignty possesses the attributes of a ‘coalition magnet’ and, thus, brings together policy actors that support agricultural reform, but have diverse and often opposing interests, in a loose coalition. This facilitates agenda setting, but there may be problems in policy formulation and implementation stages due to the ambiguous nature of the idea. Consequently, despite including food sovereignty in a country’s constitution and/or legislation, policies and programs related to food and agriculture exhibit the status quo, which is not expected under an alternative food paradigm. We examine this argument in a case study of Nepal, where food sovereignty has been instituted as a fundamental right in the Constitution.

Spatial Models, Legislative Gridlock, and Resource Policy Reform

This review evaluates the use of spatial models for the analysis of policy making. First, we examine spatial theory and its applications in a variety of institutional settings. We discuss how the preferences of the actors involved in political processes, the steps in those processes, and the locations of the reversion policies affect the policies that emerge from the processes. To illustrate this and analyze how the rights of political actors determine the extent of policy reform and the occurrence of gridlock, we use a spatial model of European Union (EU) policy making. We apply the model to major EU reforms in two resource policy areas: the Common Agricultural Policy reforms of the past two decades and the recent reforms of the Emissions Trading System.

The Reform of the Common European Agricultural Policy - An Opportunity for Effective Agri-environmental Policy Instruments?

The European Commission has put together a reform package for a demanding, targeted and efficient agri-environmental and climate protection policy including newly introduced Eco-Schemes and other measures to promote rural areas. The two types of measures used are anchored in two different support systems, which requires considerable administrative effort. Agricultural animal husbandry in particular has received a great deal of attention at present: A high consumption of meat is regarded as harmful to the environment and the husbandry conditions often contradict animal welfare. In order to change consumer behaviour, the creation of a uniform, easily understandable and binding state animal welfare label is regarded as central. Ultimately, however, stricter animal welfare measures can lead to loss of income and welfare for producers and the economy.

Semi-natural habitats and Ecological Focus Areas on cereal, beef and dairy farms in Ireland

Biodiversity and associated ecosystem services have declined globally with agricultural intensification identified as a major driver of this loss. The most recent reform of the Common Agricultural Policy resulted in the introduction of three mandatory ‘Greening’ measures aimed at improving the environmental performance of EU agricultural legislation. The Ecological Focus Area (EFA) measure within Greening was intended to help improve biodiversity associated with European tillage farms. To improve understanding of the implementation of this measure, data are needed on the areas within tillage farms that qualify as EFA. We also consider a scenario that implements an EFA measure on pastoral farming enterprises, assessing the percentage area of wildlife habitats contained within grassland farms. These data will aid in the implementation of appropriate management strategies to attempt to halt the decline of biodiversity and associated ecosystem services.We surveyed 119 intensively managed farms across three farming enterprises (tillage, beef and dairy) in Ireland to estimate the percentage of EFA and other farmland habitats occurring within these farms. Almost 10% of the total area of farms within this sample comprised habitats beneficial for wildlife, with linear features such as hedgerows, buffer strips and drainage ditches accounting for 43% of the total area of wildlife habitat surveyed. Hedgerows were the most abundant and frequently occurring wildlife habitat, present on 100% of farms surveyed and accounting for almost 3% of the total area of every farm. Other semi-natural wooded habitats (semi-natural woodland, isolated trees, field copse) accounted for a further 2% area of farms surveyed. All tillage farms and the majority of pastoral farms in our sample met the current 5% EFA requirement. Field margins were the most frequently encountered habitat that was ineligible under Irish EFA prescriptions, but which qualifies as EFA under EU legislation. Additionally, a large percentage area (6.8% after application of conversion and weighting factors) of tillage farms sampled was covered by habitats not classed as EFA under EU legislation.To facilitate enhanced environmental performance of EU agricultural legislation, a broader range of habitats beneficial for wildlife, already present on farms but not protected under legislation, may be incorporated into future prescriptions. Preserving these habitats can help reduce ecological losses, increase biodiversity and promote the sustainability of agricultural systems.

German Farmers’ Perspectives on Direct Payments in the Common Agricultural Policy

SummaryAfter several reforms of the Common Agricultural Policy and gradual liberalisation, direct payments that serve to stabilise farm incomes remain highly pertinent for EU farmers in that they continue to contribute a high share of total farm income. This was also reflected in our survey of German farmers’ perspectives on direct payments, which showed the importance that these payments play in their financial situation. However, several economists have pointed to the lack of justification for poorly targeted direct payments in achieving societal goals, namely the delivery of valued public goods. In particular, the surveyed German farmers also recognised societal disapproval of the direct payment scheme. However, without direct payments, an accelerated structural change in German agriculture is very likely, leading to larger, less diversified farms and more intensive farming; which contrasts with the expectations of the German society for the agriculture sector. As German tax payers contribute substantially to financing the CAP, societal approval in terms of animal welfare and environmental services should receive greater priority in the direct payment scheme. The latter could be achieved by a well‐aimed targeting of direct payments, providing compensation for farmers producing agri‐environmental public goods and/or clearly contributing to improved animal welfare.

Agricultural productivity evolution in China: A generalized decomposition of the Luenberger-Hicks-Moorsteen productivity indicator

China has undergone a series of agricultural policy reforms since 1978. The measurement of the productivity gains and identification of the underlying drivers thereof are important facets of policy analysis. The commonly used Total Factor Productivity (TFP) measures often lack such desirable properties as completeness or independence of the direction of the optimization (orientation). In this paper, we take a top down approach by beginning with a TFP measure and then decomposing it into three mutually exclusive, exhaustive elements. In particular, we begin with the additively complete Luenberger-Hicks-Moorsteen (LHM) TFP indicator that takes into account both input and output changes when measuring productivity and then additively decompose it into measures of technological progress, technical efficiency change, and scale efficiency change. We develop a generalized decomposition of the LHM TFP indicator which encompasses both input-oriented and output-oriented changes over time. We illustrate this additively complete LHM TFP indicator using agricultural data from 31 Chinese provinces over the period 1997–2015. Our empirical results show that Chinese agricultural productivity growth (3.05% per annum) was mainly driven by technological progress (2.35% p.a.), with relatively small contributions from scale efficiency change (0.65% p.a.) and technical efficiency change (0.04% p.a.). We also found that productivity change and the relative importance of its components varied across both time and provinces.

Limitations of Rural Tourism as an Economic Diversification and Regional Development Instrument. The Case Study of the Region of La Vera

In the mid-1980s, at the same time as the Common Agricultural Policy (CAP) reforms resulted in a decrease in agricultural employment, the Single European Act transformed the reduction of regional differences into an objective of European regional policy. The LEADER Initiative and the PRODER Program were two of the instruments chosen by the European Commission to deal with the effects that these new challenges would have for the rural environment. This research studies the scope and limitations of these programs. For this, we analyzed their implementation, resorting to the case study of the region of La Vera, Extremadura (Spain). The results show that although the structure of these programs is consistent with the purpose of developing and diversifying rural economies, their application must overcome a number of risks, including an excessive concentration of investments in the tourism sector, which stands out from the rest. In addition to highlighting the limitations of tourism as an axis of development, this research detects some aspects that should be taken into account when implementing these programs.

Applied spatial approach of modelling field size changes based on a consideration of farm and landscape interrelations

Field sizes in agricultural production determine landscape characteristics and thus habitats. Yet, field sizes are not adequately considered in many theoretical landscape-oriented modelling approaches explaining habitats as well as biodiversity (BD). Our objective is to transfer theoretical model thinking into a practical approach with the focus on field and farm size changes. In our novel approach we model the impact of land consolidation driven by structural change, exchange of land between neighboring farmers and the participation in agri-environmental scemes. We work with a spatial representation of farming decisions and apply our model to a regional case study characterized as an intensively used agricultural area in Germany. Results are graphically translated via a geographical information system (GIS) and indicate that structural change leads to landscape homogeneity in our study region, and diversity of farming shrinks under the Common Agricultural Policy Reform 2009. Our model gives an idea of spatial variation in crop heterogeneity over time by conceptualizing spatial and temporal scales. In our stylized landscape visualization we prove the capabilities of a bio-economic modelling approach capturing economic resource allocation patterns and spatial representation of farming decisions in a perspective of sustainability analysis.

Measuring the Trade Restrictiveness of Domestic Support using the EU Common Agricultural Policy as an Example

AbstractWe develop an index that measures the overall trade effects of domestic support payments. Our index is based on the Mercantilist Trade Restrictiveness Index (MTRI) and is capable of analysing the development of the trade restrictiveness of domestic support payments over time and across countries. It facilitates the evaluation of agricultural policy reforms introducing changes in the composition of domestic support payments. We conduct this analysis with a computable general equilibrium model that is extended to depict detailed agricultural policies using the Common Agricultural Policy of the European Union (EU) as an example. For the representation of agricultural policies, we updated the underlying database by incorporating detailed EU domestic support payments taken from the OECD Producer Support Estimate (PSE) tables and reconcile PSE data with the WTO classification scheme. Our index confirms a decrease in trade distortion stemming from the implementation of decoupled support in the EU. In addition, the trade‐equivalent protection rate shows that the trade restrictiveness of domestic support payments depends on the assumptions made with regard to the degree of decoupling of those payments.

IIMPACT OF THE TYPE OF AGRICULTURAL ACTIVITY UNDERTAKEN ON INCOME EARNED FROM INDIVIDUAL FARMS IN POLAND – A REGIONAL ANALYSIS

Variation in income earned from individual farms is affected by a variety of factors such as soil quality, technical advancement, agricultural policy reforms, work efficiency, as well as scale and directions of agricultural production. The level of income earned by business entities, including individual farms, is a significant factor that affects expenses incurred in relation to the operation of an agricultural business and expenses to satisfy the needs of each member of a farmer’s household. The objective of this paper is to determine the impact of the type of agricultural activity undertaken and the area of agricultural land on income earned by individual farms in Poland. In addition, an attempt was made to evaluate regional variation in financial, area–related, and production indicators taken into consideration in the course of the study between individual farms. The results have been presented at the regional NUTS 2 level in Poland for 2017. Results of the study conducted have been visualised by means of the statistical, descriptive, comparative, and graphical method. Coefficients of variation Vs and correlation coefficients rxy were calculated. The study has revealed that there is a significant regional variation in Poland in terms of income earned by individual farms. Regional variation has also been found in the scale and type of agricultural production undertaken. In addition, it has been proven that the level of income earned from individual farms depends on the type of agricultural activity undertaken and on the area of agricultural land.