Farm-level Effects Research Articles

Evaluating environmental effects of adopting automatic milking systems on Norwegian dairy farms

Abstract We present a novel procedure based on eco-efficiency for assessing farm-level effects of technology adoption while considering secondary effects. Secondary effects are defined as structural and behavioural adaptations to technology that may impact environmental, social or economic outcomes. We apply the procedure to automatic milking systems (AMS) in Norway and find that AMS induces secondary effects, most strongly by decreasing labour per cow and increasing herd sizes. For estimating effects of AMS we employ a novel causal machine learning approach. AMS induce heterogenous effects on eco-efficiency, negatively associated with herd expansion and labour per cow.

Farm impacts of the 2019 Missouri River floods and economic valuation of flood risk reduction

The 2019 Missouri River flood caused billions of dollars in damage to businesses, homes, and public infrastructure. Yet little is known about the farm-level effects of this event and farmers' perceptions of its causes. This study reports on the operational and financial setbacks farmers sustained because of the 2019 floods, as well as on their beliefs on the causes of these floods. It further explores farmers' willingness to pay (WTP) to avoid flood risks and the factors that condition it. The empirical application focuses on a sample of approximately 700 Missouri farmers operating near the Missouri River. Results show that yield loss, loss of growing crops, and inability to plant crops were the three most important consequences of flooding. Nearly 40% of the flood-affected farmers reported financial losses of $100,000 or more. Most respondents identified government decision makers as the cause of the 2019 floods, and many believe that government should prioritize flood control over other benefits (recreation and fish and wildlife habitat) the Missouri River system provides. The WTP results show that less than half of the surveyed farmers were willing to pay to avoid flood risks, with an average WTP estimated at $3 per $10,000 value of agricultural land. Subjective but not objective risk exposure influences WTP for flood risk reduction. Other important determinants of WTP are risk aversion, disutility from flood risks, and respondents’ age, income, and education. Directions for policy to improve flood risk management in the Missouri River Basin are discussed.

A dynamic simulation model to assess farm-level effects of pasture intensification strategies on beef herd outputs and carbon footprints in acid soil savannas of Eastern Colombia

The neotropical savannas of Eastern Colombia (Llanos) are subjected to changes in land use associated with intensification of beef production and there is limited knowledge on the long-term impacts of these change processes. Furthermore, the effects of spatial and temporal intensification at farm level via the introduction of sown pastures on beef herd outputs, their greenhouse gas (GHG) emissions and the resulting carbon (C) footprints in contrasting savanna landscapes of of the Llanos are unknown. This study was aimed to assess the consequences of gradual system intensification via introduction of sown tropical pastures in two contrasting landscapes, the tillable, flat savannas and the highly dissected rangelands, of the well-drained Eastern savannas of Colombia, in terms of cow-calf production and GHG emissions and the resulting C footprints. A dynamic model was developed to simulate the gradual introduction of two types of tropical pastures in a region with dissected and steep slopes and limited tillable areas where cattle would also have access to Serrania savanna and sown pastures, versus one located in the Plains that are fully transformed over time with the exclusion of native rangelands. Marked changes in herd demography, animal outputs, and emissions were found over time. The C footprint of all systems varied over time depending upon the length of time that pastures contributed to soil organic carbon accumulation and the balance between savanna and sown pasture areas at a whole farm level. In conclusion, the dynamics of the systems subject to intensification were marked and were dependent on the temporal and spatial deployment of sown forage resources. Therefore, generalizing the trends for the region as a whole result in uncertainty. Nevertheless, examination of simulated prototypes may shed light on the expected trends and provides guidance for decision-making

Inflation: The problems for aquaculture

Inflation: The problems for aquaculture

Farm-Level Effects of Emissions Tax and Adjustable Drainage on Peatlands

Drained agricultural peatlands emit significantly higher amounts of greenhouse gas (GHG) emissions per hectare than mineral soils. GHG abatement costs for representative cereals (CF) and dairy (DF) farms in southwestern Finland were estimated by integrating an emission-based tax together with an option to invest in a subsidized adjustable drainage system on peat soils in a farm-level dynamic optimization model. With an average 10% share of peat soils from overall farm area, emissions tax rates over 15 (CF) and 19 (DF) €/tCO2e triggered adjustable drainage investments with a significant reduction in GHG emissions per ha, when assuming no crop-yield effect from the adjustable drainage. Abatement costs for emissions tax rates €12–50/tCO2e/ha were €16–44/tCO2e (CF) and €26–51/tCO2e (DF) for whole farm-soil emissions, depending on the share of peatlands on the farm, on the yield effects of adjustable drainage, and on crop prices. High emissions tax rates imply higher abatement costs since farms have a limited capability to adjust their production and land use. Thus, emissions reductions from peatlands can be achieved at reasonable costs when investing in adjustable drainage on peatlands. The income losses due to emissions tax, however, are high, but they can be compensated for farmers by lumpsum payments independent of their production decisions. Since existing agricultural policies such as the EU CAP system may have limited effectiveness on GHG emissions, the emissions tax and adjustable drainage on peatlands could promote GHG abatement significantly on farms and areas with abundant peatlands.

Farm Level Effects of On‐Farm Irrigation Infrastructure Programs in the Southern Murray–Darling Basin

AbstractOn‐farm irrigation infrastructure programs have become an important method of recovering water for the environment in the Australian Murray–Darling Basin (MDB). These programs offer farmers funding to upgrade infrastructure in return for a portion of their water rights. This study measures the effects of Australian Government on‐farm infrastructure programs in the southern MDB between 2009–2010 and 2016–2017, particularly the On‐Farm Irrigation Efficiency Program. A novel dataset is constructed combining program administrative data with farm survey data. This data is used to derive econometric estimates on the effects of these programs on various measures of farm productivity, profitability and water demand. On‐farm programs are found to have positive effects for participants in terms of higher farm productivity and profitability. However, the study also finds a Jevon's paradox outcome, where farm demand for water is significantly higher post‐upgrade.

The role of risk in the context of climate change, land use choices and crop production: evidence from Zambia

Most of the studies that investigate the impacts of climate change on agriculture have concentrated on the effects of changes in mean temperature and precipitation even though the importance of volatility and risk on farmers’ decision making is well documented. This study examines the empirical importance of the effects of risk associated with the impacts of climate change on farm land allocations and consequent effects on agricultural output in Zambia. We used a discrete-choice model consistent with a mean-variance utility function to model farm-level land allocations among alternative crops. Results indicate that risk-reducing decisions can reinforce crop shifts driven by climate change impacts on mean temperature and precipitation. While an analysis of the available per-capita daily nutrients reveals that farmers’ crop allocation choices can mitigate the negative effects of climate change, the opportunity cost of these decisions is explored through a simulation scenario in which yield variability is reduced to zero. Reduction of yield variability leads to land allocations that result in a sizable increase in total crop production and a significant increase in available per capita daily calories. Important conclusions can be derived from this analysis. First, the risk environment matters and should not be ignored. When the economic effects of climate change are considered, decision making under uncertainty and risk should be at the forefront of the problems that need to be addressed. Second, concentrating on farm-level effects of responses to climate change is not sufficient. To understand the economy-wide consequences of climate change, the aggregate effects of individual decisions should be assessed. Third, results indicate that increased efforts in risk management and in developing policies aimed at reducing risk can lead to significant positive outcomes for the nutritional status of low-income, food-insecure populations.

A multivariable assessment of the spatio-temporal distribution of pyrethroids performance on the sea lice Caligus rogercresseyi in Chile

Synthetic pyrethroids have been widely used in Chile to control the sea lice Caligus rogercresseyi, a major ectoparasite of farmed salmon. Although resistance of C. rogercresseyi to pyrethroids has been reported in Chile, there is no information regarding the geographic extent of this problem. In this study we explored the spatial and temporal variation of C. rogercresseyi’s response to pyrethroids in Chile from 2012 to 2013. We modeled lice abundance one week after treatment with a linear mixed-effects regression, and then we performed spatial and spatio-temporal cluster analyses on farm-level effects and on treatment-level residuals, respectively. Results indicate there were two areas where the post-treatment lice counts were significantly higher than in the rest of the study area. These spatial clusters remained even once we adjusted for environmental and management predictors, suggesting unmeasured factors (e.g. resistance) were causing the clustering. Further investigation should be carried out to confirm this hypothesis.

Policy analysis of perennial energy crop cultivation at the farm level: Short rotation coppice (SRC) in Germany

Perennial energy crop production methods such as short rotation coppice (SRC) have gained interest among farmers and policy makers. SRC is characterised by rapid biomass production, low inputs, and high managerial flexibility. SRC plantations also provide environmental advantages relative to annual crop production and contribute to the transition towards renewable energy. Yet, the combination of high sunk costs and high uncertainty hampers SRC adoption among farmers. Policy instruments currently implemented to foster SRC adoption exhibit limited success. In this paper we assess the performance of different policy measures intended to stimulate SRC adoption in terms of efficiency and farm-level effects, taking into account related uncertainty. We use a combination of stochastic programming and the real options approach in our model featuring SRC poplar cultivation in Germany. We analyse four policy measures intended to foster SRC adoption: an establishment subsidy, a price floor, a guaranteed price, and increasing the “Ecological Focus Area” (EFA) value for SRC systems within the European Union Common Agricultural Policy. Our results indicate that a guaranteed price can stimulate immediate SRC adoption; however, it is inferior to the other instruments in other dimensions. An establishment subsidy as recently implemented in the study area might incentivise farmers to adopt SRC by contributing substantially to farm income, but should be modified because it may encourage postponement of SRC adoption. Increasing the EFA coefficient and a price floor are more efficient measures in terms of governmental expenditures, while having limited positive effects on bioenergy produced.

Farm level effects of policy reforms in Germany: First empirical evidence

The farm level effects of policy reforms in agriculture have been discussed in the literature for a long time. However, empirical studies based on field data are not yet available. In this paper, the effects of the EU agricultural reforms in the last two decades and the introduction of the German Renewable Energy Sources Act on agricultural enterprises are investigated. For this, panel data of arable farms in the German federal state of North Rhine-Westphalia for the period from 1984/85 to 2010/11 is analyzed by means of a fixed effects model. The results suggest that the farm income level, transmission effects on land rental markets and the farm income risk were significantly affected by the respective reforms.

Potential Farm-Level Effects of Eliminating Direct Payments

Since 2003, direct payments have accounted for a significant portion of farm program payments. If direct payments were eliminated, many agricultural producers would be affected, both through the loss of income and potential declines in land values and rental rates. This report considers the potential contribution of direct payments to farm revenues and land values across farm commodities and regions and estimates the magnitude of the financial impact on participating farms should direct payments be eliminated. Direct payments are highest relative to crop revenues in parts of the Northern Plains, Southern Plains, Mountain, Delta, and Southeast regions, and the estimated effect of direct payments on cropland values also is relatively high in many of these regions. Overall, our analysis suggests that an abrupt end to the direct payment program could reduce the number of farms with a favorable financial status (profitable farms having relatively low debt burdens) by about 11,000 nationally, or about 2 percent of farms that received direct payments in 2009. The estimated effect varies regionally and is more pronounced in the Delta and Southeast regions, where direct payments per farm tend to be higher, on average, than elsewhere.

Environment and farm factors associated with exposure to Theileria parva infection in cattle under traditional mixed farming system in Mbeere District, Kenya

The objective of this study was to investigate the relationship between seroprevalence to Theileria parva infection in cattle and potential environmental and farm-level effects in 80 farms under traditional crop-livestock system in Mbeere District, Kenya. A standardized questionnaire was used to collect the effects characteristics as related to T. parva infection epidemiology. Serum samples were collected from 440 cattle of all ages for detection of T. parva antibodies by the enzyme-linked immunosorbent assay technique. The association between the variables was assessed using a generalized estimation equation logistic regression model. The overall T. parva seroprevalence, accounting for correlation of responses, was 19.3% (95% confidence interval (CI) 14%, 25%). Two variables, "administrative division" and "presence of the vector tick on the farm", were significantly associated with the T. parva seroresponse. Respectively, cattle from farms in Gachoka, Evurore, and Mwea divisions were (and their 95% CI) 1.3 (0.36, 4.8), 4.4 (1.2, 15.9), and 15.2 (4.9, 47.1) times more likely to be seropositive relative to those from Siakago Division (P = 0.000). Cattle from farms in which the vector tick was present were 2.9 (1.2, 6.7) times more likely to be seropositive (P = 0.011). Results of this study suggested that both environmental and farm factors may be associated with T. parva infection epidemiology in Mbeere District. Under such circumstances, characterization of environmental suitability for the vector tick and corresponding environment-specific farm management practices in the district is required both for improved understanding of the disease and in planning disease control programs.

Potential impacts of Bt eggplant on economic surplus and farmers' health in India

In this article, the potential impacts of Bt eggplant technology in Indian agriculture are analyzed. Several proprietary Bt hybrids are likely to be commercialized in the near future. Based on field trial data, it is shown that the technology can significantly reduce insecticide applications and increase effective yields. Comprehensive farm survey data are used to project farm level effects and future adoption rates. Simulations show that the aggregate economic surplus gains of Bt hybrids could be around US $108 million per year. Consumers will capture a large share of these gains, but farmers and the innovating company will benefit too. As the company has also shared its technology with the public sector, Bt open-pollinated varieties might become available with a certain time lag. This would make the technology more accessible, especially for resource-poor farmers, entailing further improvements in welfare and distribution effects. The wider implications of the private-public technology transfer are discussed. Furthermore, the potential benefits for farmers' health resulting from reduced insecticide applications are examined, using an econometric model and a cost of illness approach. These benefits are worth an additional $3-4 million per year. Yet they only constitute a small fraction of the technology's environmental and health externalities. More research is needed for comprehensive impact analysis.

The Effect of Subtherapeutic Chlortetracycline on Antimicrobial Resistance in the Fecal Flora of Swine

The aims of this research were to determine the association between inclusion of subtherapeutic chlortetracycline in the diets of swine and the prevalence and antimicrobial resistance of Salmonella; define the association between inclusion of subtherapeutic chlortetracycline and antimicrobial resistance in the aerobic Gram-negative fecal flora of swine; and estimate the proportion of total model variance attributable to farm, pig, and colony level effects. There was no association between subtherapeutic chlortetracycline exposure and Salmonella prevalence. There were increased odds for an aerobic Gram-negative fecal isolate to be resistant to ampicillin, ceftriaxone, and tetracycline if isolated from a pig that received chlortetracycline. There was a positive association between inclusion of subtherapeutic chlortetracycline in the diet and resistance to multiple antimicrobials. The proportion of total variance associated with farm, pig, and colony varied based on the resistance phenotype. Because farm-level variance contributed a small proportion to total variance in all models, effects of antimicrobial use interventions observed in this study may be predictive of anticipated impact of interventions on most swine farms. Resources for future investigations may be better allocated to sampling more pigs and more bacterial colonies per pig in relationship to the number of farms.

Roundup Ready soybeans in Argentina: farm level and aggregate welfare effects

AbstractAlthough adoption rates of genetically modified crops have been staggering in some countries, there is still comparatively little evidence about biotechnology impacts under diverse agroecological and institutional conditions. These knowledge gaps lead to an overly precautious attitude among policy makers and the public. This article analyzes the effects of Roundup Ready (RR) soybeans in Argentina, the country with the second biggest transgenic area worldwide. Based on recent survey data, it is shown that the technology increases total factor productivity by 10% on average, with cost savings being somewhat more pronounced for smaller than for larger farms. The reduction in use of toxic herbicides and of tillage operations entails positive environmental repercussions. Aggregate welfare effects are computed over the 1996–2001 period with a three‐region, partial equilibrium model, comprising Argentina, the United States, and the rest of the world. In 2001, RR soybeans created more than US$1.2 billion of economic surplus at the global level. The largest share went to consumers (53%), followed by seed and biotechnology firms (34%), and agricultural producers (13%). Due to comparatively weak intellectual property protection, and thus only small technology mark‐ups in seed prices and widespread adoption, Argentine soybean growers receive 90% of the benefits in that country. This demonstrates that farmers in developing countries can gain considerably when they obtain access to suitable foreign innovations through technology spill‐overs.

Roundup Ready soybeans in Argentina: farm level and aggregate welfare effects

Roundup Ready soybeans in Argentina: farm level and aggregate welfare effects

The performance of farmed ostrich chicks in eastern Australia

A prospective observational epidemiological study was undertaken in the south-eastern region of Queensland in eastern Australia to collect accurate information on the performance of farmed ostriches, and to identify the most important constraints facing on-farm production. This paper (the third in a series of three) focuses upon the performance of 394 chicks that hatched on 11 farms in this region from eggs laid between 1 July 1993 and 30 June 1994. Each chick was observed from hatch until dying, leaving the farm of origin or reaching 4 months of age (whichever occurred first). A total of 60.8% of the chicks survived to 4 months of age, with an overall crude mortality rate during the period of observation of 14.0 deaths per 100 chick-months at risk. The most common causes of death were the development of a lower-limb deformity (most frequently tibiotarsal rotation which accounted for 36% of all chick deaths), ‘fading chick syndrome’ (13%), and salmonellosis (11%). Only 83% of the chicks remained free of tibiotarsal rotation during the period of observation. This condition was generally first detected in chicks between 2 and 10 weeks after hatch, and the median survival time following diagnosis was 10 days. ‘Fading chick syndrome’ mainly affected chicks less than 3 weeks of age and did not appear to spread in a contagious manner. Chicks died following infection with Salmonella typhimurium on only one farm. Chick-level factors affecting survival during the 4 months following hatch were examined using the Cox proportional hazards regression model. After accounting for farm-level effects, risk factors for death or euthanasia during the first 4 months following hatch included the weight of the chick at hatch, and the development of tibiotarsal rotation. The need of the industry-wide development and adoption of objective measures of productivity is discussed, and some relevant measures are proposed.

THE ECONOMICS OF - WHEAT PRODUCTION IN MOROCCO

A representative farm policy impact model was developed using linear programming and primary survey data. The model was used to estimate farm-level effects of proposed national government policies aimed at increasing food security through greater bread wheat production. The four policy options analysed included the introduction of a bread wheat variety resistant to an insect pest, an increase in the official bread wheat support price, potentially unlimited availability of nitrogen fertiliser, and rationing of nitrogen fertiliser at 500 kg per farm. The various policies increased farm income between 2.45 and 18 percent, as farmers made trade-offs between the production of bread wheat and the more profitable durum wheat. Adjustments were made by farmers in the model to meet government-targeted levels of bread wheat production in order to support national food self-sufficiency at minimum cost. Simultaneously, the resources freed were used to produce more durum wheat. The results suggest a need to analyse interregional and international comparative advantages in wheat production prior to implementing proposed policies aimed at increasing bread wheat output.

Peasant farmer behavior and cereal technologies: Stochastic programming analysis in Niger

Peasant farmers in Sahelian West Africa adjust to rainfall uncertainties in the agricultural season by making decisions sequentially as a function of the evolving rainfall patterns. Understanding such flexibilities in farmer decision-making is central to technology introduction. This paper determines how sequential decision-making under weather uncertainty affects the adoption and farm-level effects of cereal technologies in Niger. The study also draws policy implications for a price floor to arrest the substantial fall in cereal prices in good rainfall years when farmers have more grains to sell. The methodology used is Discrete Stochastic Programming. This paper shows that the ability of peasant farmers to adapt cropping and resource-management strategies to the rainfall patterns is the basis for their survival in this high-risk environment. Model results show that by (a) carrying a portfolio mix of varieties of varying maturities, and (b) making sequential decisions based upon rainfall expectations, farmers can adapt to the production uncertainties. Breeding programs should therefore be diversified to develop not only early-maturing cultivars, but also improved intermediate and long-season varieties.

The Farm Level Effects of Better Access to Information: The Case of Dart

AbstractIn this study, two methods of entering and accessing dairy herd records are compared: the traditional mail-in Dairy Herd Improvement (DHI) system and the Direct Access to Records by Telephone (DART) system, which provides more timely and convenient access to records. An evaluation of DART was carried out using mail survey responses from 117 DART users and telephone surveys of 40 randomly selected users. Results indicate that DART users are generally satisfied with the system and feel that it improves their herd management. Variations in use of the DART system by DART users are explained by herd, cost, and management variables. DART users and comparable non-DART, DHI users are compared with respect to gains in herd production efficiency. Results indicate that DART users made somewhat better gains in most efficiency measures but that the differences were generally not statistically significant.