German Agricultural Sector Research Articles

Evaluation of nitrogen balances and nitrogen use efficiencies on farm level of the German agricultural sector

CONTEXTUse of Nitrogen (N), an essential macronutrient, must be optimised in order to ensure food security and food sovereignty, mitigate negative externalities of food production and achieve ambitious (inter-)national environmental, climate and sustainability goals. Nitrogen use efficiency (NUE) is an appropriate indicator for assessing N utilisation on farms. OBJECTIVEThe aim of the study was to evaluate N performance of the German agricultural sector, to generate knowledge gain regarding methodological design and estimating N indicators based on farm accounting data, to estimate the role and extent of externalities, and to increase understanding of interrelations between farm characteristics and N performance in order to support policymakers in finding targeted N mitigation measures. METHODSUsing data from the German Farm Accountancy Data Network (FADN) covering 5923 farms between the years 2016/17 and 2018/19, we calculated mean farm-level NUE and N balance values for six farm types, considering input and output parameters on farm level as well as externalities. We also developed two explanatory models to identify interrelations between N performance indicators investigated, and regional, socio-economic and farm structural characteristics. RESULTS AND CONCLUSIONSThe results indicated an increasing trend in NUE from dairy, to pig and poultry, and arable farms, but large variance within each farm type, indicating efficiency reserves in N use. Livestock farms undercut NUE and exceed N surpluses to such an extent that the sustainability goal for 2030 for the national N balance as defined in German Sustainable Development Strategy could be jeopardised. Different levels of externalisation, namely feed imports and manure exports, may deepen this gap. Multiple regression analysis revealed statistically significant interrelations between N performance and independent variables such as soil fertility, crop selection and diversity, production type, operating profit and consulting services received. Thereby, structural patterns and strategies in order to reduce N waste and increase NUE were identified. However, main source of uncertainty was due to the lack on imported manure amounts from FADN data. SIGNIFICANCEDetermination of N performance can improve understanding the complexity of agri-environmental interrelations and support policymakers in designing appropriate policies to improve N management.

Identifying Strengths and Obstacles to Climate Change Adaptation in the German Agricultural Sector: A Group Model Building Approach

In the past 30 years, there has been a significant increase in drought events in Europe. It is expected that climate change will make droughts more frequent and intense. This situation is particularly concerning for areas with no drought management culture. This study focuses on North East Lower Saxony (NELS), an important agricultural region in northern Germany. We implement a novel approach to Group Model Building to assess the preparedness of NELS to deal with climate change and droughts. Our novel approach includes the creation of a preliminary model based on individual interviews and a triangulation of information after the workshop. We conclude that stakeholders are aware of climate change, but insufficient attention is given to adaptive solutions mainly because they require high initial investments. Given its existing political infrastructure, the region has the potential to adjust. With efficient government bodies are already in place, beneficial updates could be made to established water withdrawal regulations.

Economic Performances of German Agri-Food Businesses: an Extension of Existing Discourses on the Topic

Considering the circumstance that literature dealing with the economic performance of agri-food businesses in general, or particularly with the German agricultural sector, mainly deals with strictly agricultural-related theory in order to explain the economic success of agri-food businesses, the present paper aims to extend existing discourses to further areas of thought. Consequently, the characteristics: a) increased size of agribusiness, b) pull-strategies, c) the development of new markets and d) focus on the processing industry, that all correspond to the current picture of the German agricultural sector and are considered to be significantly responsible for recently managing to outpace the French agri-food sector, will be first explained in their success against the background of mainly non-agricultural-related literature. By doing so helpful and rather unnoted perspectives can be contributed to existing discourses. Second, the paper presents scatter plots which portray correlations between a) the added value of agriculture and the regular labor force, b) the added value of agriculture and the number of agricultural holdings and c) the added value of agriculture and the number of enterprises concerning milk consumption. Corresponding scatter plots which show different developments in Germany and France can be related to the findings of the first part of the paper and allow new perspectives in existing discourses as well.
 JEL Classification: Q10

EU biofuel policies: Income effects and lobbying decisions in the German agricultural sector

European Union (EU) policymakers have persistently supported first-generation biofuels despite the clearly emerging picture of small or even negative green house gas mitigation effects. This leads to the conclusion that support is driven by other objectives, for example income effects. Against this background, the main objective of this article is to analyse the income effects of abolishing biofuel policies, as well as to explore the link between these effects and lobbying decisions taken by farmers' associations representing different groups of German farmers. Income effects are estimated for different farm types and regions, and differences between farm net value added and family farm income are analysed. To understand the link between income effects and lobbying decisions, our quantitative results are compared with the biofuel policy positions of different farmers' associations. Our results suggest that, in the long run, average income effects are small, especially if the ownership of production factors is accounted for in the income calculation. Many farms show losses if biofuel support is abolished, but others even benefit from lower rental costs and experience positive income effects. Farmers' associations seem to be able to well assess the income effects of EU biofuel policy for different types of farms.

The mitigation potential and cost efficiency of abatement-based payments for the production of short-rotation coppices in Germany

In Northern and Central Europe, short-rotation coppices (SRC) have become a profitable agricultural production alternative, particularly for marginal fields with suitable groundwater levels. Furthermore, the replacement of fossil fuels by the wood chips produced in SRC contributes to the mitigation of greenhouse gases (GHGs). Due to heterogeneous regional production conditions, the impacts on the economy, production and GHG mitigation are expected to vary widely by region.Several studies investigate the specific agronomic, environmental and economic aspects of SRC. However, only a few studies present a concise analysis of more than one or all of these aspects or evaluate SRC as a mitigation strategy. This study complements the existing literature by estimating the mitigation potential from SRC in Germany. It presents an integrated modeling approach that considers agronomic and economic aspects and investigates the mitigation potential and the abatement cost efficiency arising from abatement-based payments.The simulation of different payment scenarios indicates that SRC could mitigate up to 15% of the German agricultural sector's GHG emissions. The integrated model approach links a site model and the agro-economic model RAUMIS and can be regarded as a fruitful development for addressing SRC-related research questions as well as a promising base for further work.

The Impact of Map and Data Resolution on the Determination of the Agricultural Utilisation of Organic Soils in Germany

Due to its nature, agricultural land use depends on local site characteristics such as production potential, costs and external effects. To assess the relevance of the modifying areal unit problem (MAUP), we investigated as to how a change in the data resolution regarding both soil and land use data influences the results obtained for different land use indicators. For the assessment we use the example of the greenhouse gas (GHG) emissions from agriculturally used organic soils (mainly fens and bogs). Although less than 5 % of the German agricultural area in use is located on organic soils, the drainage of these areas to enable their agricultural utilization causes roughly 37 % of the GHG emissions of the German agricultural sector. The abandonment of the cultivation and rewetting of organic soils would be an effective policy to reduce national GHG emissions. To assess the abatement costs, it is essential to know which commodities, and at what quantities, are actually produced on this land. Furthermore, in order to limit windfall profits, information on the differences of the profitability among farms are needed. However, high-resolution data regarding land use and soil characteristics are often not available, and their generation is costly or the access is strictly limited because of legal constraints. Therefore, in this paper, we analyse how indicators for land use on organic soils respond to changes in the spatial aggregation of the data. In Germany, organic soils are predominantly used for forage cropping. Marked differences between the various regions of Germany are apparent with respect to the dynamics and the intensity of land use. Data resolution mainly impairs the derived extent of agriculturally used peatland and the observed intensity gradient, while its impact on the average value for the investigated set of land-use indicators is generally minor.

The Response of the German Agricultural Sector to the Envisaged Biofuel Targets in Germany and Abroad: A CGE Simulation

This article analyses the impact of national, European and global biofuel targets on German food production and land allocation until 2020. The LEITAP General Equilibrium Model simulates the interaction of agricultural and energy markets in response to the envisaged expansion of the biofuel industry. First generation biofuels are integrated in the production structure of the petroleum sector. Second generation biofuels are modelled indirectly via estimated bottom-up reductions in land available for agriculture. Biofuel targets are set exogenously according to the current policy goals. The model recursively responds to increments in the biofuel mandates over three time intervals. Each country or region is required the meet its respective target and is allowed to subsidize biofuel consumption through a budget-neutral mechanism. Thanks to a nested land specification, changes in land use take into account variable elasticities of substitution among different cultivations. The results indicate that German production of biofuel crops substantially increases. In particular, oilseed output experiences a remarkable growth. Land allocation and land prices also change significantly. However, higher production does not suffice to satisfy the demand for biofuels feedstock, and imports of oilseeds and sugar rise considerably. Moreover, the model suggests that the growth in biofuel crop production among the remaining EU-26 countries is driven by the new Member States of the EU, and that the supply of EU biofuel crops also has to be enhanced by imports from abroad. Biofuel policies outside Europe show only little additional impact on German agriculture. The projected changes in food commodity prices are in line with the results of other CGE analyses, although prices rise to a lesser extent than projected in studies based on Partial Equilibrium Models.

Real Wages and Labor Productivity in Britain and Germany, 1871–1938: A Unified Approach to the International Comparison of Living Standards

Throughout the period 1871–1938, the average British worker was better off than the average German worker, but there were significant differences between major sectors. For the aggregate economy, the real wage gap was about the same as the labor productivity gap, but again there were important sectoral differences. Compared to their productivity, German industrial workers were poorly paid, whereas German agricultural and service sector employees were overpaid. This affected the competitiveness of the two countries in these sectors. There were also important differences in comparative real wages by skill level, affecting the extent of poverty.

The Impact of Domestic and Global Biofuel Mandates on the German Agricultural Sector

The aim of this work is to evaluate the impact of domestic and global biofuel policies on Germany's agricultural sector. The central part of our study is divided into four sections. Section 2 presents in detail the issues that make biofuels a debated topic in today's economic policies. Fundamental aspects of our energy consumption patterns and the geographic location of our natural resources are highlighted together with a quantitative analysis of the recent surge in biofuels output capacity and estimates of their near-future deployment. An introduction to current and future biofuels production technologies is coupled with an overview of recent studies that assess their net contribution to harmful gaseous emissions and energy efficiency. The concerns associated with rising food prices and their likely causes are then briefly examined. Section 3 provides a thorough description of the subsidy, taxation and protection measures granted to biofuels across the world. Current governmental policies in the EU and its member states are given special attention. Section 4 presents the current literature on economic modelling and focuses on partial equilibrium (AGLINK-COSIMO, Impact, Esim, etc.) and general equilibrium frameworks (EPPA, GTAP, etc.). Section 5 simulates the impact of domestic and global biofuel policies in Germany within a Computable General Equilibrium framework. The LEITAP model is introduced. A description of the analysed scenarios is given on the basis of the envisaged biofuel blending mandates described in section 3. The simulation results are then evaluated with respect to production, prices, international trade and land use of the relevant commodities. The outcome clearly indicates that current biofuels policies significantly affect food markets as well as land allocation. The conclusion summarizes the main findings of our study and draws a comparison with results of other publications.

Structural change in the West German agricultural sector

AbstractThis article explains regionally differentiated patterns of structural change based on a theoretical framework dealing with strategic interaction of farms on the land market. The main research question focuses on the causes of regionally persistent structures. An empirical Markov chain model is defined for the West German agricultural sector. The model is used to explain the probabilities of farm growth, decline, or exit in terms of the current and former regional farm size structure. Further, the impact of variables describing the regional farm structure, thereby indicating market power of the large, the potential of high competition for land within a region, and possibly high rents of the status quo in combination with sunk costs, is quantified. The results confirm the relevance of strategic interaction as a crucial determinant of persistent regional differences in the farm size structure over time.

The Role of Small Farms in Structural Change

This paper explains regionally differentiated patte rns of structural change based on a theoretical framework dealing with strategic intera ction of farms on the land market. The main research question focuses on the causes of regionally persistent structures. An empirical Markov chain model is defined for the West German agricultural sector. Thereby it is possible to explain the probabilities of farm growth, decline or exit in terms of the current and former regional farm size structure. Further, the impact of variables describing the regional farm structure, t hereby indicating market power of the large, the potential of high competition for la nd within a region and possibly high rents of the status quo in combination with sunk co sts, is quantified. The results confirm the relevance of strategic interaction as a crucial determinant of regionally different structural change and persistent regional differences in the farm size structure over time.

The Role of Small Farms in Structural Change

This paper explains regionally differentiated patte rns of structural change based on a theoretical framework dealing with strategic intera ction of farms on the land market. The main research question focuses on the causes of regionally persistent structures. An empirical Markov chain model is defined for the West German agricultural sector. Thereby it is possible to explain the probabilities of farm growth, decline or exit in terms of the current and former regional farm size structure. Further, the impact of variables describing the regional farm structure, t hereby indicating market power of the large, the potential of high competition for la nd within a region and possibly high rents of the status quo in combination with sunk co sts, is quantified. The results confirm the relevance of strategic interaction as a crucial determinant of regionally different structural change and persistent regional differences in the farm size structure over time.

Real Wages and Labour Productivity in Britain and Germany, 1871-1938: A Unified Approach to the International Comparison of Living Standards

Throughout the period 1871-1938, the average British worker was better off than the average German worker, but there were significant differences between major sectors. For the aggregate economy, the real wage gap was about the same as the labour productivity gap, but again there were important sectoral differences. Compared to their productivity, German industrial workers were poorly paid, whereas German agricultural and service sector employees were overpaid. This affected the competitiveness of the two countries in these sectors. There were also impor-tant differences in comparative real wages by skill level, affecting the extent of poverty.

Does Gender Mainstreaming Work?

The wide adoption of gender mainstreaming has rekindled debates about feminist engagements with the State. The purpose of this article is to provide a clearer specification of power politics in such engagements and develop the conceptual tools to assess the utility of feminist strategies. Drawing on feminist state theory and comparing two feminist strategies (gender mainstreaming and the equal rights strategy), this article develops an analysis of six types of power mechanisms. Feminist engagements with the German agricultural sector are used to illustrate these mechanisms. The campaign to gain women farmers independent pension rights illustrates the mechanisms of compromise and silencing of difference. The current effort to mainstream gender into rural development policies illustrates mechanisms of cooptation and normalization. In both forms of engagement, in addition, there is evidence of women's empowerment and state refusal. The article concludes that the success of both gender mainstreaming and the equal rights strategy is limited because they are sidelined, side-tracked and slowed down by mechanisms of power.

A concept for the calculation of financial losses when changing the forest management strategy

The objectives of nature conservation can often only be realised by changing forest management regimes. Thus far, mainly institutional regulations have been used to achieve these goals. However, in Germany there is strong political interest in encouraging contract-based forest management whereby forest owners receive financial compensation for losses when changing over forest management regime. Such compensation is commonly paid in the German agricultural sector but is absent in forestry. When managing forests for social convenience, forest enterprises are faced with financial losses. With regard to practical experience in forestry there is a considerable lack of information about the economic consequences. To estimate the losses related to changes in silvicultural treatment, a calculation scheme based on the annuity method has been developed and figures have been calculated for different tree species and age classes. The annual timber production value determined per ha and year is documented in tables and, as shown by examples, could be applied to evaluate typical changes in forest management such as the renunciation of forest production, change of tree species, premature harvest and the preservation of mature stands. Standardised annual timber production values for different tree species, yield classes, management schemes etc. can be helpful to estimate the financial losses for forest-land owners when changing the management strategy. These financial losses can also be interpreted as the minimum price which has to be offered to forest land owners when a contract-based forest management is striven for by the government.

The Power of Nature and the Nature of Power: How Agrarian Myths Become Reality

The bovine spongiform encephalopathy (BSE) crisis challenged one of the basis principles of modernity: the divide between nature and society. In a case study on the German agricultural sector, I analyze how the societal actors responded in order to cope with the crisis. In their attempt to re-establish the division between nature and society, they employed the ambivalences of this relationship for strategic purposes. The actors sought to relocate or to newly define the boundary in line with their own ideas and interests. It can be seen how "nature" was frequently used as legitimizing ground in the narratives. The analysis of the politics of nature aims to add a process dimension to Latourian diagnosis of the eroding nature-society divide.