Measuring total factor productivity on Irish dairy farms: a Fisher index approach using farm-level data

peer reviewedThis paper presents a Fisher index measure of the total factor productivity (TFP) performance of Irish dairy farms over the period 2006–2016 using the Teagasc National Farm Survey (NFS) data. The removal of milk quotas in 2015 has led to an increase of over 30% in dairy cow numbers since 2010, and although suckler cow numbers have dropped slightly, the total number of cows in Ireland reached an all-time high of 2.5 million head in 2016. This large increase adds to the environmental pressures attributed to agricultural output and puts the focus firmly on how efficiently the additional agricultural output associated with higher cow numbers is produced. The primary purpose of this paper is to identify a standardised measure of the TFP performance of Irish dairy farms that can be routinely updated using Teagasc NFS data. We found that relative to 2010 the TFP of Irish dairy farms has increased by almost 18%; however, in one production year 2015, when milk quota was removed, the TFP measure increased by 7% and TFP continued to grow by 2.5% in the production year 2016. It would seem therefore that the removal of the European dairy quota system has resulted in a windfall gain for Irish dairy farmers but that productivity gains are continuing. Future data will be required to investigate the longer-term TFP performance of Irish dairy farms in the post-milk quota era

On the causes of economic growth in Europe: why did agricultural labour productivity not converge between 1950 and 2005?

The objective of this study is to make a further contribution to the debate on the causes of economic growth in the European Continent. It explains why agricultural labour productivity differences did not converge between 1950 and 2005 in Europe. We propose an econometric model, one combining both proximate and fundamental causes of economic growth. The results show that the continuous exit of labour power from the sector, coupled with the increased use of productive factors originating in other sectors of the economy, caused the efficiency of agricultural workers to rise. However, we offer a complete explanation of the role played by institutions and geographical factors. Thus, we detect a direct and inverse relation between membership of the EU and the Communist bloc and the productivity of agricultural labour. In addition, strong support for agriculture affected productivity negatively

Assessing the Feasibility of Wetlands Conservation: Using Payments for Ecosystem Services in Pallisa, Uganda

This chapter reports on a study of the potential for payments for ecosystem services to encourage the adoption of more sustainable agricultural practices in the Pallisa district in southeastern Uganda. Due to low productivity and population pressure, the subsistence agriculture that dominates the upland areas is increasingly encroaching on wetland areas critical to a many ecosystem services. While encroachment is illegal, enforcement has not been effective, raising the possibility that a positive incentive mechanism might be a more effective approach to wetlands protection. This study began with a workshop designed to learn about the potential importance of wetlands and their services from local and national stakeholders, and to assess the legal and institutional setting in which environmental policy is being implemented. The next step was to implement a quantitative analysis of ecosystem service supply, to estimate the possible rates of participation by farmers in contracts for wetlands conservation and the impact on farmers’ incomes. The analysis suggests that payments for ecosystem services could be a viable alternative to conventional environmental regulation if local institutions can manage contracts with farmers at a reasonable cost, and if national and international beneficiaries are willing to pay for wetlands protection