Decoupled Payments to EU Farmers, Production, and Trade: An Economic Analysis for Germany

After an extended process of reform the European Union has introduced direct payments to farmers which are decoupled from production decisions as a central element of its Common Agricultural Policy. They are also referred to as Single Farm Payments. In this paper we analyze the production and trade effects of this policy and its compatibility with WTO international trade rules. A survey of the literature suggests that the system of direct payments in its present form has effects which are analogous to a subsidization of agricultural land. Thus, they act to increase production and trade. Furthermore we quantify the total economic cost of production of selected commodities in the European Union and compare them to the price at which EU production is sold in foreign markets. Our analysis suggests that the costs of production in the European Union for key agricultural commodities are below international prices. It can be established that commodities for which the European Union is a net exporter are sold below cost, for extended periods of time and in substantial quantities. The EU system of decoupled payments to farmers, thus, acts to inflict economic injury to third countries. Under WTO rules, dumping can only occur when a country is an exporter. In this paper we demonstrate that on the markets included in the analysis dumping occurs on the market for wheat. The extent of injury is exemplified for Australia.European Union, Common Agricultural Policy, WTO rules, decoupled payments, Agribusiness, Agricultural and Food Policy, Food Security and Poverty, International Development, International Relations/Trade, Risk and Uncertainty,

Global agricultural market trends and their impacts on European Union agriculture

The economic, political and climatic conditions in which farmers around the world have to make their production and investment decisions are changing dramatically. This study analyses the driving forces of changes in agricultural world markets and their implications for European Union agriculture for the time period 2003/05 - 2013/15. The impacts on European Union agriculture are quantified using of a multi-market-model. The mega-trend of declining world market prices has ended. Since the turn of the millennium world market prices for agricultural goods have been increasing. This trend can be expected to continue. Not only will prices have a tendency to increase, but also fluctuations of agricultural world market prices are likely to be higher in the future than they have been in the past. The reason for the positive trend in agricultural world market prices is that global demand growth outstrips the growth in global supply, and this trend will continue in the foreseeable future. The global demand for food will continue to grow mainly for two reasons. One is the continued growth in world population; the other is the sustained growth in per capita incomes in developing and newly industrialised countries, with corresponding increase of per capita food consumption. Global food supply will have difficulty keeping pace with the growth in demand. A key factor is that the globally available agricultural land is limited in scale. Consequently, to meet the needs of the rapidly growing world population the necessary production growth will have to a large extent be met by a rise in productivity on the land already being farmed today. However, this will be difficult to accomplish as global agricultural productivity growth has been in decline since the Green Revolution of the 1960s and 1970s. Moreover, the rapid expansion of bio-energy production diverts agricultural land and other inputs away from food production. In addition, increasing water scarcity is starting to act as a constraint to production growth, and climate change is also beginning to affect production. The quantitative results of the analysis for key crops demonstrates that, both in the European Union and globally, agricultural demand will grow faster than supply during the time period 2003/05 - 2013/15. European Union demand for grains can be expected to increase by 10-20 percent and by more than 50 percent in oilseeds. However, European Union supply of wheat and other grains can only be expected to increase by less than 10 percent, corn by 15-20 percent, and oilseeds by more than 30 percent. As a consequence, the price of wheat can be expected to increase by more than 10 percent and the price of corn and oilseeds by more than 30 percent. With regard to the trade balance, the net trade position of European Union agriculture can be expected to deteriorate. While there would be a reduction in net imports of corn, net imports of oilseeds are expected to increase by more than 70 percent. Moreover, it is foreseeable that for wheat the European Union will switch from being a net exporter to a net importer. The same is true for other grains. Two additional aspects warrant further considerations. These are achieving world food security and combating global warming. For the world’s poor, increasing food prices may become a matter of survival. The results of the analysis confirm that the developing countries will not even come close to securing food supply for their rapidly growing population through domestic production, even under the best of all realistic scenarios. Consequently, the increasing food import needs of developing countries can only be met if the industrialised countries produce more and export more food. However, growth in bio-energy production in the European Union will let the region revert back to a net importing position in wheat, and it will have to increase imports of oilseeds. This will reduce the European Union’s ability to help in the fight against starvation in the world, unless there would be an increase in agricultural productivity beyond what is anticipated in this analysis. Climate change is now widely accepted as a fact, and human activity is a contributing factor. While probably not being of major importance during the time period considered in this study, world agriculture will be affected by global warming in the long run. On balance, world food production will be negatively affected as a consequence of climate change. Climate change and the associated additional increase in world food prices will amplify hunger and malnutrition in developing countries. Food production will decline predominantly in the countries which are already characterised by increasing food import needs. These countries are also those that are unable to make the necessary investment in agricultural research to adapt food production to the changing climate and to cope with increase in demand. Higher food prices will also increase the incentives for deforestation in order to claim additional farm land. Deforestation however, is one of the most important causes of global warming. In the global picture, the European Union will be less affected by climate change. It may even benefit. Europe will become a more secure production location in comparison to other world regions. Consequently, it has to take responsibility to significantly contribute to world food security and also to combat global warming by utilising its production potential. To avoid negative repercussions and to fully capitalise on its production potential, it is imperative that the European Union employs strategies which increase overall agricultural productivity on the available agricultural land. Zusammenfassung In diesem Beitrag werden die Bestimmungsfaktoren der Entwicklungen auf den Weltagrarmärkten untersucht und deren Auswirkungen auf die EU Landwirtschaft für den Zeitraum 2003/05 - 2013/15 quantifiziert. Dabei zeigt sich, dass die weltweite Nachfrage nach Agrargütern stärker steigt als das Angebot, so dass der Trend der Weltagrarpreise positiv ist. Die gegenwärtig (Mai 2008) sehr hohen Preise werden indes nicht von Dauer sein. Vielmehr ist mittelfristig mit einem eher moderaten Preisanstieg von etwa 15-30 % im Untersuchungszeitraum zu rechnen. Bei Weizen und anderem Getreide (außer Mais) wird die Europäische Union wieder zu einem Nettoimporteur. Die zu erwartenden Entwicklungen auf den Weltagrarmärkten und die dadurch steigenden Preise für Nahrungsgüter werden zu einer ernsthaften Verschärfung der Welternährungslage führen. Da die Flächen, die weltweit für die Nahrungsgüterproduktion verfügbar sind, begrenzt sind, muss die Steigerung des Angebots, die notwendig ist, um die rasch wachsende Weltbevölkerung in hinreichendem Umfang mit Nahrungsgütern zu versorgen, weitgehend über eine Steigerung der Produktivität derjenigen Flächen erreicht werden, die bereits heute landwirtschaftlich genutzt werden. Eine Steigerung der Produktivität in der Weltlandwirtschaft führt zu geringeren Nahrungsgüterpreisen. Sie verringert daher auch die Anreize auf dem Weg der Brandrodung zusätzliche landwirtschaftliche Nutzflächen zu erschließen. Gegenwärtig tragen diese Brandrodungen 18 % zum anthropogenen Klimawandel bei. Dies ist mehr als der Klimaeffekt der weltweiten Industrieproduktion. Damit ist das landwirtschaftliche Produktivitätswachstum nicht nur zentral im Kampf gegen den Hunger auf der Welt, sondern es leistet auch einen wichtigen Beitrag zur Verringerung des Klimawandels.World agriculture, food security, climate change, agriculture productivity growth, Weltlandwirtschaft, Sicherung der Welternährung, landwirtschaftliches Produktivitätswachstum, International Relations/Trade,

Global agricultural market trends revisited: The roles of energy prices and biofuel production

Global agricultural market, trends energy prices, biofuel production, Agribusiness, Agricultural and Food Policy, Agricultural Finance, Crop Production/Industries,

Frictional Duality Observed during Nanoparticle Sliding

One of the most fundamental questions in tribology concerns the area dependence of friction at the nanoscale. Here, experiments are presented where the frictional resistance of nanoparticles is measured by pushing them with the tip of an atomic force microscope. We find two coexisting frictional states: While some particles show finite friction increasing linearly with the interface areas of up to 310,000nm^2, other particles assume a state of frictionless sliding. The results further suggest a link between the degree of surface contamination and the occurrence of this duality.Comment: revised versio

Registerforschung: Verwaltungs- und Statistikdaten für die Wissenschaft

Die Verfügbarkeit von Daten aus der Verwaltung sowie der Bundesstatistik für die (Grundlagen-)Forschung wird zunehmend ein Faktor für die Wettbewerbsfähigkeit eines Forschungsstandortes – insbesondere in den Sozialwissenschaften aber auch der Gesundheitswissenschaft – und könnte einen wichtigen Beitrag für eine Evidenzorientierung in der Politik und Verwaltung liefern. In Österreich bildet vor allem die vergleichsweise unklare und zerklüftete Rechtslage in diesem Bereich sowie politische Widerstände gegen einen Zugang zu diesen Daten für die Wissenschaft eine wesentliche Herausforderung. Aus internationaler Perspektive ist aber die Öffnung dieser Daten geradezu notwendig und ein Gebot der Stunde

Global agricultural market trends revisited: The roles of energy prices and biofuel production

This paper has benefited greatly from a discussion of an earlier version with the participants of the first Humboldt Forum for Food and Agriculture in Davos, Switzerland in March 2009. Research has been made possible in part by a research grant from BASF SE - The Chemical Company. The first two sections of the paper draw on von Witzke et al. (2008) who provide a detailed discussion of the Agricultural Treadmill and its end

Global agricultural market trends and their impacts on European Union agriculture

The economic, political and climatic conditions in which farmers around the world have to make their production and investment decisions are changing dramatically. This study analyses the driving forces of changes in agricultural world markets and their implications for European Union agriculture for the time period 2003/05 - 2013/15. The impacts on European Union agriculture are quantified using of a multi-market-model. The mega-trend of declining world market prices has ended. Since the turn of the millennium world market prices for agricultural goods have been increasing. This trend can be expected to continue. Not only will prices have a tendency to increase, but also fluctuations of agricultural world market prices are likely to be higher in the future than they have been in the past. The reason for the positive trend in agricultural world market prices is that global demand growth outstrips the growth in global supply, and this trend will continue in the foreseeable future. The global demand for food will continue to grow mainly for two reasons. One is the continued growth in world population; the other is the sustained growth in per capita incomes in developing and newly industrialised countries, with corresponding increase of per capita food consumption. ...In diesem Beitrag werden die Bestimmungsfaktoren der Entwicklungen auf den Weltagrarmärkten untersucht und deren Auswirkungen auf die EU Landwirtschaft für den Zeitraum 2003/05 - 2013/15 quantifiziert. Dabei zeigt sich, dass die weltweite Nachfrage nach Agrargütern stärker steigt als das Angebot, so dass der Trend der Weltagrarpreise positiv ist. Die gegenwärtig (Mai 2008) sehr hohen Preise werden indes nicht von Dauer sein. Vielmehr ist mittelfristig mit einem eher moderaten Preisanstieg von etwa 15-30 % im Untersuchungszeitraum zu rechnen. Bei Weizen und anderem Getreide (außer Mais) wird die Europäische Union wieder zu einem Nettoimporteur. Die zu erwartenden Entwicklungen auf den Weltagrarmärkten und die dadurch steigenden Preise für Nahrungsgüter werden zu einer ernsthaften Verschärfung der Welternährungslage führen. Da die Flächen, die weltweit für die Nahrungsgüterproduktion verfügbar sind, begrenzt sind, muss die Steigerung des Angebots, die notwendig ist, um die rasch wachsende Weltbevölkerung in hinreichendem Umfang mit Nahrungsgütern zu versorgen, weitgehend über eine Steigerung der Produktivität derjenigen Flächen erreicht werden, die bereits heute landwirtschaftlich genutzt werden. Eine Steigerung der Produktivität in der Weltlandwirtschaft führt zu geringeren Nahrungsgüterpreisen. Sie verringert daher auch die Anreize auf dem Weg der Brandrodung zusätzliche landwirtschaftliche Nutzflächen zu erschließen. Gegenwärtig tragen diese Brandrodungen 18 % zum anthropogenen Klimawandel bei. Dies ist mehr als der Klimaeffekt der weltweiten Industrieproduktion. Damit ist das landwirtschaftliche Produktivitätswachstum nicht nur zentral im Kampf gegen den Hunger auf der Welt, sondern es leistet auch einen wichtigen Beitrag zur Verringerung des Klimawandels

Decoupled payments to EU farmers, production, and trade: An economic analysis for Germany

After an extended process of reform the European Union has introduced direct payments to farmers which are decoupled from production decisions as a central element of its Common Agricultural Policy. They are also referred to as Single Farm Payments. In this paper we analyze the production and trade effects of this policy and its compatibility with WTO international trade rules. A survey of the literature suggests that the system of direct payments in its present form has effects which are analogous to a subsidization of agricultural land. Thus, they act to increase production and trade. Furthermore we quantify the total economic cost of production of selected commodities in the European Union and compare them to the price at which EU production is sold in foreign markets. Our analysis suggests that the costs of production in the European Union for key agricultural commodities are below international prices. It can be established that commodities for which the European Union is a net exporter are sold below cost, for extended periods of time and in substantial quantities. The EU system of decoupled payments to farmers, thus, acts to inflict economic injury to third countries. Under WTO rules, dumping can only occur when a country is an exporter. In this paper we demonstrate that on the markets included in the analysis dumping occurs on the market for wheat. The extent of injury is exemplified for Australia.Im Zuge des Reformprozesses der Gemeinsamen Agrarpolitik der Europäischen Union wurden als zentrales Instrument schließlich Direktzahlungen an die Landwirtschaft eingeführt, die von den tatsächlichen Produktionsentscheidungen entkoppelt sind. In diesem Beitrag wird analysiert, welche Produktions- und Handelseffekte durch diese Direktzahlungen an die Landwirtschaft verursacht werden und wie diese im Licht der WTO Handelsregeln zu beurteilen sind. Eine Auswertung der Literatur zeigt, dass die Direktzahlungen wie eine Subvention auf den Bodeneinsatz wirken und diese daher Produktionseffekte aufweisen. Darüber hinaus werden in diesem Beitrag die Produktionskosten in Deutschland für ausgewählte Agrargüter quantifiziert und mit den Weltmarktpreisen verglichen. Dabei zeigt sich, dass selbst unter sehr konservativen Annahmen die Produktionskosten oberhalb der Weltmarktpreise liegen. Bei Weizen ist die EU Nettoexporteur und erfüllt daher die WTO Kriterien für Dumping. Der Umfang der ökonomischen Kosten dieser Politik bei Weizen wird am Beispiel Australiens quantifiziert

IgCAMs redundantly control axon navigation in Caenorhabditis elegans

<p>Abstract</p> <p>Background</p> <p>Cell adhesion molecules of the immunoglobulin superfamily (IgCAMs) form one of the largest and most diverse families of adhesion molecules and receptors in the nervous system. Many members of this family mediate contact and communication among neurons during development. The <it>Caenorhabditis elegans </it>genome contains a comparatively small number of IgCAMs, most of which are evolutionarily conserved and found across all animal phyla. Only some of these have been functionally characterized so far.</p> <p>Results</p> <p>We systematically analyzed previously uncharacterized IgCAMs in <it>C. elegans</it>. Green fluorescent protein reporter constructs of 12 IgCAMs revealed that expression generally is not confined to a single tissue and that all tissues express at least one of the IgCAMs. Most IgCAMs were expressed in neurons. Within the nervous system significant overlap in expression was found in central components of the motor circuit, in particular the command interneurons, ventral cord motoneurons as well as motoneurons innervating head muscles. Sensory neurons are underrepresented among the cells expressing these IgCAMs. We isolated mutations for eight of the genes showing neuronal expression. Phenotypic analysis of single mutants revealed limited neuronal defects, in particular axon navigation defects in some of the mutants. Systematic genetic interaction studies uncovered two cases of functional overlap among three and four genes, respectively. A strain combining mutations in all eight genes is viable and shows no additional defects in the neurons that were analyzed, suggesting that genetic interactions among those genes are limited.</p> <p>Conclusion</p> <p>Genetic interactions involving multiple IgCAMs affecting axon outgrowth demonstrate functional overlap among IgCAMs during nervous system development.</p

Melanoma-associated adhesion molecule MUC18/MCAM (CD146) and transcriptional regulator Mader in normal human CNS

The proteins MUC18 and Mader have been identified as markers of tumor progression in melanoma cells, MUC18, also known as MCAM (melanoma cell adhesion molecule) and as CD146 (endothelial antigen), is a cell adhesion molecule belonging to the immunoglobulin superfamily, Mader is a transcriptional regulator shown to negatively regulate EGR-1. As it is known that neoplastic cells of neuroectodermal origin frequently express neuron-specific molecules, we studied whether these melanoma-associated antigens are found in normal CNS tissue. We investigated the expression of MUC18/MCAM and Mader in adult human post mortem CNS tissue by immunohistochemistry, immunoblot and two-dimensional gel electrophoresis. Our results show that Mader is preferentially expressed on neurons and glial cells and that the adhesion protein MUC18/MCAM is mainly expressed on vasculature within the CNS. These observations may have important implications for further studies investigating their possible roles in cell adhesion and proliferation control within the CNS