Modeling Greenhouse Gas Emissions on Diversified Farms: The Case of Dairy Sheep Farming in Greece

Agricultural activity has been identified as a considerable source of Greenhouse Gas (GHG) emissions. Emissions from ruminant livestock farms are produced particularly due to CH4 emissions from enteric fermentation. Dairy sheep farming is the most important livestock production activity in Greece, characterized by a high degree of farm diversification. This paper addresses the issue of the evaluation of GHG emissions of Greek dairy sheep farms, through the use of a whole farm mathematical programming model that uses farm level data and optimizes total gross margin. Mathematical programming models are an appropriate tool, when addressing complex issues, such as GHG emissions. The analysis is undertaken on different farm types, instead of a representative farm, to account for the heterogeneity of the sheep farming activity. Thus, marginal abatement cost and appropriate mitigation strategies for diversified farms are determined. The results indicate that intensive farms cause few emissions per produced milk (2.7kg of CO2 eq). Also, the marginal abatement cost ranges among 51-64€/t for all types of sheep farms (at 20% abatement level). The model used in this analysis and the results it yields are useful to researchers and policy makers, who aim to design efficient mitigation measures.Dairy sheep farming, linear programming, GHG emissions, abatement cost, Environmental Economics and Policy,

Greenhouse gas mitigation options in Greek dairy sheep farming: A multiobjective programming approach

Dairy sheep farming is an important agricultural activity in the Mediterranean region. In Greece, sheep farming offers employment and income to thousands of families. On the other hand, ruminant livestock farming has been identified as a considerable source of Greenhouse Gases (GHGs). In this analysis, multiple objectives of policy makers are incorporated into a decision making model that yields a number of alternative mitigation strategies, for Greek dairy sheep farming. Each policy alternative achieves the environmental and socio-economic objectives at certain levels. The policy maker can then select the preferred alternative. The model utilizes detailed farm level data, which increases the accuracy of the results. The analysis is undertaken on two different farming systems identified in Continental Greece and indicates that there is a considerable degree of conflict among the GHGs minimization objective and the gross margin and labor maximization objectives. The results also indicate that the mitigation options for sheep farming involve the reduction or/and the intensification of the activity and also changes in the production orientation and feeding practices. The model, can, therefore, be a useful tool for policy makers, since it allows them to design appropriate measures, according to the mitigation option that best meets their preferences

Multiple goals in farmers’ decision making: The case of sheep farming in Western Greece

Management strategies and performance differ among farmers, as a result of different, multiple and often conflicting goals. Many approaches to building farm level models that incorporate multiple goals have been developed over the years, most of which share a common weakness. The determination of the goals to be used as attributes in the utility function is the result of a highly interactive process with the individual farmer, often difficult to implement. In this study, we use a non-interactive methodology, described in recent literature, to elicit the utility function of selected sheep farmers in western Greece, since farmers often appear reluctant to answer straightforward questions about their goals and preferences. Τhe results indicate that sheep farmers aim at the achievement of multiple goals, and that the maximization of gross margin is an important attribute in the utility function of mainly larger farms with a commercial orientation. The minimization of purchased forage, family labor and cost of hired labor are also important goals, especially for small and less commercial family farms. The multi objective farm level model built reproduces the Greek sheep farmers’ behavior more accurately and can replace the single objective model in decision making or agricultural planning problems.Sheep farming, mixed integer programming, multiple goals, noninteractive elicitation, Livestock Production/Industries, C61, D21, Q12,

Utility-derived Supply Function of Sheep Milk: The Case of Etoloakarnania, Greece

Sheep farming is an important agricultural activity in Greece, since it contributes significantly to the country’s gross agricultural production value. Recently, sheep milk production received further attention because of the increased demand for feta cheese and also because of the excessive price level suffered by consumers, in contrast with the prices paid at the farm level. In this study, we suggest the use of multicriteria analysis to estimate the supply response of sheep milk to price. The study focuses in the Prefecture of Etoloakarnania, located in Western Greece, where sheep farming is a common and traditional activity. A non-interactive technique is used to elicit farmers’ individual utility functions which are then optimized parametrically subject to technico-economic constraints, to estimate the supply function of sheep milk. Detailed data from selected farms, representing different farm types and management strategies, have been used in the analysis. The results indicate that the multicriteria model reflects the actual operation of the farms more accurately than the gross margin maximization model and therefore leads to a more robust estimation of the milk supply.Sheep-farming, multi-criteria, utility function, milk supply

Assessing economic incentives for dairy sheep farmers: A real options approach

New policy measures have been introduced to transform Greece’s agriculture into a more modern and environmentally friendly agriculture. Adopting new technology and environmentally friendly production systems involves risk and uncertainty, which in turn stress the need for well designed policy schemes. This study attempts to examine the effects of income variability upon the decision to adopt new technology and environmentally friendly production systems by introducing the real options analysis to dairy sheep farming in Greece. The real options procedure revealed that the investment in new technology in dairy sheep farms under organic scheme is profitable. Attractive economic incentives that are offered by the applied agricultural policy to young farmers compensate for the risk and uncertainty of the activity.agricultural policy, organic sheep farming, real options, Livestock Production/Industries,

Policy implementations for organic agriculture: A real options approach

Organic farming has experienced a vast increase within the EU, despite the fact that it implies greater risk and uncertainty than that of conventional farming. This is the result of the increased environmental concern and the rising demand for quality food, which led to the implementation of the organic policy scheme. Nevertheless, the production of organic fruits, including cherries, is still limited in the EU. Farmers will adopt this alternative farming system only if the support provided by the existing policy regime out weights the increased risk and uncertainty. This study explores the effectiveness of the current policy measures for the production of organic cherries in Greece, using the real options methodology. The framework of real options analysis is an appropriate form of analysis so as to examine the investment’s profitability under risk and uncertainty and assess the economic incentives offered to organic farmers. The results indicate that the economic incentives provided by the existing policy regime, compensate for the risk and the uncertainty that farmers are undertaking. Furthermore, this study reveals that the profitability of the economic activity explored, lies mainly on the subsidies organic farmers receive.Keywords: organic agriculture, real options, agriculture policy, uncertainty, Agricultural and Food Policy, D81, Q14, Q18,

Assessing agricultural policy incentives for Greek organic agriculture: A Real options approach

The adoption of organic agriculture or livestock involves risk and uncertainty, and to overcome this, well designed schemes are required. Are the current support measures attractive for farmers who wish to convert to organic? At first, this study tries to assess the optimal investment trigger for a new comer into organic dairy sheep farming system and secondly, to evaluate the investment profitability of an existing organic farmer in his attempt to improve his farm. Results indicate that the framework of real options analysis is an appropriate form of analysis if the question of investment profitability is examined under risk and uncertainty and the role of economic subsidies offered to organic farmers is assessed.organic agriculture, dairy sheep farming, real options, agriculture policy, Agricultural and Food Policy, Farm Management, Land Economics/Use,

Estimating utility functions of Greek dairy sheep farmers: A multicriteria mathematical programming approach

Mathematical programming models are commonly used to approach decision making in livestock farms. The majority of these models assume gross margin maximisation as the sole objective of farmers. In this study an alternative multicriteria model is built to test the hypothesis of the multiplicity of the objectives of Greek sheep farmers. A farm typology is constructed to account for diversified farm structures and a non-interactive methodology is used to elicit the utility function of farmers. The results of the analysis indicate that the multicriteria model allows for a better representation of the farms, compared to the gross margin maximisation model

MODELLING ECONOMIC ALTERNATIVES FOR TOBACCO PRODUCERS: THE CASE OF SHEEP FARMING

After the introduction of the new tobacco regime, many regions in Greece, formerly specialized in tobacco cultivation, are now facing serious threats of economic and social decline. Sheep farming is considered by many analysts as a viable alternative to tobacco. This study analyses the financial performance of sheep production and the risk that producers are taking. Through a stochastic efficiency analysis with respect to a function we explore the economic viability of conventional and organic sheep farming; key factors determining the economic outcome of these activities are also investigated. Both organic and conventional sheep farming appear as viable alternatives. The viability of organic farming lies, mainly, in organic payments. Conventional farming generates a slightly lower but less uncertain net return.organic farming, dairy sheep, risk analysis, SERF, agricultural policy, Agricultural and Food Policy, Farm Management, Livestock Production/Industries, Risk and Uncertainty,

The production cost of sheep milk in intensive and extensive breeding farms in Greece

The presentation includes the following sections: Objectives Sheep farming in Greece Data Methods Results of the analysis Concluding remark