Marginal Farmers and Agri-Environmental Schemes: Evaluating Policy Design Adequacy for the Environmental Fallow Measure

This paper examines the factors affecting farmer's participation in an agri-environmental scheme (AES) in marginal areas implying few changes in the traditional farm management (environmental fallow). The enrolment theoretical micro-economic model reveals that farmers` (extrinsic) factors as well as decision maker's (intrinsic) factors are important for farmer's participation, without disregarding the role of social capital. The farm and farmer characteristics (intrinsic factors) as well as the influence of the social capital have been tested trough the specification and estimation of an adoption model for dry-land marginal farmers in Granada (southern Spain). 300 farmers with cereal dry-land specialization have been surveyed in order to identify factors influencing their enrolment decision and to derive scheme design modifications to improve the AES success, understood as participation rate. Due to the fact that the effects of applying this measure do not have significant effect on the food and animal production, the participation decision is hypothesized to be mainly driven by the farmer's attitude reflecting the importance of the social capital in order to educate farmers. Nevertheless, AES interaction with other agricultural policies, such as LFA compensatory payments, restraints the possibility of this scheme's success specially when these payments imply greater financial resources. Further research is needed to see whether this same pattern holds when considering AES implying a more intensive change in the farm management.Agri-environmental policy, participation, marginal areas, policy design, Environmental Economics and Policy,

When more is less: the effect of multiple health and nutritional labels in food product choice

Consumers are facing increasing information on health and nutritional aspects of foods, an important source of which is that presented in food packages. Prior research has identified that this information is positively valued, but the effect of multiple information items simultaneously is not so well understood. A choice experiment has been conducted to identify the effect of multiple health and nutrition information sources in two products which represent both a healthy and less-healthy food (pork Frankfurt sausages and plain yoghurt respectively). Results show that although highly heterogeneous, preferences seem to positively value individual information items and negatively value the presence of more than one item, specially if the item is a health claim. Premiums consumers are willing to pay represent a significant percentage of retail price, specially for the less healthy food product which also faces lower retails prices.Nutritional information, nutritional claims, health claims, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety,

Re-considering Agri-Environmental Schemes premiums: the impact of fixed costs in sign-up decisions

Current EU legislation states that premiums for agri-environmental schemes must be calculated based on forgone profit and additional costs. This approach has been implemented for the last decades without much success in farmer uptake, a situation that might even worsen as the 20% additional payment as incentive for participation has been excluded in the new EU Rural Development Framework 2007-2013. This paper tries to explain why supply side estimated premiums might not suffice to assure farm profitability investigating the role that fixed costs have on adoption. A farm profit maximizing model is proposed where fixed and transaction costs are split from variations in marginal profit. This model is then developed to identify the potential barriers to adoption associated with the presence of fixed compliance costs. A sample of farmers eligible for an agri-environmental scheme entailing a land-use change is used to test whether the theoretical models are valid for explaining adoption decisions. Two different econometric specifications are used to identify the role of fixed costs, one assuming that uptake and surface decisions are governed by the same variables and another distinguishing both decisions. Estimation results show that there is an adoption barrier derived from the initial farm technical assets and know-how affecting the fixed compliance costs of introducing the new crop. Therefore not compensating for fixed costs can curtail agri-environmental policy success. In addition, there is an adoption barrier derived from transaction costs which are reduced in the presence of social networks.Agri-environmental schemes, fixed costs, adoption, Environmental Economics and Policy,

IDENTIFYING CONSUMER VALUATION PATTERNS OF ALTERNATIVE NUTRITION AND HEALTH LABELS COMBINATIONS: EVIDENCE FROM SPAIN

The provision of nutrition and health information on food labels is increasing as an industry and regulation answer to the growing consumer concern with diet-health relationships. Prior research has shown that the presence of this information on food labels is valued by consumers; however there is still no clear pattern on which labelling options are more valued and how different consumers value the different options. This paper analyses the results of a choice experiment conducted to identify the effect of multiple health and nutrition information sources on consumer food choice, taking into account preference heterogeneity using a latent class approach. Results show that different consumer groups can be identified with clearly distinguishable valuation and behavioural patterns. A minority of consumers attaches high WTP to the provision of additional information in the nutrition facts panel, however this is not show for a vast majority who value claims. Moreover, not taking into account this preference heterogeneity can lead to policies that do not maximize consumer welfare. Based on the characteristics of consumers identified in each group, recommendations are made as to how both industry and public administration can move forward with the development of nutritional labelling guidelines or policies.Nutrition facts panel, latent class, choice experiments, consumer, interactions, health claims, nutrition claims, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Health Economics and Policy,

Consumers’ willingness to pay for biodiesel in Spain

Consumer/Household Economics, Resource /Energy Economics and Policy,

Reconsiderando la metodología FAO sobre el cálculo del número de personas que pasan hambre en el mundo

FAO measure of undernourishment is calculated based on three main parameters: dietary energy supply (DES), minimum dietary energy requirement (MDER), and the coefficient of variation of dietary energy consumption (CV). In the current implementation of this methodology, the DES and the MDER change over time, as would be expected. The CV, however, remains constant. However, we expect the CV to change over time and be a function of income and prices. This paper discusses why the CV should change in response to changes in these variables, and suggests a practical way to estimate changes in the CV over time in the absence of survey data.Income, prices, consumption, undernourishment, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, E21, O11, O19,

Las preferencias discontinuas en los experimentos de elección: impacto en el cálculo de la prima de los programas agroambientales

En los experimentos de elección se presupone que los individuos consideran todos los atributos que describen un bien a la hora de escoger su opción preferida. Sin embargo, existe evidencia de que los individuos pueden obviar algún atributo. Este trabajo investiga el impacto derivado de las preferencias discontinuas en las estimaciones de la compensación necesaria para acogerse a la medida agroambiental relativa a la siembra de leguminosas en secano. La consideración de las preferencias discontinuas mejora la bondad de ajuste de los modelos, sin embargo únicamente afecta de manera significativa a la compensación demandada por uno de los cuatro atributos no monetarios que definen el programa agroambiental para la submuestra de los agricultores no participantes y en dos atributos para la submuestra de participantes en el programa agroambiental.Experimento de elección, medidas agroambientales, modelo logístico de parámetros aleatorios, precios implícitos, preferencias discontinuas., Agribusiness, C25, C52, Q12, Q18.,

Incorporating Uncertainty and Cero Values into the Valuation of Protected Areas and Species

Under the Spanish conservation law, compensation is envisaged for the damage associated with all actions that reduce the quantity or quality of protected areas and species. This paper provides a tool to evaluate the monetary equivalent of this damage. We conduct a contingent valuation exercise to estimate the existence value related to protected areas and species in Aragon. This estimate is then reconsidered including the possibility of zero bids and also the possibility of uncertain preferences for non-familiar goods. Considering these two effects, mean values are reduced significantly giving support to previous recommendations of dividing by two contingent valuation estimates from dichotomous choice question formats.natural heritage, contingent valuation, Spike model, uncertainty, Land Economics/Use, B23, C24, C42, C52, D62, Q26,

Estrategias para incrementar la participación en programas agroambientales: el papel del capital social

El carácter voluntario de los programas agroambientales hace que su éxito dependa del grado de aceptación por parte de los agricultores. La decisión de participación es compleja, ya que está condicionada por una gran variedad de factores. Este estudio amplía el análisis de la elección de la mejor alternativa de gestión para una explotación agraria en presencia de programas agroambientales analizando de manera explícita el papel que juega el capital social. Los resultados señalan la importancia de este concepto, tanto en medidas con escasos requisitos de cambio como en medidas más exigentes para los agricultores.Programas agroambientales, adopción, capital social, Agricultural and Food Policy, Q12, Q58, C25,

EU commodity market development: Medium-term agricultural outlook. Proceedings of the October 2017 workshop.

The workshop on the 'EU commodity market development: Medium-term agricultural outlook' is an integral part of the intensive validation procedure of the results of the European Commission’s report on 'Prospects for EU agricultural markets and income'. It provides a forum for presentations on preliminary 10-year-ahead projections in EU agricultural commodity markets, and discussing in depth the EU prospects in a global context. This year the workshop was held on October 19-20 in Brussels. The workshop was jointly organised by the Joint Research Centre (JRC) and the Directorate-General for Agriculture and Rural Development (DG AGRI). Participants included policy makers, modelling and market experts from various countries, as well as stakeholders of the agri-food industry. This document summarises the presentations and discussions on the macroeconomic and energy assumptions associated with this outlook, and on each of the EU agricultural markets addressed (arable crops, biofuels, sugar, wine, milk and dairy, meat).JRC.D.4-Economics of Agricultur