The application of trade and growth theories to agriculture: a survey

This article reviews a broad range of theoretical concepts available to explain international trade in agricultural and food products. For many years agricultural trade analyses were largely based on traditional perceptions of comparative advantage following neoclassical theory. Observations of agricultural trade suggest, however, that concepts from modern trade and growth theories are increasingly relevant. This survey demonstrates that many opportunities exist for applying these new theories to the modern food economy.International Development, International Relations/Trade,

INTERNATIONAL DIFFUSION OF GAINS FROM BIOTECHNOLOGY AND THE EUROPEAN UNION'S COMMON AGRICULTURAL POLICY

This paper analyses the impact of adopting or rejecting genetically modified GM crops in the EU, taking into account the European Union's Common Agricultural Policy (CAP). In this paper the productivity impact of GMs differs across crops, as it takes factor biased technology change into account. The transfer of knowledge across countries is modelled as a process of endogenous knowledge spillovers. Analyses with a multi-region applied general equilibrium model shows that the CAP protects farm income and production from not adopting GM crops in the EU but has costs in terms of welfare. The EU will forgo substantial benefits if it banned GM imports.Agricultural and Food Policy, Research and Development/Tech Change/Emerging Technologies,

Adjustment and differences in farm performance; A farm management perspective from the Netherlands

There are differences in performance between farmers. In the Netherlands this has been a major topic of research for at least 30 years. Research has shown that the managerial capacities of farmers play a major role in differences in economic and environmental performance. Management can be measured and the optimal level is not the maximum level. Farmers differ in their objectives, competences and local external situation and there-fore their strategies. These strategies can be identified. In recent years strategic management has become more important and this can be supported with consultancy. Farmers also differ in their adoption and innovation behaviour. These micro-economic results, which correlate with large differences in income and high prices of fixed assets with a limited supply, can be explained as being consistent with economic theory on perfect markets. Although these findings suggest that some farm households have attractive strategies that can cope with policy adjustments, the research supports the hypothesis but does not (yet) prove that a severe adjustment of agricultural policy e.g. towards a more market oriented policy, induces more innovation, and that due to this innovation the effects of adjusting the agricultural policy are less severe than estimated ex ante with current dynamic policy models.Farm Management,

'Cijfers noodzaak in onderhandelingen'

De Nederlandse regering wil directe steun aan boeren vervangen door een beloning voor maatschappelijke diensten. De onderhandelingen daarover in Brussel zullen moeilijk worden, voorspelt Hans van Meijl van LEI. De Europese Unie is divers en Brussel is beducht voor het inleveren van macht

Modernisation in Agriculture: What Makes a Farmer Adopt an Innovation?

Farm Management, Research and Development/Tech Change/Emerging Technologies,

Consequences of EU Biofuel Policies on Agricultural Production and Land Use

This article assesses the implications of European Union (EU) biofuel policies based on a general equilibrium framework with endogenous land supply. The results show that, without policy intervention to stimulate the use of biofuel crops, the targets set by the EU Biofuels Directive will not be met. European biofuel policies boosting demand for biofuel crops have a strong impact on agriculture globally and within Europe, leading to an increase in land use. On the other hand, the long–term declining trend in real agricultural prices may slow down or even reverse

Modernisation in Agriculture: What Makes a Farmer Adopt an Innovation?

This paper addresses the question which factors influence a farmer in deciding to adopt an innovation. We differentiate between innovations that are new to the farmer, but already well established in the sector, innovations that are early in their process of diffusion, and innovations that are new to the farmer's sector. We use an ordered probit approach to relate adoption behaviour to variables that capture characteristics of the farm (labour and financial resources and market position), of the business environment of the farm (type of production and market, degree of regulation) and of the farmer (access to information, capabilities, preferences). We use data on 865 Dutch farms and find that innovation adoption is positively related to labour resources, market position, access to information and past adoption behaviour, and negatively to solvency and the degree of market regulation.Research and Development/Tech Change/Emerging Technologies,