Influence of rural development policy targets on farm efficiency: An efficiency study of labour intensive grape growing family farms

The aim of this study was to provide an empirical analysis of the performance of Macedonian grape-growing family farms assessed in terms of technical, allocative, and economic efficiency and to relate aspects targeted in the Rural Development Program (RDP) to the efficiency scores. The study was based on a two-step efficiency analysis, applying Data Envelopment Analysis (DEA), in the first step, and Tobit regression analysis in the second step. Data were collected between 2006 and 2008 through face-to-face interviews with 300 grape growers in the Tikvesh vineyard district in Macedonia, each represented by the three-year average of inputs, outputs and prices. The results indicated a large potential for efficiency improvement. The average efficiency was 0.71 for technical efficiency, 0.79 for allocative efficiency and 0.56 for economic efficiency. More efficient farms used smaller areas, irrigated a smaller proportion of total area, used less hired labour, used and paid less for inputs, but produced a larger quantity, with higher value per hectare. RDP measures targeted at stable yield, yield quality, and modernisation of equipment were important for enhancing and improving farm efficiency and consequently, the competitiveness of the entire sector. --Data Envelopment Analysis,rural development program,Tobit regression

Is emissions trading a solution to climate change?- A study with the focus on the European Union Emissions Trading Scheme

Climate change affects us all through rising sea levels, environmental degradation and rising temperatures. The issue with climate change emerges from the fact that the discharge of carbon dioxide creates negative externalities, which causes the market to reach an inefficient allocation. The European Union has chosen to respond to the problem with a market-based policy and established an emissions trading scheme (ETS) to create a market for carbon dioxide. The market puts a price on the right to emit and therefore creates an incentive for companies to reduce their emissions. Whether this market has had any impact on the emissions of carbon dioxide and can therefore be a solution to climate change is the question being treated in my report. The question is addressed through a qualitative approach where environmental economic theory is compared with the reality of emissions trading. The progress towards emission reductions is determined based on current reports from leading organizations such as the European Environmental Agency. The market for carbon dioxide in the European Union has so far exhibited some proof of contributing to emission reductions, but has the at the same time encountered issues such as a loose cap put on the carbon dioxide emissions, which has led to an unstable price on the emission allowances. The excessive lobbying from companies for these allowances is also a problem with the marked-based policy. On the other hand, the EU ETS has in some periods successfully put a price on carbon dioxide and companies have responded to the policy. Based on the current report from the European Environmental Agency, small emission reductions will be reached through the EU ETS. But the target of an emission reduction of 8% relative to the base year 1990 to which the EU-15 has common committed to in the Kyoto Protocol, will probably not be reached. Based on my findings, the EU ETS in its current form is not the solution to climate change, however may together in a policy mix with other policies targeting individual behavior, technical change and clean energy be a part of the solution to climate change

Reasons for developing or exiting business in the primary sector - A study of milk farmers in central-west Sweden

The aim of this research was to study empirically what characterize farms and farmers that choose to develop the milk production at their farms. The background was that several farms have exited milk production, which threatens both goals about rural development and also the activities of the dairies. Based on survey data from 313 milk producing farms in central-west Sweden and structural equation analysis, it was concluded that farms that are accustomed to changes will develop their milk production further. The results also showed that farms which are more dependent on their milk production are more likely to develop their milk production. Furthermore, it was indicated that satisfactory supply of qualified labour stimulates development of milk production, as do location of the farm at a longer distance from common facilities. The results also showed that the farmers who develop their farms have more positive expectations about profitability in milk production and are also less risk averse. Finally, the results indicated that information through trade magazines and similar oneway communication channels are used by those who develop their milk production and that farmers who develop their milk production are those who take actions to evaluate their strategic decisions more seriously.farm management, rural development, strategic decision making, Farm Management, Livestock Production/Industries,

Understanding dairy farmers' trade-offs between environmental, social and economic sustainability attributes in feeding systems: The role of farmers' identities

There is scope for improving the sustainability of intensive dairy farms through the uptake of sustainable production practices such as more grass-based feeding systems. Such feeding systems can reduce feed-food competition and the environmental impacts of feed production, among other farm-level and societal benefits. However, empirical research on how farmers' feed choices mis(align) with sustainability transitions and the associated drivers is limited. This paper explores the trade-offs that farmers make between the environmental, social and economic sustainability impacts of grass-based feeding systems based on data from Swedish dairy farmers. Using an identity-based utility framework and a hybrid latent class model, we find substantial heterogeneity in dairy farmers' trade-offs between feed-related sustainability attributes: greenhouse gas emissions, biodiversity, animal welfare, feed self-sufficiency, feed cost and milk yield. Furthermore, our findings demonstrate that farmers who are strongly interested in the environmental and social sustainability impacts of their dairy feeding systems, beyond economic gains, are motivated mainly by their pro-environmental and pro-social identities. Overall, our findings imply that identity-enhancing interventions are promising policy instruments for encouraging the uptake of more grass-based feeding systems

Information provision and preferences for more sustainable dairy farming: Choice experimental evidence from Sweden

Dairy farming in Europe faces profound environmental, social, and economic sustainability challenges, which are of significant policy interest. These challenges support the need for a transition toward the uptake of more sustainable dairy farming practices. This paper examines the effects of an advisory instrument "balanced sustainability information" on farmers' preferences for more grass-based feeding systems using a between-subjects design and a discrete choice experiment among a sample of Swedish dairy farmers. Conceptually, we develop a state-dependent utility framework with Bayesian updating to motivate the impact pathway. Our results demonstrate that on average, balanced sustainability information has negligible effects on farmers' feed choices, which could be a consequence of opposing responses to the information, among others. Considering farmer heterogeneity based on their identities and prior knowledge, we find support for some evidence of treatment effects. Our findings highlight important and policy-relevant critical reflections about overoptimistic expectations of information provision as an instrument to nudge behavioral change toward more sustainable farming practices

Influence of rural development policy targets on farm efficiency: An efficiency study of labour intensive grape growing family farms

The aim of this study was to provide an empirical analysis of the performance of Macedonian grape-growing family farms assessed in terms of technical, allocative, and economic efficiency and to relate aspects targeted in the Rural Development Program (RDP) to the efficiency scores. The study was based on a two-step efficiency analysis, applying Data Envelopment Analysis (DEA), in the first step, and Tobit regression analysis in the second step. Data were collected between 2006 and 2008 through face-to-face interviews with 300 grape growers in the Tikvesh vineyard district in Macedonia, each represented by the three-year average of inputs, outputs and prices. The results indicated a large potential for efficiency improvement. The average efficiency was 0.71 for technical efficiency, 0.79 for allocative efficiency and 0.56 for economic efficiency. More efficient farms used smaller areas, irrigated a smaller proportion of total area, used less hired labour, used and paid less for inputs, but produced a larger quantity, with higher value per hectare. RDP measures targeted at stable yield, yield quality, and modernisation of equipment were important for enhancing and improving farm efficiency and consequently, the competitiveness of the entire sector

Measuring sustainability at farm level – A critical view on data and indicators

Measuring sustainability at farm level is a priority for both research and policy and requires sustainability indicators to track progress. Indicators make the sustainability concept more concrete and guide farm level decisions, playing a decisive role in determining food system impacts on societies and the environment. Data availability is often a limiting factor when choosing indicators, but not enough attention is paid to the role of data in indicator construction and assessment results. This paper assessed the critical role of data in indicator construction and the potential limitations that current data availability imposes on farm-level sustainability assessments, using the example of dairy farms in Sweden. To do so we used a five-step approach consisting of a literature review, an inventory of data sources, an expert consultation, a matching and gap analysis, and a critical assessment. We found that 20 indicators categorized under 12 out of 20 sustainability themes had measurement issues due to missing scope, temporary data, or additional data requirements. At least some indicators within all themes in the social and economic dimensions were measureable, while all indicators for pesticides, non-renewable energy, and soil quality in the environmental dimension had measurement issues. In the critical assessment, we argue that for some indicators, there are trade-offs between data availability and issues of comprehensibility and analytical validity. Furthermore, we found that no single data source could be used to measure all themes; which means that merging of different data sets is needed for a broader on-farm sustainability assessment. Our findings are relevant for the discussion on sustainability indicators and will also inform future programs aimed at collecting sustainability data at farm level, which should consider the broad data needs identified, and the potential to merge data to enable holistic sustainability assessments

Intra-household risk perceptions and climate change adaptation in sub-Saharan Africa

We examine the effects of spouses' climate risk perceptions (CRPs), defined by their beliefs about unfavourable climatic events and associated damages, on climate change adaptation (CCA) and the observed gender gap in adaptation. Our analysis uses the intra-household data collected by independent interviews with 1,274 female and male spouses in Kenya, Uganda and Senegal. By addressing the CRP endogeneity issue using the exogenous weather shocks during data collection months as instruments, we find that a higher CRP of both female and male spouses increases their probability of adopting CCA strategies. We also find that a higher CRP of female spouses reduces the adaptation gap by increasing their relative adoption of soil and water conservation practices. Our results highlight the importance of understanding gender-differentiated behavioural and economic factors to design effective climate policy interventions

Assessing Farm Efficiency Through Quantities or Revenues and Costs: Does It Matter?

We examined the effect of using input and output quantities as compared with costs and revenues when estimating farm-level efficiency scores and ranking. We used farm-level data from the 2015 Ethiopia Rural Socioeconomic Survey (ERSS) where production inputs and outputs in quantities as well as monetary units could be distinguished. Average technical efficiency scores of 72.2% and 68.6%, respectively, were found for analysis based on quantities and on costs and revenues. Efficiency ranking differed significantly. Results suggest that type of data compilation introduces bias to the efficiency assessment and that conclusions may be unclear, which complicates policy advice

Rationalising inefficiency in dairy production: evidence from an over-time approach

We argue that inefficiency can be part of a strategic self-repositioning adjustment process beyond the general interpretation of poor performance. Based on the rational inefficiency hypothesis, we examine the simultaneous dynamics of efficiency and animal welfare improving investments over time in dairy farms. Using rotating panel data from Swedish dairy farms and implementing multidirectional efficiency analysis and Markov transitional dynamic analysis, the paper provides evidence that for some farms inefficiency is temporary and part of rational decision along their trajectory towards multi-efficiency (high efficiency-high animal welfare). The findings show the importance of time dynamics in efficiency achievements with implications to cross-sectional view