Annual Conference of the Agricultural Economics Society
Doi
Abstract
peer-reviewedThe concept of sustainability is one of the forefront issues in global agricultural production at
present, given mounting pressure to increase food production in both a socially responsible
and environmentally friendly way. From an Irish perspective the sustainable intensification
of agriculture is of particular relevance given ambitious targets to increase milk production
by 50 percent by 2020, in the context of European milk quota removal. Alongside this,
environmental targets may be specified, meaning that expansion would have to be achieved
in a sustainable way. To evaluate dairy farm-level sustainability a series of indicators are
developed here using Teagasc National Farm Survey FADN (Farm Accountancy Data
Network) data for Ireland from 2012. Three dimensions, reflecting the multifaceted nature of
sustainability (economic, environmental and social) are considered. Given the environmental
challenges inherent in the sustainable intensification of agriculture, it is encouraging to
observe that the more intensive, top performing farms (in an economic sense) emit relatively
less greenhouse gases when compared to their less intensive counterparts. Conversely, the
better performing farms in economic terms tend to have higher nitrogen surplus per hectare
on average. This is consistent with their higher rates of production intensity but poses a
challenge in terms of sustainable expansion. That said this analysis demonstrates that the
nitrogen use efficiency of milk production is positively correlated with economic
performance, with more intensive farms producing relatively more milk per kg of nitrogen
surplus. From a social perspective demography also tends to be correlated with economic
performance. These indicators allow for the continued assessment of the sustainability status
of Irish farming