A project-based system for including farmers in the EU ETS

Farmers in the EU do not trade greenhouse gases under the Kyoto agreement. This is an empirical puzzle because agriculture is a significant contributor of greenhouse gases (GHG) in the EU and may harvest private net gains from trade. Furthermore, the US has strongly advocated land-use practices as 'the missing link' in past climate negotiations. We argue that farmers have relatively low marginal reduction costs and that consequences in terms of the effect on permit price and technology are overall positive in the EU Emission Trading System (ETS). Thus, we propose a project-based system for including the farming practices in the EU ETS that reduces the uncertainty from measuring emission reduction in this sector. The system encourages GHG reduction either by introducing a new and less polluting practice or by reducing the polluting activity. When doing so, farmers will receive GHG permits corresponding to the amount of reduction which can be stored for later use or sold in the EU ETS.     

Toward Improved Environmental and Social Management of Indian Shrimp Farming*

In the last decade, Indian shrimp aquaculture production tripled from 30,000 tons (1990) to 102,000 tons (1999). This fast development, combined with a lack of adequate planning and regulation, caused a number of environmental problems and social conflicts, including conversion of mangroves, water pollution, and salinization of drinking water wells. Because of the significant investments made in shrimp culture and the size of the environmental and social impacts, the formulation of a regulatory framework for shrimp aquaculture has been subject to an intensive debate between the aquaculture and the environmental lobbies. Following an order from the Supreme Court (1996), the Aquaculture Authority was established and a regulatory and institutional framework for the shrimp aquaculture sector has been set up. However, implementation of the system is still defective, and there is an urgent need for improvement. Farmers are increasingly able to prevent the devastating white spot disease in shrimps, and in the absence of proper planning and regulation, further expansion of shrimp production could result in significant additional environmental and social costs. The environmental and social management of Indian shrimp farming can be improved through a mix of policy measures, including strengthening of the license system, more effective enforcement of regulations, the use of economic incentives, and increased monitoring of environmental and social impacts.     

Environmental Awareness, Economic Orientation, and Farming Practices: A Comparison of Organic and Conventional Farmers

/ This study examines similarities and differences between organic and conventional farmers. We explore the factors that underlie farmers' conservation attitudes and behaviors, including demographic and farm characteristics, awareness of and concern for environmental problems associated with agriculture, economic orientation toward farming, and self-reported conservation practices. A series of intensive personal interviews was conducted with 25 farmers in Washtenaw County, Michigan, USA, using both qualitative and quantitative survey methods. The findings indicate that both groups of farmers share a concern for the economic risks associated with farming, although the organic farmers reported a significantly greater concern for long-term sustainability and a greater willingness to incur present risk to gain future benefits. Organic farmers expressed a greater awareness of and concern for environmental problems associated with agriculture. Organic farmers also scored significantly higher on a multifaceted measure of conservation practices, although both groups had a fairly high adoption rate. Implications of these findings are discussed, relative to economic risks of farming, implications for new farmers, effectiveness of conservation education and government programs, and impact of farm size and crop diversity.KEY WORDS: Environmental attitudes; Conservation behaviors; Organic farming; Agricultural sustainability     

Rural development and ecological management of endogenous resources: the case of mountain olive groves in Los Pedroches comarca (Spain)

In this paper, we explore the dissemination potential of organic farming in Andalucía, using the case of Olivarera de los Pedroches, a small farmer cooperative. This will be done in the search for an agroecological strategy in the olive tree organic agricultural sector. A comparative analysis of organic and conventional olive oil production is made: both in economic terms, and regarding employment creation, taking into account its environmental benefits. This will permit us to shed light on certain elements necessary in the design of rural policies linked to this economic sector, and in the family farming social stratum. After a brief analysis of the Andalucían inequality structure in rural areas—both historically and at present times—this work presents the following issues: (i) a systematic characterization of European olive cultivation, with special reference to the Spanish and Andalucían situations; (ii) an exploration of the socio-economic impact of the case study within the context of the major actors involved, and their relations in terms of its reproducibility, taking into account their relationships with institutional and policy arrangements. Organic agriculture in Spain has developed slowly since 1995—the year in which aid towards this type of production began to be established—and, at present, begins to show an exponential increase. Many farmers began the transition to ecological handling of olive groves. Consequently, the organic management of the olive groves and the sale of organic olive oil can be a stimulus to farmers to increase their profits. Hence, it can be a fundamental pillar on which to establish rural development in areas with a high level of importance concerning this crop. In this work, data clearly show that, in spite of high costs, organic olive farming has advantages over conventional agriculture in terms of incomes and employment. Copyright © 2001 John Wiley & Sons, Ltd.     

OPTIMAL PROFITS UNDER ENVIRONMENTAL CONSTRAINTS: IMPLICATIONS OF NUTRIENT AND SEDIMENT STANDARDS1

To reduce nonpoint source pollution from nutrient, chemical, and sediment runoff, a number of environmental policy standards have been proposed. Such standards could be used to reduce nonpoint source pollution from nutrient, chemical, and sediment runoff to impaired water bodies. State governments can use voluntary approaches to meet nonpoint source pollution reduction goals. However, the practices that lower net returns will not be voluntarily adopted by farmers. Crop rotations and tillage practices may help producers to comply with the environmental standards while minimizing losses in farm profits. This study compares runoff from crop rotation practices and conventional continuous row cropping systems in Mississippi. The results are compared for different tillage systems in order to examine robustness of results. Nutrient runoff and sediment runoff are simulated using the Erosion Productivity Impact Calculator (EPIC). Sensitivity analysis of the sediment and nitrate reductions at 15 percent, 25 percent, and 35 percent are conducted. Under these scenarios, net returns are optimized under environmental constraints, and the marginal cost of sediment reduction ranges from US$1.61 to US$9.63 per ton depending on soil conditions, while the corresponding nitrate and phosphorus reductions costs range from US$1.21 to US$7.08 per kg and from US$0.09 to US$31.91, respectively. The empirical results from this study indicate that a nitrate reduction policy is relatively less costly than a sediment reduction policy. The results also demonstrate the importance of geophysical conditions and policy costs, which vary across regions.     

Impacts of farmer field schools on productivity of vegetable farming in Indonesia

This study assesses the impact of farmer field schools (FFS) on the productivity of vegetable farming in vegetable‐producing areas of East Java and Bali, Indonesia. The FFS have equipped over 3,000 vegetable farmers with integrated crop management knowledge applicable to chilies and tomatoes. The FFS are expected to enhance farmers’ capacity such that they can increase production. This study employs a difference‐in‐differences (DiD) method to overcome selection bias. A survey of 250 FFS‐graduated farmers and 250 non‐FFS farmers were purposively randomly selected from the overall community of farmers. Focus group discussion was used to support the survey. The results indicate that FFS were successful for enhancing farmers’ capability in vegetable farming. Farmers who participated in FFS have higher productivity than those who did not. Farmers also could adapt and adopt the knowledge gained from FFS as they underwent a process of learning by doing. The impacts of the increase in farmers’ capacity can be more evident if weaknesses during the FFS preparation and implementation can be overcome, to ensure more participation, flexibility to fit different conditions/needs and continuous learning.     

Issues,impacts, and implications of shrimp aquaculture in Thailand

Water quality impacts to and from intensive shrimp aquaculture in Thailand are substantial. Besides the surface and subsurface salinization of freshwaters, loadings of solids, oxygen-consuming organic matter, and nutrients to receiving waters are considerable when the cumulative impacts from water exchange during the growout cycle, pond drainage during harvesting, and illegal pond sediment disposal are taken into account. Although just beginning to be considered in Thailand, partial recirculating and integrated intensive farming systems are producing promising, if somewhat limited, results. By providing on-site treatment of the effluent from the shrimp growout ponds, there is less reliance on using outside water supplies, believed to be the source of the contamination.The explosion in the number of intensively operated shrimp farms has not only impacted the coastal zone of Thailand, but has also resulted in an unsustainable aquaculture industry. Abandonment of shrimp ponds due to either drastic, disease-caused collapses or more grandual, year-to-year reductions in the productivity of the pond is common. To move Thailand towards a more sustainable aquaculture industry and coastal zone environment, integrated aquaculture management is needed. Components of integrated aquaculture management are technical and institutional. The technical components involve deployment of wastewater treatment and minimal water-use systems aimed at making aquaculture operations more hydraulically closed. Before this is possible, technical and economic feasibility studies on enhanced nitrification systems and organic solids removal by oxidation between production cycles and/or the utilization of plastic pond liners need to be conducted. The integration of semi-intensive aquaculture within mangrove areas also should be investigated since mangrove losses attributable to shrimp aquaculture are estimated to be between 16 and 32% of the total mangrove area destroyed betweeen 1979 and 1993.Government policy needs to devote as much attention to sustainability issues as it has on promoting intensive pond culture. Such a balanced policy would include training and education monitoring and enforcement, rehabilitating abandoned ponds, managing land use within the coastal zone, more community involvement, and government reorganization to eliminate overlapping jurisdictions among agencies.As integrated aquaculture management becomes more the practice than the exception, less risk of crop failure to the industry and reduced discharge loadings from intensively managed shrimp ponds to receiving waters can be expected. Projected limitations on growing and marketing shrimp in the future, such as scarcity of land and broodstock, continued disease outbreaks, negative publicity, regulatory enforcement, water treatment and solids disposal costs, and increased competition from growers in other Asian countries will also drive the government and the industry towards adopting integrated aquaculture management.The data for this paper was obtained while the senior author was a Visiting Fulbright Researcher at the Coastal Resources Institute (CORIN), Prince of Songkla University, Hat Yai, Songkhla, 90112, Thailand.     

“Low-Salt” Shrimp Aquaculture in Thailand: Goodbye Coastline, Hello Khon Kaen!

/ Intensive shrimp culture has been confined to relatively narrow bands of land along the seashores of tropical developing nations due to the need for large volumes of saltwater for water exchange during the culture period. Recent developments in Thailand suggest, however, that this close association could soon be a thing of the past. Large numbers of Thai farmers are adopting low-salinity culture systems that rely upon sea or salt pan water that is trucked inland. This development greatly increases the potential for establishing shrimp cultivation much further from the coast than previously believed possible. The migration of intensive shrimp farming into freshwater environments, however, raises serious concerns over the disposal of pond effluents and the impact of saltwater intrusion on surrounding agricultural activities. In the absence of effective government regulation of the expansion and operation of the shrimp culture industry, supporting local nongovernmental organizations (NGOs) and community initiatives may be the only means of minimizing the negative impacts of shrimp farming on rural communities.KEY WORDS: Aquaculture; Shrimp; Salinity; Thailand     

Resolving conflicting priorities in Ontario agriculture

Changes in global patterns of grain production have affected the profitability of commercial, cash-crop agriculture in North America. The current financial crisis has highlighted a perceived conflict between the priorities of (1) strengthening net farm profit, (2) maintaining the productive potential of the land base, (3) enhancing the health and cohesiveness of the agricultural community, and (4) addressing societal demands for safe foodstuffs. Reducing input costs by reducing the need for privately owned machinery can minimize the scale-dependence of agricultural practices, as illustrated with examples involving silage and intensively managed pasture in Ontario. This approach could improve farming opportunities for nontraditional, part-time farmers, and at the same time, create a niche for professional custom operators and managers. Enhancing the viability of nontraditional farm operations, a historically neglected component of the farming community, as well as commercial farms is viewed as one approach to sustaining and improving both the agricultural land base and the agricultural community. Applying resource-extensive rather than resource-intensive approaches to forage management reveals that these apparently divergent priorities are, in fact, interlocking pieces of the same puzzle.     

Food: From Commodity to Commons

Our food and farming system is not socially, economically or ecologically sustainable. Many of the ills are a result of market competition driving specialization and linear production models, externalizing costs for environmental, social and cultural degradation. Some propose that market mechanisms should be used to correct this; improved consumer choice, internalization of costs and compensation to farmers for public goods. What we eat is determined by the path taken by our ancestors, by commercialization and fierce competition, fossil fuels and demographic development. Based on those, governments and the food industry are the choice architects who determine what we eat; consumer choice plays a marginal role. Using market mechanisms to internalize cost and compensate farmers for public goods has been proposed for decades but little progress has been made. There are also many practical, ethical and theoretical objections to such a system. The market is not a good master for a sustainable food system. Instead we need to find new ways of managing the food system based on food as a right and farming as a management system of the planet Earth. The solutions should be based on relocalization of food production and de-commodification of food and our symbionts, the plants and animals we eat.     

AN ECONOMIC ASSESSMENT OF GROUND WATER RECHARGE IN THE TUCSON BASIN1

ABSTRACT: Bringing water from Colorado River via the Central Arizona Project was perceived as the sole solution for Tucson Basin's water problem. Soon after Central Arizona Project's water arrived in Tucson in 1992, its quality provoked a quarrel over its use for potable purposes. A significant outcome of that quarrel was the enactment of the 1995 Proposition 200. The Proposition 200 precludes the use of Central Arizona Project's water for potable purposes, unless it is treated. Yet, it encourages using it for non‐potable purposes and for replenishing the Tucson aquifer through recharge. This paper examines the economic issues involved in utilizing Central Arizona Project's water for recharge. Four planning scenarios were designed to measure and compare the costs and benefits with and without Central Arizona Project's water recharge. Cost‐benefit analysis was utilized to measure recharge costs and benefits and to derive a rough estimate of cost savings from preventing land subsidence. The results indicate that the institutional requirements can be met with Central Arizona Project's water recharge. The economic benefits from reducing pumping cost and saving groundwater are not economically significant. Yet, when combining the use of Central Arizona Project's water for recharge and non‐potable purposes, it demonstrates positive net economic benefits.     

Traditional olive orchards on sloping land: Sustainability or abandonment?

Traditional olive orchards account for a large share of the area under olives in the EU, particularly in marginal areas, like those analysed in the OLIVERO project. In general, traditional olive growing can be described as a low-intensity production system, associated with old (sometimes very old) trees, grown at a low density, giving small yields and receiving low inputs of labour and materials. Though such systems are environmentally sustainable, their economic viability has become an issue, since EU policies favour more intensive and competitive systems. Orchards that have not been intensified seem to be threatened by the recent reform of the EU olive and olive oil policy, as income support has been decoupled from production. The main purpose of this paper is to identify the present constraints to traditional olive growing, and to recommend some private and public interventions to prevent its abandonment. During the OLIVERO project, traditional olive production systems were identified and described in five target areas (Trás-os-Montes-Portugal, Cordoba and Granada/Jaen-Spain, Basilicata/Salerno-Italy, and West Crete-Greece). The causes and consequences of abandonment are discussed, based on the analysis of the costs and returns, which revealed that these systems are barely economically sustainable. Their viability is only assured if reduced opportunity costs for family labour are accepted, and the olive growing is part-time. Based on these results, recommendations are made to prevent the abandonment of traditional olive growing and to preserve its environmental benefits.     

ECONOMIC AND WATER QUALITY EFFECTS OF VARIABLE AND UNIFORM APPLICATION OF NITROGEN1

ABSTRACT: Nitrogen (N) fertilizer rates for achieving optimum crop yields often vary within a field due to spatial variability in soil moisture and nitrogen content and other crop growth factors. When there is substantial within-field variability in these factors, uniform application of N (UAN) may not be economically efficient in terms of maximizing net return because N is likely to be over-applied in some areas and under-applied in other areas of the field. In addition, over-application can adversely affect water quality. A sample of fields in a Midwestern agricultural watershed is used to test for statistically significant differences in N application rates, crop yields, surface and ground water quality and net returns between UAN and variable application of N (VAN) for four cropping systems. Profitability and water quality benefits of VAN are sensitive to the distribution of soil types within a field. Water quality effects and profitability of UAN and VAN vary with cropping systems. VAN is not uniformly superior to UAN in terms of increasing net returns and improving water quality for the farming systems and watershed evaluated in this study.     

Economic Valuation of a Mangrove Ecosystem Threatened by Shrimp Aquaculture in Sri Lanka

Mangrove ecosystems in Sri Lanka are increasingly under threat from development projects, especially aquaculture. An economic assessment is presented for a relatively large (42 ha) shrimp culture development proposed for the Rekawa Lagoon system in the south of Sri Lanka, which involved an extended cost–benefit analysis of the proposal and an estimate of the “total economic value” (TEV) of a mangrove ecosystem. The analysis revealed that the internal benefits of developing the shrimp farm are higher than the internal costs in the ratio of 1.5:1. However, when the wider environmental impacts are more comprehensively evaluated, the external benefits are much lower than the external costs in a ratio that ranges between 1:6 and 1:11. In areas like Rekawa, where agriculture and fisheries are widely practiced at subsistence levels, shrimp aquaculture developments have disproportionately large impacts on traditional livelihoods and social welfare. Thus, although the analysis retains considerable uncertainties, more explicit costing of the environmental services provided by mangrove ecosystems demonstrates that low intensity, but sustainable, harvesting has far greater long-term value to local stakeholders and the wider community than large shrimp aquaculture developments.     

Discourses of on-farm wind energy generation in the UK farming press

As the owners of the majority of land in the U.K., farmers are well placed to contribute to renewable energy targets. Media coverage can both drive and reflect farmers’ views about renewable energy but has been largely unexplored to date. This article uses discourse analysis to examine the evolution of coverage of one form of renewable energy – on-farm wind – in the U.K. farming press from 1980 to 2013. We identified a diverse debate with five major discourses. On-farm wind turbines are alternatively represented as: profitable farm diversification opportunities; producers of clean energy; important for rural development and sources of conflict. Although press coverage predominantly encourages wind energy production, a further discourse advises farmers to ‘Proceed with Caution’. While emphasising images and values which have widespread affinity among U.K. farmers, the press have increasingly employed an economic frame, constructing wind energy generation as a farm diversification strategy. The most recent farming press coverage predominantly encourages an instrumental approach to wind energy, crowding out other (non-economic) rationales and marginalising local community concerns. This appears to reflect the financial orientation of recent policy support (particularly Feed-in Tariffs), and may have long-term costs in enabling sustainable energy production systems.     

Marine shrimp aquaculture and natural resource degradation in Thailand

Rising demand for shrimp in the developed nations has helped to foster a dramatic growth in marine shrimp aquaculture, particularly in South America and South Asia. In Thailand, Marine shrimp aquaculture is now an important earmer of foreign exchange. The growth in Production has been achieved through the expansion of the culture area and the adoption of intensive production methods. The conversion of near-shore areas to shrimp culture, however, is proving to have many consequences that impinge on the environmental integrity of coastal areas. This paper reviews the development of Thailand's marine shrimp culture industry and examines the nature of the environmental impacts that are emerging. It then discusses the implications these have for rural poor and the long-term viability of the culture industry.     

Emergy evaluation and economic analysis of three wetland fish farming systems in Nansi Lake area,China

Emergy and economic methods were used to evaluate and compare three fish production models, i.e., cage fish farming system, pond intensive fish rearing system and semi-natural extensive pond fish rearing system, in Nansi Lake area in China in the year 2007. The goal of this study was to understand the benefits and driving forces of selected fish production models from ecological and economic points of view. The study considered input structure, production efficiency, environmental impacts, economic viability and sustainability. Results show that the main difference among the three production systems was the emergy cost for fish feed associated with their feeding system, i.e., feeding on natural biomass such as plankton and grass or on commercial feedstock. As indicated by EYR, ELR and ESI, it can be clearly shown that the intensive production model with commercial feed is not a sustainable pattern. However, the point is that more environmentally sound patterns do not seem able to provide a competitive net profit in the short run. The intensive pond fish farming system had a net profit of 2.57E+03 $/ha, much higher than 1.27E+03 $/ha for cage fish farming system and slightly higher than 2.37E+03 $/ha for semi-natural fish farming system. With regard to the drivers of local farmer’s decisions, the accessibility of land for the required use and investment ability determine the farmer’s choice of the production model and the scale of operation, while other factors seem to have little effect. Theoretically, the development of environmentally sustainable production patterns, namely water and land conservation measures, greener feed as well as low waste systems is urgently needed, to keep production activities within the carrying capacity of ecosystems. Coupled emergy and economic analyses can provide better insight into the environmental and economic benefits of fish production systems and help solve the problems encountered during policy making.     

WATER SUPPLY COSTS FOR SMALL PRIVATE UTILITIES1

ABSTRACT: This paper examines the cost of water supply for small and mid-sized private water utilities. An econometric approach was employed in which data on utility costs and characteristics were used to estimate a total water supply cost function from which average and marginal costs were derived. The results suggest that although average and marginal costs decline with output, the rate of decline rapidly approaches zero, and unit costs therefore appear to remain relatively constant over a wide range of output. Implications of the results for pricing policy are examined.     

EVALUATING DIRECT BENEFIT ESTIMATION PROCEDURES FOR IRRIGATION PROJECTS: A SIMPLIFIED APPROACH1

ABSTRACT: An integral part of evaluating the net benefits generated by an existing or proposed irrigation project is the assessment of the associated impacts in commodity markets. Traditionally, these impacts have been measured by either assuming no change in commodity prices and calculating net returns to project farmers, or by allowing commodity prices to fall in accordance with a given elasticity of demand and subtracting commodity production costs from the associated area under the commodity demand curve. In either case, it is implicitly assumed that supply is perfectly inelastic. This article establishes that traditional approaches to measuring direct benefits are biased. Formulae are presented for calculating the maximum absolute and relative error which may result from using these techniques as a function of project size. Direct benefit estimates are then evaluated for three irrigation projects in Nebraska, illustrating how these results can be used to improve project evaluation procedures.     

Prioritisation of farm scale remediation efforts for reducing losses of nutrients and faecal indicator organisms to waterways: a case study of New Zealand dairy farming

The international competitiveness of the New Zealand (NZ) dairy industry is built on low cost clover-based systems and a favourable temperate climate that enables cows to graze pastures mostly all year round. Whilst this grazed pasture farming system is very efficient at producing milk, it has also been identified as a significant source of nutrients (N and P) and faecal bacteria which have contributed to water quality degradation in some rivers and lakes. In response to these concerns, a tool-box of mitigation measures that farmers can apply on farm to reduce environmental emissions has been developed. Here we report the potential reduction in nutrient losses and costs to farm businesses arising from the implementation of individual best management practices (BMPs) within this tool-box. Modelling analysis was carried out for a range of BMPs targeting pollutant source reduction on case-study dairy farms, located in four contrasting catchments. Due to the contrasting physical resources and management systems present in the four dairy catchments evaluated, the effectiveness and costs of BMPs varied. Farm managements that optimised soil Olsen P levels or used nitrification inhibitors were observed to result in win-win outcomes whereby nutrient losses were consistently reduced and farm profitability was increased in three of the four case study farming systems. Other BMPs generally reduced nutrient and faecal bacteria losses but at a small cost to the farm business. Our analysis indicates that there are a range of technological measures that can deliver substantial reductions in nutrient losses to waterways from dairy farms, whilst not increasing or even reducing other environmental impacts (e.g. greenhouse gas emissions and energy use). Their implementation will first require clearly defined environmental goals for the catchment/water body that is to be protected. Secondly, given that the major sources of water pollutants often differed between catchments, it is important that BMPs are matched to the physical resources and management systems of the existing farm businesses.