Spanish Journal of Agricultural Research
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Economic and social impacts of the biodiesel industry: Assessment and policy implications in Spain
Aim of study: This study evaluates, through the input-output (I-O) methodology, the economic and social impacts (Gross Value Added –GVA– and job creation) of the national biodiesel industry on the Spanish economy in the recent past (between 2005 and 2018). These impacts are also simulated for different scenarios, for an average year following a trend from the past, based on different hypotheses on biodiesel production, trade balance and national production of raw materials. The aim is to guide decision-makers in the planning and design of regulations with implications in the domains of energy, economy and employment.Area of study: Spain.Material and methods: I-O methodology.Main results: The contribution of the biodiesel sector to GVA and job creation in Spain was very high during the construction phase of the biodiesel industry. However, this has been very limited during the operational phase, mainly due to imports of biodiesel and raw material, from Indonesia and Argentina. The economic and social impacts of this industry would be greater if higher amounts of domestic raw materials were used.Research highlights: The results justify public support for the operation of existing biodiesel plants in Spain in order to increase gross domestic product and employment, including the further implementation of specific measures to encourage domestic production. Policy measures to increase the use of national raw materials could include promoting rapeseed as an ideal cereal rotation in Spain and establishing contracting systems that guarantee farmers' profitability
Heterogeneity, transient and persistent technical efficiency of Polish crop farms
Accounting for heterogeneity in the measurement of farm efficiency is crucial to avoid biases related to climate and soil quality diversity in a given area. Therefore, this paper investigates the level of technical efficiency (TE) of Polish crop farms based on several stochastic frontier panel data models with different approaches to the measurement of unobserved heterogeneity, short- and long- run inefficiency. In our study, we show that ignoring farm heterogeneity can lead to underestimation of the level of TE in conventional stochastic frontier panel data models. Moreover, we have found empirically that not accounting for heterogeneity in the Generalized True Random Effects model may lead to incorrect estimates of persistent TE. The obtained results for Polish crop farms indicate that the level of transient TE (0.81) is lower than the level of persistent TE (0.88). This result suggests that Polish farms may have, for example, problems with adopting new technologies and poor managerial skills
Farm household income inequality in Slovenia
Aim of study: To investigate the structure and evolution of farm household income and examine the contribution of different sources of farm household income, particularly the impact of Common Agricultural Policy reform on farm household income inequality in Slovenia.Area of study: Slovenia, one of the European Union member states.Material and methods: A panel data set was compiled using Slovenian Farm Accountancy Data Network data at farm level for the period 2007-2013. Total farm household income was disaggregated into two different components: 1) income components, which can contain market income and off-farm income, and 2) subsidy components, which can contain subsidies from Pillars 1 and 2. Pillar 2 support included subsidies related to agri-environmental measures, less favoured areas and other rural development measures. The income distribution and decomposition were examined using the Gini decomposition method to determine the contribution of each income source and the policy shift from market to government support on farm household income and overall inequality.Main results: A shift in Common Agricultural Policy and related measures determined the structure and evolution of farm household incomes. Off-farm income had a lesser and rather stable impact on farm household income inequality, while the major change involved an increase in the importance of subsidies from Pillar 2 which is consistent with a policy of targeting farms in less favoured areas. Subsidies from Pillar 1 reduced, while market income increased farm household income inequality.Research highlights: Subsidies in farm incomes increased. They could reduce farm household income inequality
Predicting spring wheat yields based on water use-yield production function in a semi-arid climate
Grain yield of spring wheat (Triticum aestivum L.) fluctuates greatly in Western Loess Plateau of China due to limited and highly variable precipitation. Farmers in this area need a simple tool to predict spring wheat grain yield and assess yield loss risk efficiently. The objectives of this study were to establish relations between water use and grain yield of spring wheat for predicting actual yield and attainable yield (water limited yield) under conventional management practice and mulching practices. Reference data during 1993-2013 and field experiment conducted from 1987 to 2011 were used to determine water use-yield production function and boundary function for spring wheat. Probability of achieving a given spring wheat grain yield threshold is determined based on available soil water content at sowing plus expected precipitation during growing season. Single linear equation was obtained with slope of 14.6 kg ha-1 mm-1 and x intercept at 126.3 mm for spring wheat water use-yield production function with different wheat varieties under varying climatic patterns. The slopes of the boundary function were 16.2 kg ha-1 mm-1 and 19.1 kg ha-1 mm-1 under conventional management practice and mulching practices, respectively. With increase of available soil water content at sowing, the probability of achieving at least 2000 and 4000 kg ha-1 of spring wheat for actual and attainable yield increased under different agricultural management practices
Determinants of sorghum adoption and land allocation intensity in the smallholder sector of semi-arid Zimbabwe
Sorghum is important for sustainability of smallholder farmers’ subsistence, social and economic livelihoods in semi-arid and arid environments of Southern Africa. However, production of the crop has been on the decline in the smallholder communities of semi-arid Zimbabwe. The study examines factors affecting smallholder farmers’ inclination towards producing sorghum and allocating differential land proportions towards the crop. The paper uses a double hurdle estimation approach with cross-sectional survey data from 380 small holder sorghum farmers in the Mid Zambezi region. Frequency of contact with relatives, duration of receiving subsidies and the number of groups to which household members belonged had a robust influence (p<0.01) on the adoption decision. Market frequency, availability of storage facilities and the number of buyers in the market significantly (p<0.01) influenced the land allocation decision. Variables influencing the two decisions are not necessarily the same showing independence in the decisions. However, information flow from networks and conditions of market platforms remain important variables in the two decisions. It is important to decentralise sorghum markets, strengthen local networks of kinships and increase the scope of inclusive and responsive formal extension delivery systems. Storage facilities can also be developed in partnership with private players to allow for sales during market windows which generates higher returns for the small holder sorghum farmers
A new classification of European Union regions: A decision support tool for policymakers
The classification of agricultural and territorial systems is essential to improve the comparability of regions for the development programmers of the Common Agricultural Policy (CAP), to give new tools of intervention to policymakers and to increase farmers’ knowledge. Analysis of the principal characteristics of these systems is essential during a time in which the new CAP is being designed for the period 2021-2027. The research is focused on the analysis of the agricultural features of 228 regional areas (NUTS 2) of the 28 European Union (EU) countries. It considers two specific sets of environmental and socio-economic indicators provided by the Farm Accountancy Data Network (FADN). The main factors that differentiate agricultural systems in EU regions from one another were identified with the application of principal component analysis, while the classification of the same regions in homogeneous groups was carried out through hierarchical cluster analysis. The results clearly show that some groups of “homogeneous” EU regions such as the Natura 2000 area and the family-run agricultural system, which have weaker agricultural structures than the average of the 228 EU regions considered in this study, have a greater need for the restructuring of their agricultural systems than others (e.g., the professional agricultural system and the food industry system). The results confirm that policy design should not consider EU agriculture as a whole, but should take into account the environmental and structural specificities of agricultural holdings, as well as the different training levels of farm managers
Impact of farm protectionism on the use of agricultural inputs in Chile
Despite evidence highlighting the multiple benefits that liberalization can have in the agricultural sector, agricultural protectionism is abundant, especially in developing countries. Chile provides an interesting case on this topic because it implemented an aggressive liberalization in the agricultural sector during the 1970s and 1980s. This paper analyzes the impact of farm protectionism on the use of agricultural inputs in Chile. To do this, we estimated partial elasticities of substitution by incorporating government protectionism as a factor for agricultural production. Our findings reveal that increased protectionism decreases agricultural labor and promotes the use of fixed capital. In contrast, protectionism has no effect on the use of working capital and land. This information shows a clear transference from the government to farmers. Furthermore, our results are useful for anticipating the effects that varying levels of government protectionism can have on the Chilean agricultural sector over time
Effect of growth hormone on milk yield and reproductive performance of subfertile Holstein cows during extended lactations
The objective of this study was to determine the effects of the administration of recombinant bovine somatotropin (rbST) throughout lactation to high-yielding subfertile (conception > 270 days postpartum) Holstein cows undergoing extended lactations (≥480 d) on milk production and reproductive performance. The study used two large adjacent commercial herds with similar management in a hot area of northern Mexico (25° N). Cows in one herd (n=2341) received a 500-mg dose of rbST every 14 d until dried off, starting 60 days postpartum. The other herd served as control (n=984). Across parity, rbST-treated cows produced 20% greater milk yield than control cows in 305-d lactations. Across parities, milk yield from 305 d postpartum to the end of lactation was 2734 kg higher in rbST-treated cows than control cows. Across parities rbST-treated cows produced 4777 more kg of milk during the entire lactation (mean 605 d) than the control group (mean 572 d). Conception rates (CR) at first service were only 3.2% and 5.9% (p<0.05) for control and rbST-treated cows, respectively. Overall CR was 43.5% and 61.6% (p<0.05) for control and treated cows, respectively. Control cows required 2.4 more (p<0.01) services per conception than rbST-treated cows. It was concluded that in this hot environment, the use of rbST suits dairy producers because it substantially improves both milk yield and reproductive performance in subfertile high-yielding Holstein cows. By markedly increasing lactation length and lactation persistency farm efficiency is greatly improved due to extended herd life