Alternative rates of structural change in Norwegian dairy farming: impacts on costs of production and rural employment

The economies of size in Norwegian dairy farming are far from exploited. There is increasing pressure on cost savings through faster farm restructuring. Such a structural transition could have severe effects on other concerns (rural employment and social well being, landscape preservation, biodiversity, heritage values, etc.) valued by the society. A simulation model is developed to study effects of alternative rates of structural change on the social costs of milk production, farm employment and farm subsidies. The model is based on economic conditions at the farm level for various size groups and regions. Changes in the model's farm structure depend on the exit rate of existing farms in various size groups and the size of newly established farms. When new farms are substituted for existing farms, a rapid change in farm structure and a new herd size of 60 cows (the largest evaluated) results in the lowest costs. Approximately 60% of the cost savings achieved by larger farms can be attributed to lower labour input, resulting in considerable losses of employment. Job losses will have the greatest negative family and community impacts in areas located far from urban centres, because a large share of the milk is produced is such areas, farms are smaller and there are fewer non-farm employment opportunities. Government support is necessary to preserve small farms’ provision of multiple benefits. The balance between cost-saving pressures and the rationales for retaining small farms under increasingly liberalized market regimes is bound to be a complex issue.     

Africa's Rising Demand for Wheat: Trends,Drivers, and Policy Implications

This article analyses trends in wheat consumption and imports in sub‐Saharan Africa since 1980, and estimates the economic and demographic determinants of this rising demand for wheat. Results point to rising incomes, growing populations, and increasing women's labour‐force participation as key drivers. Urban wheat‐expenditure shares generally exceed rural ones and SSA's demand is met largely by imports and partly through domestic production on large‐scale farms. Rising demand may therefore entail few farm–non‐farm synergies and minimal prospects to spur broad‐based economic development. The article concludes by discussing policy options for African countries to meet their staple food needs while also promoting pro‐poor agricultural growth.     

Wind farms in rural areas: How far do community benefits from wind farms represent a local economic development opportunity?

Although the large-scale deployment of renewable technologies can bring significant, localised economic and environmental changes, there has been remarkably little empirical investigation of the rural development implications. This paper seeks to redress this through an analysis of the economic development opportunities surrounding wind energy development in rural Wales. The paper concludes that the economic development outcomes to rural areas from wind generation projects to date have been questionable. Increasing the flow of conventional economic benefits to rural economies in terms of incomes and jobs is shown to be difficult because of the nature of the local supply side in remote areas. Partially as a consequence of this, developers of wind farms have come to routinely provide diverse forms of community benefits to ‘affected communities’, but these have yet to evolve into significant tools of economic development. In any case, the flows of revenues from community benefits are dwarfed, in quantitative terms, by the revenue streams that might be channelled to rural areas through a broader community ownership of wind energy projects. However, although a few local successes have been achieved, the scope for realising the returns from community ownership remains low in the Welsh case, with a series of impediments considered. We close the paper by suggesting means through which economic outputs might be improved.     

Agricultural adjustment and the diversification of farm households and corporate farms in Central Europe

Survey evidence from three Central European Countries (Czech Republic, Hungary and Poland) is analysed to identify the degree of non-agricultural farm diversification and the factors facilitating or impeding it in individual and corporate farms. The effect of diversification on rural job creation and household incomes is investigated. The results indicate that the level of diversification is relatively small and enterprise diversification by farmers is unlikely to generate sufficient new jobs to solve the problem of high rural unemployment. The attempt to transpose the West European model of agricultural diversification to the associated countries via the SAPARD programme is questionable, as non-farm centric rural policies appear to be more appropriate.     

The impact of the agricultural industry on the rural economy — tracking the spatial distribution of the farm inputs and outputs

With all the uncertainty surrounding the future of the agricultural industry, it is important to gain some kind of insight into the economic impact the industry has on the rural economy, to enable the formation of the most appropriate rural policies. Using Farm Business Survey data, this study examines the spatial distribution of inputs and outputs from a sample of 52 farms in the Reading Province. The results show significant links between farms and their locality, especially for the smaller farm.     

Reconstructing rurality and community: plantation forestry in Victoria, Australia

Changes in land use are a common response to deterioration in the economic viability of farming. While diversification into other agricultural land uses apparently takes place with little consternation or resistance, the development of plantation forestry on agricultural land is often accompanied by concern and controversy. What sets plantation forestry apart from agriculture is that it often involves new forms of ownership and control, it is accompanied by changes in population, and it transforms the production landscape. The development of plantation forestry has become increasingly commonplace in many parts of rural Australia, and it has been met with mixed reactions from rural communities. Our interest was to explore the outlook and perspectives on forestry within a rural locality—Branxholme in the State of Victoria—that is experiencing relatively rapid land-use change into planted forests. We provide a synopsis of community reactions to land-use change. The social construction of change is reported at one level in relation to well-established elements—population, service provision, and employment. Underlying our analysis, though, is an attempt to understand the social construction of change in relation to the higher-order concepts of rurality and community.     

Rural structural change,poverty and income distribution: evidence from Peru

Some rural regions of Peru showed remarkable rates of poverty reduction and inequality reduction between 2004 and 2012, while others lagged behind. Using microsimulation-based decompositions, we analyse the driving forces behind these trends, finding that rural poverty and inequality reductions are mainly attributable to increasing labour incomes in Peru’s agricultural sector and, to a smaller extent, increasing public transfers. In earlier years, higher returns to experience drive these results, while in later years, increasing staple-crop yields and prices are of key importance. Further, remuneration of working hours increases in reaction to labour-supply shortages in rural areas. The accompanying rising incomes and non-agricultural job creation is less pro-poor than would be ideal, as they benefit more highly skilled workers. Further, shrinking farm sizes hampers poverty reduction and income-inequality reduction. Policies should target the participation of the poor in high-value (non-)agricultural activities, especially if positive trends in commodity prices are only transitory.     

The ‘myth’ of the family farm: Defining the family farm and assessing its importance in the European community

Family farming is a central but inadequately defined concept in the European Community's agricultural policy. An investigation into the importance of family farming is reported, using data from the European Community's Farm Accountancy Data Network that covers some 59,000 farms in the 12 Member States. A definition is adopted, based on the share of the labour provided by the family, to group farms into family, intermediate or non-family types. Almost three-quarters of Community farms were classed as family farms in 1989, but they produced only just over half of the total agricultural output and 62% of the total income. The incidence of family farming varied between countries and was lowest in the United Kingdom, where less than half fell into the family group. In all countries family farms tended to be smaller and to have lower incomes per person than non-family farms. However, the non-family group did not consist solely of larger farms operated by family labour supplemented by hired labour; at least in some countries the group contained smaller farms operated on a part-time basis and where there is substitution by hired labour for family labour. These subgroups point to alternative ways of structural adjustment to achieve higher incomes from farming.     

Agricultural structural change: Impact on the rural environment

Current farm practices contribute to a wide array of environmental problems: the monoculture of many agricultural regions, the problem of soil erosion, the contamination of ground water resources by nitrate and pesticide, wildlife habitats lost or subject to fragmentation. Over 50% of the EC's total land area is used by agriculture.Assumed are links between settlement and farm structure, rural culture, related values and environmental quality. This paper attempts to identify key indicators and relationships to predict what the environmental impact of certain structural changes will be. Is there a correlation between farm size or type and environmental impact? An example is the decreasing linkage between animal husbandry and crop growing.Is there a correlation between degree of pluriactivity and the structure of land use? The majority of small farms in the F.R.G. have additional off-farm income. The predominance of small farms is characteristic of the few charming rural areas left. Does that imply that large farm units mean necessarily infrastructural changes, loss of crop diversity and more monotonous landscape?Finally, the question of the impact that different policy measures have on the direction and intensity of agricultural change is examined. A major conclusion is that environmental policies need to be an integral part of regional development and agricultural policies.     

Impact assessment of the EU structural funds to support regional economic development in rural areas of Germany

Rural areas in Germany have been subject to major structural changes in agriculture and other economic sectors due to the combined effects of CAP reform and socio-economic adjustments resulting from German reunification. By comparing the different approaches to assistance for rural economic development in the two groups of rural areas the paper will focus on the following topics: analysis of initial conditions with respect to agricultural, demographic and economic indicators; design of the delivery system for financial assistance with regard to strategic aims and the policy mix of the programmes; organizational and operational aspects of the required system for monitoring and evaluation of operations according to EU regulations; indication of intended and immediate impacts of some measures, e.g. changing conditions on the labour markets in different types of rural areas. Conclusions will be drawn from comparison of observable changes based on experiences with impact assessment and evaluation of support schemes in the two different types of rural areas during the current phase 1989–1993 with a view to the next phase of the reform of the EU structural funds 1994–1999.     

Landowners’ perspectives on the rural future and the role of forests across Europe

Contemporary changes in rural Europe have been characterised by the contrasting terms of rural modernisation and productivism versus restructuring and post-productivism. This study investigates how different categories of owners of farm and/or forestland in 16 case study areas in eight European countries perceive future development. Landowners’ prospects for change are investigated on both the locality and enterprise level. Special attention is given to the role of forestry as a potential future development perspective. The results reveal that both restructuring and modernisation perspectives are important to many landowners. Moreover, a polarisation seems to be developing between a minority of full-time farmers with progressive farming prospects and the vast majority of landowners with declining prospects or little dependency on primary production. More importantly, the research reveals a third employment perspective, which did not have any specific content apart from the social security of having employment opportunities in the locality. Also at the enterprise level, farmers anticipate both restructuring and modernisation practices, even on the very same property. The study proves that it is not only part-time, hobby and retired farmers that are engaged in “restructuring” activities, but also full-time farmers. As regards the role of forests, the majority of landowners do not interpret forests in an economic development context, but as green infrastructure important to the local quality of life. It can be concluded that forests are closely related to restructuring thinking among landowners. Future perspectives differ from one European rural area to another, dependent on local conditions and problems. More importantly, however, this research reveals that modernisation–restructuring thoughts and practices of landowners are manifold and heterogeneous in all types of rural areas across Europe.     

关于深化上海农村改革的若干思考

上海深化农村改革应着力发展现代农业经营的"三类主体":家庭农场、农民合作社和农业企业;着力保障农民的"三项权利":农民的土地承包经营权、农村集体经济组织成员权利和农民宅基地用益物权;着力盘活农村的"三块土地":农村承包土地、农民宅基地和农村集体建设用地;着力完善涉农的"三项制度":农产品价格形成制度、农业支持保护制度和土地征收制度;着力提升农村公共服务的"三项水平":农村义务教育水平、农村社会保障水平和农村医疗服务水平。     

The new rural-urban labor mobility in China: Causes and implications

As the Chinese economy reforms, a huge new floating population of rural-urban migrants is transforming the urban labor force. This article explores some of the most important reasons for the emergence of the floating population in China. We argue that the neoclassical model alone is not adequate to explain the massive rural-urban internal migration underway in China. Instead, ideas drawn from both sociological theories of segmented markets and institutional economics are used to supplement the standard neoclassical explanation. We found that Chinese policy reforms in both rural and urban areas decreased the balkanization of labor markets and opened up employment opportunities for many rural-urban migrants. In rural areas, a set of agricultural market reforms, starting in 1978, increased farm incomes and simultaneously produced a large surplus labor supply. In urban areas, reforms beginning in the 1980s created an effective demand for rural migrants. Of particular importance was the development of a contract labor system and the emergence of a private sector.     

Targeting disadvantage in agriculture

The effectiveness of the main policy instrument targeting support at farmers in disadvantaged areas of the UK from 1976 to 2000 (the Hill Livestock Compensatory Allowance Scheme) is evaluated for Northern Ireland, using recursive linear programming models and input–output analysis. Capital, income and employment effects of the Scheme in its latter years are estimated and assessed against declared policy objectives. It is estimated that average farm cash incomes would have been between 17 and 31 per cent lower in the absence of HLCA payments, while farmer net worth would have fallen by approximately 1 per cent annually. In aggregate, some 1000 jobs were sustained by the Scheme and incomes and profits in the region were boosted by £9 million each year. The main economic effect arising from the introduction of a successor area-based subsidy, will be a redistribution of payments from farms with relatively high stocking rates (predominantly larger units) to those operating more extensively (mostly smaller, part-time farms).     

Vascular plants along an urban-rural gradient in the city of Tampere,Finland

The aim of this study was to analyse the spatial distribution of vascular plants along a 21-kilometre rural–urban–rural transect in the city of Tampere, Finland. The study emphasised the distribution of native and non-native species, both in absolute numbers and proportionally. The observed differences are explained by the share of forest land, the number of detached houses, distance from the city centre, and human population. Non-natives showed the highest values in suburban areas. Still, the difference in number of non-natives between suburban and central areas was quite small. In the city of Tampere, there are not continuous large areas devoid of vegetation. The number of native species remained high until the urban core and natives dominated in the rural-type areas of the city. However, there was not a great difference in the number of native species between rural and suburban areas. In the suburban areas, the detached houses and block-of-flats have little effect on the general vegetation. Proportionally, the share of natives decreases in line with the urban traits of the city. Urbanisation therefore affects native species in Finland. Overall, the characteristic features of a Finnish city, such as dispersed urban structure, small population, late urbanisation, abundant natural vegetation (forest) and the qualities of Finnish forests, guarantee the continuing diversity of urban vascular plants.     

Modelling the interaction of economic and socio-behavioural factors in the prediction of farm adjustment

This paper describes a methodology for the representation of farm household decision-making under conditions of agricultural and rural policy change. The methodology employs a Geographic Information System (GIS) to integrate a range of spatially referenced data describing the internal and external decision environments of individual farmers, and model the interaction of these variables in conditioning adjustment in response to policy change. The difficulties in identifying and representing the detailed interaction of farm and farmer characteristics with the external environment of the household and business are reviewed. From a policy perspective it is, however, of considerable importance that models which are sensitive to the complexity of the farm decision-making process are developed and evaluated, for their potential contribution in supporting policy and resource allocation decisions is considerable. The methodology described here remains highly generalized, but it represents an advance on previous techniques through the representation of economic, social and behavioural factors which interact with farm resources and external constraints to predict the response of individual farm holdings to policy and market shifts.     

Structural funds the challenge for sustainable development and regional disparity in the Slovak Republic

The countries of Central and Eastern Europe have undergone unprecedented political and economic changes since the fall of the Berlin Wall in 1989. The EU responded by providing political and financial support for the difficult transformation of these countries and refocused its policies towards the strategy of preparing associate countries for membership. This strategy, commonly known as the ‘pre‐accession strategy’, has three main instruments: European Agreements, structured dialogue and the PHARE programme. After a short delay in the negotiation process caused by political instability, the Slovak Republic has been offered membership in the EU, together with nine other candidates, in May 2004.

The transition process from a command‐and‐control economy to a market economy and a democratic society addressed the issue of the numerous differences in the regions in the Slovak Republic. The high disparity in economic development and low competitiveness of the regions with a resultant dramatic rise in unemployment in a number of ‘low‐income regions’ are some of the major observations. Rather than a result of its rural character alone, the main reason for regional disparity in the Slovak Republic is the deformation of historical relationships in rural areas as a result of industrialization and the intensification of agriculture in the command‐and‐control economy of the past. This led to a distortion of traditional farming habits as well as environmental damage to agricultural land and forests. In addition, the environmental infrastructure (sewerage, water treatment, etc.) is underdeveloped in these regions. Environmental protection and its infrastructure thus play a significant role in the regional disparity of the Slovak Republic and the approximation of the Slovak Republic in the environmental sector can provide double dividends for these low‐income regions. This paper analyses the above‐mentioned regional disparities and tries to identify reasons and measures particularly regarding sustainable development. It also discusses the pre‐accession period failures and successes that can be taken as a learning experience in regard to the financial opportunities of Structural Funds that will emerge upon entering the European Community in May 2004. The paper contains information available prior to February 2003.     

Beyond the European Rural Areas: the Need for Strategic Approaches

The European Commission has paid and is paying particular attention to rural development by increasing the measures and the resources available in order to enhance the environment, the quality of life in rural areas and also provides incentives to diversify economic activities in rural areas. The current European delimitation of rural areas is the result of the application of OECD methodology. According to this methodology, the level of population density is the common and only criterion adopted. This indicator can be interpreted as a direct function of attractiveness: the higher the population, the more attractive an area and vice versa. However, the concept of rural can have different definitions, influenced by the economic, social, political needs or contexts, added to which the application of the OEDC methodology tends to flatten different situations. The most important processes of change that the methodology is not able to identify are the urbanisation trend which entices population and economic activity out of more remote rural areas into urban and accessible rural areas and the counter-urbanisation flow from urban regions into accessible rural areas. The final aim of the Chapter is to evaluate whether both current and new strategies are coherent with territorial needs and whether the inherent territorial disparities require a tailored definition and policy. Consequently, the analysis takes into consideration the different European socio-economic situation, the agricultural and forestry sectors, the levels of diversification and the quality of life and the state of the environment.     

Demand Constraints on Agricultural Growth in East and Southern Africa: A General Equilibrium Analysis

This article analyses demand constraints on agricultural growth in seven countries of East and Southern Africa using an applied general equilibrium framework. It finds that both traditional and non‐traditional export crops have limited potential to raise incomes because of demand constraints (for traditional exports) or a relatively small base (for non‐traditional exports). The best prospects for agriculture‐led growth remain in the food sector, where domestic demand represents a large and growing market. Improvements in market efficiency and simultaneous growth in the livestock sectors can help spur demand further and avert falls in prices. Achieving rapid gains in farm incomes, however, also requires investment in rural infrastructure to reduce marketing costs, and demand‐ enhancing growth in the non‐agricultural sector to spur demand.     

The economic diversity of rural England: stylised fallacies and uncertain evidence

Debate about rural policy is often based on persistent presumptions about conditions in ‘rural England’, generally associated with economic decline, low incomes, and a lack of services. Such generalisations are rarely justified for rural areas as a whole and we term them as ‘stylised fallacies’. The impression of their relevance is perpetuated by the selective comparison of statistics for ‘urban’ and ‘rural’ areas. The paper reviews the evidence on a number of such fallacies: the economic impact of agriculture, depopulation, low incomes, rural labour markets, house prices and service provision. In each case, the position is far more complex than is commonly recognised in policy debate. The rural character of an area does not in itself offer a rationale for policy intervention. Rather, discussion could be supported through the characterisation of different types of local area. This might be approached either through statistical analysis or through qualitative analysis of emerging social and economic patterns of differentiation. In practice, each approach needs to be supported through the other.