Browsing by Subject "Agrarreform"

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Agro-economic policy analysis with the regional production model ACRE : a case study for Baden-Wuerttemberg
(2011) Henseler, Martin; Dabbert, Stephan
Since its introduction the Common Agricultural Policy (CAP) of the European Union (EU) has undergone several reforms in order to adapt policy instruments and enable the agricultural sector to fulfil multiple functions with respect to economic, supply and environmental objectives. In the German federal state Baden-Wuerttemberg agricultural production is characterized by regional heterogeneity. Therefore it is important to estimate the impacts resulting from changes in the CAP at a detailed regional level. In this study the agricultural policy model ACRE (Agro-eConomic pRoduction model at rEgional level) has been used to simulate different policy scenarios and to analyze regional economic, production and environmental impacts. In particular the study aims to address the following research questions: What are the regional impacts of different policy measures in the German federal state Baden-Wuerttemberg with respect to economic, production and environmental objectives? How suitable are the simulated policy measures for achieving the policy objectives of the CAP 2003 reform, as well as the objectives of subsidy reduction, promotion of energy crop production, reduction of environmental pollution and promotion of agro-environmental measures? How suitable is the regional supply model ACRE as a tool for policy analysis and policy decision support? In order to address the research questions, ACRE has been updated, adapted and extended to simulate agricultural production in the federal state Baden-Wuerttemberg at NUTS3 level. The policy scenarios simulated in this study are defined to cover recent discussions on the future development of the CAP and their results are analysed according to a regional framework for NUTS3 counties, farm types and the complete model region. The simulation of the reference year (REF) implies the policy reform Agenda 2000 in the simulation year 2000. Thus, REF represents the observed situation of regional agricultural production on whose statistical data ACRE is calibrated. The scenario CAP2003 simulates the policy measures of the CAP 2003 reform in the simulation year 2015. Assumptions of increased yields and prices as well as harmonized direct payments for arable land and grassland result in an increase in income as well as in an increase of subsidy volume. In the entire model region Baden-Wuerttemberg cereal production increases while the production of fattening bulls and pigs decreases. Increases in crop production intensity result in an increase in environmental pollution. The scenario CAP2003 is used as the baseline scenario to compare the results of simulated policy scenarios which are delineated in the following paragraphs only with the most important results for the complete model region Baden-Wuerttemberg. In two subsidy reduction scenarios the simulated policy instruments aim to reduce subsidy volume by reducing Pillar 1 payments by 60% and by shifting 70% of the money from Pillar 1 to Pillar 2 respectively. Both scenarios result in the positive impact of a decrease in subsidy volume, but show a negative impact, especially an increase of abandoned land. In two energy crop scenarios the production of energy maize is simulated under the assumption that different situations in energy policy and energy markets result in different competitiveness between production of energy maize and food. In both scenarios energy crop production partially replaces cereal production, although the extent varies according to the high or small level of competitiveness between production of energy maize and food. Impacts on agricultural income and subsidies are small while increased environmental pressure is expected in the event of a significant expansion in energy crop production. Two nitrogen reduction scenarios simulate policy measures according to the water framework directive (WFD) and the OSPAR convention. The scenario according to the WFD (limitation of organic nitrogen input to a maximum of 170kg nitrogen per hectare) does not result in any impacts. In contrast, the scenario according to the OSPAR convention (reduction of nitrogen input quantities by 10%) results in a decrease in environmental pollution and is accompanied by a reduction of income and reduction of agricultural production under land abandonment. In the scenario of mandatory agri-environmental measures (AEM) it is assumed that the area with applied AEM is extended. The increase of AEM area results in a decrease in cereal production and a reduction of environmental pollution, while income decreases only slightly. Two combined scenarios simulate a mix of different policy and market situations which provoke an intensive and an extensive agricultural production. The results of these scenarios illustrate the interaction of the single policy measures. The measures of subsidy reduction have similar reducing impacts on income and subsidy volume in both scenarios. In the intensive production scenario high competitive energy crop production and a less restrictive nitrogen restriction result in a compensation effect of land abandonment by extension of energy crop area. In the extensive production scenarios, less competitive energy crop production and a high restrictive nitrogen constraint result in reduced agricultural production, increased land abandonment and reduced environmental pressure. In order to evaluate the impact of the simulated policy measures on the achievement of policy objectives the results of all scenarios are compared and ranked according to their impact on the policy objectives. The analyses of the model results show impacts of policy measures which are likely to be expected. However, the analyses at NUTS3 as well as farm types' level reveal that the impacts of the policy measures can be regionally quite different. Thus the detailed regional model results clearly show that (and where) the implementation of agricultural policy measures requires a regional specific evaluation and monitoring. In order to discuss the study with regard to the methods applied and the outcome, a final strengths and weaknesses analysis was conducted. The analysis highlights the strengths of the study (e.g. the model validation, the regional analysis of different policy scenarios, the possibility of cooperation with regional stakeholders). The validation and the results of the study also show that ACRE is a suitable tool for regional agricultural policy analysis and policy decision support. Supplementary work could help to overcome single shortcomings and caveats and to further develop the model. However, ACRE can already be used now as a useful tool for the regional agricultural policy analysis of the CAP in Baden-Wuerttemberg.
Climate change adaptation, social networks, and agricultural extension reforms in Ethiopia
(2016) Tensay, Teferi Mequaninte; Bennewitz, Jörn
Research on the impact of climate change in sub-Saharan Africa shows that climate change is expected to cause an increased frequency of extreme events such as high temperature and rainfall intensity, droughts and floods, desertification, and spread of animal and human diseases. These extreme events are likely to have a negative impact on food security. Using the case of Ethiopia, this thesis analyses the role that social network and agricultural extension can play in enhancing farmers’ ability to adapt to climate change. The thesis builds on recent research, which has highlighted the role of social networks and extension in promoting adaptation to the negative impacts of climate change. Social networks between farmers can build community resilience and increase adaptation to climate change. They also affect technology adoption and climate change adaptation through social learning, joint evaluation of new technologies and collective action. Current research on social networks in Ethiopia has mainly focused on the effects of network size on technology adoption and there is no empirical study on which types of social networks matter the most, and how do such types of social networks matter for climate change adaptation. Agricultural extension is expected to facilitate climate change adaptation through training and education of farmers, enabling them to anticipate climate change and to update their knowledge, attitudes and adaptive capabilities in response to climate change. In addition to their well-established function of promoting technologies and natural resource management practices, agricultural extension services are expected to play new roles in building farmers’ social networks and supporting climate change adaptation strategies. There are various studies on agricultural extension reforms in Ethiopia, but there are still gaps in this literature, especially regarding the capacity of the extension service to promote adaptation to climate change and to promote social networks. The purpose of this thesis is, therefore, to fill these knowledge gaps and to contribute to the current debate on the dynamic links between climate change, social networks and extension reforms. The thesis combines quantitative and qualitative methods for analysis of three inter-related research topics. First, the thesis examines farmers’ vulnerabilities to climate change and the role of adaptation in increasing productivity at the household level. Second, it assesses how the different types of social networks are related with the adoption of sustainable land management practices for climate change adaptation. Third, by examining what works and what does not work well in the agricultural extension reforms in Ethiopia, the thesis investigates the interactions between climate change, social networks and extension reforms in Amhara region of Ethiopia. The thesis is based on a mixed methods approach. It combines a quantitative analysis, using World Bank data from a survey conducted in 2011 covering 1338 farmers. The analytical methods include a probit model, an OLS analysis and an endogenous switching regression model. Qualitative research methods included Focus Group Discussions (FGDs) combined with an individual scoring technique, and a Climate Vulnerability and Capacity Analysis. The study on climate change adaptation found that the effects of climate change and adaptation practices differ across agro-ecological zones and adopter groups. In the kolla agro-ecologies, the major hazards were drought, floods, and migration. In contrast, snowfall, landslides and crop diseases were the main hazards in the dega and woyna-dega agro-ecologies. Erratic rainfall, soil erosion and livestock diseases were common hazards to all agro-ecologies. Households’ responses to the hazards were differed across the different agro-ecologies. In the kolla agro-ecologies, the most common coping strategies were reducing the number of daily meals, migration, livestock selling and utilization of irrigation. In the dega and woyna-dega agro-ecologies common coping strategies included: changing consumption patterns; adopting drought resistant crops (sorghum and millet); sale of chickens, eggs, sheep, goats, eucalyptus trees; soil conservation and tree planting; zero grazing and water harvesting. In all agro-ecologies, local institutions support communal adaptation strategies such as communal water harvesting and irrigation schemes, reforestation, rangeland enclosure and prevention of soil erosion. The empirical results also revealed that farmers who implemented climate change adaptation strategies have significantly increased their food productivity and food security, compared to farmers who did not implement such strategies. The findings regarding the relationship between social networks and sustainable land management revealed that networks with relatives have a positive impact on planting trees, but the impact of such networks on soil conservation was found to be negative. This finding can be interpreted as an incidence of self-interested behavior, since farmers may plant trees as a means of securing land holdings. When farmers are faced with the risk of losing their land to relatives, due to common heritage, they prefer planting trees to soil conservation. Farmers can reclaim all their investment costs by cutting trees, should they lose their land holding rights to relatives. In contrast, it would be difficult to regain soil conservation investment costs in this case. Friendship networks were found to be insignificant in both planting trees and soil conservation, while neighborhood ties only had a significant association with tree planting. This suggests the potential contributions of friendship and neighborhood networks, which can significantly affect sustainable land management practices, but may remain untapped. The analysis of extension conducted as part of this thesis suggests that a uniform reform approach, as pursued in Ethiopia, does not fit well with the diverse agro-ecologies and extension challenges in the country. While the number of service providers increased substantially, they still lack skills, incentives and resources, which affect their work motivation and job performance. Moreover, the planning, monitoring and evaluation system was found not to be very effective in regularly assessing what has been achieved at the farmers’ training centers and what remains to be done in the future. Similarly, there is room to improve partnerships and linkages of actors, especially by including key actors that are currently missing. Based on the above findings, this thesis derived the following policy implications: 1. The potential capacity of schools and religious organizations in supporting climate change adaptation should be tapped. The case study identified agricultural extension, health extension, NGOs, cooperatives, indigenous institutions (Iddir, Kirre, Jiggie, Debo, Iquib), microfinance institutions, schools, local governments, youth and women groups as key institutions providing rural services. However, extension organizations, cooperatives/unions, local governments and NGOs were the only institutions providing services relevant for climate change adaptation. Surprisingly, important local institutions (schools and religious organizations) did not have any short or long term plans to support climate change adaptation efforts despite the fact that they have the social capital to plan and implement some communal strategies such as terracing and planting trees on communal lands. 2. The regional and national policies should support local climate change adaptation strategies. The study showed that adaptation efforts should not be left to only farmers and local governments. Regional and national policies should support the local adaptation strategies. It was found that the absence of communal land and natural resource use policies was encouraging farmers to over utilize natural resources, and the long delay in land use rights (certification) was discouraging farmers from making long term investments on their land (e.g., tree planting and soil conservation). Therefore, the findings suggest that it would be useful to promote the introduction of communal land and natural resource use policy and a speedy land certification process. 3. The potential contributions of social networks as alternative channels of extension services should be tapped. The findings revealed that funds for agricultural extension are declining and extension managers should look for alternative source of funding and move away from a “one-size-fits-all” thinking to a “best fit” approach. It needs to become a priority for the current extension system to better understand what types of social networks matter most for technology adoption. 4. The findings also indicate that extension reforms should consider current agricultural challenges, especially climate change. In dega and woyna-daga agro-ecologies, the main challenges were getting information on climate change related hazards (rainfall and temperature), commercial marketing (cooperative development, price and new markets), post-harvest handling (drying and storage technique). In the kolla agro-ecologies, the major problems were lack of dry land farming methods (contour plowing, mulching, strip farming, summer fallow, seedbed preparation and planning in rows). So far, the extension system is not geared towards addressing these different challenges, which calls for aligning the extension reforms to the different local farming systems. 5. It can also be derived from the findings of this study that the regional government should design a new incentive system for the extension service. The case study showed that current incentives are inconsistent with the regional goal of promoting commercially oriented agriculture. Service providers in the region were found to lack the soft skills, incentives and resources to provide commercially oriented services. This finding calls for designing a new incentive system, which may include better salary, improved career prospects, and recognition as well as incentives for extra work. Such provisions will motivate and enable frontline service providers. 6. The governance and management structures of the Agricultural Development Partners’ Linkage Advisory Councils (ADPLACs) should be redesigned. The case study revealed that when measured against indicators such as information sharing and feedback, joint planning, monitoring, evaluation and implementation, the linkages between farmers, NGOs and research institutes were very weak. This calls for redesigning the governance and management structures of the Agricultural Development Partners’ Linkage Advisory Councils (ADPLACs), which was responsible for facilitating the partnership and linkages of extension actors in the region. 7. The findings of this thesis also suggest that the roles of NGOs and the private sector in the provision of extension service should be enhanced. The case study found that key actors such as the private sector and NGOs were missing from effective provision of extension services. The private sector and NGOs may have a comparative advantage in activities such as provision of improved seeds, fertilizers, pesticides, vaccination, deworming and artificial inseminations. NGO and private sector engagement in these areas will allow the regional government to free up and reallocate funds to its broader extension strategies such as development of new incentive schemes, education and training, technical advisory services, sustainable natural resource management practices and organizing farmers to link them with new markets.
Institutional change in Cuba's agricultural sector
(2010) Jaffe Lopez, Mercedes Isabel; Zeller, Manfred
Cuba has a low agricultural production and depends on costly food imports. The partial reforms advanced by the government during the 1990s seem to have failed in increasing productivity or output. Due to a lack of primary research in the agricultural sector, little is known about the incentives and constraints that producers face. This dissertation seeks to contribute in the reduction of this knowledge gap and proposes a new way of understanding the transition in the agricultural sector in Cuba. The role of the institutions governing this sector is studied in order to evaluate the main problems of different producer types and the possibilities and constraints of reform towards a more productive agriculture. The dissertation is organized around three papers. The analyses presented in these papers use quantitative and qualitative data collected during two field trips in 2007-2008 and 2009, as well as secondary data from publications, news and official statistics. The first paper describes the sector?s institutional framework and compares the performance of different producer types that include state farms, semi-independent collectives, and private producers. These producers differ in their access to illegal markets, and in their property rights for land and cattle. Private farmers have more incentives to produce due to their stronger user rights, resulting in a better productive performance when compared to state and state-dependent collective farms. The results cast doubt on the prevailing idea that production problems result from technical or resources deficiencies. The second paper deals with the largest producer type described in the first paper, by exploring poverty and food access of collective farm households with the use of principal component analysis and other methods. It is found that relative poverty and food security depend on the household?s access to individual and collective resources for subsistence production. The main productive activities and the economic performance of the state-dependent collective farms have no correlation with the poverty status of their workers, exposing incentive problems at worker level. The third paper investigates the constraints that have led to the failure of adopting economically efficient institutions by evaluating the historical political power dynamics in Cuba?s agricultural sector. It is found that the institutions adopted aim to limit the accumulation of political power by private producers. Economic crises that threaten the political elite have caused the partial and temporary adoption of free markets and the distribution of state land to private farmers. These reforms, however, have been blocked by the bureaucrats as they lose political power. The papers show that the incomplete and insecure property rights regime in Cuba results in low overall productivity caused by incentive and other problems. In the case of the state-dependent collective farms, this increases the poverty and food insecurity of the workers, while hurting the supply of rationed food to the general population. The institutional setup is a result of power dynamics where the elite, using the bureaucracy, tries to minimize the political threat of organized private producers by limiting their accumulation of wealth. Successful reform of the agricultural sector would require a redefinition of the power bases and relationships between the government and political stakeholders such as the bureaucracy and other groups (for example the civic society) by allowing participation of these stakeholders in the shaping of the reforms. The dissertation concludes by presenting an outlook for research and the international development organizations working in the country.
Microeconomic impacts of institutional transformation in Vietnam?s Northern uplands : empirical studies on social capital, land and credit institutions
(2012) Saint-Macary, Camille; Zeller, Manfred
Vietnam's economic achievement over the last two decades is frequently regarded as a successful case of development. The Doi Moi reform program enacted in 1986 gradually led the transition from a centrally-planned to a market-oriented economy. In rural areas, reforms entailed a deep transformation of institutions and were aimed at placing back farmers at the center of decision making as a way to boost agricultural production and alleviate poverty. Agricultural markets were gradually liberalized, user rights were transferred to smallholder farmers for most of the agricultural land, and anti-poverty programs were implemented. At the national level, the high economic growths in all sectors of the economy have permitted a drastic reduction of poverty. These successes however did not take place evenly through the country. Mountainous regions and its inhabitants have lagged behind in the process. The poverty incidence in the Northern Uplands was still twice as large in 2008 than in the rest of the country. In addition, the rapid population growth combined with the intensification and expansion of agricultural systems into fragile ecosystems have considerably increased pressure on natural resources. This accentuates the risk for resource-based economies such as Vietnam?s mountainous regions to get trapped in a vicious circle whereby environmental degradation and poverty mutually reinforce each other and durably undermine economic development. The existence of complex relations between poverty and environmental degradation in fragile ecosystems implies that equity, economic growth and environmental sustainability cannot be treated as separate objectives but must jointly be addressed to ensure sustainable development. Drawing on a conceptual framework that highlights the determinant role of institutions in the poverty-environment nexus, this thesis investigates to which extent the current institutional framework addresses objectives of equity, economic growth and environmental sustainability. It focuses on three critical dimensions: the definition of property rights, the functioning of intertemporal markets, and social capital. More specifically, the thesis addresses the following research questions: (i) Has the individualization of land access and land titling policy enhanced tenure security, and thereby increased the adoption of soil conservation practices? (ii) Has a land market emerged in the study area? (iii) Is the credit market equitable and efficient? Does state intervention induce a more equitable and efficient allocation than other sectors? (iv) Does ethnic diversity undermine collective action and the formation of social networks? These questions are investigated empirically in the six chapters of this thesis. Analyses build on a rich and primary quantitative household- and village-level dataset collected in 2007/2008 in Yen Chau, a mountainous district of the Northern Upland region, as well as on qualitative information gathered in the field through focus group discussions and informal discussions with local stakeholders. Successes of the land reform lie in its egalitarian character which enables most farmers to cultivate land with long term user rights. Yet, results show that tenure security is not fully guaranteed and land reallocations conducted by the government as well as its indecision regarding the prolongation of land use rights at the end of their term have created mistrust and uncertainty. The incertitude is found to impede the adoption of soil conservation technologies and to hamper the land market, depriving the local economy from potentially important equity and efficiency gains, and threatening environmental sustainability. The credit market, thanks to good levels of social capital, is found to function relatively well and enable all farmers including the poor to finance agricultural input and consumption through loans. The state-governed formal sector, despite offering competitive contract terms remains a secondary credit source, particularly for the poor. The costly micro-credit program of the government fails to reach the poor and is found to have only limited impact on welfare. This inefficiency causes an important leakage of state resources. Finally, we do not find as predicted by the literature, that ethnic heterogeneity undermines participation in local organizations and the formation of social networks. This impact appears to depend on the political nature of organizations, and the public nature of goods managed. Moreover, evidence shows that heterogeneity encourages bridging connections among farmers and constitutes as such a factor that can foster innovations and economic development. The contributions of this thesis are twofold. First, it identifies sources of success and failure in the current institutional framework to promote sustainable development in Vietnam?s mountainous areas from which we derive policy recommendations. Evidence in this thesis highlights limitations of the top-down approach that dominates public intervention in mountainous areas. These interventions are usually costly and not always successful in enhancing equity, efficiency and the environmental sustainability of resource use. This stresses the need for the Vietnamese government to further enhance the functioning of incentive-based mechanisms in the economy as a complement to current policies. In this perspective, the clarification of the land reform objectives, the development of a land market, the promotion of independent and financially sustainable financial institutions, the reinforcement of the legal system, and the support of the emergence of an independent civil society are all measures that may support sustainable development in Vietnam?s mountainous regions.