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Fan, F., Henriksen, C. B., & Porter, J. (2016). Valuation of ecosystem services in organic cereal crop production systems with different management practices in relation to organic matter input. Ecosystem Services, 22, 117–127.
Abstract: As the degradation of global ecosystem services (ES) continues in the last five decades, maintaining or even enhancing the ES of agro-ecosystem is one of the approaches to mitigate the global ES loss. This study provides the first estimate of an economic valuation of ES provided by organic cereal crop production systems with different management practices in relation to organic matter input (low, medium and high). Our results show that organic matter inputs significantly affect the total ES value on organic cereal crop production systems. The system with high organic matter input has the highest gross total ES value (US$ 1969 ha(-1) yr(-1)), followed by the low organic matter input system (US$ 1688 ha(-1) yr(-1)), and the lowest ES value are found in the medium organic matter input system (US$ 1492 ha(-1) yr(-1)). Organic matter inputs have strong positive relationship with non-marketable ES values, while this relationship was not found in marketable ES values. Monetizing the ES can be used by land managers and policy makers to adjust management practices in terms of organic matter input in cereal production system with a long term goal for sustainable agriculture.
Keywords: soil physical-properties; carbon sequestration; microbial biomass; farming systems; nitrogen mineralization; earthworm populations; straw; incorporation; economic valuation; agricultural soils; different tillage; Organic farming; Ecosystem services; Economic valuation; Management; Informed decision making
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Fan, F., Henriksen, C. B., & Porter, J. (2018). Long-term effects of conversion to organic farming on ecosystem services – a model simulation case study and on-farm case study in Denmark. Agroecology and Sustainable Food Systems, 42(5), 504–529.
Abstract: Organic agriculture aims to produce food while establishing an ecological balance to augment ecosystem services (ES) and has been rapidly expanding in the world since the 1980s. Recently, however, in several European countries, including Denmark, organic farmers have converted back to conventional farming. Hence, understanding how agricultural ES are affected by the number of years since conversion to organic farming is imperative for policy makers to guide future agricultural policy. In order to investigate the long-term effects of conversion to organic farming on ES we performed i) a model simulation case study by applying the Daisy model to simulate 14 different conversion scenarios for a Danish farm during a 65 year period with increasing number of years under organic farming, and ii) an on-farm case study in Denmark with one conventional farm, one organic farm under conversion, and three organic farms converted 10, 15 and 58 years ago, respectively. Both the model simulation case study and the on-farm case study showed that non-marketable ES values increased with increasing number of years under organic farming. Trade-offs between marketable and non-marketable ES were not evident, since also marketable ES values generally showed an increasing trend, except when the price difference between organic and conventional products in the model simulation study was the smallest, and when an alfalfa pre-crop in the on-farm case study resulted in a significantly higher level of plant available nitrogen, which boosted the yield and the associated marketable ES of the subsequent winter rye crop. These results indicate a possible benefit of preserving long-term organic farms and could be used to argue for agricultural policy interventions to offset further reduction in the number of organic farms or the land area under organic farming.
Keywords: Long-term; conversion; economic value; ecosystem services; organic farming; agricultural policytrade-offs; Greenhouse-Gas Emissions; Former Arable Soils; Daisy Model; Crop; Production; Conventional Agriculture; Straw Incorporation; Production; Systems; Nitrogen Dynamics; Climate-Change; Water-Balance
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Sandhu, H., Wratten, S., Costanza, R., Pretty, J., Porter, J. R., & Reganold, J. (2015). Significance and value of non-traded ecosystem services on farmland. PeerJ, 3, e762.
Abstract: Background. Ecosystem services (ES) generated within agricultural landscapes, including field boundaries, are vital for the sustainable supply of food and fibre. However, the value of ES in agriculture has not been quantified experimentally and then extrapolated globally. Methods. We quantified the economic value of two key but contrasting ES (biological control of pests and nitrogen mineralisation) provided by non-traded non-crop species in ten organic and ten conventional arable fields in New Zealand using field experiments. The arable crops grown, same for each organic and conventional pair, were peas (Pisum sativum), beans (Phaseolus vulgaris), barley (Hordeum vulgare), and wheat (Triticum aestivum). Organic systems were chosen as comparators not because they are the only forms of sustainable agriculture, but because they are subject to easily understood standards. Results. We found that organic farming systems depended on fewer external inputs and produced outputs of energy and crop dry matter generally less than but sometimes similar to those of their conventional counterparts. The economic values of the two selected ES were greater for the organic systems in all four crops, ranging from US$ 68-200 ha(-1) yr(-1) for biological control of pests and from US$ 110-425 ha(-1)yr(-1) for N mineralisation in the organic systems versus US$ 0 ha(-1)yr(-1) for biological control of pests and from US$ 60-244 ha(-1)yr(-1) for N mineralisation in the conventional systems. The total economic value (including market and non-market components) was significantly greater in organic systems, ranging from US$ 1750-4536 ha(-1)yr(-1), with US$ 1585-2560 ha(-1)yr(-1) in the conventional systems. The non-market component of the economic value in organic fields was also significantly higher than those in conventional fields. Discussion. To illustrate the potential magnitude of these two ES to temperate farming systems and agricultural landscapes elsewhere, we then extrapolate these experimentally derived figures to the global temperate cropping area of the same arable crops. We found that the extrapolated net value of the these two services provided by non-traded species could exceed the combined current global costs of pesticide and fertiliser inputs, even if utilised on only 10% of the global arable area. This approach strengthens the case for ES-rich agricultural systems, provided by non-traded species to global agriculture.
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Irz, X., & Kuosmanen, N. (2013). Explaining growth in demand for dairy products in Finland: an econometric analysis. Food Economics, 9(sup5), 47–56.
Abstract: The dairy sector represents the cornerstone of Finnish agriculture but faces new challenges linked to the decoupling of farm subsidies and abolition of milk production quotas. Because of its increasing exposure to market forces, the sector must anticipate future changes in demand and deliver precisely what Finnish consumers want. This paper contributes to that goal by analyzing retroactively the drivers of demand for dairy products over the period 1975–2010 using National Accounts Data. After presenting the evolution of consumption for dairy products, we estimate a complete system of demand for food and dairy products and use it to decompose demand growth into a substitution effect, income effect, and trend effect. The analysis points to the severity of the challenges that the sector is facing. Stagnant consumption is at least partially the result of continuous but adverse taste changes, and as Finnish consumers grow more prosperous, they allocate an increasingly smaller share of their food budget to the dairy group. The low own-price elasticity of demand for dairy products also limits the benefits to the sector of growth in milk production. Hence, business-as-usual will result in the dwindling importance of the dairy sector in the Finnish food chain. Innovation and product differentiation, perhaps emphasizing the attributes of livestock production processes, are clearly required to counter this evolution.
Keywords: Consumption; food; almost ideal demand system; decomposition; elasticities; milk; demand analysis; farm
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Lehtonen, H., Palosuo, T., Korhonen, P., & Liu, X. (2018). Higher Crop Yield Levels in the North Savo Region—Means and Challenges Indicated by Farmers and Their Close Stakeholders. Agriculture, 8(7), 93.
Abstract: The sustainable intensification of farming systems is expected to increase food supply and reduce the negative environmental effects of agriculture. It is also seen as an effective adaptation and mitigation strategy in response to climate change. Our aim is to determine farmers’ and other stakeholders’ views on how higher crop yields can be achieved from their currently low levels. This was investigated in two stakeholder workshops arranged in North Savo, Finland, in 2014 and 2016. The workshop participants, who were organized in discussion groups, considered some agricultural policies to discourage the improvement of crop yields. Policy schemes were seen to support extensification and reduce the motivation for yield improvements. However, the most important means for higher crop yields indicated by workshop participants were improved soil conditions with drainage and liming, in addition to improved crop rotations, better sowing techniques, careful selection of cultivars and forage grass mixtures. Suggested solutions for improving both crop yields and farm income also included optimized use of inputs, focusing production at the most productive fields and actively developed farming skills and knowledge sharing. These latter aspects were more pronounced in 2016, suggesting that farmers’ skills are increasingly being perceived as important.
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