The trade credit in the Spanish agrofood industry

Selling on credit is rather frequent in Mediterranean countries. Its generalized use can lead to excessive enlargements of the payment periods and consequently can deteriorate the profitability of firms. In spite of the relevance of this problem there are few empirical researches. This work intends to fill this gap and to shed light on the factors related to the extension of trade credit. In the theoretical and empirical literature, different motives have been proposed to explain this issue: a mechanism to reduce transaction costs, a financial alternative to the bank system and an additional tool to improve commercial activities. To contrast these ideas a panel of 388 firms of the Spanish agrofood industry has been taken, and static and dynamic regression models have been estimated by using robust methods to heteroskedasticity, autocorrelation and endogeneity of the explanatory variables. The results confirm that trade credit receivable is associated with more active firms and with cheaper bank financing. Other factors with positive relationships are short-term bank debts and accounts payable. These findings are consistent with commercial motives, rather than a pure financial view, in the sense that financial distressed producers extend trade credit as a way of promoting their products and in turn increasing their sales.

Modelling agro-forestry scenarios for ammonia abatement in the landscape

Ammonia emissions from livestock production can have negative impacts on nearby protected sites and ecosystems that are sensitive to eutrophication and acidification. Trees are effective scavengers of both gaseous and particulate pollutants from the atmosphere making tree belts potentially effective landscape features to support strategies aiming to reduce ammonia impacts. This research used the MODDAS-THETIS a coupled turbulence and deposition turbulence model, to examine the relationships between tree canopy structure and ammonia capture for three source types?animal housing, slurry lagoon, and livestock under a tree canopy. By altering the canopy length, leaf area index, leaf area density, and height of the canopy in the model the capture efficiencies varied substantially. A maximum of 27% of the emitted ammonia was captured by tree canopy for the animal housing source, for the slurry lagoon the maximum was 19%, while the livestock under trees attained a maximum of 60% recapture. Using agro-forestry systems of differing tree structures near ?hot spots? of ammonia in the landscape could provide an effective abatement option for the livestock industry that complements existing source reduction measures.