Land leasing, land degradation and agricultural productivity in Finland

This study analysed whether the land tenure insecurity problem has led to a decline in long-term land improvements (liming and phosphorus fertilization) under the Common Agricultural Policy (CAP) and Nordic production conditions in European Union (EU) countries such as Finland. The results suggests that under traditional cash lease contracts, which are encouraged by the existing land leasing regulations and agricultural subsidy programs, the land tenure insecurity problem on leased land reduces land improvements that have a long pay-back period. In particular, soil pH was found to be significantly lower on land cultivated under a lease contract compared to land owned by the farmers themselves. The results also indicate that land improvements could not be reversed by land markets, because land owners would otherwise have carried out land improvements even if not farming by themselves. To reveal the causality between land tenure and land improvements, the dynamic optimisation problem was solved by a stochastic dynamic programming routine with known parameters for one-period returns and transition equations. The model parameters represented Finnish soil quality and production conditions. The decision rules were solved for alternative likelihood scenarios over the continuation of the fixed-term lease contract. The results suggest that as the probability of non-renewal of the lease contract increases, farmers quickly reduce investments in irreversible land improvements and, thereafter, yields gradually decline. The simulations highlighted the observed trends of a decline in land improvements on land parcels that are cultivated under lease contracts. Land tenure has resulted in the neglect of land improvement in Finland. This study aimed to analyze whether these challenges could be resolved by a tax policy that encourages land sales. Using Finnish data, real estate tax and a temporal relaxation on the taxation of capital gains showed some potential for the restructuring of land ownership. Potential sellers who could not be revealed by traditional logit models were identified with the latent class approach. Those landowners with an intention to sell even without a policy change were sensitive to temporal relaxation in the taxation of capital gains. In the long term, productivity and especially productivity growth are necessary conditions for the survival of farms and the food industry in Finland. Technical progress was found to drive the increase in productivity. The scale had only a moderate effect and for the whole study period (1976–2006) the effect was close to zero. Total factor productivity (TFP) increased, depending on the model, by 0.6–1.7% per year. The results demonstrated that the increase in productivity was hindered by the policy changes introduced in 1995. It is also evidenced that the increase in land leasing is connected to these policy changes. Land institutions and land tenure questions are essential in agricultural and rural policies on all levels, from local to international. Land ownership and land titles are commonly tied to fundamental political, economic and social questions. A fair resolution calls for innovative and new solutions both on national and international levels. However, this seems to be a problem when considering the application of EU regulations to member states inheriting divergent landownership structures and farming cultures. The contribution of this study is in describing the consequences of fitting EU agricultural policy to Finnish agricultural land tenure conditions and heritage.

Determinants of farmer retirement and farm succession in Finland

In the past decade, the Finnish agricultural sector has undergone rapid structural changes. The number of farms has decreased and the average farm size has increased when the number of farms transferred to new entrants has decreased. Part of the structural change in agriculture is manifested in early retirement programmes. In studying farmers exit behaviour in different countries, institutional differences, incentive programmes and constraints are found to matter. In Finland, farmers early retirement programmes were first introduced in 1974 and, during the last ten years, they have been carried out within the European Union framework for these programmes. The early retirement benefits are farmer specific and de-pend on the level of pension insurance the farmer has paid over his active farming years. In order to predict the future development of the agricultural sector, farmers have been frequently asked about their future plans and their plans for succession. However, the plans the farmers made for succession have been found to be time inconsistent. This study estimates the value of farmers stated succession plans in predicting revealed succession decisions. A stated succession plan exists when a farmer answers in a survey questionnaire that the farm is going to be transferred to a new entrant within a five-year period. The succession is revealed when the farm is transferred to a suc-cessor. Stated and revealed behaviour was estimated as a recursive Binomial Probit Model, which accounts for the censoring of the decision variables and controls for a potential correlation between the two equations. The results suggest that the succession plans, as stated by elderly farmers in the questionnaires, do not provide information that is significant and valuable in predicting true, com-pleted successions. Therefore, farmer exit should be analysed based on observed behaviour rather than on stated plans and intentions. As farm retirement plays a crucial role in determining the characteristics of structural change in agriculture, it is important to establish the factors which determine an exit from farming among eld-erly farmers and how off-farm income and income losses affect their exit choices. In this study, the observed choice of pension scheme by elderly farmers was analysed by a bivariate probit model. Despite some variations in significance and the effects of each factor, the ages of the farmer and spouse, the age and number of potential successors, farm size, income loss when retiring and the location of the farm together with the production line were found to be the most important determi-nants of early retirement and the transfer or closure of farms. Recently, the labour status of the spouse has been found to contribute significantly to individual retirement decisions. In this study, the effect of spousal retirement and economic incentives related to the timing of a farming couple s early retirement decision were analysed with a duration model. The results suggest that an expected pension in particular advances farm transfers. It was found that on farms operated by a couple, both early retirement and farm succession took place more often than on farms operated by a single person. However, the existence of a spouse delayed the timing of early retirement. Farming couples were found to co-ordinate their early retirement decisions when they both exit through agricultural retirement programmes, but such a co-ordination did not exist when one of the spouses retired under other pension schemes. Besides changes in the agricultural structure, the share and amount of off-farm income of a farm family s total income has also increased. In the study, the effect of off-farm income on farmers retirement decisions, in addition to other financial factors, was analysed. The unknown parameters were first estimated by a switching-type multivariate probit model and then by the simulated maxi-mum likelihood (SML) method, controlling for farmer specific fixed effects and serial correlation of the errors. The results suggest that elderly farmers off-farm income is a significant determinant in a farmer s choice to exit and close down the farm. However, off-farm income only has a short term effect on structural changes in agriculture since it does not significantly contribute to the timing of farm successions.

APSIM – Evolution towards a new generation of agricultural systems simulation

Agricultural systems models worldwide are increasingly being used to explore options and solutions for the food security, climate change adaptation and mitigation and carbon trading problem domains. APSIM (Agricultural Production Systems sIMulator) is one such model that continues to be applied and adapted to this challenging research agenda. From its inception twenty years ago, APSIM has evolved into a framework containing many of the key models required to explore changes in agricultural landscapes with capability ranging from simulation of gene expression through to multi-field farms and beyond. Keating et al. (2003) described many of the fundamental attributes of APSIM in detail. Much has changed in the last decade, and the APSIM community has been exploring novel scientific domains and utilising software developments in social media, web and mobile applications to provide simulation tools adapted to new demands. This paper updates the earlier work by Keating et al. (2003) and chronicles the changing external challenges and opportunities being placed on APSIM during the last decade. It also explores and discusses how APSIM has been evolving to a “next generation” framework with improved features and capabilities that allow its use in many diverse topics.

Crude oil and agricultural futures: An analysis of correlation dynamics

Correlations between oil and agricultural commodities have varied over previous decades, impacted by renewable fuels policy and turbulent economic conditions. We estimate smooth transition conditional correlation models for 12 agricultural commodities and WTI crude oil. While a structural change in correlations occurred concurrently with the introduction of biofuel policy, oil and food price levels are also key influences. High correlation between biofuel feedstocks and oil is more likely to occur when food and oil price levels are high. Correlation with oil returns is strong for biofuel feedstocks, unlike with other agricultural futures, suggesting limited contagion from energy to food markets.

Good science for improving policy: greenhouse gas emissions from agricultural manures

Australia’s and New Zealand’s major agricultural manure management emission sources are reported to be, in descending order of magnitude: (1) methane (CH4) from dairy farms in both countries; (2) CH4 from pig farms in Australia; and nitrous oxide (N2O) from (3) beef feedlots and (4) poultry sheds in Australia. We used literature to critically review these inventory estimates. Alarmingly for dairy farm CH4 (1), our review revealed assumptions and omissions that when addressed could dramatically increase this emission estimate. The estimate of CH4 from Australian pig farms (2) appears to be accurate, according to industry data and field measurements. The N2O emission estimates for beef feedlots (3) and poultry sheds (4) are based on northern hemisphere default factors whose appropriateness for Australia is questionable and unverified. Therefore, most of Australasia’s key livestock manure management greenhouse gas (GHG) emission profiles are either questionable or are unsubstantiated by region-specific research. Encouragingly, GHG from dairy shed manure are relatively easy to mitigate because they are a point source which can be managed by several ‘close-to-market’ abatement solutions. Reducing these manure emissions therefore constitutes an opportunity for meaningful action sooner compared with the more difficult-to-implement and long-term strategies that currently dominate agricultural GHG mitigation research. At an international level, our review highlights the critical need to carefully reassess GHG emission profiles, particularly if such assessments have not been made since the compilation of original inventories. Failure to act in this regard presents the very real risk of missing the ‘low hanging fruit’ in the rush towards a meaningful response to climate change

25th Anniversary of the Linked Life Insurance Commemorative Medal

Obverse: Inscription. Reverse: The life insurance emblem, a house with family inside, shekel coin on the roof of the house.

Allelopathy for weed control in agricultural systems

Weeds are a hidden foe for crop plants, interfering with their functions and suppressing their growth and development. Yield losses of ∼34 are caused by weeds among the major crops, which are grown worldwide. These yield losses are higher than the losses caused by other pests in the crops. Sustainable weed management is needed in the wake of a huge decline in crop outputs due to weed pressure. A diversity in weed management tools ensures sustainable weed control and reduces chances of herbicide resistance development in weeds. Allelopathy as a tool, can be importantly used to combat the challenges of environmental pollution and herbicide resistance development. This review article provides a recent update regarding the practical application of allelopathy for weed control in agricultural systems. Several studies elaborate on the significance of allelopathy for weed management. Rye, sorghum, rice, sunflower, rape seed, and wheat have been documented as important allelopathic crops. These crops express their allelopathic potential by releasing allelochemicals which not only suppress weeds, but also promote underground microbial activities. Crop cultivars with allelopathic potentials can be grown to suppress weeds under field conditions. Further, several types of allelopathic plants can be intercropped with other crops to smother weeds. The use of allelopathic cover crops and mulches can reduce weed pressure in field crops. Rotating a routine crop with an allelopathic crop for one season is another method of allelopathic weed control. Importantly, plant breeding can be explored to improve the allelopathic potential of crop cultivars. In conclusion, allelopathy can be utilized for suppressing weeds in field crops. Allelopathy has a pertinent significance for ecological, sustainable, and integrated weed management systems.

Queensland Agricultural Journal Volume 13 Parts 1-6 July to December 1903

General Index Vol 13 Parts 1-6, pages 1-81

Consumption of crops by feral pigs (Sus scrofa) in a fragmented agricultural landscape

Feral pigs (Sus scrofa) consume and damage crops and impact the environment through predation, competition and habitat disturbance, although supporting dietary data are lacking in agricultural landscapes. This study was undertaken to determine the relative importance of food items in the diet of feral pigs in a fragmented agricultural landscape, particularly to assist in predicting the breadth of likely impacts. Diet composition was assessed from the stomach contents of 196 feral pigs from agricultural properties in southern Queensland. Feral pigs were herbivorous, with plant matter comprising >99% of biomass consumed. Crops were consumed more frequently than non-crop species, and comprised >60% of dietary biomass, indicating a clear potential for direct economic losses. Consumption of pasture and forage species also suggests potential competition for pasture with domestic stock. There is little evidence of direct predation on native fauna, but feral pig feeding activities may impact environmental values. Seasonal differences in consumption of crop, pasture or animal food groups probably reflect the changing availability of food items. We recommend that future dietary studies examine food availability to determine any dietary preferences to assist in determining the foods most susceptible to damage. The outcomes of this study are important for developing techniques for monitoring the impacts of feral pigs, essential for developing management options to reduce feral pig damage on agricultural lands.

Fauna community trends during early restoration of alluvial open forest/woodland ecosystems on former agricultural land

Vertebrate fauna was studied over 10 years following revegetation of a Eucalyptus tereticornis ecosystem on former agricultural land. We compared four vegetation types: remnant forest, plantings of a mix of native tree species on cleared land, natural regeneration of partially cleared land after livestock removal, and cleared pasture land with scattered paddock trees managed for livestock production. Pasture differed significantly from remnant in both bird and nonbird fauna. Although 10 years of ecosystem restoration is relatively short term in the restoration process, in this time bird assemblages in plantings and natural regeneration had diverged significantly from pasture, but still differed significantly from remnant. After 10 years, 70 and 66% of the total vertebrate species found in remnant had been recorded in plantings and natural regeneration, respectively. Although the fauna assemblages within plantings and natural regeneration were tracking toward those of remnant, significant differences in fauna between plantings and natural regeneration indicated community development along different restoration pathways. Because natural regeneration contained more mature trees (dbh > 30 cm), native shrub species, and coarse woody debris than plantings from the beginning of the study, these features possibly encouraged different fauna to the revegetation areas from the outset. The ability of plantings and natural regeneration to transition to the remnant state will be governed by a number of factors that were significant in the analyses, including shrub cover, herbaceous biomass, tree hollows, time since fire, and landscape condition. Both active and passive restoration produced significant change from the cleared state in the short term.

Managing reforestation to sequester carbon, increase biodiversity potential and minimize loss of agricultural land

Reforestation will have important consequences for the global challenges of mitigating climate change, arresting habitat decline and ensuring food security. We examined field-scale trade-offs between carbon sequestration of tree plantings and biodiversity potential and loss of agricultural land. Extensive surveys of reforestation across temperate and tropical Australia (N = 1491 plantings) were used to determine how planting width and species mix affect carbon sequestration during early development (< 15 year). Carbon accumulation per area increased significantly with decreasing planting width and with increasing proportion of eucalypts (the predominant over-storey genus). Highest biodiversity potential was achieved through block plantings (width > 40 m) with about 25% of planted individuals being eucalypts. Carbon and biodiversity goals were balanced in mixed-species plantings by establishing narrow belts (width < 20 m) with a high proportion (>75%) of eucalypts, and in monocultures of mallee eucalypt plantings by using the widest belts (ca. 6–20 m). Impacts on agriculture were minimized by planting narrow belts (ca. 4 m) of mallee eucalypt monocultures, which had the highest carbon sequestering efficiency. A plausible scenario where only 5% of highly-cleared areas (<30% native vegetation cover remaining) of temperate Australia are reforested showed substantial mitigation potential. Total carbon sequestration after 15 years was up to 25 Mt CO2-e year−1 when carbon and biodiversity goals were balanced and 13 Mt CO2-e year−1 if block plantings of highest biodiversity potential were established. Even when reforestation was restricted to marginal agricultural land (<$2000 ha−1 land value, 28% of the land under agriculture in Australia), total mitigation potential after 15 years was 17–26 Mt CO2-e year−1 using narrow belts of mallee plantings. This work provides guidance on land use to governments and planners. We show that the multiple benefits of young tree plantings can be balanced by manipulating planting width and species choice at establishment. In highly-cleared areas, such plantings can sequester substantial biomass carbon while improving biodiversity and causing negligible loss of agricultural land.

Papers regarding workhouse and constitution of the American Hebrew Agricultural Association

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Accounting for risk: The advent of capped conveyancing title insurance

Title insurance companies originating from America, have, in the past 15 years become part of the Australian conveyancing landscape. However for most residential freehold owners, their activities would be a mystery. A purchaser does not routinely obtain title insurance, with the companies presently focussing on servicing the mortgagee sector. While the lack of penetration in the residential purchaser market may be attributed to the consumer’s lack of knowledge, evidence from Ontario and New Zealand illustrates that title insurance is likely to become an additional cost in the conveyancing process in Australia. In this article we highlight the reasons why, and demonstrate how title insurers have, by working with the legal profession been able to subtly move the risk of responsibility for compensation for loss, (at least in the first instance) from the state to the insurer, but with the added benefit for the state and the conveyancing agents that the cost of the insurance is ultimately borne by the consumer. In New Zealand this development is being accelerated by the introduction of capped conveyancing title insurance. Whether title insurance will become part of the conveyancing process is no longer the relevant question for Australia, (it undoubtedly will), but the unknown issue is just how title insurance companies will work with conveyancing agents to infiltrate the market, and what response this infiltration will have in terms of the state’s view as to their continued role in the provision of assurance. We suggest that developments from New Zealand in relation to capped conveyancing insurance are likely to be replicated in Australia in the near future, and that the state’s role in providing an assurance fund will continue, though the state may seek to expand the areas in which the right to compensation is restricted.