Drivers of agricultural capital productivity in selected EU member states. Factor Markets Working Paper No. 30, September 2012

The aim of this Working Paper is to provide an empirical analysis of the marginal return on working capital and fixed capital in agriculture, based on data gathered by the Farm Accountancy Data Network from seven EU member states. Particular emphasis is placed on the detection of credit market imperfections. The key idea is to provide farm group-specific estimates of the shadow price of capital, and to use these to analyse the drivers of on-farm capital use in European agriculture. Based on Cobb Douglas estimates of farm-type specific production functions, we find that working capital is typically used in more than economically optimal quantities and often displays negative marginal returns across countries and farm types. This is less often the case with regard to fixed capital, but it is only in a small set of sectors where access to fixed capital appears severely constrained. These sectors include field crop and mixed farms in Denmark, dairy farms in East Germany, as well as mixed farms in Italy and the UK. The relationship between farm financial indicators and the estimated shadow prices of capital varies considerably across countries and sectors. Among the farms with a high shadow price for fixed capital in Denmark, high debt levels and little owned land tended to induce more intensive capital use, which may reflect the liberal Danish banking system. In East Germany, Italy and the UK, high debt levels made farmers more tightly capital constrained. Hence, in the latter group of countries, more traditional mechanisms of capital allocation based on debt capacity seemed to be at work. As a general conclusion, EU agriculture appears to be characterised by overcapitalisation rather than by credit constraints.

Will improved access to capital dampen the need for more agricultural land? A CGE analysis of agricultural capital markets and world-wide biofuel policies. Factor Markets Working Paper No. 48, May 2013

This paper analyses the consequences of enhanced biofuel production in regions and countries of the world that have announced plans to implement or expand on biofuel policies. The analysis considers biofuel policies implemented as binding blending targets for transportation fuels. The chosen quantitative modelling approach is two-fold: it combines the analysis of biofuel policies in a multi-sectoral economic model (MAGNET) with systematic variation of the functioning of capital and labour markets. This paper adds to existing research by considering biofuel policies in the EU, the US and various other countries with considerable agricultural production and trade, such as Brazil, India and China. Moreover, the application multi-sectoral modelling system with different assumptions on the mobility of factor markets allows for the observation of changes in economic indicators under different conditions of how factor markets work. Systematic variation of factor mobility indicates that the ‘burden’ of global biofuel policies is not equally distributed across different factors within agricultural production. Agricultural land, as the pre-dominant and sector-specific factor, is, regardless of different degrees of inter-sectoral or intra-sectoral factor mobility, the most important factor limiting the expansion of agricultural production. More capital and higher employment in agriculture will ease the pressure on additional land use – but only partly. To expand agricultural production at global scale requires both land and mobile factors adapted to increase total factor productivity in agriculture in the most efficient way.

El avance de los agronegocios en regiones marginales del agro pampeano : Concentración de la producción y tensiones entre las fracciones del capital agrario

En la Argentina, durante la última década las actividades agrícolas han avanzado sobre regiones marginales para la agricultura como la Depresión del Salado de la provincia de Buenos Aires. El objetivo central de este trabajo es identificar la diversidad de formas en que se expresan los agronegocios en los partidos de Chascomús y Lezama. Para ello nos proponemos caracterizar los principales agentes socioeconómicos que intervienen en la producción de granos y analizar las disputas que se generan por el uso del suelo. La metodología utilizada consiste en el análisis cualitativo de entrevistas semiestructuradas a informantes clave y a agentes de empresas agrícolas, combinado con el análisis de fuentes de información secundaria.Los resultados del trabajo constatan la intensificación en la competencia por el uso del suelo en la región, concluyendo que las nuevas reglas de juego han implicado la consolidación de algunos sectores (agentes externos y actores locales reconvertidos) y la subordinación de otros, entre ellos los estratos de la pequeña producción.

El avance de los agronegocios en regiones marginales del agro pampeano : Concentración de la producción y tensiones entre las fracciones del capital agrario

En la Argentina, durante la última década las actividades agrícolas han avanzado sobre regiones marginales para la agricultura como la Depresión del Salado de la provincia de Buenos Aires. El objetivo central de este trabajo es identificar la diversidad de formas en que se expresan los agronegocios en los partidos de Chascomús y Lezama. Para ello nos proponemos caracterizar los principales agentes socioeconómicos que intervienen en la producción de granos y analizar las disputas que se generan por el uso del suelo. La metodología utilizada consiste en el análisis cualitativo de entrevistas semiestructuradas a informantes clave y a agentes de empresas agrícolas, combinado con el análisis de fuentes de información secundaria.Los resultados del trabajo constatan la intensificación en la competencia por el uso del suelo en la región, concluyendo que las nuevas reglas de juego han implicado la consolidación de algunos sectores (agentes externos y actores locales reconvertidos) y la subordinación de otros, entre ellos los estratos de la pequeña producción.

El avance de los agronegocios en regiones marginales del agro pampeano : Concentración de la producción y tensiones entre las fracciones del capital agrario

En la Argentina, durante la última década las actividades agrícolas han avanzado sobre regiones marginales para la agricultura como la Depresión del Salado de la provincia de Buenos Aires. El objetivo central de este trabajo es identificar la diversidad de formas en que se expresan los agronegocios en los partidos de Chascomús y Lezama. Para ello nos proponemos caracterizar los principales agentes socioeconómicos que intervienen en la producción de granos y analizar las disputas que se generan por el uso del suelo. La metodología utilizada consiste en el análisis cualitativo de entrevistas semiestructuradas a informantes clave y a agentes de empresas agrícolas, combinado con el análisis de fuentes de información secundaria.Los resultados del trabajo constatan la intensificación en la competencia por el uso del suelo en la región, concluyendo que las nuevas reglas de juego han implicado la consolidación de algunos sectores (agentes externos y actores locales reconvertidos) y la subordinación de otros, entre ellos los estratos de la pequeña producción.

The Finance Acts 1998 and 2000: can the owners of agricultural land continue to gain from their capital disposals?

This paper seeks to analyse and discuss, from the perspective of the owners of agricultural land, the main changes to the Capital Gains Tax regime introduced in the Finance Act 1998 and subsequently amended in the Finance Act 2000. The replacement of indexation with a new Taper relief is examined, along with the phasing out of Retirement relief, and the interaction of Taper relief with Rollover relief. The opportunity for tax mitigation by the owners of agricultural land is critically examined.

The Finance Act 1998: can the owners of agricultural land continue to gain from their capital disposals?

This paper seeks to analyse and discuss, from the perspective of the owners of agricultural land, the main changes to the Capital Gains Tax regime introduced in the Budget of March 1998 and contained in the Finance Act 1998. The immediate replacement of indexation with a new Taper relief is examined, along with the phasing out of Retirement relief, and the interaction of Taper relief with Rollover relief.

Drivers of Agricultural Physical Capital Development: Theoretical Framework and Hypotheses. Factor Markets Working Paper No. 18, February 2012

This paper aims to identify drivers of physical capital adjustments in agriculture. It begins with a review of some of the most important theories and modelling approaches regarding firms’ adjustments of physical capital, ranging from output-based models to more recent approaches that consider irreversibility and uncertainty. Thereafter, it is suggested that determinants of physical capital adjustments in agriculture can be divided into three main groups, namely drivers related to: i) expected (risk-adjusted) profit, ii) expected societal benefits and costs and iii) expected private nonpecuniary benefits and costs. The discussion that follows focuses on the determinants belonging to the first group and covers aspects related to product market conditions, technological conditions, financial conditions and the role of firm structure and organization. Furthermore, the role of subjective beliefs is emphasized. The main part of this paper is concerned with the demand side of the physical capital market and one section also briefly discusses some aspects related to supply of farm assets.

Soil management effects on organic carbon in isolated fractions of a Gray Luvisol

Agricultural management affects soil organic matter, which is important for sustainable crop production and as a greenhouse gas sink. Our objective was to determine how tillage, residue management and N fertilization affect organic C in unprotected, and physically, chemically and biochemically protected soil C pools. Samples from Breton, Alberta were fractionated and analysed for organic C content. As in previous report, N fertilization had a positive effect, tillage had a minimal effect, and straw management had no effect on whole-soil organic C. Tillage and straw management did not alter organic C concentrations in the isolated C pools, while N fertilization increased C concentrations in all pools. Compared with a woodlot soil, the cultivated plots had lower total organic C, and the C was redistributed among isolated pools. The free light fraction and coarse particulate organic matter responded positively to C inputs, suggesting that much of the accumulated organic C occurred in an unprotected pool. The easily dispersed silt-sized fraction was the mineral-associated pool most responsive to changes in C inputs, whereas the microaggregate-derived silt-sized fraction best preserved C upon cultivation. These findings suggest that the silt-sized fraction is important for the long-term stabilization of organic matter through both physical occlusion in microaggregates and chemical protection by mineral association.

Implementation costs of Agricultural Management Practices for Water Quality Improvement in the Great Barrier Reef Catchments. CSIRO: Water for Healthy Country National Research Flagship

Executive summary. In this report we analyse implementation costs and benefits for agricultural management practices, grouped into farming systems. In order to do so, we compare plot scale gross margins for the dominant agricultural production systems (sugarcane, grazing and banana cultivation) in the NRM regions Wet Tropics, Burdekin Dry Tropics and Mackay Whitsundays. Furthermore, where available, we present investment requirements for changing to improved farming systems. It must be noted that transaction costs are not captured within this project. For sugarcane, this economic analysis shows that there are expected benefits to sugarcane growers in the different regions through transitions to C and B class farming systems. Further transition to A-class farming systems can come at a cost, depending on the capital investment required and the length of the investment period. Obviously, the costs and benefits will vary for each individual grower and will depend on their starting point and individual property scenario therefore each circumstance needs to be carefully considered before making a change in management practice. In grazing, overall, reducing stocking rates comes at a cost (reduced benefits). However, when operating at low utilisation rates in wetter country, lowering stocking rates can potentially come at a benefit. With win-win potential, extension is preferred to assist farmer in changing management practices to improve their land condition. When reducing stocking rates comes at a cost, incentives may be applicable to support change among farmers. For banana cultivation, the results indicate that the transition to C and B class management practices is a worthwhile proposition from an economic perspective. For a change from B to A class farming systems however, it is not worthwhile from a financial perspective. This is largely due to the large capital investment associated with the change in irrigation system and negative impact in whole of farm gross margin. Overall, benefits will vary for each individual grower depending on their starting point and their individual property scenario. The results presented in this report are one possible set of figures to show the changes in profitability of a grower operating in different management classes. The results in this report are not prescriptive of every landholder. Landholders will have different costs and benefits from transitioning to improved practices, even if similar operations are practiced, hence it is recommended that landholders that are willing to change management undertake their own research and analysis into the expected costs and benefits for their own soil types and property circumstances.

Analysis of Betaine and Choline Contents of Aleurone, Bran, and Flour Fractions of Wheat (Triticum aestivum L.) Using 1H Nuclear Magnetic Resonance (NMR) Spectroscopy

In conventional milling, the aleurone layer is combined with the bran fraction. Studies indicate that the bran fraction of wheat contains the majority of the phytonutrients betaine and choline, with relatively minor concentrations in the refined flour. This present study suggests that the wheat aleurone layer (Triticum aestivum L. cv. Tiger) contains the greatest concentration of both betaine and choline (1553.44 and 209.80 mg/100 g of sample, respectively). The bran fraction contained 866.94 and 101.95 mg/100 g of sample of betaine and choline, respectively, while the flour fraction contained 23.30 mg/100 g of sample (betaine) and 28.0 mg/100 g of sample (choline). The betaine content for
the bran was lower, and the choline content was higher compared to previous studies, although it is known that there is large variation in betaine and choline contents between wheat cultivars. The ratio of betaine/choline in the aleurone fraction was approximately 7:1; in the bran, the ratio was approximately 8:1; and in the flour fraction, the ratio was approximately 1:1. The study further
emphasizes the superior phytonutrient composition of the aleurone layer.
INTRODUCTION
Wheat is a valuable source of betaine, choline (1, 2), B
vitamins, vitamin E, and a number of minerals, including iron,
zinc, magnesium, and phosphorus (3). Epidemiological studies
indicate that whole-grain consumption is protective against
several chronic diseases (4-12). It has not been fully elucidated
how whole-grain cereals or specific fractions (13) exert their
protective effect, but it is thought to be due to their content of
several nutrients associated with the reduced risk of disease.
Conventionally, whole grain is separated during milling into
bran, germ, and flour (14). The nutrient composition of these
fractions differ markedly; refined wheat flour contains approximately
50% less vitamins and minerals than whole-grain
flour (

Impact of Agricultural Credit in the.Agricultural Development of Kuttanad

Introduction of agrarian reforms and introduction of new technology increased dependence on casual labourers. High labour absorption in the subsistence agriculture and increased price of input resulted in high cost of cultivation. Price of paddy did not rise correspondingly. As a result subsistence economy's future is bleak. The purpose of the _study is to examine these arguments and related issues with the help of empirical evidence from Kuttanad. The credit schemes are designed to help farmers to earn higher incomes by larger output brought either by an increase in area or by an improvement in yield rates or both. It is difficult to isolate the impact of agricultural credit on agricultural development. Because agricultural development is the combined effect of all inputs. The specific .criteria selected for analysing the impact of agricultural icredit are how increased supply of credit would bring changes ‘in capital formation, agrarian relations, informal lending and its cost and the changes in area, output, introduction of new technology, income, savings and employment of farm households.

Public policies and the competitiveness of agricultural exports

Includes bibliography