scholarly journals Missing the Target: Brazil's Agricultural Policy Indirectly Subsidizes Foreign Investments to the Detriment of Smallholder Farmers and Local Agribusiness

2022 ◽  
Vol 5 ◽  
Author(s):  
Graciella Corcioli ◽  
Gabriel da Silva Medina ◽  
Cristiano Alencar Arrais
Keyword(s):  
Supply Chains ◽  
Multinational Corporations ◽  
Agricultural Policy ◽  
Agricultural Sector ◽  
Smallholder Farmers ◽  
Direct Foreign Investment ◽  
Foreign Companies ◽  
Family Farmers ◽  
Transnational Companies ◽  
The Impact

Currently there is controversy about the effect of direct foreign investment in the Brazilian agricultural sector, mainly due to the impact it has on small farmers, land use, the environment, and food security. In this context, Brazil finds itself in an even more delicate situation, since in order to remain a bulwark of the economy, Brazilian agribusiness depends heavily on public policies that directly impact its treasury. This suggests there is an indirect transfer of public resources to transnational companies involved in agribusiness production chains. This paper assesses the allocation of agricultural credits in Brazil and the market share held by Brazilian groups, vis-à-vis multinational corporations in the agribusiness supply chains. The study was carried out analyzing the three largest supply chains established in the country: soybean, corn, and cattle. Results reveal that 75% of the operating credit (crédito de custeio), which represents 60% of the total government credit in Brazil, goes directly to soybean, corn, and cattle farmers. Most of this subsidized credit budget goes to the soybean farmers, which are mostly encompassed by large farmers. Results also reveal that 76.1% of the soybean supply chain in Brazil is controlled by foreign multinational corporations. These findings suggest that resources invested in large farmers that take part in supply chains controlled by multinational foreign groups end up indirectly financing foreign companies to the detriment of local smallholder farmers and domestic agribusiness. This highlights the need for restructuring Brazilian agricultural policy in favor of family farmers and domestic agribusiness.

scholarly journals Generational Changes in Agriculture: The Influence of Farm Characteristics and Socio-Economic Factors

Agriculture ◽  
2019 ◽  
Vol 9 (12) ◽  
pp. 264 ◽  
Author(s):  
Wojciech Sroka ◽  
Michał Dudek ◽  
Tomasz Wojewodzic ◽  
Karol Król
Keyword(s):  
Agricultural Policy ◽  
Agricultural Sector ◽  
Agricultural Land ◽  
Local Level ◽  
Agricultural Activity ◽  
Endogenous Factors ◽  
Large Cities ◽  
Generational Changes ◽  
Exogenous Factors ◽  
The Impact

The increasing importance of large cities (metropolises) poses a range of challenges to the socio-economic functions of the rural and agricultural areas around them. One such challenge is pressure exerted on family-run farms to abandon agricultural activity and on people engaged in such activity to shift to other sectors. This may be a hindrance to successful succession on family farms. The aim of this paper is to present spatial variation in generational changes in farms located around large cities (metropolises) in Poland and to assess the factors affecting the scale of such changes. Special attention was paid to the importance of the location of farms relative to large cities. One innovative feature of the approach presented was to conduct an analysis of generational changes in the agricultural sector at the supra-local level along with an attempt to quantify the impact of large urban centers on that process. The empirical material based on which the conclusions were formulated included official statistics data and information made available by an institution engaged in the implementation of agricultural policy programs financed from European Union (EU) funds, i.e., young farmer payments (Common Agricultural Policy (CAP) pillar I) and measures “Setting up of young farmers” and “Early retirement” (CAP Pillar II). In the executed study, methods of descriptive and multivariate statistics, including regression trees, were used. It was found that socio-economic (exogenous) factors had a significant statistical impact on generational changes in farms. In areas with an attractive labor market and a high level of urbanization, a successful generational shift in farms occurred less often. Nonetheless, generational changes in the agriculture of the analyzed areas were relatively most strongly determined by endogenous factors linked with the economic potential of the farm. Farm characteristics (area of agricultural land and economic size) and the characteristics of managers, including in particular their education, were found to be more important than exogenous factors. In areas where large and economically strong farms dominated and the level of education among farmers was relatively high, generational changes were faster compared to other areas.

scholarly journals The impact of climate change on European agricultural policy

European View ◽  
2019 ◽  
Vol 18 (2) ◽  
pp. 171-177 ◽  
Author(s):  
Nicole M. Schmidt
Keyword(s):  
Climate Change ◽  
Greenhouse Gas ◽  
Agricultural Policy ◽  
Agricultural Sector ◽  
Raising Awareness ◽  
Combat Climate Change ◽  
Warming World ◽  
The Impact ◽  
Principal Contributor ◽  
The Eu

Agriculture in the context of climate change is often a provocative subject because agriculture is both heavily impacted by the warming world and also a principal contributor to climate change. As efforts to reduce greenhouse gas emissions increase, the EU is pushing all sectors to integrate measures to combat climate change. This article argues that the agricultural sector has instigated a process of integrating climate concerns. However, these efforts will not lead to a large number of disruptive changes in the agricultural sector. While the EU is putting climate change firmly on the agricultural agenda, ranking the issue even higher than the environment, the Union’s primary goal is still to support the income of farmers. Hence, the EU’s intentions will likely lead to raising awareness of the issue of climate change in the context of agriculture but will not lead to any transformative changes in European agricultural policymaking.

scholarly journals A framework for designing symbiotic simulation decision support systems for horticultural supply chains involving smallholder farmers

2021 ◽  
Vol 922 (1) ◽  
pp. 012050
Author(s):  
K Kusnandar ◽  
T Perdana ◽  
A L H Achmad ◽  
F R Hermiatin
Keyword(s):  
Developing Countries ◽  
Decision Support ◽  
Supply Chains ◽  
Agricultural Sector ◽  
Smallholder Farmers ◽  
Close Association ◽  
Design Decision ◽  
Market Demand ◽  
Time Data ◽  
The Real

Abstract Horticulture is one of the important components of Indonesia’s economy that come from the agricultural sector. However, many challenges are encountered in the development of horticultural supply chains (HSCs) in Indonesia. One of them is the lack of production planning that suits the market demand. This results in inefficiency, high food losses and price fluctuation. HSCs systems are complex, especially in developing countries like Indonesia in which many smallholders are involved. Concerning this situation, ICT-based approaches have been widely proposed to integrate planning along supply chains. One of the approaches is a symbiotic simulation that enables a close association between the real system and simulation system. Symbiotic simulation is designed to support decision-makers to plan their activities using the real/near real-time data generated by the real systems as the inputs. However, how this system model can be used in HSC systems involving many smallholders is still a question. This paper proposes a framework to design decision support symbiotic simulations for HSC systems involving smallholders. The framework is designed based on the literature study on symbiotic simulation and agricultural supply chains in developing countries. In this framework, four activities in the HSCs are considered: 1) production; 2) post-production; 3) logistics, and 4) market. This framework can be used by farmer organisations or agricultural companies that have partnerships with smallholders to plan their activities along their supply chains.

scholarly journals Effects of COVID-19 induced pandemic on the production, trade, and income of smallholder vegetable growers in Kathmandu Valley, Nepal

2020 ◽  
Vol 5 (4) ◽  
pp. 548-553
Author(s):  
Nirmal Gadal ◽  
Basanta Neupane ◽  
Rudra B. Shrestha ◽  
Susan Baniya
Keyword(s):  
Supply Chains ◽  
Smallholder Farmers ◽  
Kathmandu Valley ◽  
Group Discussions ◽  
Impact Pathways ◽  
Market Opening ◽  
Farm Productivity ◽  
Descriptive Research ◽  
Multistage Sampling ◽  
The Impact

This study assessed the effects of the COVID-19 pandemic on production, trade and income of smallholder vegetables growers in the Kathmandu valley, Nepal. We made a scenario-based situation analysis of pre-COVID (January to March 2020) and COVID-19 pandemic induced lockdown (April to June 2020) situations. The study used a descriptive research design and employed multistage sampling techniques. One hundred forty-five vegetable growers were surveyed and six focus group discussions were carried out between May to July 2020 in the three municipalities- Chandragiri, Mahalaxmi and Changunarayan of Kathmandu, Lalitpur and Bhaktapur districts respectively. The study showed that the income of smallholders' vegetable growers was decreased by 66.1 percent due to an increase in input price (16.9 percent), a decrease in output price (62.67 percent), and low farm productivity (9.3 percent) in comparison with the pre-COVID period. This paper has figured out the impact pathways that caused the income decline of vegetable growers. The primary constraints to smallholder producers were the absence of local aggregators followed by transportation barriers, limited market opening hours, and mobility obstruction and changed consumers' behavior due to lockdown. Majority of the farmers adjusted to the situations by selling their products at lower prices, free distribution to the local inhabitants, and composting and dumping the surpluses. The study concluded that this kind of analysis is necessary to develop resilient supply chains and extend appropriate support to the smallholder farmers who are critical actor to the supply chains.

Dopady společné zemědělské politiky EU na české zemědělce v období 2014–2020

2021 ◽  
Author(s):  
Eliška Stromská ◽  
Dominika Tóthová ◽  
Katarína Melichová
Keyword(s):  
Czech Republic ◽  
Agricultural Policy ◽  
Common Agricultural Policy ◽  
Financial Stability ◽  
Agricultural Sector ◽  
The Czech Republic ◽  
The Common ◽  
Political Economic ◽  
The Impact ◽  
The Eu

The implementation of the Common Agricultural Policy of the EU in the Czech Republic brought many changes in the functioning and financing of agriculture in the Czech Republic with political, economic, and social impacts and many challenges and threats for Czech farmers. Since the Czech Republic acceded to the EU, the Common Agricultural Policy has been reformed several times. The aim of the article is to evaluate the impact of the Common Agricultural Policy on Czech farmers in 2014–2020. The evaluation is based on a qualitative survey among selected farmers in the Moravian-Silesian and Olomouc regions. The research results show that enterprises positively evaluate financial stability and the overall protection of the agricultural sector. Support for the diversification of agriculture and support for the investment was also highlighted. On the contrary, the administrative burden, great emphasis on cross compliance rules, differences in the payments in EU countries, reducing the competitiveness of Czech agriculture and unfavourable conditions for livestock farmers were assessed negatively.

Economic Issues Related to Asian Deforestation

2021 ◽  
Author(s):  
Stefanie Onder ◽  
James T. Erbaugh ◽  
Georgia Christina Kosmidou-Bradley
Keyword(s):  
Supply Chains ◽  
Multinational Corporations ◽  
Forest Cover ◽  
Local Population ◽  
Economic Incentives ◽  
Forest Monitoring ◽  
Tree Cover ◽  
Forest Governance ◽  
Observation Data ◽  
The Impact

The loss of Asian forests represents one of the most significant changes in contemporary land cover. Between 2000 and 2020 alone, an area twice the size of Malaysia has lost its tree cover as measured by Earth observation data. These trends have significant repercussions for greenhouse gas emissions, carbon storage, the conservation of biodiversity, and the wellbeing of Indigenous Peoples and local communities (IPLCs), making Asian deforestation a phenomenon of global concern. There are many immediate factors that drive deforestation across Asia, but the conversion to commodity agriculture is the leading cause. Most notably, the expansion of oil palm and rubber plantations by both multinational corporations and smallholders has led to dramatic conversion of forests. The production of timber as well as pulp and paper has further contributed to significant deforestation, with the evolution of each sector often driven by government policies, such as logging bans. However, it is the underlying drivers (i.e., distal and proximate causes) that determine where and when commodity production displaces forest cover. They are particularly challenging to tackle in a globalized world, where consumption patterns driven by local population and income growth lead to environmental and social change in distant producer countries, including in Asia. Certification programs and legality requirements have been put in place to address these externalities with varying success. Deforestation in Asia is also facilitated by weak governance and regulatory frameworks, where forest rights are often unclear, and financial, technological, and human resources for forest monitoring are limited. Several contemporary forest governance strategies seek to promote sustainable management of Asian forests. Financial mechanisms such as reducing emissions from deforestation and forest degradation (REDD+) and payments for ecosystem services (PES) schemes seek to provide economic incentives for forest conservation. Pledges and activities to remove deforestation from commodity supply chains seek to respond to consumer demand, promote corporate environmental and social responsibility, and reduce the extent to which commodity supply chains contribute to Asian deforestation. And multiple state-led initiatives across Asia to empower IPLCs aim to align forest management objectives between national governments, subnational administrations, and local people. Assessing the impact of interventions related to financial mechanisms, corporate responsibility, and local forest governance will be critical to shaping the future of Asian forest cover change.

scholarly journals The Use of Extraneous Information in the Development of a Policy Simulation Model

1973 ◽  
Vol 5 (1) ◽  
pp. 167-174 ◽  
Author(s):  
Daryll E. Ray
Keyword(s):  
Agricultural Policy ◽  
Agricultural Sector ◽  
Supply And Demand ◽  
Simulation Models ◽  
Policy Simulation ◽  
Policy Makers ◽  
Production And Consumption ◽  
Extraneous Information ◽  
Aggregated Model ◽  
The Impact

A number of highly aggregated policy simulation models have been developed for the U.S. agricultural sector. While these models are useful in providing broad-stroke sketches of the effects of alternative farm policies, they have been criticized for their lack of commodity detail. Individuals, organizations and congressmen from a cattle producing state, as an example, are more interested in the impact of a changed agricultural policy on cattle prices and incomes than its effect on the income of all farmers. The reason most often given for not disaggregating by commodity groups is the researcher's reluctance to quantify opportunities for substitution among commodities in production and consumption. However, there may be more agreement on the relative magnitudes of supply and demand elasticities for individual commodities than the price elasticities of supply and demand for all farm output. Hence, a disaggregated model may distort reality much less than a highly aggregated model and at the same time provide detail on indirect effects of proposed policies that is so often sought by policy makers.

A Wrong Sound in the Quest for a Symphony? The WTO and the Impact of EU’s Common Agricultural Policy on Africa: Insight from Senegal

2021 ◽  
pp. 1-15
Author(s):  
Henry Ufomba
Keyword(s):  
Empirical Evidence ◽  
Agricultural Policy ◽  
Common Agricultural Policy ◽  
Agricultural Sector ◽  
Developed Countries ◽  
Economic Policies ◽  
Trade Relations ◽  
The Impact ◽  
The Eu ◽  
Local Farmers

Abstract This paper is situated within the growing debate on how the domestic economic policies of developed countries condition that of the developing countries through the mechanism of international trade relations under the auspices of the WTO. Using the framework of the dependency theory I shall examine the economic impact of the EU Common Agricultural Policy (CAP) on Africa with critical attention on the agricultural sector of the former, drawing empirical evidence from the present situation in Senegal. This answered the overarching question: How does the EU CAP affect the economies of Africa in general and Senegal in particular? The empirical evidence from Senegal’s experience presented in this paper revealed that CAP negatively affects the economic growth of Africa through the suffocation of its agricultural sector as a result of its distortion of the domestic price and the inability of local farmers to produce at a price that can compete equally with the heavily subsidized imported alternatives from the EU.

scholarly journals Sustainability of Agricultural Diversity in the Farm Households of Southern Tibet

2019 ◽  
Vol 11 (20) ◽  
pp. 5756
Author(s):  
Colin Brown ◽  
Lava Prakash Yadav ◽  
Jing Zhang ◽  
Deqing Zhouma
Keyword(s):  
Agricultural Sector ◽  
Smallholder Farmers ◽  
Limited Resource ◽  
Farming Systems ◽  
External Input ◽  
Farm Households ◽  
Resource Base ◽  
Southern Tibet ◽  
Agrarian Transition ◽  
The Impact

Farming systems in Tibet are undergoing significant change as farm households are encouraged to shift from more subsistence-oriented staple cereals to more intensive, diverse, and integrated forage crop livestock systems reliant on engagement with external input and product markets. This is occurring at a time of rapid agrarian transition with more and more of the livelihoods, income, and expenditures of farm households dependent on off-farm sources. Modernizing an agricultural sector that can sustain the livelihoods of smallholder farmers and meet the demands of an ever more discerning customer base all within the confines of a limited resource base has proved a major R&D and policy challenge for Tibetan and Chinese officials, let alone the farmers and market actors impacted by these developments. In this paper, key drivers impacting diversity in Tibetan farm households, including agrarian transition and demographic, infrastructure, and food price developments, are outlined. The impact on household economics and on the environment of the more intensive and diverse farming systems are then discussed, along with the attitudes of farm households to the changing farming systems and to their future in farming. The paper finds significant labor and environmental challenges that farm households and policy makers must grapple with if the farming system and agrarian transition trajectories are to be sustained.

scholarly journals Eu integration: the meaning of the common agricultural policy

2019 ◽  
pp. 54-69
Author(s):  
Nadiia Kryvenko
Keyword(s):  
Agricultural Policy ◽  
Common Agricultural Policy ◽  
Agricultural Sector ◽  
Food Products ◽  
Common Market ◽  
Agricultural Products ◽  
Eu Integration ◽  
The Common ◽  
The Impact ◽  
The Eu

Introduction. Integration has reached its highest level of development in the EU, and particular attention is drawn to the agrarian integration and resolution of these problems at the beginning of the integration process. This in its turn confirms the significant importance of the agrarian sector for the member-states. Although, the majority of this market participant does not trade agricultural products. The growing global food problem, the positive consequences of the CAP for EU integration, the significant importance of the agricultural sector for Ukraine, which is one of the major exporters of some agri-food products, and the existence of a number of regional trade agreements confirm the importance of research of the Common Agricultural Policy (CAP). Purpose. It is pivotal to explore the importance of the EU CAP for the development of EU integration, its goals and changes, the mechanism, the formation of a common market. In addition, it is a positive experience of the integration group and Ukraine can learn a lesson if manages to analyze the EU’s place in the world market of agricultural products. Methods. The methods of theoretical generalization, historical method, method of analysis, comparison, and graphical method were used in the article for revealing the features of the CAP and the EU as an exporter of agricultural products. Results. The research shows the importance of the agrarian integration of the EU (it is confirmed by the CAP) and the impact of the CAP on the development of integration. In the case of enlargement of the EU, difficulties are often caused by agrarian policy. The article analyzes the aims of the CAP, which varied during the group history depending on a number of factors, and it shows its flexibility and compliance with urgent problems. The creation of a common market and the use of appropriate regulatory measures (which can also be used by Ukraine) are analyzed. It is determined that the EU is one of the world’s major producers and exporters of agri-food products, and its export share of many product is more than 30% or even 50%. Discussion. In further research it is advisable to focus on the stages and reforms of the CAP and to take into account some new aims CAP for the agricultural policy of Ukraine.

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