experiences from switzerland311sao10khan44l5et2q3gvs-wpengine.netdna-ssl.com/... · 8 structure of...
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Federal Department of Economic Affairs,
Education and Research EAER
Agroscope
www.agroscope.ch I good food, healthy environment
13 June 2018
Experiences from
Switzerland
Markus Lips
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Zürich area, plain region
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Sonnenberg, plain region
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Goms, mountain region
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Saas-Grund, mountain region
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Vineyard, Lake Biel/Bienne
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Relevance
• Obviously, land fragmentation is a topic in Swiss
agriculture.
• However it is not addressed:
• Not a topic in the agricultural policy debate
• Not a topic for farm advice services
(cooperation is a topic)
• No research questions for Agroscope
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Structure of Swiss Agriculture
Source: Agroscope, several years
Situation 2016 Annual change 1998-2016
Number of farms 44651 -1.75%
Arable land 25.3 ha +1.88 %
Livestock Units 33.3 LU +1.93 %
Labour forces 1.88 full time work forces
+0.46 %
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Economies of scale in milk production(standard costs)
Source: Gazzarin et al., 2005
0.6
0.7
0.8
0.9
1
1.1
1.2
1.3
1.4
1.5
1.6
20 30 40 50 60 70 80 90 100
Co
sts
per
kg
of
mil
k
Number of cows
Standard costs
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Income statement for dairy, actual costsper livestock unit, mountain region
1 CHF = 8.2 NOK = 0.86 EUR
Source: Hoop et al., 2017
All Cost
share (%) Worst quarter
Best quarter
Difference P-Value
Number of observations 941 211 209
Earnings 7323 7067 7574 507 ** 0.003
Total costs 9979 100 11827 8056 -3771 *** 0.000
Direct costs 1804 18 2007 1646 -361 *** 0.000
Feed 1046 11 1175 945 -231 *** 0.000
Indirect costs 7827 78 9479 6061 -3418 *** 0.000
Labour 4764 48 5721 3493 -2228 *** 0.000
Machine 1502 15 1852 1246 -606 *** 0.000
Builidings 1050 11 1297 891 -406 *** 0.000
Porfit/loss -2656 -4760 -482 4278 *** 0.000
Real wage rate [CHF/h] 10.0 3.8 19.5 15.7 *** 0.000
Farmland in ha 25.3 19.3 33.1 13.9 *** 0.000
Milk yield [kg/cow/year] 6388 6236 6573 337 ** 0.002
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Growth
• Survey on dairy farms in Eastern Switzerland in 2006/7
(end of quota removal: 2009)
• Only 17% had no growth intention (base: farms intending to
stay in dairy at least at medium term)
• Obstacles for growth (base: farms intending to stay in dairy at
long term):
• 21% no obstacles
• 39% no land available
• 17% costs for growth are too high
• 10% full barn
• 13% other obstacles
Source: Gazzarin et al., 2008
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Cooperation
• Swiss farmers are involved in cooperation:
• 53% hire contractor
• 36% have common machines
• 27% carry out machine services for others
• 18% are involved in machine cooperatives
• 5.4% are involved in enterprise/production branch
cooperation
• 4.2% are involved in farming collective
(full cooperation)
Source: Lips et al., 2009
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Recent development of cooperation
0
0.5
1
1.5
2
2.5
3
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Share farming collective Share enterprise cooperation
Source: Office of Agriculture
Pe
rce
nta
ge
ofa
ll fa
rms
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Crop rotation cooperation
• Background: A balanced crop rotation is a precondition for
direct payments (e.g. wheat, maize grain, beans).
• In a crop rotation cooperation all farmers
• bring their arable land in.
• may merge small field to larger fields.
• establish together a crop rotation.
• Crop rotation cooperation are both relatively easy to establish
and relatively easy to resolve.
• Nevertheless, they are seldom applied.
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Image of cooperation
• Survey about attitudes towards cooperation
• 347 farm manager
• 132 apprentices (agriculture)
• Weakness of cooperation
• Fear of interpersonal conflicts
• Farmers involved in farming collectives show above average
communication skills.
• Dependency/ Loss of independence
• Risk of failure
• Potential gaps in cooperation contract
• Too complicated
Source: Pulfer, 2007
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Job preferences of dairy farmers
• Research question: Do dairy farmers have non-pecuniary or
non-financial job preferences?
• The survey on dairy farms in Eastern Switzerland in 2006/7
included also a discrete choice experiment.
• 300 complete data sets are available.
• Estimation of a random utility function by means of a mixed
effects-logit model
Source: Lips et al., 2016
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Discrete Choice Experiment
Attributes Levels
Work content Dairy production (status quo)
Suckler cow husbandry plus additional employment
Farming without cattle
Outside agriculture
Terms of employment
Self-employed (status quo)
Employed
Leisure time Hardly a weekend or hardly a week’s holiday
12 weekends or 2 weeks
52 weekends or 4 weeks
Variation in income per year
CHF −6,000.-
CHF 0.- (status quo)
CHF +15,000.-
CHF +30,000.-
1 CHF = 8.2 NOK = 0.86 EUR
Source: Lips et al., 2016
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Results
• Annual on-farm income of a full-time family work unit:
CHF 34’500.-
• The preference of being self-employed or independent has
the same size as the annual income.
Levels in CHF Standard Error
95% Confidence Interval
Suckler cow + add. emp. 52,864 5,537 42,012 63,715
Without cattle 45,755 4,926 36,100 55,410
Outside agriculture 53,807 5,318 43,384 64,230
Employed 32,340 4,809 22,915 41,765
Holidays, 1 week -7,369 1,029 -9,386 -5,352
1 CHF = 8.2 NOK = 0.86 EUR
Source: Lips et al., 2016
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Independence: Livestock builings
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Independence: Machines (hydraulic loaders)
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Thank you for
your attention
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Literature
• Agroscope, several years. Grundlagenbericht, Ettenhausen.
• Gazzarin, C., Ammann, H., Schick, M., Van Caenegem, L. & Lips, M., 2005.
Milchproduktionssysteme in der Tal- und Hügelregion, Was ist optimal für die Zukunft? FAT-
Bericht Nr. 645.
• Gazzarin, C., Bloch, L., Schneitter, O. & Lips, M., 2008. Wie reagieren
Verkehrsmilchbetriebe auf die aktuellen Herausforderungen? Eine repräsentative Umfrage in
der Ostschweiz vor Aufhebung der Milchkontingentierung, ART-Bericht Nr. 698,
Ettenhausen.
• Hoop, D., Spörri, M., Zorn, A., Gazzarin, C. & Lips, M., Kapitel 4,
Wirtschaftlichkeitsrechnungen auf Betriebszweigebene, in Wirtschaftliche Heterogenität auf
Stufe Betrieb und Betriebszweig, p.61-77. IN Lips, M., (Ed.) 2017. Wirtschaftliche
Heterogenität auf Stufe Betrieb und Betriebszweig, Agroscope Science Nr. 53, Ettenhausen.
• Lips, M., Pulfer, I. & Jucker, F., 2009. Kooperationsformen mit einfachen
Ausstiegsmöglichkeiten, ART-Bericht Nr. 706.
• Lips, M., Gazzarin, C. & Telser, H., 2016. Job Preferences of Dairy Farmers in Eastern
Switzerland: A Discrete Choice Experiment, German Journal of Agricultural Economics,
65(4): 254-261.
• Pulfer,I., 2007. Das Image von Betriebsgemeinschaften, Befragung von
Betriebsleiterschülern und einer repräsentativen Stichprobe von Deutschschweizer Bauern,
ART-Bericht Nr.692, Ettenhausen.