sustainable agriculture a natural part of the structural adjustment process ?

Sustainable AgricultureSustainable Agriculture

A natural part of the structural A natural part of the structural adjustment process ?adjustment process ?

Sustainable Agriculture:Sustainable Agriculture:balance three main goalsbalance three main goals

Environmental healthEnvironmental health Economic profitabilityEconomic profitability Socio-economic equitySocio-economic equity

Commodity agricultureCommodity agriculture

Agriculture is incorporated into an Agriculture is incorporated into an global and corporate-controlled food global and corporate-controlled food systemsystem

Driven by twin goals of productivity Driven by twin goals of productivity and efficiencyand efficiency

Maximizing profitability by balancing Maximizing profitability by balancing 1) land 2) labor 3) capital and 4) 1) land 2) labor 3) capital and 4) managementmanagement

Why the changeWhy the change

Industrial Agriculture now creates Industrial Agriculture now creates multiple problemsmultiple problems

- threat to the environment- threat to the environment

- threat to natural resources- threat to natural resources

- threat to the quality of life for - threat to the quality of life for

farmers and rural communities farmers and rural communities - and the society as a hole - and the society as a hole

Approaches to changeApproaches to change

Government can regulate and set Government can regulate and set standards – code of best practicestandards – code of best practice

Let the invisible hand of the market Let the invisible hand of the market do the jobdo the job

Post industrial approaches – people Post industrial approaches – people driven solutionsdriven solutions

The Dutch Manure Quota SystemThe Dutch Manure Quota System

Regulation and markets to achieve Regulation and markets to achieve

environmental outcomesenvironmental outcomes

andand

Sustain rural communitiesSustain rural communities

The Dutch System of Manure QuotaThe Dutch System of Manure Quota

Over-application of manure effluent can result in runoff and ponding of water on the soil surface. Both activities can lead to surface and ground water contamination.

Bacteria and nitrate are the two most dangerous pollutants in drinking water

Impact on human health especially infantsAlso reduced vitality and increase stillbirth, low birth weight and slow weight gain in livestock

Holland: The Environmental Holland: The Environmental Problem in Animal Agriculture:Problem in Animal Agriculture:

Between the early 1960s and the mid Between the early 1960s and the mid 1980s:1980s:

Pigs increased by 10 million (450%)Pigs increased by 10 million (450%) Poultry increased by 50 million (125%)Poultry increased by 50 million (125%) Consequently, a manure surplus developed Consequently, a manure surplus developed

of + 19%of + 19% The EU standard of 50mg of nitrate pr liter of The EU standard of 50mg of nitrate pr liter of

groundwater was exceeded on 60% of groundwater was exceeded on 60% of agricultural landagricultural land

First warning sounded in the 1970sFirst warning sounded in the 1970s

11stst Policy Action: A Moratorium Policy Action: A Moratorium the Interim Law for Restriction of Pig the Interim Law for Restriction of Pig

and Poultry Farms (November 1984).and Poultry Farms (November 1984). No new farms in the worst affected No new farms in the worst affected

areasareas Restrictions on expansions on existing Restrictions on expansions on existing

farms (10%)farms (10%)It was not enough: It was not enough: the number of pigs went up with 7.5% the number of pigs went up with 7.5%

per year from 1983 to 1987per year from 1983 to 1987 Eutrophication of surface and ground Eutrophication of surface and ground

water became of international concern water became of international concern (cut nutrients into North Sea by 50%)(cut nutrients into North Sea by 50%)

The 3 Phase PlanThe 3 Phase PlanPhase I: 1987 – 1990Phase I: 1987 – 1990 The Manure Law (Phosphate control)The Manure Law (Phosphate control)

• Manure quota and book-keeping system Manure quota and book-keeping system The Soil Protection ActThe Soil Protection Act

• Application rates and timing of land Application rates and timing of land applicationapplication

Phase II: 1991 – 1994Phase II: 1991 – 1994 The Environmental Management ActThe Environmental Management Act

• Guidelines on ammonia and cattle farming Guidelines on ammonia and cattle farming under the Nuisance Actunder the Nuisance Act

Phase III: 1995 – 2000Phase III: 1995 – 2000 Markets for manure quotas establishedMarkets for manure quotas established

Overview of the Quota SystemOverview of the Quota System Manure production rights limited to 125 kg of Manure production rights limited to 125 kg of

phosphate per hectarephosphate per hectare Farmer grandfathered a ‘reference amount’Farmer grandfathered a ‘reference amount’ Based on inventory of animals and standards Based on inventory of animals and standards

for manure production for 3 animal categoriesfor manure production for 3 animal categories1.1. Cattle and turkeyCattle and turkey2.2. Goat, sheep, fox, nutria and ducksGoat, sheep, fox, nutria and ducks3.3. Swine and poultry Swine and poultry

Difference between phosphate intake through Difference between phosphate intake through feed and output through meat, egg etcfeed and output through meat, egg etc

Established phosphate deficit and surplus Established phosphate deficit and surplus farmsfarms

Deficit farmers could continue to expandDeficit farmers could continue to expand Surplus farmers needed additional registered Surplus farmers needed additional registered

manure production rights for expansionmanure production rights for expansion

Trading in Manure Production RightsTrading in Manure Production Rights

1987 – 93 :1987 – 93 : transfer of manure production rights transfer of manure production rights

restricted to land transfers:restricted to land transfers:• Part of transfers of whole farmPart of transfers of whole farm• With marriage and heritageWith marriage and heritage• With annulment of lease contractWith annulment of lease contract

Expansion only by buying landExpansion only by buying land However, If buying additional land the However, If buying additional land the

associated ‘reference amount’ would first associated ‘reference amount’ would first fill the gap on existing land.fill the gap on existing land.• Expansion of animal production therefore Expansion of animal production therefore

limited to new farms on cropping landlimited to new farms on cropping land

1994–97: Relaxed trading1994–97: Relaxed trading These restrictions limited investmentThese restrictions limited investment Manure production right renamed Manure production right renamed

manure quotas 1) land based and 2) manure quotas 1) land based and 2) non-land based quotasnon-land based quotas

1) 125 kg of phosphate per ha of land1) 125 kg of phosphate per ha of land

2) diff. between land based quota and 2) diff. between land based quota and the animal based reference amountthe animal based reference amount

Both 1 and 2 made animal specificBoth 1 and 2 made animal specific Only non-land based quotas were Only non-land based quotas were

tradabletradable

1994–97: Relaxed trading1994–97: Relaxed trading

Reference amount adjusted for Reference amount adjusted for improvement in feed qualityimprovement in feed quality

The difference between reference The difference between reference amount and adjusted reference amount and adjusted reference amount made non-tradableamount made non-tradable

Quota cut by 25% when tradedQuota cut by 25% when traded Could only trade from animal Could only trade from animal

category 3) to 2) to 1), not in reverse category 3) to 2) to 1), not in reverse order – restrict expansion in swine order – restrict expansion in swine productionproduction

Trading in Manure Production RightsTrading in Manure Production Rights

1995: Nutrient Accounting System proposed1995: Nutrient Accounting System proposed

In 1995 quotas for pork and poultry cut by 30% In 1995 quotas for pork and poultry cut by 30% in response to the development of low-nutrient in response to the development of low-nutrient feed,feed,

1997 further problems with swine fewer, policy 1997 further problems with swine fewer, policy move to reduce swine quotas by further 25% by move to reduce swine quotas by further 25% by 2000 - farmer protest2000 - farmer protest

1 Jan 1998 NAS and building regulation 1 Jan 1998 NAS and building regulation introduced and the 30% abandonedintroduced and the 30% abandoned

1 Sept 1998 pork quotas reduced to reflect 90% 1 Sept 1998 pork quotas reduced to reflect 90% of herd as part of the aim to reduce herd by of herd as part of the aim to reduce herd by 25% by 200025% by 2000

Quota buy-out program for the swine sector Quota buy-out program for the swine sector

1998 Nutrient Accounting System1998 Nutrient Accounting System Farmers challenged 10% reduction in court. In Farmers challenged 10% reduction in court. In

2000 the Court upheld decision but exempted 2000 the Court upheld decision but exempted the planned 15% reduction in 2000 the planned 15% reduction in 2000

Nutrient accounting for phosphor and nitrateNutrient accounting for phosphor and nitrate Nutrient surplus subject to a high tax to Nutrient surplus subject to a high tax to

encourage farmers in surplus regions to truck encourage farmers in surplus regions to truck manure and spread it on grain farms in deficit manure and spread it on grain farms in deficit regionregion

Building requirements for new buildings to Building requirements for new buildings to reduce ammonia emissionsreduce ammonia emissions

Condition for purchase of extra quota: Condition for purchase of extra quota: improvement for buildings to reduce ammonia improvement for buildings to reduce ammonia emissionemission

Regional Differences Regional Differences and Geographical and Geographical

Restrictions on TradingRestrictions on Trading

Surplus: manure production Surplus: manure production in excess of 125 kg of in excess of 125 kg of PP22OO55/ha/ha

Deficit: less than 125 kgDeficit: less than 125 kg Surplus region: small Surplus region: small

intensive farmsintensive farms Deficit region: larger farms Deficit region: larger farms

with little experience in with little experience in confined livestock confined livestock productionproduction

Trade allowed within regionsTrade allowed within regions And from surplus to deficitAnd from surplus to deficit In surplus regions expansion In surplus regions expansion

also required purchase of also required purchase of ammonium rights – these ammonium rights – these only tradable within countiesonly tradable within counties

Reduce willingness to Reduce willingness to expand in surplus regionsexpand in surplus regions

Evaluation:Evaluation:

Price of quota: Great variation Price of quota: Great variation between regions, animal categories between regions, animal categories and over timeand over time

Volume of tradeVolume of trade very low 1.5% of total quota the first very low 1.5% of total quota the first

yearyear By 1997 accumulated to 8.1% and By 1997 accumulated to 8.1% and

9.5% for surplus and deficit regions 9.5% for surplus and deficit regions respectivelyrespectively

Evaluation:Evaluation: Reasons for low trade:Reasons for low trade:

• Administrative procedures; buyers had to Administrative procedures; buyers had to demonstrate adequate manure disposal plan. demonstrate adequate manure disposal plan. During first year 37% of plans rejected. Therefore During first year 37% of plans rejected. Therefore high transaction costs (as much as 17% of price)high transaction costs (as much as 17% of price)

• Policy uncertaintyPolicy uncertainty• Initially many had excess quotas (10-25%, gave Initially many had excess quotas (10-25%, gave

high numbers for reference amount calculations). high numbers for reference amount calculations). Impact on demand and priceImpact on demand and price

• Restrictions between regions and categories Restrictions between regions and categories impeded tradeimpeded trade

• The 25% retirement rule increased the willingness The 25% retirement rule increased the willingness to acceptto accept

EvaluationEvaluation Geographic pattern of tradeGeographic pattern of trade

• Encouraged farmers in surplus region to sell land and Encouraged farmers in surplus region to sell land and quota and set up in deficit regionquota and set up in deficit region

Encouraged exit adjustmentEncouraged exit adjustment Environmental effectivenessEnvironmental effectiveness

• Animal numbers and nutrients emission have been Animal numbers and nutrients emission have been reduced – but why and by how much?reduced – but why and by how much?

• Especially pork farmers have not been convinced of Especially pork farmers have not been convinced of the environmental benefitsthe environmental benefits

Dynamic Effects and InnovationDynamic Effects and Innovation• Incentive to development of methods to reduce Incentive to development of methods to reduce

emission. Especially nutritional development in the emission. Especially nutritional development in the pork industrypork industry

Post-industrial approachesPost-industrial approachesLess input intensive farming methodsLess input intensive farming methodsFocus on value and quality Focus on value and quality Civic agricultureCivic agriculture Organic farmingOrganic farming Alternative agricultureAlternative agriculture Biodynamic farmingBiodynamic farming Ecologically grownEcologically grown Local food systemsLocal food systems Community supported agricultureCommunity supported agriculture

The Environmentally friendly producer The Environmentally friendly producer and consumer - Eco-labelingand consumer - Eco-labeling

Shade grown coffeeShade grown coffee Plantation timberPlantation timber

Fair Trade not Free TradeFair Trade not Free Trade

Low-till or no-till

Slide from Southwestern Minnesota from www.stolaf.edu

Higher Soil Organic MatterHigher Soil Organic Matter• Nutrients for crop growthNutrients for crop growth• Soil aggregation and porositySoil aggregation and porosity• Stabilizes soil against erosionStabilizes soil against erosion

0

1

2

3

4

5

6

7

8

9

Conventional Rotation No-Till

Farm Type

% S

oil

Org

anic

Mat

ter

Soil Resources


Lower Soil CompactionLower Soil Compaction

Enhances water infiltrationEnhances water infiltration Prevents rapid runoff and soil erosionPrevents rapid runoff and soil erosion

0

100

200

300

400

500

600


Farm Type

So

il C

om

pac

tio

n a

t 6

in.

(psi

)

Soil Resources


Higher Soil MoistureHigher Soil Moisture

(samples taken during grain-filling period – (samples taken during grain-filling period – Aug./Sept.)Aug./Sept.)

0

5

10

15

20

25


Farm Type

% S

oil

Mo

istu

re

Soil Resources


Higher Soil Invertebrate PopulationsHigher Soil Invertebrate Populations• Contribute to Nutrient RecyclingContribute to Nutrient Recycling• Maintain porous soil (burrowing)Maintain porous soil (burrowing)• Control crop pestsControl crop pests

0.000

5.000

10.000

15.000

20.000


Farm Type

# I

nv

ert

s /

.0

12

5 m

3

Soil Resources


Lower Runoff VolumeLower Runoff Volume Porous soil structuresPorous soil structures Cover crops (crop rotation) Cover crops (crop rotation) Crop residue (no till)Crop residue (no till) }

0

200

400

600800

1000

1200

1400


Farm Type

mL

Ru

no

ff /

cm

Ra

inincrease infiltration

Water Resources


Lower N Loss in RunoffLower N Loss in Runoff Crop Rotation – deep roots of Crop Rotation – deep roots of

perennials take up nutrientsperennials take up nutrients No Till – low erosion prevents No Till – low erosion prevents

nutrient lossnutrient loss

0.0

0.1

0.2

0.3

0.4

0.5

0.6


Farm Type

N F

lux

(m

g N

/ c

m r

ain

)

Water Resources

Lower Fossil Fuel UseLower Fossil Fuel Use

Decreased fertilizer and pesticide useDecreased fertilizer and pesticide use Decreased machinery and fuel useDecreased machinery and fuel use

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

CONV. (C

)

CONV. (C

-C-S

)

ROTATI

ON

NO-TIL

L

Farm Type

En

erg

y U

se (

kcal

/acr

e/yr

)

Fuel

Pesticides

Fertilizer

Energy Use

Higher Corn and Soybean YieldsHigher Corn and Soybean Yields

Higher soil fertilityHigher soil fertility Higher soil moistureHigher soil moisture

020406080

100120140160

CONV (C-S)

ROTATION (C-S-O/A-A-A)

NO-TILL (C-S)

Farm Type

Yie

ld (

bu

sh

els

/ a

cre

)

Corn(bushels/acre)

Soybeans(bushels/acre)

Economic Productivity

Environmentally friendly productionEnvironmentally friendly production

Shadegrown coffee

Environmentally friendly productionEnvironmentally friendly production

Plantations - the alternative to native Plantations - the alternative to native forest logging – sustainable production forest logging – sustainable production ‘seal of approval’‘seal of approval’

Forest clearing project sponsored by the Indonesian government.

Fair trade – not free tradeFair trade – not free trade FairTrade Mark –Banana from Haiti FairTrade Mark –Banana from Haiti

an independent guarantee that disadvantaged producers in the developing world are getting a better deal

Civic AgricultureCivic AgricultureSmaller scale, locally oriented enterprisesSmaller scale, locally oriented enterprisesDirect marketing offers farmers the advantage of:Direct marketing offers farmers the advantage of:High value products: organic grown, specialtiesHigh value products: organic grown, specialties grass fedgrass fed free rangefree rangeCut out of middle-level handlersCut out of middle-level handlers pick-your-own, farm standspick-your-own, farm stands growers marked, e-mail orders, growers marked, e-mail orders,

consumer participation in productionconsumer participation in productionCraft-style productsCraft-style productsBetter land management practicesBetter land management practicesHealthier soils and animalsHealthier soils and animalsA community connection about food production A community connection about food production

Trends in: Direct sales Trends in: Direct sales

1992 - 86.000 farmers in US 1992 - 86.000 farmers in US mainland reported direct salesmainland reported direct sales

1997 – 97.000 farmers in US 1997 – 97.000 farmers in US mainland reported direct salesmainland reported direct sales

5% of all farms with sales totaling US 5% of all farms with sales totaling US $ 500 million, but less than 1% of all $ 500 million, but less than 1% of all agricultural salesagricultural sales

Demographic characteristicsDemographic characteristics

Farmers in areas in and around Farmers in areas in and around metropolitan areas can benefitmetropolitan areas can benefit

Farmers in areas with a population of Farmers in areas with a population of affluent, well-educated urban affluent, well-educated urban consumers consumers

13% of all farms in Northeast13% of all farms in Northeast

3.1% of all farms in the South3.1% of all farms in the South

4% of all farms in the Midwest4% of all farms in the Midwest

Water in Australia-Water in Australia-

anotheranother example example

Historical contextHistorical context

Policy legacy resulted in over Policy legacy resulted in over allocation of water and development allocation of water and development of unsustainable landof unsustainable land

Mechanisms needed to Mechanisms needed to • facilitate and encourage a reallocation facilitate and encourage a reallocation

of resources to more efficient and higher of resources to more efficient and higher valued producers in more sustainable valued producers in more sustainable locationslocations

• provide water for ecosystemsprovide water for ecosystems

Council of Australian GovernmentsCouncil of Australian Governments

Following international trends in 1994 Following international trends in 1994 CoAG introduced a reform package:CoAG introduced a reform package:

PricingPricing Water entitlementsWater entitlements Water TradingWater Trading Formally recognizing the environmentFormally recognizing the environment Institutional reformsInstitutional reforms Consultation and public educationConsultation and public educationPart of an IGA on a National Competition Part of an IGA on a National Competition Policy and related reformsPolicy and related reforms

Council of Australian GovernmentsCouncil of Australian Governments

2003 review identified three shortcomings 2003 review identified three shortcomings

uncertainty over the long-term access to uncertainty over the long-term access to water was still hampering investment;water was still hampering investment;

Current water market arrangements are Current water market arrangements are preventing markets from reaching their preventing markets from reaching their full potential; full potential;

concern over the pace of securing concern over the pace of securing adequate environmental flows and adequate environmental flows and adaptive management systems.adaptive management systems.

2004 National Water Initiative2004 National Water Initiative

Clear, secure and nationally-compatible Clear, secure and nationally-compatible characteristics for water access characteristics for water access entitlements defined as a perpetual entitlements defined as a perpetual share of the consumptive pool share of the consumptive pool

a transparent, statutory-based water a transparent, statutory-based water planning process defining the planning process defining the consumptive pool and the process of consumptive pool and the process of allocating water allocating water

statutory provisions for environmental statutory provisions for environmental and other public benefit outcomesand other public benefit outcomes

2004 National Water Initiative2004 National Water Initiative

returning currently over allocated or returning currently over allocated or overused systems to environmentally overused systems to environmentally sustainable levels of extractionsustainable levels of extraction

progressive removal of barriers to trade in progressive removal of barriers to trade in waterwater

assignment of risk arising from future assignment of risk arising from future change in the availability of water for change in the availability of water for consumptionconsumption

address future adjustment issues that may address future adjustment issues that may impact on water users and communities impact on water users and communities

The Murray Darling Basin The Murray Darling Basin

1996 Cap on water use at 93/94 level1996 Cap on water use at 93/94 level 2002 Living Murray process2002 Living Murray process 2004 IGA on addressing overallocation 2004 IGA on addressing overallocation

as the first step to provide 500 GL for as the first step to provide 500 GL for six sitessix sites

Water Sharing Plans – NWI no guidelines Water Sharing Plans – NWI no guidelines as to how to share the cost of thisas to how to share the cost of this

State legislation and policyState legislation and policy

South Australia 1997, NSW 2000, South Australia 1997, NSW 2000, Queensland 2000 – New Water Acts:Queensland 2000 – New Water Acts:• Separation of land and waterSeparation of land and water• Separation of ownership and use of waterSeparation of ownership and use of water• Planning processesPlanning processes• Water marketsWater markets• Environmental issues Environmental issues

But absolutely inconsistent across But absolutely inconsistent across statesstates


2004 - Victoria White Paper:2004 - Victoria White Paper: Introduce the separation of land and water Introduce the separation of land and water

– max 10% of total entitlements of source– max 10% of total entitlements of source Share based entitlementShare based entitlement Non-tradable site use licenses linked to Non-tradable site use licenses linked to

landland Some channels need to be closed – Some channels need to be closed –

compensation for loss of land valuecompensation for loss of land value New tradable low security license against New tradable low security license against

20% reduction in pool for the environment20% reduction in pool for the environment


Victorian White Paper continued:Victorian White Paper continued: Channel capacity entitlementChannel capacity entitlement Separate capacity charge – better Separate capacity charge – better

economic signalseconomic signals Government committed to provide the Government committed to provide the

initial water for environmental flowinitial water for environmental flow Promise to consider supporting Promise to consider supporting

communities suffering from export of communities suffering from export of water out of districtswater out of districts


Generally changed allocation Generally changed allocation practicepractice

Transferred most risk management Transferred most risk management from water authorities to irrigatorsfrom water authorities to irrigators

Water markets looked upon as one of Water markets looked upon as one of the main instruments to alleviate the main instruments to alleviate impact of new policy paradigm by impact of new policy paradigm by both Federal, State and Basin both Federal, State and Basin

Have markets achieved objectivesHave markets achieved objectives

Water moved to more efficient usersWater moved to more efficient users Water moved to higher valued usersWater moved to higher valued users Water consolidate into larger unitsWater consolidate into larger units

ConclusionsConclusions

Change in policy paradigm in Change in policy paradigm in Australia aggressive due to the Australia aggressive due to the extend of the impact of past policiesextend of the impact of past policies

Transferred most risk management Transferred most risk management to irrigatorsto irrigators

Reductions in entitlement inevitable Reductions in entitlement inevitable in most catchmentsin most catchments

Water markets relied upon to Water markets relied upon to manage this processmanage this process

A sustainable Water Management A sustainable Water Management FrameworkFramework

Farm Business

Access Entitlement

Use Right

Farm Water Management Plan

Water Allocation

Planning Hierarchy

Local plan Capacity Entitlement

Catchment Plan

State Plan

National Strategy

Water trading and leasing

Access Entitlement trading and leasing

Capacity trading and leasing

sustainable agriculture a natural part of the structural adjustment process ?

Documents

s slide

hole slide

management slide

sustainable agriculture

poultry farms

change industrial agriculture

animal agriculture

environment threat