Newsletter on bioeconomic and social research on
Sustainability and Economics in Agriculture



Issue 1, May 1998

Editor: Dave Pannell, University of Western Australia, email David.Pannell@uwa.edu.au
SEA Project main funder: Grains Research and Development Corporation
Address of the SEA News web site:
http://www1.crcsalinity.com.au/newsletter/sea/

In This Issue

Editorial - Welcome and Introduction

Articles:
Sustainable agriculture: what does it mean?
What we think we know about extension, and why it's not enough for Landcare
Adoption of sustainable farming practices - social and economic challenges
The value of monitoring sustainability indicators

Policy Forum:
Comments by Dave Pannell on the Western Australian Salinity Action Plan
Comments by Ted Lefroy on the Western Australian Salinity Action Plan

Ideas and Lessons on Sustainability from Overseas:
Farmers' attitudes to policies to reduce phosphorous runoff in the US

Regular Bits and Pieces
News and Coming Events - Overview of the SEA Project - People in the SEA Team - Publications available

Editorial - Welcome and Introduction

Welcome to the first issue of SEA News, a newsletter canvassing issues related to sustainability and economics in agriculture. Our focus is on bioeconomic and social research results and their implications, but we will not constrain ourselves to this. Much of the research will be from the SEA project, funded by Grains Research and Development Corporation, but articles from outside the project will be solicited and submissions are most welcome. The main intended audience is researchers, advisers, consultants, policy makers and planners involved in or interested in work in this area. We plan to produce around three issues per year. It is our hope that SEA News will act as an easy way to introduce you to a large and diverse area of research which is useful to you and might otherwise escape your notice.

The main way to access SEA News will be through this web site. As each issue is published, emails will be sent to all subscribers advising them of the features of the issue and providing links into the web site. You can print out whichever bits of the newsletter interest you using your browser. Note that the format of the printout (page orientation, margin sizes, etc.) are controlled by you by changing the page settings in your web browser. You can also elect to receive a hard copy of the newsletter by snail mail if you prefer - just let me know. The disdvantage of this is that you miss out on immediate access to the complete articles on which the articles in SEA News are based. However, we are happy to provide copies of any articles from the full web site.

If you have any comments about SEA News or wish to make additions or deletions to our mailing list, contact David.Pannell@uwa.edu.au, fax: (08) 98 928 496, snail mail: Agriculture WA, 444 Albany Hwy, Albany 6330.

Articles

Sustainable Agriculture: What Does it Mean? by Dave Pannell and Steven Schilizzi

"three basic concepts: environmental stability, intergenerational equity and economic efficiency"

Sustainability is the paradigm of our time, yet its use as a guide to planning or decision making is clouded by its ambiguity and the multiplicity of definitions in use. In this paper we address the issue of how best to deal with the multi-faceted nature of sustainability. We outline each of the facets of sustainability which have been discussed in the literature, but suggest that most of them boil down to three basic concepts: environmental stability, intergenerational equity and economic efficiency. Nevertheless it remains difficult to link the concept to practical actions and decisions. We argue that a multiple criteria decision making approach is the best solution to this problem. This is consistent with the use of "sustainability indicators", but such indicators need to be selected carefully to be relevant to the essential elements of sustainability.
For the full article, see this web page:
http://www.general.uwa.edu.au/u/dpannell/spap971f.htm (35K)

What We Think We Know About Extension, and Why it's Not Enough for Landcare by Sally Marsh and Dave Pannell

"Adopting Landcare technologies involves difficult and different economic decision problems for farmers"

A great deal of money is being invested by governments, agribusiness and farmers in extension efforts to encourage farmers to adopt practices which will stop continuing land degradation. The Landcare movement in Australia has done a great deal to raise awareness of land degradation issues and show ways in which they can be tackled. However, despite this awareness, the rate of uptake of conservation practices by farmers in general is slow, and less than desired by both governments and committed farmers. In this paper we look at the reasons why Landcare technologies are different from the other innovative technologies that farmers make decisions about using. We contend that adopting Landcare technologies involves difficult and different economic decision problems for farmers. We argue that only by acknowledging and looking realistically at these problems can progress be made in getting Landcare practices widely adopted.
For the full article, see this web page:
http://www.general.uwa.edu.au/u/dpannell/spap973f.htm (29K)

Adoption of Sustainable Farming Practices - Social and Economic Challenges by Dave Pannell

"The most important challenges include: developing a system that is in fact more profitable than current practice; and overcoming the problem of deep uncertainty about the technology. "

The fundamental challenge in developing a new farming system is to have it adopted and maintained by farmers. The difficulty of achieving widespread adoption is increased if the new farming system is complex and/or radically different to current farming practice. This paper is a review of these issues with a focus on farming systems based on mimicry of natural ecosystems. It is proposed that there are four conditions which are necessary for an individual farmer to adopt a farming-system innovation: awareness of the innovation, perception that it is feasible to trial the innovation, perception that the innovation is worth trialing, and perception that the innovation promotes the farmer’s objectives. Challenges involved in meeting each of these conditions are discussed. It is concluded that the most important challenges in developed countries are: (a) developing a system that is in fact more profitable than current practice; (b) assessing whether a system is in fact more profitable than current practice; and (c) overcoming the problem of deep uncertainty about the technology. In developing countries one must add the additional challenges of (d) high interest rates/high discount rates; and (e) insecure or inequitable land tenure.
For the full article, see this web page:
http://www.general.uwa.edu.au/u/dpannell/spap972f.htm (65K)

The Value of Monitoring Sustainability Indicators by Nicole Glenn and Dave Pannell

"there is no guidance currently available as to which of the possible sustainability indicators provides information of the greatest economic value"

In recent years, the concept of "sustainability indicators" has become prominent in agricultural science. The idea is that particular characteristics of resources are monitored and recorded, with the intention that this information proves an aid for decision making by farmers and/or policy makers. For example, in the Western Australian wheatbelt, information about the level of the ground water table provides information about the urgency of actions to reduce deep drainage of additional water. A great many sustainability indicators have been proposed by agricultural scientists, including several for each major resource management problem. However there is no guidance currently available as to which of the possible sustainability indicators provides information of the greatest economic value, and no clear understanding of who should use them and how. In this paper we present a conceptual framework for economic valuation and prioritisation of sustainability indicators. The framework is based on Bayesian Decision Theory, particularly its use to calculate the value of information under conditions of uncertainty. We present an illustrative numerical example. Based on this example and the theoretical framework, we identify a number of important insights about the practical use of sustainability indicators.
For the full article, see this web page:
http://www.general.uwa.edu.au/u/dpannell/spap981fb.htm (100K)

Policy Forum

One of the most important policy documents in Australia relating to the sustainability and economic productivity of agriculture is the Western Australian Salinity Action Plan. The plan was put together by four state government agencies and released in 1997. Subsequently there was public criticism about aspects of the plan, and especially about the lack of public consultation in its development. It is currently (May 1998) being reviewed, with public submissions being received, considered and, perhaps, incorporated in the plan. Here we reproduce the submissions of two commentators, with a somewhat similar line of argument.

Comments by Dave Pannell on the Western Australian Salinity Action Plan: Summary

Some fundamental premises:

If these premises are accepted, then we are completely reliant on farmers deciding that they are willing to invest in large-scale revegetation. We will not succeed in achieving high levels of adoption of woody perennials if their adoption is highly unprofitable to farmers. In order for it to be economically worthwhile for farmers to adopt woody perennials on the necessary scale, it is clear from modelling studies that they will have to generate a direct economic return in addition to their impact on the salinity problem. However, there are currently large areas of the agricultural region for which there is no woody perennial available which generates a significant direct financial return. The investment in development of new options which might provide the necessary benefits is substantial, but still too small, given its pivotal role if we are to succeed in coping with salinity in this state. If additional funds cannot be secured to increase activity in this area, it would be justified to reallocate funding away from other areas and into this one.

For full submission see Web page: http://www.general.uwa.edu.au/u/dpannell/saltplan.htm

Comments by Ted Lefroy on the Western Australian Salinity Action Plan

Summary of "Why marketing won’t help if you’ve got nothing to sell"

The revegetation targets in the Salinity Action Plan are grossly inadequate, relying on a small proportion of the landscape devoted to woody perennials and an unjustified expectation of large areas of lucerne. On the basis of research into the factors governing water use of native plant communities in southern Australia, it is suggested that a far higher proportion of the agricultural landscape will need to be planted with deep rooted (woody) perennials than is acknowledged if the stated aim of dramatically reducing the impact of salinity is to be achieved.

The expectation that lucerne will expand into lower rainfall areas to augment the water use role of woody perennials is not matched by evidence that existing varieties are suited or that specific effort is being put into developing well adapted varieties of lucerne or any other herbaceous perennials.

There are no solutions for managing salinity that are both biophysically and economically viable for the under 600 mm annual rainfall zone, two thirds of the cleared land in the agricultural area.

In this light, the emphasis of the plan on extension of the few inadequate existing options rather than the development of options that are both biophysically and economically viable at a scale necessary to have an impact is not defensible.

For full submission see Web page: http://www.general.uwa.edu.au/u/dpannell/saltplan.htm

Ideas and Lessons on Sustainability from Overseas

To help us think laterally about the problems we face in Australia, we will include an example from overseas in each issue of SEA News. The first is from Laura McCann, who has now moved to the University of Western Australia and taken up a position as lecturer in agricultural and resource economics.

Farmers' attitudes to policies to reduce phosphorous runoff in the US

Laura McCann, Agricultural and Resource Economics, University of Western Australia, Nedlands 6907

The Minnesota River in the northern Corn Belt region of the United States has a variety of water quality problems including bacterial contamination, sedimentation, and nutrient enrichment. Many of these pollutants come from non-point sources such as private septic systems and runoff from fields and feedlots. As part of a larger study examining policies to reduce agricultural non-point source phosphorus pollution of the Minnesota River, a mail survey of farmers’ attitudes and practices was conducted.

Four policies were examined in the survey: an expanded education program about best management practices to reduce phosphorus runoff, a requirement for conservation tillage on all cropped land, an expanded program of purchasing conservation easements called Reinvest in Minnesota (RIM), and a tax on phosphorus fertilizers.

The only factor that was statistically significant across policies was that if a policy increased costs to the farmer, it also increased resistance to the policy. Other factors were significant for individual policies. The acceptability of a requirement for conservation tillage was positively correlated with that practice already being in place on the farm. Farmers with a university degree were more likely to support educational policies than those with less formal education. Other than perceived cost, no factor examined was significantly related to the acceptability of the RIM program. Older farmers were significantly more opposed to a phosphorus tax, although the effect was small. The survey highlighted problem areas as well as opportunities for reducing agricultural phosphorus pollution. Farmers perceived that water quality in the Minnesota River was a problem and that agriculture contributed to it. There was support for changing practices if the farmers perceive a problem and a solution. The survey results can form the basis for further research in soil science and agricultural economics as well as improved educational programs.

For the full article, see this web page: http://www.general.uwa.edu.au/u/dpannell/seaos1.htm

Regular Bits and Pieces

Overview of the SEA Project

This project has a strong integrative focus, bringing together several sustainability issues and considering their biological, physical and economic implications at the whole-farm level. The main issues being researched in the project are soil salinisation, soil acidification, management of herbicide-resistant weeds, farmer adoption of sustainable practices and the economics of monitoring sustainability indicators. Main funding: Grains Research & Development Corporation. Commencement: 01-Aug-97 Completion: 30-Jun-02

People in the SEA Team

Direct collaborators in Western Australia - Economists: Martin Chopping (Department of Environmental Protection), Gavin White (Campbell White and Associates), Simone Blennerhassett (Agriculture Western Australia), Amir Abadi, Anne Bennett (University of Western Australia), Vanessa Stewart (CLIMA). Bio-physical scientists: Don McFarlane, Bill Porter, Chris Gazey, David Bowran, Dan Carter and Rob Hetherington (Agriculture Western Australia), Steve Powles, David Jasper (University of Western Australia), Norm Campbell, Tom Hatton + team (CSIRO).

Publications available

As well as the articles summarised in this Newsletter, the SEA Project has a range of publications which we invite you to read. A list is shown at the following web page address. You can view and print many of the papers directly in your browser. For others you are interested in, contact David Pannell to ask for a copy.
Web page: http://www.general.uwa.edu.au/u/dpannell/seapprs.htm

Other issues of SEA News

Issue #1, May 1998
Issue #2, September 1998
Issue #3, February 1999
Issue #4, June 1999
Issue #5, November 1999
Issue #6, April 2000
Issue #7, July 2000
Issue #8, December 2000
Issue #9, June 2001
Issue #10, September 2001
Issue #11, December 2001
Issue #12, September 2002
Issue #13, September 2002
Index

Copyright note: Some articles in SEA news have subsequently been submitted for publication in journals or books. SEA News contains pre-publication versions of these articles. They have not been subject to peer review, and copyright rests with the authors. When an article is formally published, the version on the SEA News web site is not updated to the published version, as this would violate copyright. However, the citation shown on the web page is updated to allow readers to identify the published version. Readers are encouraged to make use of the material present on the web site, provided that its source is acknowledged. Readers who wish to make direct quotes from an article in SEA News should not attribute the quote to a more formal (e.g. journal) published version of the paper without checking the published version, since the quote may have been alterred or even omitted from the published version.

If you have any comments about SEA News or wish to make additions or deletions to our mailing list, contact David.Pannell@uwa.edu.au


The SEA Project acknowledges support from

Grains Research and
Development Corporation

Copyright © David J. Pannell, 1998
Last revised: June 10, 2004.