sustainable agriculture as a producer of public goods louise o. fresco
TRANSCRIPT
Sustainable Sustainable Agriculture as a Agriculture as a
Producer of Public Producer of Public GoodsGoods
Louise O. FrescoLouise O. Fresco
Threefold Increase in Human Population Threefold Increase in Human Population since 1960 since 1960
25% more Calories per Person25% more Calories per Person Food Prices in steady Decline Food Prices in steady Decline Expansion of Trade in Food/AgricultureExpansion of Trade in Food/Agriculture Proportion of People working in Proportion of People working in
Food/Agriculture in sharp DeclineFood/Agriculture in sharp Decline New biological Technology to fine tune New biological Technology to fine tune
Crop and Animal Characteristics but Crop and Animal Characteristics but unease about technologyunease about technology
Land saving due to yield increases but Land saving due to yield increases but emissions and destruction of habitatsemissions and destruction of habitats
The Rapid Modernization of Agriculture
(after 1945)
Objectives of sustainable Objectives of sustainable agricultural policiesagricultural policies
Increase productivityIncrease productivity Reasonable standard of living for Reasonable standard of living for
farmersfarmers Sufficient supply of foodSufficient supply of food Reasonable prices for consumersReasonable prices for consumers
focus on focus on quantityquantity
New policy objectives: New policy objectives: contributing to sustainability contributing to sustainability
and prosperity and prosperity Not only by producing ‘food’ (incl. Not only by producing ‘food’ (incl.
feed and raw materials)feed and raw materials) But also by delivering ‘green But also by delivering ‘green
services’: nature and landscape services’: nature and landscape managementmanagement
High standards of animal welfare, High standards of animal welfare, food safetyfood safety
Rural developmentRural development
Avoiding past Mistakes: biological Avoiding past Mistakes: biological Control, Code of Conduct PesticidesControl, Code of Conduct Pesticides
Food Safety: a Priority (CODEX + Food Safety: a Priority (CODEX + HACCP)HACCP)
New ecological Services of New ecological Services of AgricultureAgriculture
Quality and niche MarketsQuality and niche Markets Integrated Production Chains (from Integrated Production Chains (from
Farm to Fork)Farm to Fork)
Learning from past mistakes - No Doomsday scenario –
GlobalisationGlobalisation – unprecedented movements of – unprecedented movements of
humans, products and pathogens humans, products and pathogens leading to uniformity - but renewed leading to uniformity - but renewed
interest in ‘locality’interest in ‘locality’
Ignorance and NostalgiaIgnorance and Nostalgia
Sequence of reforms: the Sequence of reforms: the example of the CAP/EUexample of the CAP/EU
Stimulate productivity increases Stimulate productivity increases (since 1962)(since 1962)
Stimulate non-production (since Stimulate non-production (since 1983)1983)
Common rural development policy Common rural development policy (since 2000)(since 2000)
Stimulate production of public Stimulate production of public services for which no market exists services for which no market exists (after 2013, hopefully…)(after 2013, hopefully…)
Requirements for Requirements for new agricultural policies:new agricultural policies:
Basically market-orientedBasically market-oriented Better application of subsidiarity Better application of subsidiarity Allow for diversity within the EU-27Allow for diversity within the EU-27 But keeping the internal market intactBut keeping the internal market intact Target specific incentives for ‘public Target specific incentives for ‘public
services’services’ Include incentives for innovationInclude incentives for innovation WTO-proof while meeting the challenges WTO-proof while meeting the challenges
of globalisationof globalisation fundamental reform towards targeted fundamental reform towards targeted
payments and towards rebalancing roles payments and towards rebalancing roles of EU / member states (subsidiarity)of EU / member states (subsidiarity)
Why financial aid to Why financial aid to agriculture?agriculture?
To compensate for substantial To compensate for substantial natural handicaps, if society prefers natural handicaps, if society prefers continuation of agricultural continuation of agricultural production in a certain regionproduction in a certain region
To compensate for restrictions due to To compensate for restrictions due to higher standards than in other higher standards than in other countriescountries
To pay for specific public services To pay for specific public services supplied by agriculturesupplied by agriculture
To stimulate innovation towards To stimulate innovation towards sustainability (as in other sectors of sustainability (as in other sectors of the economy) the economy)
Public servicesPublic services
Not all social values require public Not all social values require public services services
Often regulating markets will sufficeOften regulating markets will suffice Public services in case of complex Public services in case of complex
externalities: public or semi-public goodsexternalities: public or semi-public goods Not a ‘joint product’ of agricultural Not a ‘joint product’ of agricultural
production: additional efforts neededproduction: additional efforts needed Products for which no market exist: Products for which no market exist:
rewards are dependent on collective rewards are dependent on collective actionaction
From social value to public From social value to public serviceservice
waarden
Actieve overheidszorggewenst?
Nee, private waarde
Voldoende levering zon
Ja, marktordening volsta Nee,public levering
Social Values
Public guarantee needed?
Active role of government
needed?
No, private value
Yes, public interest
No, guarantee will suffice
Sufficient supply without
collective action
Yes, market regulation
No, public service
Yes, private value
Public value, but public Public value, but public service too?service too?
Not a public service (market regulation Not a public service (market regulation will suffice):will suffice):food safety (international standards), food safety (international standards),
animal welfare (no international animal welfare (no international standards)standards)
Public service: supply requiring Public service: supply requiring collective action:collective action:landscape managementlandscape managementnature and biodiversity managementnature and biodiversity management
Nine Dimensions of Nine Dimensions of Agriculture Agriculture
Production, employment, land useProduction, employment, land use Food securityFood security Food safety, human and animal healthFood safety, human and animal health Animal welfareAnimal welfare Biodiversity and nature conservationBiodiversity and nature conservation Landscape and non agricultural land Landscape and non agricultural land
useuse Environment and climate Environment and climate
‘management’‘management’ Water management (blue services)Water management (blue services) Rural developmentRural development
Complex externalities in Complex externalities in agriculture: negative and agriculture: negative and
positivepositive NegativeNegative (harm to the natural (harm to the natural
environment, to public health etc.): environment, to public health etc.):
the polluter pays principlethe polluter pays principle
PositivePositive (benefits to others): how to (benefits to others): how to reward these in order to optimize reward these in order to optimize the supply of e.g. attractive the supply of e.g. attractive landscapes, breeding grounds for landscapes, breeding grounds for birds and water storage?birds and water storage?
Large scale Large scale commercial farms… commercial farms…
or…or…
... marginal areas and local ... marginal areas and local valuesvalues
Farm typology for public supportFarm typology for public support
Farms that …Farms that … … … produce in produce in ‘normal’ regions‘normal’ regions
… … produce in produce in handicapped handicapped regionsregions
… … produce only produce only ‘food’ (feed ‘food’ (feed etc.)etc.)
1.1. After After transition: only transition: only support for support for innovationinnovation
2. 2. flat rate plus flat rate plus sharpened cross-sharpened cross-compliancecompliance
… … also supply also supply ‘green services’ ‘green services’
3.3. targeted targeted rewardreward
4. 4. combination combination of 2. and 3.of 2. and 3.
New agricultural policies: the New agricultural policies: the role of the staterole of the state
Co-financing compensations and rewardsCo-financing compensations and rewards Ensuring competition and an effective Ensuring competition and an effective
internal marketinternal market External trade policiesExternal trade policies Common rules and standards for food Common rules and standards for food
quality, animal welfare, the environment quality, animal welfare, the environment etc.etc.
Basic market stabilisation (in case of Basic market stabilisation (in case of emergencies)emergencies)
New Roles for New Roles for AgricultureAgriculture
High potential areas High potential areas as food basketsas food baskets
New forms: industrial New forms: industrial agriculture and agriculture and aquaculture, aquaculture, integrated with integrated with urban areasurban areas
Low potential areas Low potential areas for landscape, water for landscape, water management, management, tourism, biological tourism, biological agriculture and local agriculture and local productsproducts
Long-term issues for Long-term issues for reforming agriculturereforming agriculture
Climate change or variability, CO2 Climate change or variability, CO2 storage and tradestorage and trade
Biobased economy and biofuelsBiobased economy and biofuels Effects of high food pricesEffects of high food prices Growth in demand for food and Growth in demand for food and
feedfeed Animal welfare, fair trade and Animal welfare, fair trade and
ethical issuesethical issues Biological agricultureBiological agriculture
Ultimately, Ultimately, we need to we need to restore the restore the linkage between linkage between urban and rural urban and rural areas, areas, between farmers between farmers and consumersand consumers