Publications
NIBIOs employees contribute to several hundred scientific articles and research reports every year. You can browse or search in our collection which contains references and links to these publications as well as other research and dissemination activities. The collection is continously updated with new and historical material.
2024
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Income comparisons between farm and non-farm households play a crucial role in many aspects of farm policy. Using household income data from tax returns of all Norwegian taxpayers in the period 2006–2015 we study these income differences. We find that the unconditional mean income is higher for farm households, but with important differences depending on the comparison group considered. We also find that the income difference is reduced when we control for differences in the personal characteristics of the different non-farm comparison sub-groups. This finding implies that income comparison using unconditional means, as frequently done in agricultural policy making, is potentially misleading. We also show that the income effect of personal characteristics is not the same for different comparison sub-groups, as has been assumed in previous studies of income disparities. Differences in personal characteristics, and the income effect of those characteristics, therefore need to be accounted for if income comparisons between farmers and non-farmers are to inform farm support policies.
Authors
Rasmus Bang Bjørn Gunnar Hansen Mario Guajardo Jon Kristian Sommerseth Ola Flaten Leif Jarle AsheimAbstract
CONTEXT An important question for farmers is whether to run their farm conventionally or organically. This choice can significantly affect the farm's financial performance and its impact on the environment. OBJECTIVE The primary objective of this study is to compare the profitability of conventional and organic cattle systems and investigate how it is associated with individual farm characteristics, like forage production capacity, forage quality, milk quota, animal housing capacity, and their relative presences. METHOD We employ a whole farm optimization model, customized for Norwegian cattle farming. The primary goal of this model is to maximize the gross margin by optimizing decisions related to land usage and animal inventory while adhering to a set of constraints. We systematically solve more than 200,000 model instances, with varying farm characteristics. RESULTS AND CONCLUSIONS The results can be distilled to the following key points: If forage of good quality is readily available, but the livestock operation cannot be expanded due to animal housing and milk quota restrictions, organic may outcompete conventional farming. Otherwise, gross margin is maximized with conventional farming. These findings emphasize the crucial role of forage production capacity and quality in relation to available milk quota and infrastructure when considering the transition from conventional to organic farming. Extensive sensitivity analyses affirm the robustness of these conclusions. Regional regulatory factors, such as government farm payments, also play a significant role, and influence the optimal farming approach. Additionally, we show that increases in organic price premiums can markedly impact the competitiveness of organic farming, even in a system where government payments make out a significant part of the farm revenue. SIGNIFICANCE The model can support farmers to make informed decisions about converting to organic or conventional farming. It can also be used by policymakers to determine the level of support required to make it worthwhile for different types of farms to convert. We also show that existing government payment schemes give rise to regional differences in the incentives for organic farming in Norway. To ensure equal incentives for organic farming across the country, the organic payments would have to be regionally adjusted, in line with the other already regionally dependent government payments. This insight may be of significant interest to policymakers and other stakeholders.
Abstract
Housing and indoor feeding of sheep is required throughout the cold season, which can last more than half a year, in Nordic highlands and Alpine regions. This study aimed to examine and evaluate the housing costs, including labour requirements, according to type of sheep housing system and degree of mechanized feeding by investigating systems commonly used in Nordic and Alpine regions. Detailed cost data were obtained from 61 surveyed sheep farmers in Norway with sheep houses built between the years 2008 and 2015. Costs were calculated for a baseline scenario (2021-prices) as well as for five scenarios at low and high discount rates and opportunity cost of labour, and high energy prices. The median (interquartile range) flock size was 150 (100) winter-fed sheep. Houses with slatted floors were more expensive than deep-litter systems. Costs of bedding material and feed waste were however higher, and the net value of the manure were lower in houses with deeplitter systems. At the baseline assumptions, overall net housing costs per sheep was not statistically different among the main housing types studied. Multiple regression analyses showed that net housing costs per sheep were lower in larger flocks and for centrally located farms (control variables). Undertaking daily chores, such as feeding of roughages twice a day rather than once, resulted in significantly higher net housing costs. Mechanized feeding of roughages, and even more so for concentrates, were not economically justified since labour savings were not sufficient to pay for the additional capital costs. A round bale chopper lowered net housing costs, significantly at a high labour cost. None of the scenarios found slatted floors to be significantly more expensive than deep-litter systems. High costs of labour and capital favoured deep-litter systems, while slatted floor systems were more advantageous at rising prices of energy that resulted in increased values of organic manures and costs of feed wastes and bedding materials. The study was based on a decade old data from common Norwegian sheep house variants. Farmers that consider constructing a new sheep house today, still must compare these variants as their main alternatives. We encourage other researchers to include effects of housing systems and mechanized feeding on animal performance, health, and welfare. Moreover, future studies should preferably also be undertaken in other environmental or socio-economic settings to produce more general results.
Authors
Habtamu AlemAbstract
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Editors
Habtamu AlemAbstract
In the face of unprecedented challenges posed by the global COVID-19 pandemic, Resilience and Realities - Exploring Pandemic Effects, Governance Challenges, and Economic Insights offers a comprehensive exploration of the intricate interplay between public policies and uncertain times. This enlightening volume presents a thought-provoking collection of chapters that dissect the illusions, opportunities, and complexities surrounding public policies during crises. Spanning two captivating sections, this book embarks on a journey through the labyrinth of pandemic-related public policies, offering fresh insights into the ever-evolving landscape of economic responses and the resilient spirit of entrepreneurship. In the first section, “Illusions of Public Policies Amidst a Pandemic”, readers are invited to dissect the enigma of navigating uncertainties in crisis management. Delve into the gendered impact of the pandemic on academic women, explore the untapped opportunities within the pandemic’s wake, and scrutinize the efficacy of governmental economic strategies. The second section, “Public Policies towards Investment, Technology, and Efficiency”, provides an insightful investigation into the impact of investment in human capital on economic growth. Review the intricacies of financial management within the public sector and gain an understanding of the multifaceted dimensions of technology, investment, and efficiency in public policies. With each chapter, esteemed authors contribute their expertise to illuminate the complexities of these critical topics. Resilience and Realities - Exploring Pandemic Effects, Governance Challenges, and Economic Insights is a vital resource for policymakers, economists, academics, and curious minds seeking a deeper understanding of the intricate nexus between public policies and uncertain times. Explore the wealth of knowledge and insights within these pages and embark on a journey toward a more informed and resilient future. Discover illuminating perspectives, engage in thought-provoking analyses, and embrace the ever-changing landscape of public economics. This book stands as a beacon of knowledge and enlightenment in an era of unprecedented challenges.
2023
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No abstract has been registered