EU milk quota abolition, dairy expansion, and greenhouse gas emissions

Läpple, Doris; Carter, Colin A.; Buckley, Cathal

doi:10.1111/agec.12666

Cited by 16 publications

(10 citation statements)

References 41 publications

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“…(2021) found a 50% productivity gap for nitrogen. Increasing productivity by 1% is associated with at least 0.26% decrease of GHG emission intensity for Irish dairy farms (Läpple et al., 2022). Our study shows that Dutch dairy farms can simultaneously increase production and reduce GHG emissions by 5.1%.…”

Section: Discussionmentioning

confidence: 99%

Mitigating greenhouse gas emissions on Dutch dairy farms. An efficiency analysis incorporating the circularity principle.

Wang,

Ang,

Oude Lansink

2023

Agricultural Economics

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Circular agriculture is vital to achieve a substantial reduction of greenhouse gas (GHG) emissions. Optimizing resources and land use are an essential circularity principle. The objective of this article is to assess the extent to which land optimization can simultaneously reduce GHG emissions and increase production on dairy farms. In addition, we explore the potential reduction of GHG emissions under four different pathways. The empirical application combines the network Data Envelopment Analysis (DEA) with the by‐production approach. This study focuses on a representative sample of Dutch dairy farms over the period of 2010–2019. Our results suggest that farms can simultaneously increase production and reduce GHG emissions by both 5.1%. However, only 0.6% can be attributed to land optimization. The land optimization results show that on average 25.3% of total farm size should be allocated to cropland, which is 6.7% more than the actual land allocation. GHG emissions could be reduced by 11.79% without changing the level of inputs and outputs. This can be achieved by catching up with the mitigation practices of the best performing peers.

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Section: Discussionmentioning

confidence: 99%

Mitigating greenhouse gas emissions on Dutch dairy farms. An efficiency analysis incorporating the circularity principle.

Wang,

Ang,

Oude Lansink

2023

Agricultural Economics

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“…These investments in bull quality provide the proxy variable we can use to identify production function coefficients (e.g., Levinsohn & Petrin, 2003;Olley & Pakes, 1996). Our work joins other studies that use the control function approach to correct for the endogeneity of input decisions in dairy farming (Frick & Sauer, 2018;Jang & Du, 2019;Kirwan et al, 2012;Läpple et al, 2021). Using the control function approach, our work represents animal breeding more accurately as an endogenous investment made by the farmer to improve future productivity and not simply as a exogenous feature of the technology.…”

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confidence: 89%

The role of animal breeding in productivity growth: Evidence from Wisconsin dairy farms

Hutchins

Gong

2023

American J Agri Economics

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We examine the relationship between investments in animal breeding and productivity growth on Wisconsin dairy farms using a control function approach. We incorporate farm‐level annual investment in breeding and genetics into the law of motion of productivity as in De Loecker (2013) to test the relationship between these investments and realized productivity. Our unique dataset also allows us to look at the effect of choosing bulls with high milk yield potential on productivity. Our results indicate that breeding investments made 3 years prior are associated with higher productivity of the current cohort. However, the farms with the highest level of productivity reap the lowest benefits from breeding investments, suggesting that there are diminishing returns to investing in genetics. When milk output is not quality adjusted, the contribution of breeding to productivity is undetectable, suggesting that breeding and investments in milk quality are related. We conclude that investments in breeding and genetics significantly contribute to dairy farm productivity, especially in terms of milk quality.

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“…Moreover, farms that are larger, more intensive, and more specialized in dairying were found to have higher technical efficiency scores. Over time, and especially following EU milk quota abolition, Irish dairy farms have also increased their productivity (Läpple et al., 2022). In contrast, incomes from beef production are traditionally low with an average farm income of €15,000 between 2015 and 2017 (Carter & Läpple, 2019).…”

Section: Introductionmentioning

confidence: 99%

An economic analysis of production efficiency: Evidence from Irish farms

Chavas

Läpple

Barham

et al. 2022

Canadian J Agri Economics

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The objective of this paper is to investigate the economics of production efficiency of dairy farms, with a specific focus on the role of agricultural policy. Our analysis is based on a representative sample of Irish dairy farms, ranging from 2000 to 2018, which includes a period of major change in EU dairy policy. Based on a multi-input multi-output production system, we first estimate technical, allocative, scale and scope efficiencies. We find significant heterogeneity in technical and allocative efficiencies, which change over time. We also calculate shadow prices of milk quota, which suggest that milk quotas restricted many farmers and limited their ability to produce milk. Finally, we explore determinants of technical, allocative, scale and overall inefficiencies using random panel-data censored regression. We find that subsidies are positively associated with farm efficiency, but the effects vary over distinct quota abolition periods. Overall, our empirical findings indicate that agricultural policy had important effects on the managerial effectiveness of farmers.

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EU milk quota abolition, dairy expansion, and greenhouse gas emissions

Cited by 16 publications

References 41 publications

Mitigating greenhouse gas emissions on Dutch dairy farms. An efficiency analysis incorporating the circularity principle.

Mitigating greenhouse gas emissions on Dutch dairy farms. An efficiency analysis incorporating the circularity principle.

The role of animal breeding in productivity growth: Evidence from Wisconsin dairy farms

An economic analysis of production efficiency: Evidence from Irish farms

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