Impact of environmental policies on the profitability of greenhouse agriculture in southeastern Spain

Abstract

Sustainable development has become an essential criterion for structural policies of the European Union, and these policies have extended its environmental dimensions. The EU has decided that circular economy will be framed within the principles of sustainable development. Thus, the changes brought forth will affect activities like agriculture, where environmental policy can undermine the stability of agricultural systems by reducing their profitability. The objective of this study was to evaluate how the implementation of these techniques impacted the southeastern peninsula of Spain, a farming region that supports the sovereignty and food security of the European Union in terms of fruit and vegetable products. The production techniques evaluated can increase production costs by up to 5.5%, although there are no significant differences in crop profitability. It is necessary to guarantee that all producers can access the incentive system to reduce their economic pressure, due in many cases to financial losses. In this regard, it is necessary to establish a specific green architecture for this subsector that factors in the effects of inflation to balance the triple aspect of sustainability.

Strategic evaluation of the sustainability of the Spanish primary sector within the framework of the circular economy

“…To this end, it is necessary to have territorial information on the economic, social, and environmental sustainability of the production system to support the implementation of those strategies with objective data. Previous research has indicated that it is necessary to expand the information in the field of study and adapt it to the needs of each production system (Castillo-Díaz et al, 2022;Castillo-Díaz, Batlles-delafuente, et al, 2023;Cirone et al, 2023;Streimikis & Baležentis, 2020).…”

“…Therefore, it is necessary to identify the specific issues that affect the sustainability of each food production system to establish appropriate management measures and limit negative externalities. For this reason, it is crucial to make the information needed to make a decision available, which is not always the case (Castillo-Díaz, Batlles-delafuente, et al, 2023;.…”

Impact of Soil Biodisinfection Techniques in Horticultural Crops on Profitability within the Framework of the Circular Economy

“…In recent years, there has been an increase in the cost of inputs and means of production in the protected horticultural system of Almeria, which has accelerated recently due to inflation in the Eurozone. Farmers in this system can see how their economic margins are reduced yearly due to the continued stability of the price at origin of fruit and vegetable products [42,131].…”

“…In recent years, there has been an increase in the cost of inputs and means of production in the protected horticultural system of Almeria, which has accelerated recently due to inflation in the Eurozone. Farmers in this system can see how their economic margins are reduced yearly due to the continued stability of the price at origin of fruit and vegetable products [42,131]. The production system that performs self-management of agricultural biomass through the biodisinfection technique shows a decrease in total production costs ranging from 3.7% to 6.1% (Figure 4).…”

“…The long-cycle crop has a lower production-cost-reduction rate than the other two alternatives evaluated, mainly due to the expansion in demand for tomatoes in the long cycle as a result of being the main economic expense (average value of +35.2%). Other research has shown how implementing eco-innovations can expand the economic benefit perceived by agricultural producers either through reduced production costs, expanded crop yields, or increased exports from their marketing channel [131][132][133]. Production costs are reduced because of lower demand for certain inputs, which are cataloged in international literature as environmentally harmful materials.…”