The impact of high crop prices on the use of agro-chemical inputs in France: A structural econometric analysis

Bayramoglu, Basak; Chakir, Raja

doi:10.1016/j.landusepol.2016.03.027

Cited by 14 publications

(11 citation statements)

References 21 publications

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“…Such studies take into account cross-price elasticities between different products and estimate crop acreage responses to price changes; they deal with the estimation of models to measure how prices affect farmers' production decisions (e.g. Bayramoglu and Chakir, 2016;Haile et al, 2016;Kim and Moschini, 2018). However, it is worth of mention the difficulty of comparing estimates from studies that differ in scope, data, and estimation methods.…”

Section: Evidence From Previous Studiesmentioning

confidence: 99%

Price responsiveness of supply and acreage in the EU vegetable oil markets: Policy implications

2021

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Vegetable oil market is becoming of increasing interest in the global biofuel industry. This phenomenon has also interested the European Union (EU), where the growing expansion of biofuel production is affected by political interventions promoting fuel security and environmental goals. Yet, empirical evidence on the impacts that changes in price of one commodity may have on the supply of another commodity are rather scant. We investigate these dynamics for the major sources of biodiesel in the EU and conclude on cross-commodity linkages for palm, rapeseed, soy, and sunflower oils. We also examine the acreage response of domestically produced feedstocks to changes in prices of vegetable oils. Our findings suggest strong and diversified path dependencies among vegetable oils that should be considered in planning sustainable biofuel policies. In particular, the empirical analysis reveals the great relevance of sunflower and soy oils, which show a high price responsiveness, and the high competition in end uses of domestically produced vegetable oils (i.e. rapeseed, soy, and sunflower oils), that tend to be net substitutes in supply. In terms of land use effects, we find that an increase in the price of imported palm oil results in a displacement effect in land devoted to rapeseed cultivation, whereas a surge in the price of sunflower oil decreases the use of land for rapeseed. Land use effects would be relevant in northern EU countries where the production of rapeseed is the most intense. A policy measure in the EU, incentivising the production of renewable and environmental-friendly fuel from sustainable feedstocks, would be positive for the domestic market to the extent that it stimulates the production of vegetable oils (soy and sunflower oils) with the highest direct and indirect emissions saving. However, the expansion of oil palm plantations in extra-EU producing countries and of imports to the EU would determine important impacts in terms of indirect land use change emissions and direct emissions due to increased transports.

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Section: Evidence From Previous Studiesmentioning

confidence: 99%

Price responsiveness of supply and acreage in the EU vegetable oil markets: Policy implications

2021

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“…Several interacting factors determine which pesticides, and how much, are used in crop production: cropping system, national legislation, pressure from weeds, pests and diseases, climate, weather, year (some pests are cyclical), and commodity prices. For example, Bayramoglu and Chakir (2016) showed that higher prices correlate positively with a higher demand for agro-chemical inputs such as pesticides. Here, the roles of cropping system and legislation are discussed, focusing on the situations in Brazil and Sweden.…”

Section: Pesticide Usementioning

confidence: 99%

Freshwater ecotoxicity impacts from pesticide use in animal and vegetable foods produced in Sweden

Nordborg

Davis²,

Cederberg

et al. 2017

Science of The Total Environment

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Chemical pesticides are widely used in modern agriculture but their potential negative impacts are seldom considered in environmental assessments of food products. This study aims to assess and compare the potential freshwater ecotoxicity impacts due to pesticide use in the primary production of six food products: chicken fillet, minced pork, minced beef, milk, pea soup, and wheat bread. The assessment is based on a detailed and site-specific inventory of pesticide use in the primary production of the food products, all of which are produced in Sweden. Soybeans, used to produce the animal-based food products, are grown in Brazil. Pesticide emissions to air and surface water were calculated using PestLCI v. 2.0.5. Ecotoxicity impacts were assessed using USEtox v. 2.01, and expressed in relation to five functional units. The results show that the animal-based food products have considerably larger impact potentials than the plant-based food products. In relation to kg pea soup, impact potentials of bread, milk, minced beef, chicken fillet and minced pork are ca. 2, 3, 50, 140 and 170 times larger, respectively. All mass-based functional units yield the same ranking. Notably, chicken fillet and minced pork have larger impacts than minced beef and milk, regardless of functional unit, due to extensive use of pesticides, some with high toxicity, in soybean production. This result stands in sharp contrast to typical carbon footprint and land use results which attribute larger impacts to beef than to chicken and pork. Measures for reducing impacts are discussed. In particular, we show that by substituting soybeans with locally sourced feed crops, the impact potentials of minced pork and chicken fillet are reduced by ca. 70 and 90%, respectively. Brazilian soybean production is heavily reliant on pesticides. We propose that weak legislation, in combination with tropical climate and agronomic practices, explains this situation.

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“…However, currently available MEMC models ignore or poorly describe an important decision of crop producers: their choice to produce a subset of crops among the set of crops they can produce and sell. Indeed, applications of MEMC models frequently ignore null acreages by relying either on very specific farm samples (e.g., Just et al, 1983Just et al, , 1990Bayramoglu and Chakir, 2016) or on crop aggregation that eliminate null crop acreages (e.g., Oude Lansing and Peerlings, 1996;Serra et al, 2005;Oude Lansink, 2008;Letort, 2012, 2014). 1 Yet, sample selection prevents extrapolation of the estimation results to farmers not producing all considered crops while crop aggregation induces information losses regarding production choices at the crop level.…”

Section: Introductionmentioning

confidence: 99%

Modeling Corners, Kinks, and Jumps in Crop Acreage Choices: Impacts of the EU Support to Protein Crops

Koutchade¹,

Carpentier²,

Femenia³

2020

American J Agri Economics

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Null crop acreages raise pervasive issues when modelling acreage choices with farm data. We revisit these issues and emphasize that null acreage choices arise not only due to binding nonnegativity constraints but also due to crop production fixed costs. Based on this micro-economic background, we present a micro-econometric multi-crop model that consistently handles null acreages and accounts for crop production fixed costs. This multivariate endogenous regime switching model allows for specific crop acreage patterns, such as multiple kinks and jumps in crop acreage responses to economic incentives, that are due to changes in produced crop sets. Currently available micro-econometric multi-crop models, which handle null acreages based on a censored regression approach, cannot represent these patterns. We illustrate the empirical tractability of our modelling framework by estimating a random parameter version of the proposed endogenous regime switching micro-econometric multi-crop model with a panel dataset of French farmers. Our estimation and simulation results support our theoretical analysis, the effects of crop fixed costs and crop set choices on crop acreage choices in particular. More generally, these results suggest that the micro-econometric multicrop model presented in this article can significantly improves empirical analyses of crop supply based on farm data.

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The impact of high crop prices on the use of agro-chemical inputs in France: A structural econometric analysis

Cited by 14 publications

References 21 publications

Price responsiveness of supply and acreage in the EU vegetable oil markets: Policy implications

Price responsiveness of supply and acreage in the EU vegetable oil markets: Policy implications

Freshwater ecotoxicity impacts from pesticide use in animal and vegetable foods produced in Sweden

Modeling Corners, Kinks, and Jumps in Crop Acreage Choices: Impacts of the EU Support to Protein Crops

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