Multifunctional Rural Land Management: Economics and Policies

Multifunctional Rural Land

Management

Multifunctional Rural Land

Management

Economics and Policies

Edited by Floor Brouwer and C. Martijn van der Heide

London • Sterling, VA

First published by Earthscan in the UK and USA in 2009

Copyright © Floor Brouwer and C. Martijn van der Heide, 2009

All rights reserved

ISBN: 978-1-84407-577-5

Typeset by MapSet Ltd, Gateshead, UK

Cover design by Dan Bramall

Main photo: Farming a corn field © Skip O’Donnell/iStockPhoto.com

Walking in autumn © Wouter van Caspel/iStockPhoto.com

Sandhill cranes at nesting site © Walter Spina/iStockPhoto.com

Cow grazing under trees: photo taken by Ronald van der Heide and supplied by the editors

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Library of Congress Cataloging-in-Publication Data

Multifunctional rural land management : economics and policies / edited by Floor

Brouwer and C. Martijn van der Heide

p. cm.

Includes bibliographical references and index.

ISBN 978-1-84407-577-5 (hardback)

1. Land use, Rural–Economic aspects. 2. Land use, Rural–Environmental aspects. 3.

Sustainable development. 4. Multiple use management areas. 5. Landscape protection.

I. Brouwer, Floor. II. Heide, C. Martijn ven der.

HD111M84 2009

333.76–dc22

2008046874

At Earthscan we strive to minimize our environmental impacts and carbon footprint

through reducing waste, recycling and offsetting our CO2 emissions, including those

created through publication of this book. For more details of our environmental policy,

see www.earthscan.co.uk.

This book was printed in the UK by Cromwell Press,

an ISO 14001 accredited company. The paper used

is FSC certified and the inks are vegetable based.

Contents

List of Figures and Tables vii

List of Contributors xiii

Preface xix

List of Acronyms and Abbreviations xxi

1 Natural Resource Management: Globalization and Regional

Integration 1

Floor Brouwer and C. Martijn van der Heide

Part I

Setting the Stage: Challenges and Reviews

2 The Biodiversity Policy Context of Multifunctional Rural

Land Management 17

Leon C. Braat

3 The Further Development of Agri-environmental Schemes:

Extending and Defending Conservation Values 33

Ian Hodge

4 Economic Issues Surrounding Nature Conservation in Rural Areas 53

Philip Bagnoli

Part II

Appreciate the Prerequisite: Perspectives on Land

5 A Sustainable Management of Nature Reserves 83

Nir Becker

6 Farmland Conservation in The Netherlands and British Columbia,

Canada 105

Geerte Cotteleer, Tracy Stobbe and G. Cornelis van Kooten

7 Economic Development and Biodiversity: The Environmental

Kuznets Curve in a Policy Assessment Tool 125

Geert Woltjer

Part III

Reorientations and Openings: Agri-environmental

Programmes

8 Factors Influencing Private Transaction Costs Related to

Agri-environmental Schemes in Europe 145

Evy Mettepenningen and Guido Van Huylenbroeck

9 Compensation or Conservation Payments for Farmers?

Exploring Opportunities for Agri-environmental Schemes in

The Netherlands 169

Raymond Schrijver, Dale Rudrum, Herbert Diemont and

Tanja de Koeijer

10 The Provision of Public Goods from Agriculture: Observations

from Agri-environmental Policies in the US 187

Sergey Rabotyagov and Hongli Feng

Part IV

Creating a Common Currency: Landscape Values

11 Changing Rural Landscapes: Demand and Supply of Public

Services in The Netherlands 213

Roel Jongeneel, Nico Polman and Louis Slangen

12 How Do Farms’ Economic and Technical Dynamics Contribute

to Landscape Patterns? 235

Claudine Thenail, Pierre Dupraz, Michel Pech, Nadine Turpin,

Géraldine Ducos, Lucie Winckler, Pascal Barillé,

Alexandre Joannon, Jacques Baudry, Didier Le Coeur and

Laurence Hubert-Moy

13 When Rural Landscapes Change Functionality: Examples from

Contrasting Case Studies in Portugal and Denmark 255

Teresa Pinto-Correia and Jørgen Primdahl

14 Historical Perspectives on the Development of Multifunctional

Landscapes: A Case Study from the UK Uplands 277

Dugald Tinch, Nick Hanley, Martin Dallimer, Paulette Posen,

Szvetlana Acs, Kevin J. Gaston and Paul R. Armsworth

vi MULTIFUNCTIONAL RURAL LAND MANAGEMENT

Part V

Outlook: Emerging Perspectives of Resource

Management in Rural Areas

15 Multifunctional Towns: Effects of New Retail Developments

in Rural Areas 297

Eveline S. van Leeuwen, Piet Rietveld and Peter Nijkamp

16 Rural Areas in Transition: A Developing World Perspective 319

Teunis van Rheenen and Tewodaj Mengistu

17 Conclusions and Prospects 335

Floor Brouwer and C. Martijn van der Heide

Index 00

CONTENTS vii

List of Figures and Tables

Figures

2.1 Global terrestrial biodiversity development by major biomes,

1700–2050 18

2.2 Ecosystem services, investments and management and competition

between services 19

2.3 The regional ecological–economic system 22

2.4 (a) Contribution of different pressures on global biodiversity loss

between 2000 and 2050 in the OECD baseline (b) Contribution of

different pressures on European biodiversity loss between 2000

and 2050 in the OECD baseline 27

3.1 Scenarios for agri-environmental schemes 38

4.1 Agriculture as a percentage of the labour force over the years 56

4.2 Change in prices paid and prices received, 2000–2007 57

4.3 Fully converted European organic acreage 64

5.1 Cost–benefit of NR development plans 92

5.2 Investment plan with several nature reserves 93

5.3 Demand curves for GNR and DNR 95

5.4 Price–revenue relation at GNR 96

5.5 Price–revenue relation at DNR 96

5.6 Dead weight loss and total revenues at the GNR 97

5.7 Dead weight loss against total revenue at the DNR 97

6.1 Distribution of land use on the Saanich Peninsula 111

6.2 Distribution of land use in The Netherlands 112

7.1 The four baseline scenarios 129

7.2 European biodiversity in 2000 and 2030 for the baseline scenarios 134

7.3 European biodiversity over time for the baseline scenarios 135

7.4 World agricultural land use in the baseline scenarios 136

7.5 Change in net exports of primary agricultural products

2001–2030 in billions of 2001 dollars 136

7.6 Effect of abolition of CAP income support on land use in the

Global Economy scenario 137

7.7 Effect of reduction of import tariffs on land use in the Regional

Communities scenario 138

7.8 Regional agricultural land use (left) and biodiversity effects of

a biofuels directive in the Global Cooperation scenario 139

8.1 Agri-environmental schemes as a transaction of environmental

goods and services 148

8.2 Model representing the factors influencing search costs,

ceteris paribus 159

8.3 Model representing the factors influencing negotiation costs,

ceteris paribus 160

8.4 Model representing the factors influencing monitoring/

enforcement costs, ceteris paribus 161

8.5 Model representing the factors influencing standardized total

private TCs, ceteris paribus 162

9.1 Payments for environmental services in different situations 176

9.2 Economic uptake of AE schemes 178

9.3 Mass flow scheme on which FIONA is based 181

9.4 Basic economic indicators for an FFN farm system with

suckler cows 182

9.5 Net result per hectare in an FFN farm system with suckler

cows according to farm size 183

10.1 The baselines in public goods provision from agriculture 189

11.1 Winterswijk area and its location in The Netherlands 222

12.1 Location of Basse-Normandie and NRP Cotentin-Bessin in France 238

12.2 The succession of frameworks for implementing agri￾environmental schemes in NRP Cotentin-Bessin 244

12.3 Number of land islets with agri-environmental measures, by

farm type and AEM type 245

13.1 Location of the Portuguese case study area: The municipality of

Castelo de Vide, in Northern Alentejo 260

13.2 Location of the Danish case study area, in Eastern Jutland 261

13.3 A view of the Montado, the extensive agro-silvo pastoral system

dominant in the case study area 263

13.4 View of the dominant landscape in the Danish case study area:

Large arable fields with scattered farm buildings and some

dispersed linear vegetation elements, as well as some small

woodlots 264

14.1 Location of the Peak District National Park in Great Britain 279

14.2 Events in the development of the multifunctional landscapes of

the Peak District National Park and UK uplands 284

14.3 Timeline of key impacts 285

15.1 Average share of purchases in zones A, B, C and ROW by town

households 301

15.2 Average share of purchases in zones A, B, C and ROW by

hinterland households 301

15.3 Share of jobs of town households in zones A, B, C or ROW 305

x MULTIFUNCTIONAL RURAL LAND MANAGEMENT

15.4 Share of jobs of hinterland households in zones A, B, C or ROW 306

15.5 Use of a logit model and microsimulation to derive the effects

of retail development 308

15.6 Location of the six case study towns in The Netherlands 310

16.1 Estimated and projected size of the world’s urban and rural

populations, 1950–2030 324

16.2 Trends of fragmenting farms in India 325

16.3 Roles of agriculture in development 329

16.4 Undernourishment in developing countries in millions of people 329

Tables

1.1 A general classification of economic goods 6

3.1 Illustrative options available under the ELS 44

4.1 Long-term structure of sectoral employment 55

4.2 FAO food price index 56

4.3 OECD agricultural support 72

5.1 TCM regression results at two sites 95

5.2 Summary for existing situation at GNR – independent

management (in NIS) 98

5.3 Summary for existing situation at DNR – independent

management (in NIS) 98

5.4 Joint management under current operating costs 100

5.5 Independent pricing vs. joint management under a possible

development plan 101

6.1 Regression results of the hedonic pricing model of farm land

markets on the Saanich Peninsula, with robust standard errors 116

6.2 Regression results of the hedonic pricing functions of farmland

markets in The Netherlands, with robust standard errors 119

8.1 Main advantages and drawbacks of tools for the measurement

of private TCs 150

8.2 Description of the sample in the survey and the follow-up 152

9.1 Indicative set-up for LP models in a spreadsheet 180

9.2 Labour input 183

11.1 Characteristics of goods and services of multifunctional land use 216

11.2 Selected sample characteristics 223

11.3 Selected characteristics of multifunctionality 224

11.4 Factor analysis about the farmers’ attitudes towards property

ownership 224

11.5 Factor analysis about farmers’ attitudes towards multifunctionality 225

11.6 Factor analysis about farmers’ attitudes towards way of farming 226

11.7 Factor analysis about farmers’ trust in government 227

11.8 Multinomial logit model explaining on-farm and off-farm

activities 228

LIST OF FIGURES AND TABLES xi

11.9 Logit models explaining nature conservation, landscape contracting

and parcel contracting for farmers without off-farm activities 229

12.1 Description of the land islets regarding their land use, hedgerow

management, size, location and clustering in space 243

12.2 Trajectories of land islet management and their link to

agri-environmental measures – the case of grassland management 248

12.3 Trajectories of land islet management and their link to

agri-environmental measures – the case of hedgerow management 249

13.1 Recent trends in agriculture and landscape in the Montado

landscape area within the Portuguese case study area 267

13.2 Changes in agriculture and landscape in the Danish case study area 269

15.1 Geographical zones and corresponding definitions used for

collection and analysis of spatial data 300

15.2 Share of income spent on purchases of different products and

services bought in town (zone A) or hinterland (zone B) by town

and hinterland households 303

15.3 Average supply of retail services in town and hinterland in five

countries 304

15.4 Availability of jobs in zone A (town) and zone B (hinterland) 305

15.5 Share of households that have lived their whole life, or more than

30 years, in the same place 306

15.6 Percentage of town households that are not attached to the town 307

15.7 Percentage of hinterland households that are not attached to the

hinterland 307

15.8 Selected case study towns in The Netherlands with the population

living in town (zone A) and in the direct hinterland (zone B) 309

15.9 Results from the multinomial logit analyses to derive the utility

from grocery shopping in zones A, B, C or D 311

15.10 The effects of a new supermarket on the total grocery

expenditure in the four zones 314

16.1 Urban population size and distribution by major geographic areas 323

16.2 International agricultural commodity prices 326

16.3 Comparison between FAO’s role of agriculture and OECD’s

multifunctionality 328

16.4 Average annual population growth rates by decades and from

1980 to 2005 330

17.1 Multifunctionality and characteristics of agricultural outputs 338

17.2 The use of decision making tools for nature and landscape 343

Boxes

2.1 The objectives of the Convention on Biological Diversity (CBD) 20

2.2 European Commission Biodiversity Objectives 21

4.1 Genetic information values 61

4.2 Irrigation 73

xii MULTIFUNCTIONAL RURAL LAND MANAGEMENT

List of Contributors

Szvetlana Acs is a research associate at the Department of Economics,

University of Stirling, Scotland.

Paul Armsworth is a lecturer in the Biodiversity and Macroecology Group and

Department of Animal and Plant Sciences, University of Sheffield, UK.

Philip Bagnoli is with the Organisation for Economic Co-operation and

Development (OECD) in Paris, and with the Centre for Applied

Macroeconomic Analysis at the Australia National University in Canberra.

Pascal Barillé completed his Masters studies in geomatics and geography at

Rennes and Le Man Universities (France) with two theses on ‘The dynamics

and factors of spatial variation of the municipality crop patterns in Bretagne,

Basse-Normandie and Eure-et-Loir’ at the Research Unit Sciences for Action

and sustainable Development (SAD)-Landscape (French National Institute for

Agronomic Research, INRA, Rennes, France).

Jacques Baudry is senior researcher in landscape ecology at the Research Unit

SAD-Landscape (Rennes, France) of INRA. He leads a Long-term Social

Ecological Research group on landscape dynamics as related to farming activi￾ties and their ecological consequences.

Nir Becker is professor and chairman of the Department of Economics and

Management at Tel-Hai College and a senior research fellow at the Natural

Resources and Environmental Research Centre (NRERC), University of Haifa,

Israel.

Leon C. Braat is senior researcher International Nature Policy in the Centre for

Ecosystem Studies at Alterra, Wageningen University and Research Centre, The

Netherlands. Before joining Alterra, he headed a team at the Netherlands

Environmental Assessment Agency (MNP), in charge of the annual Dutch

National State of Nature reports and national and international Outlook

studies.

Floor Brouwer is head of the Research Unit on Management of Natural

Resources at LEI, Wageningen University and Research Centre, The Hague,

The Netherlands.

Didier Le Coeur is vegetation ecologist, assistant professor at Agrocampus

Rennes and associated researcher at the Research Unit SAD-Landscape

(Rennes, France) of INRA.

Geerte Cotteleer is a PhD student with the Agricultural Economics and Rural

Policy Group, Department of Social Sciences, Wageningen University and

Research Centre, The Netherlands.

Martin Dallimer is a research postgraduate in the Biodiversity and

Macroecology Group and Department of Animal and Plant Sciences,

University of Sheffield, UK.

Herbert Diemont is a senior researcher with Alterra, Wageningen University

and Research Centre, The Netherlands.

Géraldine Ducos completed her PhD on the efficiency and transaction costs of

agri-environmental schemes in the Faculty of Economics of Rennes I

University.

Pierre Dupraz is researcher in economics in the Joint Research Unit ‘Structures,

Markets, Agriculture, Resources and Territories’, INRA and Agricultural

University AgroCampus Rennes.

Hongli Feng is Associate Scientist at the Center for Agricultural and Rural

Development (CARD), and adjunct assistant professor at the Department of

Economics, Iowa State University, US.

Kevin J. Gaston is professor of biodiversity and conservation in the

Department of Animal and Plant Sciences, University of Sheffield, UK.

Nick Hanley is professor of environmental economics at the University of

Stirling, Scotland.

C. Martijn van der Heide is research scholar at the Research Unit on

Management of Natural Resources, LEI, Wageningen University and Research

Centre, The Hague, The Netherlands.

Ian Hodge is professor of rural economy and head of Department of Land

Economy at the University of Cambridge, UK.

xiv MULTIFUNCTIONAL RURAL LAND MANAGEMENT