The Effect of Off-farm Work on the Intensity of Agricultural Production

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Abstract

Changes in agricultural production methods have been associated with environmental pressure and a loss of natural habitats. This paper explores the extent to which farmer participation in off-farm work (an increasing phenomenon in most developed countries) changes the intensity of agricultural input use focusing, in particular, on fertilizer and crop protection product use. A sample selection model that accounts for both unobserved heterogeneity between farms and the potential simultaneity between farm operations and hours worked off-farm is estimated for 2,419 farms in England and Wales. The econometric evidence indicates that the input intensity of products which have well-established links to environmental damage can increase as well as decrease. The results suggest that that fertilizer intensity may decline as off-farm labor increases while the use of crop protection per hectare increases as off-farm work increases.

Original languageEnglish
Pages (from-to)493-515
Number of pages22
JournalEnvironmental and Resource Economics
Volume34
Issue number4
DOIs
Publication statusPublished - Aug 2006

Keywords

  • crop protection
  • farm household model
  • fertilizer
  • input intensity
  • multifunctionality
  • off-farm work
  • panel
  • ENVIRONMENTAL IMPLICATIONS
  • HOUSEHOLD
  • SCOTLAND
  • ADOPTION
  • MODEL
  • CONSERVATION
  • PERCEPTIONS
  • FRAMEWORK
  • IMPACT
  • INPUT

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