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Disadvantage and economic viability: characterising vulnerabilities and resilience in upland farming systems

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  • Barnes, Andrew P.
  • Thomson, Steven G.
  • Ferreira, Joana

Abstract

Less Favoured Areas (LFA) were designated to support farming activity on land with limited productive potential. However, progressive land abandonment in these areas questions the rationale and targeting of support payments to maintain viable farming enterprises. Using micro level data on farm businesses over the period 2003-2016 matched to land capability and spatial data we identify the distribution of viable and vulnerable enterprises in Less Favoured Areas. We find five categories of household based on progressive quality of life thresholds, namely i. vulnerable, ii. sustainable, iii. viable, iv. resilient, and v. robust. A proportional odds model measured the effect of biophysical and remote disadvantage on predicting these states of viability, along with farm family lifecycle factors. Whilst we would expect higher proportions of disadvantaged farmland to be negatively related to viability, when combined with rural remoteness this increases the magnitude of the effect. However, clear succession planning and tenancy arrangements suggest that approaches to management of the business and the farm family life-cycle may overcome some of these disadvantages. These results have to be considered against the UK’s planned withdrawal from the Common Agricultural Policy. This offers opportunities to provide a more nuanced approach to targeting and supporting disadvantaged regions beyond current criteria. However, there would seem to be dissonance between the proposed payment for public goods agenda, which is results orientated, and support for correcting natural disadvantages where opportunities for delivery of these public goods will be limited.

Suggested Citation

  • Barnes, Andrew P. & Thomson, Steven G. & Ferreira, Joana, 2020. "Disadvantage and economic viability: characterising vulnerabilities and resilience in upland farming systems," Land Use Policy, Elsevier, vol. 96(C).
    • Handle: RePEc:eee:lauspo:v:96:y:2020:i:c:s0264837719308154
    DOI: 10.1016/j.landusepol.2020.104698
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    1. Poczta-Wajda, Agnieszka, 2020. "Economic Viability of Family Farms in Europe – A Literature Review," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2020(4).
    2. Artur Wilczyński & Ewa Kołoszycz, 2021. "Economic Resilience of EU Dairy Farms: An Evaluation of Economic Viability," Agriculture, MDPI, vol. 11(6), pages 1-14, May.
    3. Andrew P. Barnes, 2023. "The role of family life‐cycle events on persistent and transient inefficiencies in less favoured areas," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 295-315, February.
    4. Jianhong Fan & You Mo & Yunnan Cai & Yabo Zhao & Dongchen Su, 2021. "Evaluation of Community Resilience in Rural China—Taking Licheng Subdistrict, Guangzhou as an Example," IJERPH, MDPI, vol. 18(11), pages 1-15, May.
    5. Barnes, A.P. & McMillan, J. & Sutherland, L.-A. & Hopkins, J. & Thomson, S.G., 2022. "Farmer intentional pathways for net zero carbon: Exploring the lock-in effects of forestry and renewables," Land Use Policy, Elsevier, vol. 112(C).
    6. Barnes, Andrew P. & Bevan, Kev & Moxey, Andrew & Grierson, Sascha & Toma, Luiza, 2023. "Identifying best practice in Less Favoured Area mixed livestock systems," Agricultural Systems, Elsevier, vol. 208(C).
    7. Ogawa, Keishi & Garrod, Guy & Yagi, Hironori, 2023. "Sustainability strategies and stakeholder management for upland farming," Land Use Policy, Elsevier, vol. 131(C).

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