Integrating the economic and environmental performance of agricultural systems: A demonstration using Farm Business Survey data and Farmscoper

Efficiency and Sustainability in Farm Diversification Initiatives in Northern Spain

The value-added diversification strategy provides an option for guaranteeing the sustainability of small farms. This study examines how factors related to managerial strategy and socio-environmental sustainability influence the efficiency of diversification initiatives. For this purpose, we use a novel and unique database of value-added ventures implemented by 49 dairy farms located in northern Spain. We construct a production frontier using a Data Envelopment Analysis (DEA) model to estimate technical efficiency. The mean technical efficiency of the initiatives was 0.56 and 0.59 for the constant and variable returns specifications, respectively. Determinants of efficiency are analyzed with a two-step procedure with a double bootstrap. We find that the elaborations of more complex products other than fresh milk are negatively associated with efficiency. However, specialization in one product with different variants and direct sales both have a positive association with efficiency. In terms of socio-environmental variables, there is a positive association between efficiency and the use of quality schemes such as ‘protected designation of origin’ (PDO), the use of organic labelling and the farmer having university education, and a negative association with the percentage of family labor. Our findings support the idea that value-added diversification contributes to more resilient pathways of development and underlines the importance of good quality management of marketing and operational factors.

The Complex Pathway towards Farm-Level Sustainable Intensification: An Exploratory Network Analysis of Stakeholders’ Knowledge and Perception

Farm-level sustainable intensification of agriculture (SIA) has become an important concept to ensuring food security while minimising negative externalities. However, progress towards its achievement is often constrained by the different perceptions and goals of various stakeholders that affect farm management decisions. This study examines farm-level SIA as a dynamic system with interactive components that are determined by the interests of the stakeholders involved. A systems thinking approach was used to identify and describe the pathways towards farm-level SIA across the three main pillars of sustainability. An explanatory network analysis of fuzzy cognitive maps (FCMs) that were collectively created by representative groups of farmers, farm advisors and policy makers was performed. The study shows that SIA is a complex dynamic system, affected by cognitive beliefs and particular knowledge within stakeholder groups. The study concludes that, although farm-level SIA is a complex process, common goals can be identified in collective decision making.