Modelling Lithuanian family farms’ participation in agri-environmental subsidy schemes: a Neural Network Approach
DOI:
https://doi.org/10.7201/earn.2023.02.05Keywords:
Agri-environmental Subsidy, Agricultural Practices, Common Agricultural Policy, Neural Network, Multilayer PerceptronAbstract
Properly targeted agri-environmental subsidies (AES) can ensure the implementation of the European Green Deal goals. Hence, it is important to know what factors encourage family farms to participate in the AES schemes in order to select appropriate political tools and properly use the allocated subsidies. We propose a Multilayer Perceptron neural network to examine 34 Lithuanian crop family farms and identify the factors affecting their participation in the AES. The results indicate that the decision by the Lithuanian family farms regarding the participation mainly depends on a few factors, including the agricultural production output of the farm and farmers’ education, while other factors, such as farmer age and farm size, were less important.
Downloads
References
Agrimonti, C., Lauro, M. & Visioli, G. (2021). "Smart agriculture for food quality: facing climate change in the 21st century". Critical Reviews in Food Science and Nutrition, 61(6), 971-981. https://doi.org/10.1080/10408398.2020.1749555
Akter, S., Krupnik, T.J., Rossi, F. & Khanam, F. (2016). "The influence of gender and product design on farmers' preferences for weather-indexed crop insurance". Global Environmental Change, 38, 217-229. https://doi.org/10.1016/j.gloenvcha.2016.03.010
Barghusen, R., Sattler, C., Deijl, L., Weebers, C. & Matzdorf, B. (2021). "Motivations of farmers to participate in collective agri-environmental schemes: the case of Dutch agricultural collectives". Ecosystems and People, 17(1), 539-555. https://doi.org/10.1080/26395916.2021.1979098
Baylis, K., Peplow, S., Rausser, G. & Simon, L. (2008). "Agri-environmental policies in the EU and United States: A comparison". Ecological Economics, 65(4), 753-764. https://doi.org/10.1016/j.ecolecon.2007.07.034
Biffi, S., Traldi, R., Crezee, B., Beckmann, M., Egli, L., Epp Schmidt, D., Motzer, N., Okumah, M., Seppelt, R., Louise Slabbert, E., Tiedeman, K., Wang, H. & Ziv, G. (2021). "Aligning agri-environmental subsidies and environmental needs: a comparative analysis between the US and EU". Environmental Research Letters, 16(5), 054067. https://doi.org/10.1088/1748-9326/abfa4e
Blandford, D. & Hassapoyannes, K. (2018). The role of agriculture in global GHG mitigation. OECD Food, Agriculture and Fisheries Papers, No. 112. Retrieved from: OECD Publishing: https://doi.org/10.1787/18156797
Bostian, A.A., Bostian, M.B., Laukkanen, M. & Simola, A. (2020). "Assessing the productivity consequences of agri-environmental practices when adoption is endogenous". Journal of Productivity Analysis, 53(2), 141-162. https://doi.org/10.1007/s11123-019-00564-7
Carlisle, L. (2016). "Factors influencing farmer adoption of soil health practices in the United States: a narrative review". Agroecology and Sustainable Food Systems, 40(6), 583-613. https://doi.org/10.1080/21683565.2016.1156596
Coderoni, S. & Esposti, R. (2018). "CAP payments and agricultural GHG emissions in Italy. A farm-level assessment". Science of the Total Environment, 627, 427-437. https://doi.org/10.1016/j.scitotenv.2018.01.197
Damianos, D. & Giannakopoulos, N. (2002). "Farmers' participation in agri environmental schemes in Greece". British Food Journal, 104(3), 261-273. https://doi.org/10.1108/00070700210425705
Delashmit, W.H. & Manry, M.T. (2005). "Recent developments in multilayer perceptron neural networks". Conference paper presented at Proceedings of the 7th Annual Memphis Area Engineering and Science Conference, MAESC. Memphis, USA.
Enjolras, G., Capitanio, F. & Adinolfi, F. (2012). "The demand for crop insurance: combined approaches for France and Italy". Agricultural Economics Review, 13(1), 5-22. https://doi.org/10.2139/ssrn.1836798
ESTEP. (2019). Lietuvos kaimo plėtros 2014-2020 m. programos įgyvendinimo 2014- 2018 metais vertinimo ataskaita. Retrieved from: Ministry of Agriculture of the Republic of Lithuania: https://zum.lrv.lt/uploads/zum/documents/files/LT_versija/Veiklos_sritys/Kaimo_pletra/Lietuvos_kaimo_pletros_2014-2020m._programa/Stebėsenairvertinimas/Tyrimaiirvertinimai/KPP2014-2020įgyvendinimo_2014-2018/išplėstinis_vertinimas_2019.pdf
ESTEP. (2021). Lietuvos kaimo plėtros metų įgyvendinimo ataskaita. Retrieved from: Ministry of Agriculture of the Republic of Lithuania: https://zum.lrv.lt/uploads/zum/documents/files/LT_versija/Veiklos_sritys/Kaimo_pletra/Lietuvos_kaimo_pletros_2014-2020m._programa/Stebėsenairvertinimas/Tyrimaiirvertinimai/2021/KPP_2014-2020_vertinimo_galutinė_ataskaita_ESTEP.pdf
European Commission. (2015). Environmental Subsidies and Similar Transfers. Luxembourg, Luxembourg: Publications Office of the European Union.
European Commission. (2021). List of potential agricultural practices that eco schemes could support. Retrieved from: European Commission: https://agriculture.ec.europa.eu/system/files/2021-01/factsheet-agri-practices-under-ecoscheme_en_0.pdf
European Commission. (2019). Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions. COM(2019) 640 final. Retrieved from: European Commission: https://eur-lex.europa.eu/resource.html?uri=cellar:b828d165-1c22-11ea-8c1f-01aa75ed71a1.0002.02/DOC_1&format=PDF
Finger, R. & Lehmann, N. (2012). "The influence of direct payments on farmers' hail insurance decisions". Agricultural Economics, 43(3), 343-354. https://doi.org/10.1111/j.1574-0862.2012.00587.x
Galnaitytė, A. (2017). Agrarinės aplinkosaugos priemonių poveikio žemės ūkio sektoriui vertinimas. Retrieved from: Vilniaus Gedimino Technikos Universitetas: https://doi.org/10.20334/2017-034-m
Giannakis, E. (2014). "Modelling farmers' participation in agri-environmental schemes in Greece". International Journal of Agricultural Resources, Governance and Ecology, 10(3), 227-238. https://doi.org/10.1504/IJARGE.2014.064005
Henderson, B. & Lankoski, J. (2019). Evaluating the environmental impact of agricultural policies. OECD Food, Agriculture and Fisheries Papers No. 130. Retrieved from: OECD Publishing: https://www.oecd-ilibrary.org/agriculture-and-food/evaluating-the-environmental-impact-of-agricultural-policies_add0f27c-en
Joao, A.R.B., Luzardo, F. & Vanderson, T.X. (2015). "An interdisciplinary framework to study farmers decisions on adoption of innovation: insights from Expected Utility Theory and Theory of Planned Behavior". African Journal of Agricultural Research, 10(29), 2814-2825. https://doi.org/10.5897/ajar2015.9650
Khairunniza-Bejo, S., Mustaffha, S., Khairunniza-Bejo, S., Ishak, W. & Ismail, W. (2014). "Application of Artificial Neural Network in predicting crop yield: a review". Journal of Food Science and Engineering, 4, 1-9.
Kujawa, S. & Niedbała, G. (2021). "Artificial neural networks in agriculture". Agriculture (Switzerland), 11(6), 497. https://doi.org/10.3390/agriculture11060497
Laborde, D., Mamun, A., Martin, W., Piñeiro, V. & Vos, R. (2021). "Agricultural subsidies and global greenhouse gas emissions". Nature communications, 12(1), 2601. https://doi.org/10.1038/s41467-021-22703-1
Laukkanen, M. & Nauges, C. (2014). "Evaluating greening farm policies: a structural model for assessing agri-environmental subsidies". Land Economics, 90(3), 458-481. https://www.jstor.org/stable/24243782 https://doi.org/10.3368/le.90.3.458
Leonhardt, H., Braito, M. & Uehleke, R. (2022). "Combining the best of two methodological worlds? Integrating Q methodology-based farmer archetypes in a quantitative model of agri-environmental scheme uptake". Agriculture and Human Values, 39(1), 217-232. https://doi.org/10.1007/s10460-021-10242-w
McGurk, E., Hynes, S. & Thorne, F. (2020). "Participation in agri-environmental schemes: a contingent valuation study of farmers in Ireland". Journal of Environmental Management, 262, 110243. https://doi.org/10.1016/j.jenvman.2020.110243
Merckx, T. & Pereira, H.M. (2015). "Reshaping agri-environmental subsidies: from marginal farming to large-scale rewilding". Basic and Applied Ecology, 16(2), 95-103. https://doi.org/10.1016/j.baae.2014.12.003
Mettepenningen, E., Vandermeulen, V., Delaet, K., Van Huylenbroeck, G. & Wailes, E.J. (2013). "Investigating the influence of the institutional organisation of agri environmental schemes on scheme adoption". Land Use Policy, 33, 20-30. https://doi.org/10.1016/j.landusepol.2012.12.004
Millennium Ecosystem Assessment. (2005). Ecosystems and human well-being: synthesis. Washington DC, USA: Island Press.
Ministry of Agriculture of the Republic of Lithuania. (2015). Lietuvos kaimo plėtros 2014-2020 metų programa. Konsoliduota 2020 10 16 versija. Retrieved from: Ministry of Agriculture of the Republic of Lithuania: https://zum.lrv.lt/lt/veiklossritys/kaimo-pletra/lietuvos-kaimo-pletros-2014-2020-m-programa/programa-2
Mohammadi, A., Venkatesh, G., Eskandari, S. & Rafiee, S. (2022). "Eco-efficiency analysis to improve environmental performance of wheat production". Agriculture (Switzerland), 12(7), 1031. https://doi.org/10.3390/agriculture12071031
Nosratabadi, S., Ardabili, S., Lakner, Z., Mako, C. & Mosavi, A. (2021). "Prediction of food production using machine learning algorithms of multilayer perceptron and anfis". Agriculture (Switzerland), 11(5), 408. https://doi.org/10.3390/agriculture11050408
Picazo-Tadeo, A.J., Gómez-Limón, J.A. & Reig-Martínez, E. (2011). "Assessing farming eco-efficiency: a Data Envelopment Analysis approach". Journal of Environmental Management, 92(4), 1154-1164. https://doi.org/10.1016/j.jenvman.2010.11.025
Primdahl, J., Peco, B., Schramek, J., Andersen, E. & Oñate, J.J. (2003). "Environmental effects of agri-environmental schemes in Western Europe". Journal of Environmental Management, 67(2), 129-138. https://doi.org/10.1016/S0301-4797(02)00192-5
Puertas, R., Guaita-Martinez, J.M., Carracedo, P. & Ribeiro-Soriano, D. (2022). "Analysis of European environmental policies: improving decision making through eco-efficiency". Technology in Society, 70, 102053. https://doi.org/10.1016/j.techsoc.2022.102053
Puertas, R., Marti, L., & Calafat, C. (2023). "Agricultural and innovation policies aimed at mitigating climate change". Environmental Science and Pollution Research, 2050, 47299-47310. https://doi.org/10.1007/s11356-023-25663-9
Richterová, E., Richter, M. & Sojková, Z. (2021). "Regional eco-efficiency of the agricultural sector in v4 regions, its dynamics in time and decomposition on the technological and pure technical eco-efficiency change". Equilibrium. Quarterly Journal of Economics and Economic Policy, 16(3), 553-576. https://doi.org/10.24136/eq.2021.020
Santeramo, F.G., Goodwin, B.K., Adinolfi, F. & Capitanio, F. (2016). "Farmer participation, entry and exit decisions in the Italian crop insurance programme". Journal of Agricultural Economics, 67(3), 639-657. https://doi.org/10.1111/1477-9552.12155
Teff-Seker, Y., Segre, H., Eisenberg, E., Orenstein, D.E. & Shwartz, A. (2022). "Factors influencing farmer and resident willingness to adopt an agri-environmental scheme in Israel". Journal of Environmental Management, 302(PA), 114066. https://doi.org/10.1016/j.jenvman.2021.114066
Tudi, M., Ruan, H.D., Wang, L., Lyu, J., Sadler, R., Connell, D., Chu, C. & Phung, D.T. (2021). "Agriculture development, pesticide application and its impact on the environment". International Journal of Environmental Research and Public Health, 18(3), 1-24. https://doi.org/10.3390/ijerph18031112
Tyllianakis, E. & Martin-Ortega, J. (2021). "Agri-environmental schemes for biodiversity and environmental protection: how were are not yet "hitting the right keys"". Land Use Policy, 109, 105620. https://doi.org/10.1016/j.landusepol.2021.105620
United Nations. (2017). System of Environmental-Economic Accounting 2012. New York, USA: United Nations.
Valsecchi, C., ten Brink, P., Bassi, S., Withana, S., Lewis, M., Best, A., Oosterhuis, F., Dias Soares, C., Rogers-Ganter, H. & Kaphengst, T. (2009). Environmentally Harmful Subsidies (EHS): identification and assessment. Retrieved from: Institute for European Environmental Policy (IEEP): https://ieep.eu/wp-content/uploads/2009/11/EHS-Full-Report-12-01-10.pdf
Van Beers, C. & Van den Bergh, J.C.J.M. (2001). "Perseverance of perverse subsidies and their impact on trade and environment". Ecological Economics, 36(3), 475-486. https://doi.org/10.1016/S0921-8009(00)00245-7
Vitunskienė, V. & Vinciūnienė, V. (2014). Viešosios paramos reikšmė siekiant aplinkos darnumo Lietuvos žemės ūkyje. In Štreimikienė, D. (Ed.): Darnus Vystymasis: Teorija Ir Praktika (pp. 252-282). Vilnius, Lithuania: Vilniaus universitetas.
Wang, G., Shi, R., Mi, L. & Hu, J. (2022). "Agricultural Eco-Efficiency: challenges and progress". Sustainability (Switzerland), 14(3), 1051. https://doi.org/10.3390/su14031051
Wang, P., Hafshejani, B.A. & Wang, D. (2021). "An improved multilayer perceptron approach for detecting sugarcane yield production in IoT based smart agriculture". Microprocessors and Microsystems, 82, 103822. https://doi.org/10.1016/j.micpro.2021.103822
Wąs, A. & Kobus, P. (2018). "Factors determining the crop insurance level in Poland taking into account the level of farm subsidising". In Wigier, M. & Kowalski, A. (Eds.): The Common Agricultural Policy of the European Union - the present and the future EU Member States point of view (pp. 125-146). Warsaw, Poland: Instytut Ekonomiki Rolnictwa i Gospodarki Żywnościowej. https://doi.org/10.30858/pw/9788376587431.11
Wąs, A., Malak-Rawlikowska, A., Zavalloni, M., Viaggi, D., Kobus, P. & Sulewski, P. (2021). "In search of factors determining the participation of farmers in agri-environmental schemes - Does only money matter in Poland?" Land Use Policy, 101, 105190. https://doi.org/10.1016/j.landusepol.2020.105190
Withana, S., ten Brink, P., Franckx, L., Hirschnitz-Garbers, M., Mayeres, I., Oosterhuis, F. & Porsch, L. (2012). Study supporting the phasing out of environmentally harmful subsidies. Retrieved from: Institute for European Environmental Policy: https://ec.europa.eu/environment/enveco/taxation/pdf/report_phasing_out_env_harmful_subsidies.pdf
Wittstock, F., Paulus, A., Beckmann, M., Hagemann, N. & Baaken, M.C. (2022). "Understanding farmers' decision-making on agri-environmental schemes: a case study from Saxony, Germany". Land Use Policy, 122, 106371. https://doi.org/10.1016/j.landusepol.2022.106371
Wuepper, D. & Huber, R. (2022). "Comparing effectiveness and return on investment of action- and results-based agri-environmental payments in Switzerland". American Journal of Agricultural Economics, 104(5), 1585-1604. https://doi.org/10.1111/ajae.12284
Downloads
Published
Issue
Section
License
Copyright (c) 2023 Kristina Gesevičienė, Erika Besusparienė
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
This journal is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License
