ALL ESSAY PLANS Flashcards

Question

How has the CAP changed over time?

Answer 1

Agenda 2000 – two pillars of CAP 1. Pillar I – focuses on direct payments to support agriculture production – but farmers must QUALIFY for payments, meeting standards on environmental management, animal welfare etc. 2. Pillar II – focuses on funding for rural development schemes / projects – LEADERS programme – links to diversification of the rural landscape Highlights how the countryside is not only a space for food production but also a landscape with ecological and recreational value.

Answer 2

It is a model that shows the optimal harvest time for timber

Answer 3

Trees are cut once (single rotation) & not replanted – manager/owner doesn’t consider long term decisions of future rotations; decision to harvest is STATIC Costs and prices are constant – ensures the trade-off is only between growth of trees and discounting of future prices. No externalities – forest value is only generated from timber No opportunity cost (land has no alternative uses) – otherwise the model would have to compare forestry and other land uses

Answer 4

PVπ = (P-c) S_T e^(-iT) where (P-c) = net price of harvested timber S_T – volume of harvested timber at time T i – (continuous) discount rate

Answer 5

take first order derivative [illustrate the graph]

Answer 6

Positive slope: less trees to harvest – IT TAKES TIME FOR TREES TO MATURE – “too early” to harvest = less profit Negative slope: more trees to harvest – selling timber further in the future = more discounted = less profit Optimal harvest time – slope = 0 = when the value of incremental timber is equal to the value loss of the entire stock due to discounting.

Answer 7

when the value of incremental timber is equal to the value loss of the entire stock due to discounting.

Answer 8

(Faustmann's model) Multiple rotations so owner / manager needs to account for long term decisions of future rotations – harvesting is DYANMIC Delaying in harvesting = delay in all future rotations = higher opportunity costs = less profits Optimal harvest time: additional gain from delay = opportunity cost of delay Manager should only wait if the gain from growth makes up for the fact that they’re delaying the whole future income stream. Optimal harvest time should be earlier so that future rotations are not delayed.

Answer 9

Higher expectation for profits = more profit is generated if harvest is delayed = more mature trees = more harvested timber that sell at a higher price sometime in the future Higher prices can outweigh the discounting factor for some time.

Answer 10

Settlers use forest to expand agricultural activity: Land BC - open access land farmers use the land for grazing livestock, foraging etc. NO INVESTMENT because cost of improvements / removal of trees > returns; no enforceable property rights

Answer 11

Refers to the depletion of soil nutrients when farmers clear new land – ‘shifting’ of agricultural activities on forest land - Va decreases, Vf increases – soil quality declines until investing in original land > shifting to new land. Then new agri technologies increase returns for permanent non-shifting agricultural activities.

Answer 12

shifting farmers adopt advanced practices, becoming permanent (on the new forest frontier) – this justifies the removal of forest on this new frontier Increased forest value = increased cost of harvesting & transportation = increased prices.

Answer 13

Increased demand for forest products = increased removal of natural forest Deforestation is a commercial activity not due to agricultural land conversion

Answer 14

Land BD – increased open access land. Cost of obtaining and enforcing property rights high – illegal logging occurs despite government attempts Point D – forest boundary Edge of illegal logging, beginning of undisturbed natural forest (enforcing property rights > forest value) Temperate forests – selectively harvest of the few trees species Tropical forests – harvesting of ‘high valued species’

Answer 15

Shows the creation of plantation forests alongside the natural forest this occurs due to the substitution effect - costs and prices of timber products are too high causing consumers and producers to substitute: Consumers substitute timber for wood, steel etc. Producers substitute harvesting in natural forest to managed forest closer to the market

Answer 16

Land B’-B’’ – managed forest – sustainable forest activities (e.g. Replanting of trees = plantation forest) Land B’’ – D: depletion of open access land

Answer 17

Theory of agricultural treadmill (Cochrane, 1958) – technological change boots agricultural productivity yet hurts farmers. Farmers must keep investing in new technology to stay afloat Results: farmers leaving the industry (incentive to switch to more profitable endeavours like a completely new industry or diversify) – less farmers to meet domestic demand for food = international trade (Clarkson’s farm – reality of hardworking farmers for low incomes) Food chain - other actors (larger retailers and supermarkets) squeeze farmers profits [illustrate with graph] Changing food cultures (Winter, 2018) long-term decline in the consumption of core agricultural products such as fresh milk and dairy consumption choices: processed potatoes > fresh potatoes popularity of ready-made meals and ultra-processed foods - the UK now has one of the lowest red meat consumption rates in Europe, a trend that has been declining steadily over the past 30 years rising interest in veganism and vegetarianism - reduces demand for livestock products Results: lower demand for traditional farm outputs = lower prices and shrinking domestic markets for farmers.

Answer 18

physical and economic access to sufficient, safe and nutritious food

Answer 19

a region / country being able to produce enough food without needing to buy / import additional food

Answer 20

1. Global availability / resource sustainability – overall level of food supply on the global level but also the long-term availability of resources like water, soil, energy etc. needed to grow food globally. (changes to inputs can shift demand for domestic food; global farming becomes less sustainable, domestic production needs to fill gap) 2. UK availability and access – is the food physically present in the UK (availability) and can people afford it (access). Supply chain issues (Brexit trade barriers, driver shortages etc.) reduce availability. Inflation or rising inequalities affect people’s access to food. 3. UK food chain resilience – ability to absorb shocks. Any breakdown in the supply chain (labour shortages, fuel crisis, disease outbreaks etc.) undermine the viability of farming 4. Household level – is food available on a household scale even if it’s available nationally? 5.Safety and confidence in food security – do consumers trust the food. Scandals (horsemeat in 2013) etc. can erode public confidence

Answer 21

EU UK’s main trading partner (80% of supply comes from the bloc – Smith, 2013) 60% of food in Britain is domestic – relatively strong – perhaps indicates consumers preference for British food. However domestic production may change in the future w the removal of CAP subsidies in 2027 and the full introduction of ELMs.

Answer 22

Higher energy costs due to post-COVID inflationary pressures and geopolitical conflicts and wars Labour shortages in farming – less farmers due to it being less economically viable or diversifying their farmland Transportation costs of importing goods have increased due to supply chain bottlenecks – relate to the environmental implications – is environmental degradation being outsourced to other countries abroad rather than in the UK

Answer 23

Unusual climate & livestock disease = reduced yields = trade disruption = lower supply Increased demand for bio-fuels = crops used in biofuels (palm oil, maize etc.) have competing demands (food or fuel) – increase Ps Oil prices & exchange rates = increase costs in food system Lower levels of global stock Speculation – artificially rise prices

Answer 24

Population growth: more people = more mouths to food – increase D for food, pressures on production systems and prices High levels of waste – 1/3rd of food produced is wasted globally (FAO, 2013) – inefficiency of land and other inputs in production Economic development – rising incomes = increase in resource intensive food (cattle etc.) = increase prices Increased energy costs = makes food more expensive AT ALL SATGES IN THE SUPPLY CHAIN Depletion of resources – as resources become scarcer, increases prices Climate change – reduces yield; climate change policies increase prices for farmers

Answer 25

Nationalisation of land – public ownership of land, state use it in a way to maximise social welfare Hall (1941) – landlord = state; tenants = individual farmers Campaign for National Parks – state ownership allows for environmental protection

Answer 26

Dartmoor National Park – claimants argued the wild camping is not included in the public rights to the Commons; wild camping would require the landlord’s permission Held – Court of Appeal – wild camping is a public right provided the camper adheres to the requirements in the Dartmoor Commons Act (currently awaiting Supreme Court decision)

Answer 27

re-sparking debates regarding land nationalisation - the current Labour Party’s manifesto included the restoration of the right to roam on Dartmoor and in other National Parks, possibly enacting a similar legislation to Scotland’s Land Reform Act 2003 highlights this ‘right to roam’ is piecemeal a right of access dependent on access orders and statutes ⇒ challenging whether it really is the public’s right it was only through judicial interpretation — and not explicit legislative language — that the Court of Appeal recognised a right to wild camp. Underscores how public access remains conditional on the will of landowners, courts, or the legislature, rather than being a fundamental or universal right IMPLICATIONS: If access depends on interpretation rather than entitlement, then public enjoyment of nature is always liable to erosion!!

Answer 28

recreation use → Having wider access to the countryside brings people together - which forges bonds and links. Putnam (2000) – bridging social capital (heterogenous groups interaction in space) = positive effects on socioeconomic outcomes. Modern age of mental and physical health crisis – more access to countryside = less stain on an already overburdened NHS Farmers benefit – less isolated from their communities (CRPR, 2021) ecological need → Jon Moses – campaigner for ‘Right to Roam’ (2023) = more access = more people feel connected to their environment = more they want to protect it The more the public are aware of the ecological decline in their nation, [where improved access = more awareness] this can result in greater emphasis by the public pushing for more environmental protection schemes

Answer 29

commercial forest: Kielder Forest → land that has limited environmental interest OR in which profit driven decisions have limited impact on local development, this land is then sold into commercial ownership, to free up funds in which the government can use elsewhere. In the sale of such land, the contract can include basic environmental protection standards community ownership / local community woodlands → Land in local communities could be owned and managed by local organisations Example: Neroche Landscape Partnership Scheme ⇒ worked to enhance wildlife conservation, improve public access, and foster recreational opportunities Community ownership - like in Scotland, where the community with ‘substantial connection’ to the land can buy the land, which encourages sustainable development and local economic growth, whilst improving wildlife and biodiversity.

Answer 30

Environmental Land Management scheme built on the principle of ‘public money for public goods’ – pay farmers for delivering environmental benefits

Answer 31

SFI - sustainable farming incentive CS and CS+ - Countryside Stewardship Landscape Recovery

Answer 32

PAYS farmers to manage their land in an environmentally sustainable way. Rewards farmers for specific actions which they can identify and choose as best suited to their land.

Answer 33

AIMS at improving local environmental habitats CS Plus encourages farmers to work together to improve their environments on a larger scale. Focus on creating, managing and restoring habitats such as woodland, wetlands, etc, education infrastructure, events and services; and geo-diversity and heritage asset management.

Answer 34

SUPPORTS landscape-scale projects such as large-scale forest and woodland creation, restoration and improvement; ecosystem restoration; peatland restoration etc.

Answer 35

Challenge: UPTAKE Struggling with farmers signing up in ELM schemes due to complexity - difficult for farmers to understand the requirements and how to effectively participate. Solution: DEFRA increased payments by 10%, simplified applications and introduced a flexible “pick and mix” model to the SFI, allowing farmers to select specific practices from a wide range of options. Result – increased uptake Risk - fragmented approach to land management—where isolated actions replace integrated, whole-farm systems. By focusing on individual practices rather than broader, systemic changes, Defra could be jeopardising the ambitious agro-ecological reform that British agriculture needs. By promoting piecemeal activities, the scheme could miss out on achieving these multi-layered benefits. DEFRA (2014) - 55% of farmers relied (and still rely) on BPS from CAP; compared to ELMs the payment they receive is a lot less ⇒ reduction of income in a highly competitive retail environment, cost of living crisis, and worsening broader economic climate (eg. worsening inflationary pressures). What incentive is ELMs providing farmers? Focus on environment outcomes over food production - ELMs aims to produce significant benefit to the environment, but the scheme neglects the important of domestic food production & food security ⇒ in a post-COVID climate where higher food prices (from bad weather, higher energy costs, geo-political conflicts etc.) are causing long term threats to global food security, securitising domestic food production & food security becomes more important - an aspect ELMs doesn’t focus on. Limited monitoring and evaluation - the schemes pay farmers based on the quality of environmental impact of their actions - a metric that has no clear way of measuring it yet. The schemes need stronger evaluation criteria to deliver the public goods promised.

Answer 36

CAP reforms / change in EU priorities – Agenda 2000 meant farmers no longer received payments on production – forcing farmers to diversify EU LEADERS programme – fund rural entrepreneurship (highlights how agriculture was no longer the driving force of the economy) Uncertainty (political, economic and environmental) Illness - 2001 foot and mouth disease - resulted in production losses for farmers which translated into a loss / lower incomes currently - US tariff wars, Ukraine-Russia War, and other geopolitical wars / conflicts as well as environmental concerns (climate change, unusual climate conditions, higher energy costs) ADD UNCERTAINTY FOR FARMERS - they don’t know WHAT to produce (i.e the quantity) and WHO to produce for (considering all of it can change seemingly overnight) Farmers are being PUSHED into diversification (Jack et al., 2020) - necessity driven. Poor market conditions translating into squeezed profit margins & lower agricultural incomes FORCE farmers into seeking out alternative income streams: “many entrepreneurs find themselves “pushed” into it because decent livelihood alternatives do not exist for them” – (O’Donnell et al., 2024)

Answer 37

Property investment - renting out of a property in the land (through AirBnB for example) or using these properties as WFH spaces New business activity (most common way) - farmers utilise the land they already have into new business adventures Wheelbirks Parlour case study: the farmer has 3 generation of producing milk. They diversified it in such a way to create an event space, playground for the kids to see the cows and at the end of the tour / trip, they sell ice-cream, a produce of the animal’s consumer just saw. other examples include using the outdoor space to improve the performance of their business eg. kayaking on the lake etc. ⇒ its a way to create a premium to that already existing business NFU (2018) report highlights how diversification is mixed; its not all concentrated in one aspect (eg. dairy) - farmers use what their farmland is already producing or being used for to add value in their own way = creates specialisation = monopolistic competition

Answer 38

They individually benefit from greater income which is used to support the farm business and retain the farmland within the family Farmers operate in a perfect competition market structure Price takers (even if pre-selling crops) with fixed supply in the short run [illustrate with perfect comp diagram] Large buyers, retailers etc. have power to squeeze prices so they quickly erode any profit ⇒ bigger, innovative farmers can cope with this, smaller firms can’t though ⇒ results they are barely making a living (BEFORE DIVERSIFICATION) AFTER DIVERSIFICATION: farmers are making supernormal profits [illustrate monopolistic competition diagram]

Answer 39

(Van der Ploeg, 1994) - the region benefits from endogenous rural growth and development Different from exogenous growth and development which is driven by external forces (e.g., state policies, global markets, etc.), endogenous growth comes from exploiting local potential - WHICH IS WHAT FARMERS DO! When multiple farmers in the rural landscape diversify their land, it results in more varied rural landscapes - physically but also socio-economically → there’s a mixing of farming, tourism, craft, conservation etc. ⇒ ADDS to the local economy and reduces vulnerability to external shocks

Answer 40

Pelcor Case Study Cork producers in the South of Portugal - during the 00s, there was a slowdown in cork production due to the fires in a specific region - a key area for cork oak cultivation. It resulted in significant losses of woodlands and cork oak forests, impacting the industry's ability to produce and export cork. Additionally, there were changes in the wine sector, where demand for traditional corks was declining, and the family was on the receiving end of these external changes - THEY HAVE TO ADAPT TO THIS CHANGE IN DEMAND The granddaughter of the family looked for ways to use the cork they produced - used cork to produce goods - umbrellas, t-shirts, notebooks etc. Why become an entrepreneur? Why diversify? 1. desire to preserve the local environment - “keep the cork forest in a way that is good for the environment” 2. desire to keep the production business alive and keep it within the family ⇒ all this influenced entrepreneurial development of the business, moving the family business into a more sustainable, profitable business HIGHLIGHTS HOW FARMERS CAN BE PULLED INTO DIVERSIFICATION TOO ⇒ they see an opportunity themselves and seek to exploit that gap with the intent of it increasing their incomes

ALL ESSAY PLANS Flashcards

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