Skip to main content

Advertisement

SpringerLink
Log in

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

  • Published:
Environmental and Resource Economics Aims and scope Submit manuscript

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.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Bailey A., Balcombe K., Thirtle C. and Jenkins L. (2004). ME Estimation of Input and Output Biases of Technical and Policy Change in UK Agriculture, 1953–2000. Journal of Agricultural Economics 55: 385–400

    Article  Google Scholar 

  • Ball V. E. (1988). Modeling Supply Response in a Multiproduct Framework. American Journal of Agricultural Economics 70: 813–825

    Article  Google Scholar 

  • Bazaraa M., Sherali H. and Shetty C. (1993). Nonlinear Programming: Theory and Algorthims. Wiley, New York

    Google Scholar 

  • Benjamin C. (1996). Emploi et pluriactivité dans les exploitations agricoles. Economica, Paris

    Google Scholar 

  • Chambers R. G. (1988). Applied Production Analysis. Cambridge University Press, Cambridge

    Google Scholar 

  • Cooper J. and Keim R. (1996). Incentive Payments to Encourage Farmer Adoption of Water Quality Protection Practices. American Journal of Agricultural Economics 78: 54–64

    Article  Google Scholar 

  • Coughenour C. and Swanson L. (1983). Work Statuses and Occupations of Men and Women in Farm Families and the Structure of Farms. Rural Sociology 48: 23–43

    Google Scholar 

  • (2002). Farm Incomes in the UK 2001/2002. Department for Environment, Food and Rural Affairs, HMSO, London

    Google Scholar 

  • Dex S. (1995). The Reliability of Recall Data: A Literature Review. Bulletin de Methodologie Sociologique 49: 58–80

    Article  Google Scholar 

  • Dupraz P., Vermersch D., HenryDe Frahan B. and Delvaux L. (2003). The Environmental Supply of Farm Households: A Flexible Willingness to Accept Model. Environmental and Resource Economics 25(2): 171–189

    Article  Google Scholar 

  • Ellis N., Heal O., Dent J. and Firbank L. (1999). Pluriactivity, Farm Household Socio-economics and the Botanical Characteristics of Grass Fields in the Grampian Region of Scotland. Agricultural Ecosystems and Environment 76: 121–134

    Article  Google Scholar 

  • (1989). Farm Accountancy Data Network: An A–Z of Methodology. Official Publications of the European Communities, Luxembourg

    Google Scholar 

  • Falconer K. E. (1998). Managing Diffuse Environmental Contamination from Agricultural Pesticides: An Economic Perspective on Issues and Policy Options, with Particular Reference to Europe. Agriculture Ecosystems and Environment 69: 37–54

    Article  Google Scholar 

  • Fall M. and Magnac T. (2004). How Valuable is On-farm work to Farmers?. American Journal of Agricultural Economics 86: 267–281

    Article  Google Scholar 

  • Fernandez-Cornejo, J. and J. Li (2005) ‘The Impacts of Adopting Genetically Engineered Crops in the USA: The Case of Bt Corn.’ Paper presented at the American Agricultural Economics Association, Rhode Island July 2005

  • Fuglie K. and Bosch D. (1995). Economic and Environmental Implications of Soil-nitrogen Testing – a Switching-Regression Analysis. American Journal of Agricultural Economics 77: 891–900

    Article  Google Scholar 

  • Gasson, R. (1988), The Economics of Part time farming, Longman Group UK Limited

  • Gilchrist S. and Himmelberg C. P. (1995). Evidence on the Role of Cash Flow for Investment. Journal of Monetary Economics 36: 541–572

    Article  Google Scholar 

  • Goodwin B. and Mishra A. (2004). Farming Efficiency and the Determinants of Multiple Job Holding by Farm Operators. American Journal of Agricultural Economics 86: 722–729

    Article  Google Scholar 

  • Hanley N., Kirkpatrick H., Simpson I. and Oglethorpe D. (1998). Principles for the Provision of Public Goods from Agriculture: Modelling Moorland Conservation in Scotland. Land Economics 74: 102–113

    Article  Google Scholar 

  • Hill B. (2000). Farm Incomes Wealth and Agricultural Policy. Ashgrove, Ashgate

    Google Scholar 

  • Hill B. (1999). Farm Household Incomes: Perceptions and Statistics. Journal of Rural Studies 15(3): 345–358

    Article  Google Scholar 

  • Huffman W. E. (1991). Agricultural Household Models: Survey and Critique. In: Lass, A. O., Findeis, L. J. and Halberg, M. C. (eds) Multiple Job Holding among Farm Families, pp 239–262. Iowa State University Press, Ames IA

    Google Scholar 

  • Khanna M. (2001). Sequential Adoption of Site-Specific Technologies and its Implications for Nitrogen Productivity: A Double Selectivity Model. American Journal of Agricultural Economics 83: 35–51

    Article  Google Scholar 

  • Lass D. A., Findeis J. L. and Hallberg M. C. (1991). Factors Affecting the Supply of Off-Farm Labor: A Review of Empirical Evidence. In: Halberg, M. C., Findeis, J. L., and Lass, D.␣A. (eds) Multiple Job-Holding Among Farm Families, pp. Iowa State University Press, Ames IA

    Google Scholar 

  • Lopez R. E. (1984a). Estimating Substitution and Expansion Effects using a Profit Function Framework. American Journal of Agricultural Economics 66(3): 358–367

    Article  Google Scholar 

  • Lopez R. E. (1984b). Estimating Labor Supply and Production Decisions of Self-Employed Farm Producers. European Economic Review 24: 61–82

    Article  Google Scholar 

  • McLaughlin A. and Mineau P. (1995). The Impact of Agricultural Practices on Biodiversity. Agriculture Ecosystems and Environment 55: 201–212

    Article  Google Scholar 

  • McNally S. (2002). Are Other Gainful Activities on Farms Good for the Environment?. Journal of Environmental Management 66: 57–65

    Article  Google Scholar 

  • Meyer K. and Lobao L. (1997). Farm Couples and Crisis Politics: The Importance of Household, Spouse and Gender in Responding to Economic Decline. Journal of Marriage and the Family 59: 204–218

    Article  Google Scholar 

  • Mishra, A., H. El-Osta, M. Morehart, J. Johnson and J. Hopkins (2002), Income Wealth and the Economic Well being of Farm Households. ERS Agricultural Economic Report No. AER812.

  • Mishra A. and Goodwin B. (1997). Farm Income Variability and the Supply of Off Farm Labor. American Journal of Agricultural Economics 79: 880–887

    Article  Google Scholar 

  • Nehring R. and Fernandez-Cornejo J. (2005). The Impacts of Off-Farm Income on Farm Efficiency, Scale and Profitability for Corn Farms. Economic Research Service USDA, Washington

    Google Scholar 

  • O’Donnell C. J., Shumway C. R. and Ball V. E. (1999). Input Demands and Inefficiency in US Agriculture. American Journal of Agricultural Economics 81: 865–880

    Article  Google Scholar 

  • Olfert R. (1992). Nonfarm, Employment as a Response to Underemployment in Agriculture. Canadian Journal of Agricultural Economics 40: 443–458

    Article  Google Scholar 

  • Simmelsgaard S. E. and Djurhuus J. (1998). An Empirical Model for Estimating Nitrate Leaching as Affected by Crop Type and the Long-Term N Fertilizer Rate. Soil Use and Management 14: 37–43

    Article  Google Scholar 

  • Skinner J. A., Lewis K. A., Bardon K. S., Tucker P., Catt J. A. and Chambers B. J. (1997). An Overview of the Environmental Impact of Agriculture in the UK. Journal of Environmental Management 50: 111–128

    Article  Google Scholar 

  • Smith, K.R. (2002), ‘Does Off-farm work hinder Smart Farming’ Agricultural Outlook (September) 28–30. Economic Research Service/USDA.

  • Traoré N., Landry E. and Amara N. (1998). On-farm Adoption of Conservation Practices: The Role of Farm and Farmer Characteristics, Perceptions and Health Hazards. Land Economics 74(1): 114–27

    Article  Google Scholar 

  • Vella F. and Verbeek M. (1999). Two-Step Estimation of Panel Data Models with Censored Endogenous Variables and Selection Bias. Journal of Econometrics 90: 239–263

    Article  Google Scholar 

  • Willock J., Deary I. J., Edwards-Jones G., Gibson G. J., McGregor M. J., Sutherland A., Dent J.␣cB., Morgan O. and Grieve R. (1999). The Role of Attitudes and Objectives in Farmer Decision Making: Business and Environmentally-Oriented Behaviour in Scotland. Journal of Agricultural Economics 50: 286–303

    Article  Google Scholar 

  • Wu J. J. and Babcock B. A. (1998). The Choice of Tillage, Rotation and Soil Testing Practices: Economic and Environmental Implications. American Journal of Agricultural Economics 80: 494–511

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Economics, University of Aberdeen, Scotland, UK

    E. Phimister

  2. University of Aberdeen Business School, Edward Wright Building, Aberdeen, AB24 3UF, Scotland, UK

    D. Roberts

Authors
  1. E. Phimister
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. D. Roberts
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to D. Roberts.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Phimister, E., Roberts, D. The Effect of Off-farm Work on the Intensity of Agricultural Production. Environ Resource Econ 34, 493–515 (2006). https://doi.org/10.1007/s10640-006-0012-1

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10640-006-0012-1

Key words

JEL classifications

Search

Navigation