Abstract
This chapter’s objective is to measure and analyze total private income and profitability for five case study privately-owned dehesas and oak woodland ranches. The Agroforestry Accounting System is applied at the farm scale. Results are estimated for individual forestry, game, livestock, crop, and service activities, and for activities aggregated as a whole. The case study application incorporates landowner consumption of private amenities as part of the total income from the dehesa or ranch, showing that these private amenities are the most important contributor to total income, while the contribution from livestock production is low or even negative. Hunting activities show low revenues. Dehesas with a high stocking rate are significantly supported by European Union livestock subsidies, while livestock production and other activities on California ranches are more sensitive to market conditions. Both in Spain and California, real profitability is competitive with alternative non-agricultural investments when amenity consumption and increases in land value are considered. These results are relevant to understanding current and future trends in landowner motivations for land and enterprise investment, and should be considered in conservation policy development.
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Notes
- 1.
Forage is considered an “intermediate output” on the output side and an “own intermediate consumption” on the cost side. An intermediate output is one produced in the accounting period and used in the production of other things rather than marketed directly. “Own intermediate consumption” means “on-farm produced” intermediate consumption.
- 2.
Known in SNA terminology as “final gross work in progress formation” (GWPF).
- 3.
Referred to in the SNA as “work in progress used” (WPu). These are the result of natural growth from previous accounting years. When these stored goods are harvested or used, they are accounted for as a cost to the “forestry” activity. This allows integrating the physical use of natural resources as withdrawals from the production and capital accounts, since economic goods already produced that are harvested or used in the accounting period have a price higher than zero before entering as work in progress used in the current production.
- 4.
Described in accounting terminology as gross fixed capital formation (GFCF). This is a finished final output that is produced in the dehesa or ranch in the current year with the aim of being a fixed investment contributing to the production of goods and services in upcoming years.
- 5.
- 6.
Self-employed persons “are persons who are the sole or joint owners of the unincorporated enterprises in which they work” (European Communities et al. 2009: para. 19.25, p. 407). Although not all self-employed persons are necessarily part of the landowner family or all family members are necessarily self-employed, in our case studies they match up. For simplicity, we will refer to self-employed labor as family labor throughout the paper.
- 7.
Resource rent is the income receivable by the owner of a natural resource (the lessor or landlord) for putting the natural resource at the disposal of another institutional unit (a lessee or tenant) for use of the natural resource in production (European Communities et al. 2009: para. 7.154, 156). The resource rent does not include returns from any manufactured capital involved in the current production.
- 8.
This a fixed good withdrawal from the capital balance account during the accounting period that results in zero revenue for the landowner (e.g., the death of reproductive or draft livestock).
- 9.
The RECAMAN project (Valoración de la Renta y el Capital de los Montes de Andalucía) ) of the Junta de Andalucía , initiated in 2008, is ongoing and applies the Agroforestry Accounting System at the regional scale to measure total income and capital from the montes of Andalucía in Spain.
- 10.
When this value is positive and on a per hour basis is lower or equal than 80% of employee wages per hour in the area, we assume that all the mixed income value is attributed to family labor and the manufactured family net operating margin is zero. When this value is positive and on a per hour basis is higher than 80% of employee wages per hour in the area, we assume that the family labor value corresponds to this 80% of employee wages per hour, and the remaining value is attributed to the manufactured family net operating margin.
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Acknowledgments
The authors thank Kayje Booker, Samuel Gómez, Luis Guzmán, Casimiro Herruzo, Soledad Letón, María Martinez, Gregorio Montero, María Pasalodos, Dionisio Pérez, and Ana Torres for their technical support in data collection and treatment, and to Bill Stewart and Rick Standiford for their suggestions from an earlier version of the manuscript. This paper has been funded by and is a contribution to the projects Valoración de la Renta y el Capital de los Montes de Andalucía (RECAMAN) of the Junta de Andalucía, Assessing the Non-Market Values of California Ranches of the Division of Agriculture and Natural Resources of the University of California (CIG05-178), and Intramural Grant 200910I130 of the Spanish National Research Council (CSIC). The usual disclaimer applies.
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Oviedo, J.L. et al. (2013). The Private Economy of Dehesas and Ranches: Case Studies. In: Campos, P., et al. Mediterranean Oak Woodland Working Landscapes. Landscape Series, vol 16. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-6707-2_13
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