Sustainability and Agricultural Regeneration in Hungarian Agriculture

Generational renewal is a core issue in European agriculture. Despite the continuous efforts of governments and the EU Council, the ageing of farmers seems an unstoppable process, accompanied by land concentration, the decrease in agricultural activity and the transformation of the European countryside. Consequently, there is a very rich scientific literature analysing the problem; a great part of it argues that the young farmer problem consists, in fact, in a number of different problems, with these problems showing huge regional differences. Hungary, as a new member state, with a heterogeneous (both fragmented and concentrated) land-use structure offers a good field to analyse generational renewal. Our paper is based on the first results of an ongoing Horizon 2020 project analysing rural regeneration. As a part of the research study, 48 semi-structured interviews were conducted with young farmers, successors of farmers and new entrants into farming. In our paper, we explore how education, access to land and family traditions influenced generational renewal and how it impacts sustainability practices.

SUSTAINABLE LAND MANAGEMENT THROUGH AGRO-ENVIRONMENTAL ACTIVITIES AND THE NEED FOR NEW POLICY

The report examines the need for a transition to a sustainable model of agriculture through the introduction of modern land use practices. Agroecology has reliable tools to ensure the environmental friendliness of modern agricultural production. Modern European agriculture is developing in compliance with ever higher standards in terms of environmental protection, biodiversity, safe food production. The challenges facing the Common Agricultural Policy are growing, necessitating the adoption of urgent action to make a successful transition to the sustainable use of agricultural land.

Public R&D and European agriculture: impact on productivity and return on R&D expenditure

While higher effort in research is advocated for agriculture, there continues to be a lack of measurement of its impact in economic terms, at least in Europe. This paper seeks to assess the economic impact of public agricultural R&D investments in Europe. Different panel models are applied on 16 European countries, by employing productivity and investment data. Results show positive impacts with returns on public R&D investments on agricultural productivity of between 6.5% and 15.2%, varying according to model specifications and computation techniques. These values confirm that research expenditure in agriculture is well justified in economic terms. However, the results are highly dependent on the analytical approach and limited by the paucity of expenditure data. Further research is recommended to take into account the role of other important determinants of impact, such as climate, spill overs and the Common Agricultural Policy (CAP). However, a proper consideration of these variables will first require a major improvement of data availability.

Reflections on the Political Economy of European Wine Appellations

Today’s European wine policy is centered on a system of appellations, implemented as geographical indications (GIs), that entail significant technological regulations—restricting the varieties that may be grown, while imposing maximum yields per hectare and other rules regarding grape production and winemaking practice. This paper outlines the historical development of European wine policy under the CAP, and presents a more detailed analysis of the economic consequences of the rules and regulations under the appellation system. The introduction of these rules and regulations was probably beneficial initially, both for their didactive effect on wine producers and consumers and as a way of overcoming a significant “lemons” problem in the market. However, those same rules and regulations are much less valuable today, given (1) the potential for alternative sources of information to solve the lemons problem, and (2) evidence that the appellation system per se might not be effectively serving that purpose as well as it once did, while some of the regulations impose significant social costs. Yield restrictions, in particular, are economically inefficient as a way of enhancing and signaling quality (their ostensible purpose) and as a way of restricting total supply to support market prices and thus producer incomes (a significant motivation). The inherent weaknesses of the policy design are compounded by failures of governance. A less heavy-handed approach to policy would allow more scope for the market mechanism to match supply and demand for this signature product from European agriculture.

Oilseed Cakes in Italy and France: Opportunities and Difficulties of a Market (late 19th and first half of the 20th Century)

This paper addresses the trade and commercialisation of oilseed cakes (residues from the extraction of oils) and press cakes in Italy and France during the last decades of the 19th century and in the first half of the 20th century. It tries to demonstrate that the diffusion of oilseed cakes for livestock, a distinctive sign of the intensification of breeding that involved all of Europe, or as organic fertilisers, took place at the crossroads of multiple dynamics. Trade policy of the states, industrial choices and development paths of the different rural worlds help to explain the variations in timing, spatial scale and methods used. The spread of oilseed cakes confirms that the modernisation of European agriculture happened on different and interrelated fronts.