K. T. McNamara

Bio: K. T. McNamara is an academic researcher. The author has contributed to research in topics: Land tenure & Settlement (litigation). The author has an hindex of 1, co-authored 1 publications receiving 5 citations.

The Incidence of EU Per-Hectare Payments on Farmland Rental Rates: A Spatial Econometric Analysis of German Farm-Level Data

Abstract: This article analyses determinants for 2001 farmland rental prices from 3,819 farms in Germany. Based on specification tests we estimate a general spatial model to account for both spatial relationships among rental prices of neighbouring farmers and spatially autocorrelated error terms. A euro1 per hectare higher rental price in a farmer's neighbourhood coincides with a euro0.72 higher rental price paid by the farmer. The marginal incidence of EU per-hectare payments paid for eligible arable crop land on rental rates amounts to euro0.38 for each additional euro1 of premium payments. Regional livestock density, which is indirectly influenced by different policies, is also a major determinant of rental prices. Results are confirmed by sensitivity analyses. Consequently, German farmland rental rates are heavily influenced by agricultural policy instruments and therefore, these policies exhibit substantial distributional effects.

System dynamics and innovation in food networks

Abstract: In line with the social objectives of the PNPB (Brazilian Program of Production and Use of Biodiesel) and its “Social Seal” Framework, PETROBRAS has set up a 57 million liter/year biodiesel plant in the semi‐arid region of North of Minas Gerais State, where the socioeconomics indicators are very unfavorable. Despite the potential to boost the agricultural and agro‐industrial sector, the biodiesel plant is using mainly soybean oil from other regions. Funded by the Minas Gerais Government, the ongoing project aims to contribute to the development of oilseed supply chain in the North of Minas Gerais. To deal with these socioeconomic complex decisions, the Analytic Hierarchy Process (AHP) was used. Organization models were proposed for the following production chain: i) castor seed, ii) jatropha, iii) sunflower seed, iv) cotton seed, v) macaw palm and vi) soybean. For each chain, investment alternatives were analysed using the software BiodieselFAO. The organizational models and economic results will be discussed with the stakeholder in a workshop, when the alternatives will be selected. Partial results of the project demonstrate that the lack of trust between the stakeholders is the main challenge to the organization of the production chains. The AHP methodology has been proved to be adequate to accom‐ plish the project objectives. Further researches on production chain modeling and building are, especially for the bioenergy sector, highly opportune. Keyword: biodiesel, oil extraction, AHP, North of Minas

Analysing farmland rental rates using Bayesian geoadditive quantile regression

Abstract: Empirical studies on farmland rental rates so far have predominantly concentrated on modelling conditional means using spatial autoregressive models. While these models only focus on the central tendency of the response variable, quantile regression provides more detailed insight by modelling different points of the conditional distribution as a function of covariates. Based on data from the German agricultural census, this article contributes to the agricultural economics literature by modelling conditional quantiles of farmland rental rates semi-parametrically using Bayesian geoadditive quantile regression. Our results stress the importance of using semi-parametric regression models, as several covariates influence rental rates in an explicit non-linear way. Moreover, our analysis allows us to uncover potential heterogeneities of the estimated effects across the conditional distribution of rental rates. By explicitly modelling and visually presenting the spatial effects, we also provide additional insight into the spatial structure of German farmland rental rates.

Impacts of Biogas Production on the Production Factors Land and Labour – Current Effects, Possible Consequences and Further Research Needs

Abstract: Among the members of the European Union (EU), Germany has the largest biogas produc-tion from agricultural sources. However, many other EU member states are creating the necessary conditions for rapid growth in this area. The German Renewable Energy Sources Act (EEG), which sets payments over a long time period for electricity supplied from renewa-ble sources, often serves as a benchmark. However, the continuing biogas boom has also led to criticism of the EEG in Germany. Opponents of biogas production point to the rising cost of leasing land, changes in the agricultural structure due to maize monoculture, increased competition with other agricultural branches (e.g., livestock husbandry) and the crowding out of classical food production. This paper examines the validity of these points of criticism. To this end, a written survey (n = 246) of farmers in six selected rural districts in the German state of Lower Saxony was carried out in 2010 and 2011. OLS regressions conducted on the data from these farmers showed that biogas production has led to a substantial increase in land lease prices for cropland. Furthermore, approximately 20% of the respondents report complete crowding out of established agricultural production forms, resulting in a decrease in the resource basis for downstream animal and plant processing industries. The results also indicate that, in extreme cases, such crowding out might even reduce the availability of em-ployment in rural areas. In closing, the paper highlights further research needs in order to provide comprehensive information (for every German state, the entire country of Germany and other EU member states) regarding the effects of biogas production on net employment, infrastructure and added value.

Determinants of Agricultural Cash Rents in Germany: A Spatial Econometric Analysis for Farm-Level Data

Abstract: This article analyses determinants for 2001 farmland rental prices from 4376 farms in Germany We derive our regression equation from a spatial reaction function to allow for spatial transmission of rental prices Results from a general spatial model show that a € 1 per hectare higher rental price in a farmer’s neighbourhood coincides with a € 057 higher rental price he has to pay For policy evaluation we estimate the marginal incidence of regional EU per-hectare premiums We find a value significantly above one and propose an explanation for this counterintuitive result based on the long-running nature of rental contracts, simultaneity of premium introduction and intervention price cuts as well as assumed stickiness of rental prices Regional livestock density, which is indirectly influenced by different policies, is also a major determinant of rental prices