Precision dairy tools (PDT) can provide timely information on individual cow's physiological and behavioral parameters, which can lead to more efficient management of the dairy farm. Although the economic rationale behind the adoption of PDT has been extensively discussed in the literature, the socio-psychological aspects related to the adoption of these technologies have received far less attention. Therefore, this paper proposes a socio-psychological model that builds upon the theory of planned behavior and develops hypotheses regarding cognitive constructs, their interaction with the farmers' perceived risks and social networks, and their overall influence on adoption. These hypotheses are tested using a generalized structural equation model for (a) the adoption of automatic milking systems (AMS) on the farms and (b) the PDT that are usually adopted with the AMS. Results show that adoption of these technologies is affected directly by intention, and the effects of subjective norms, perceived control, and attitudes on adoption are mediated through intention. A unit increase in perceived control score is associated with an increase in marginal probability of adoption of AMS and PDT by 0.05 and 0.19, respectively. Subjective norms are associated with an increase in marginal probability of adoption of AMS and PDT by 0.009 and 0.05, respectively. These results suggest that perceived control exerts a stronger influence on adoption of AMS and PDT, particularly compared with their subjective norms. Technology-related social networks are associated with an increase in marginal probability of adoption of AMS and PDT by 0.026 and 0.10, respectively. Perceived risks related to AMS and PDT negatively affect probability of adoption by 0.042 and 0.16, respectively, by having negative effects on attitudes, perceived self-confidence, and intentions. These results imply that integrating farmers within knowledge-sharing networks, minimizing perceived risks associated with these technologies, and enhancing farmers' confidence in their ability to use these technologies can significantly enhance uptake.
This study aims to identify the effects of temperature on dairy production and the heat tolerance of different dairy breeds under heat stress. Using farm and animal-level data from 1435 dairy farms throughout Sweden for 4 years (from 2016 to 2019), we find that a 7-day average of daily maximum temperatures above ~ 20 ºC is associated with sharp declines in milk production. We then estimate the farm-level loss in contribution margin for a typical Swedish dairy farm for the year 2018, which consisted of long-lasting heatwaves and extended summer temperatures. We also estimate that, on average, there are no differences in the impact of heatwaves on milk losses for different dairy breeds but that there exists a trade-off between genetic milk production potential and heat tolerance of a dairy cow. The magnitude of this productivity-tolerance trade-off may differ across breeds, suggesting that the high-production potential animals of certain breeds may be less sensitive to heat stress. These findings have important implications in terms of adapting to heat stress, investing in mitigation measures, and development of future breeds that can ameliorate the current trade-off between production capacity of a cow and its heat tolerance.
9 August 2021 in Agricultural and Resource Economics Review
This article examines the relationships between livestock vaccinations, herd introduction decisions, and livestock disease–related outcomes. We develop a theoretical model and derive testable hypotheses about the relationships between these outcomes and practices and test them using two-stage least squares regression analysis. We find that vaccinations reduce disease-related livestock deaths, implying that vaccine availability and use may improve herd and household welfare. We do not find robust evidence of increase in disease-related illness due to herd introductions. Our results highlight the role of livestock vaccinations in safeguarding herd value, which is connected to broader household welfare for livestock keepers of Eastern Africa.
The societal demand for good farm animal welfare (FAW) has increased over time. Yet, very little is known about the economic consequences of improvements in FAW in cow–calf operations. This study investigates on-farm economic consequences of improved FAW measures in cow–calf operations. It uses a stochastic partial budgeting approach to examine the relationship between contribution margins and improvements in FAW in terms of increased space allowance for a typical Swedish cow-calf operation, as compared to current practices. In the current practice, a cow should be given at least 5 m2 and the calf 2.2 m2. We found that a 0.5 m2 increase in space allowance per calf (achieved by a corresponding reduction of herd size) was associated with a 6.9 to 18.7% reduction in contribution margins in the short term. Our analysis does not include possible indirect gains like decrease in disease incidence and enhanced non-use or ‘soft’ values associated with increased FAW. However, our analysis indicates that high FAW standards can be costly and careful cost–benefit analysis should be a part of decision-making processes regarding FAW standards. Our results also suggest a need for government support payments and/or the development of market mechanisms to stimulate farmers to continue producing livestock-based foods with high FAW.
5 May 2023 in Agricultural and Resource Economics Review
We estimate the relationship between farm animal welfare (FAW) efforts taken by beef farmers and the economic performance of beef farms by using farm accounting data from the Swedish Farm Economic Survey matched with survey data on farm management practices. To this end, we perform a two-step analysis. First, an item response theory (IRT) model estimates the latent FAW effort on farms. FAW effort likely depends on a host of complementary FAW-improving strategies, and the IRT model combines the considered strategies into a unidimensional scale. We take this to represent on-farm FAW effort. Second, we use instrumental variable regressions to estimate the relationship between FAW effort and multiple measures of farm economic performance. We find that higher FAW effort scores have no effect on margins and costs. However, higher FAW effort scores are associated with lower farm sales. Findings suggest that policies (such as targeted label for high FAW) that increase farm revenue as well as incentivize the uptake of FAW-improvement practices may be able to compensate farmers for their FAW effort.
Wetlands are critical components of natural water infrastructure, delivering hydrological regulation, biodiversity support, and climate resilience, yet they continue to deteriorate globally. This article provides new causal evidence on the effectiveness of International Environmental Agreements (IEAs) by examining the impacts of wetland designation under the Ramsar Convention. Exploiting the spatial and temporal rollout of Ramsar sites worldwide and combining high-resolution geospatial data on land cover, water extent, and biodiversity, we estimate the causal effect of designation on wetland's ecological character as well as anthropogenic activities. On average, we find that Ramsar designation has limited impacts on reversing wetland degradation and does not consistently halt declines in water, vegetation, or biodiversity. However, treatment effects are highly heterogeneous. Positive impacts emerge in countries with stronger environmental governance, higher water-management capacity, and higher income levels, as well as in smaller wetlands that are easier to monitor and manage. In contrast, large wetlands and sites in weak institutional settings often continue to deteriorate following designation. These findings suggest that international commitments alone are insufficient to safeguard wetlands. Effective policy requires pairing IEAs with investments in local institutional capacity, integrated water governance, and financing mechanisms that align conservation with development objectives, positioning wetlands as core assets within broader water systems.