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Environmental indicators for agriculture PDF

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« AGRICULTURE AND FOOD Environmental Indicators for Agriculture VOLUME 3 Environmental METHODS AND RESULTS Indicators for Overall the environmental performance of agriculture in OECD countries over the last 10 to 15 years has been mixed. According to the indicators examined in this book pollution levels from nitrogen and pesticide loadings in water remain relatively high, for certain regions within OECD countries. Agriculture Environmental risks persist, such as soil erosion and water resource depletion, and agriculture’s impact on biodiversity, wildlife habitats and landscape has been harmful in some cases. VOLUME 3 Some positive developments have also occurred. There has been a decrease in nitrogen and pesticide METHODS AND RESULTS use in many countries with associated reductions in water pollution and greenhouse gas emissions. Improvements in input use efficiency and farm management practices, such as conservation soil tillage, has also enhanced environmental performance. Agriculture also generates environmental AGRICULTURE AND FOOD benefits and services, for example, conserving wildlife habitat, acting as a sink for greenhouse gases and providing landscape amenity. This book is the first comprehensive study to review and take stock in OECD countries of progress in developing indicators to measure the environmental performance of agriculture. Using standard E n indicator definitions and methods of calculation, the book provides results of the state and trends of v environmental conditions in agriculture; interprets trends and highlights linkages between indicators; i r o and, outlines the limitations and key challenges for their future development. n m e FURTHER READING n t This book is part of a series of publications entitled Environmental Indicators for Agriculture. Volume 1, a l Concepts and Frameworks, was released in 1997; Volume 2, Issues and Design, was published in 1999 I n and provides the results of the OECD York Workshop (UK) that examined the design of suitable d environmental indicators for policy purposes. i c a This book is accompanied by an Executive Summary and released simultaneously with the OECD t o National Soil Surface Nitrogen Balances: Preliminary Estimates 1985-1997, available free of charge on r s the OECD website at: www.oecd.org/agr/env/indicators.htm. f o r A g r i c u l t u www.oecd.org r e ISBN 92-64-18614-X 51 2001 01 1 P -:HSTCQE=V][VY^: © OECD, 2001. © Software: 1987-1996, Acrobat is a trademark of ADOBE. All rights reserved. OECD grants you the right to use one copy of this Program for your personal use only. Unauthorised reproduction, lending, hiring, transmission or distribution of any data or software is prohibited. You must treat the Program and associated materials and any elements thereof like any other copyrighted material. All requests should be made to: Head of Publications Service, OECD Publications Service, 2, rue André-Pascal, 75775 Paris Cedex 16, France. Environmental Indicators for Agriculture Methods and Results Volume 3 2001 ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT Pursuant to Article 1 of the Convention signed in Paris on 14th December 1960, and which came into force on 30th September 1961, the Organisation for Economic Co-operation and Development (OECD) shall promote policies designed: – to achieve the highest sustainable economic growth and employment and a rising standard of living in Member countries, while maintaining financial stability, and thus to contribute to the development of the world economy; – to contribute to sound economic expansion in Member as well as non-member countries in the process of economic development; and – to contribute to the expansion of world trade on a multilateral, non-discriminatory basis in accordance with international obligations. The original Member countries of the OECD are Austria, Belgium, Canada, Denmark, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The following countries became Members subsequently through accession at the dates indicated hereafter: Japan (28thApril1964), Finland (28th January 1969), Australia (7th June 1971), New Zealand (29th May 1973), Mexico (18th May 1994), the Czech Republic (21st December 1995), Hungary (7th May 1996), Poland (22ndNovember 1996), Korea (12th December 1996) and Slovak Republic (14th December 2000). The Commission of the European Communities takes part in the work of the OECD (Article 13 of the OECD Convention). Publié en français sous le titre : INDICATEURS ENVIRONNEMENTAUX POUR L’AGRICULTURE Méthodes et résultatt Volume 3 © OECD 2001 Permission to reproduce a portion of this work for non-commercial purposes or classroom use should be obtained through the Centre français d’exploitation du droit de copie (CFC), 20, rue des Grands-Augustins, 75006 Paris, France, Tel. (33-1) 44 07 47 70, Fax (33-1) 46 34 67 19, for every country except the United States. In the United States permission should be obtained through the Copyright Clearance Center, Customer Service, (508)750-8400, 222Rosewood Drive, Danvers, MA 01923 USA, or CCC Online: www.copyright.com/. All other applications for permission to reproduce or translate all or part of this book should be made to OECD Publications, 2,rueAndré-Pascal, 75775 Paris Cedex 16, France. FOREWORD The impacts of agriculture on the environment and the achievement of sustainable agriculture are of major public concern in the context of agricultural policy reform, trade liberalisation, and multilateral environmental agreements. This study is Volume 3 of the OECD project Environmental Indicators for Agriculture. It is a stocktaking of the environmental performance of agriculture considering a range of policy relevant agri-environmental issues in OECD countries. This Volume aims to review and take stock of progress in developing agri-environmental indicators in OECD countries; build on earlier OECD work in establishing standard definitions and methods of calculation for indicators; provide preliminary results of the state and recent trends of environmental conditions in agriculture across OECD countries; interpret indicator trends and highlight linkages between indicators; and outline the current limitations and key challenges for their future development. Part I of the study, Agriculture in the broader economic, social and environmental context, outlines a set of contextual indicators which reveal the influence on agri-environmental relationships of macroeconomic forces, the viability of rural areas, biophysical processes, land use changes, and farm financial resources, including farm income and public and private expenditure on agri-environmental schemes. Part II, Farm management and the environment, examines different farming practices and systems and their impact on the environment, covering whole farm management, organic farming, as well as nutrient, pest, soil and irrigation management practices. Part III, Use of farm inputs and natural resources, tracks trends in farm input use, including nutrients, pesticides (including risks), and water use. Part IV, Environmental impacts of agriculture, monitors the extent of agriculture’s impact on the environment including: soil quality, water quality, land conservation, greenhouse gases, biodiversity, wildlife habitats and landscape. A Glossary, list of Websites, and Index are also provided at the end of the study. The study is the result of work carried out by the OECD Joint Working Party of the Committee for Agriculture and the Environment Policy Committee. These committees approved the study in August 2000, and agreed that it be published under the responsibility of the OECD Secretary-General. It is primarily aimed at policy makers and the wider public, in both OECD and non-OECD countries. Volume 1, Concepts and Frameworks, was released in 1997. Volume 2, Issues and Design was published in 1999 and provides the results of the OECD York Workshop (UK) which examined the design of suitable agri-environmental indicators. This study is accompanied by an Executive Summary published separately. Acknowledgements This study was prepared by the OECD Policies and Environment Division in the Food, Agriculture and Fisheries Directorate, with the participation of Member countries, especially through a questionnaire in 1999 which provided much of the data in the study. OECD wishes to acknowledge the many experts outside the Secretariat who have helped in preparing and editing draft chapters of the study, in particular, Richard Arnold, Ben Ten Brink, FrankClearfield, Robert Koroluk, Jonathan Lloyd, Eiko Lubbe, Katsuyuki Minami, Jamie Morrison, Andrew Moxey, Leslie Russell, Jesper Schou, Nicola Shadbolt, Dirk Wascher, Daniel Zürcher and also Richard Pearce for editing the complete text. The following Secretariat staff, under the overall guidance of Wilfrid Legg, contributed to drafting this study: Kevin Parris, Yukio Yokoi, Outi Honkatukia, Seiichi Yokoi, Gérard Bonnis, Morvarid Bagherzadeh, Jeanne Richards, Dan Biller and Myriam Linster, and many other OECD staff provided comments on the study. Technical assistance was provided by Françoise Bénicourt, Theresa Poincet, Laetitia Reille, and Véronique de Saint-Martin, with the production and marketing of the publication provided by Mubeccel Valtat-Gevher, Colette Goldstein and Catherine Candea and their colleagues. 3 © OECD 2001 ACRONYMS AND ABBREVIATIONS Acronyms BMP Best Management Practice CAP Common Agricultural Policy CBD Convention on Biological Diversity COP Conference of the Parties to the Convention CVM Contingent Valuation Method DDT Dichloro-diphenyl-trichloro-ethane DSR Driving force-state-response EUROSTAT Statistical Office of the European Communities FAO United Nations Food and Agriculture Organisation GDP Gross Domestic Product GHG Greenhouse Gas GIS Geographical Information System GMOs Genetically Modified Organisms GPS Global Positioning System IPCC Intergovernmental Panel on Climate Change IPM Integrated Pest Management ISO International Standardisation Organisation MRF Minimum Reference Flow NCI Natural Capital Index NOPAT Net Operating Profit After Tax NVZ Nitrate Vulnerable Zone OFSF Off-farm Sediment Flow PNC Potential Nitrate Concentration PSE Producer Support Estimate SBI Soil Biodiversity Indicator UN United Nations UNFCCC United Nations Framework Convention on Climate Change USLE Universal Soil Loss Equation WRC Water Retaining Capacity WTP Willingness-to-pay WUE Water Use Efficiency For an explanation of technical terms, see the Glossary at the end of the Report Abbreviations and symbols µg microgram N nitrogen CH methane N O nitrous oxide 4 2 CO carbon dioxide NH ammonia 2 3 g gram NO nitrate 3 ha hectare NO nitrogen oxides x Kg kilogram P phosphorus Km kilometre ppbv parts perbillion by volume l litre ppmv parts permillion by volume m3 cubic meter t metric tonne mg milligram US$ United States dollar mm millimetre yr/y year 4 © OECD 2001 TABLE OF CONTENTS ExecutiveSummary ............................................................................................................................................................. 17 Highlights ...................................................................................................................................................................... 17 Background: Objectives and Scope of the Report ....................................................................................................... 19 1. Introduction .............................................................................................................................................................. 19 2. Objectives of the report ......................................................................................................................................... 19 3. Structure of the report ............................................................................................................................................ 20 4. Developing the indicators ...................................................................................................................................... 22 Identifying policy relevant issues which indicators should address ................................................................ 23 Developing a common framework to structure the development of indicators ............................................. 23 Establishing indicator definitions and methods of measurement ................................................................... 23 Collecting data and calculating indicators ........................................................................................................... 25 Interpreting indicators ............................................................................................................................................ 26 5. Future challenges .................................................................................................................................................... 27 Annex: Complete List of OECD Agri-environmental Indicators............................................................................ 30 Notes .............................................................................................................................................................................. 32 Bibliography .................................................................................................................................................................. 33 List of Boxes 1. Selected International andRegional Environmental Agreements Relevant toOECD Agri-environmental Indicators ............................................................................................................ 20 2. Complete list ofOECD Agri-environmental Indicators .................................................................................... 21 3. Development of Agri-environmental Indicators in OECD Countries and Internationally ........................... 24 4. The Use of Agri-environmental Indicators in Recent OECD Studies and Activities .................................... 28 Part I Agriculture in the Broader Economic, Social and Environmental Context Chapter 1. Contextual Information and Indicators ........................................................................................................ 39 Highlights ...................................................................................................................................................................................... 39 1. Background ............................................................................................................................................................... 41 2. Agriculture and economic forces .......................................................................................................................... 41 Agricultural production and farm incomes ........................................................................................................... 41 Farm employment and education ......................................................................................................................... 43 Farm structures ........................................................................................................................................................ 45 Technology ............................................................................................................................................................... 46 Policies ...................................................................................................................................................................... 47 3. Agriculture and societal preferences .................................................................................................................... 49 4. Agriculture and environmental processes ........................................................................................................... 49 5. Land use changes .................................................................................................................................................... 51 Overview ................................................................................................................................................................... 51 Agricultural land use ............................................................................................................................................... 51 Notes .............................................................................................................................................................................. 54 Bibliography .................................................................................................................................................................. 60 5 © OECD 2001 Environmental Indicators for Agriculture: Methods and Results, Vol. 3 Chapter 2. Farm Financial Resources ............................................................................................................................... 63 Highlights ....................................................................................................................................................................... 63 1. Background ............................................................................................................................................................... 64 2. Indicators ................................................................................................................................................................... 65 Farm income ............................................................................................................................................................. 65 Related information ................................................................................................................................................. 67 Agri-environmental expenditure ............................................................................................................................ 68 Public and private agri-environmental expenditure...................................................................................... 68 Expenditure on agri-environmental research................................................................................................. 72 3. Future challenges ..................................................................................................................................................... 73 Notes ............................................................................................................................................................................... 75 Bibliography ................................................................................................................................................................... 78 List of Boxes Chapter 1 1. Public perceptions of agriculture and the environment in Canada ................................................................ 49 2. Rural viability ......................................................................................................................................................... 50 List of Tables Chapter 1 Annex Table 1. Key agricultural indicators ............................................................................................................ 55 Annex Table 2. National and agricultural land area: 1985-87 to 1995-97 ........................................................... 58 Annex Table 3. Agricultural land use: 1985-87 to 1995-97 .................................................................................... 59 Chapter 2 1. Value offarmland andbuildings: United States, 1989 to1996 ....................................................................... 68 Annex Table 1. Nominal net farm income from agricultural activities: 1984 to1998 ........................................ 76 Annex Table 2. Public expenditure onagri-environmental goods, services andconservation: 1985 to1998 .................................................................................................................................... 77 List of Figures Chapter 1 1. Share of agriculture in Gross Domestic Product: mid-1990s ............................................................................ 42 2. Value of final agricultural output in constant 1990 US dollars Purchasing Power Parities: 1985-87 to 1995-97 ................................................................................................................................................. 42 3. Share of agricultural employment in total civilian employment: late 1990s................................................... 43 4. Share of new farmers entering agriculture by age and gender categories: late 1990s ................................. 44 5. Educational level of farmers: mid/late 1990s...................................................................................................... 45 6. Change in number of farms: 1985-87 to 1995-97................................................................................................. 46 7. Percentage Producer Support Estimate: 1986-88 to 1997-99............................................................................ 48 8. Share of agricultural land use in the total national land area: 1995-97............................................................ 52 9. Change in the agricultural land area: 1985-87 to 1995-97.................................................................................. 52 10. Agricultural land area by different use categories: 1995-97.............................................................................. 53 Chapter 2 1. Nominal and real net farm income from agricultural activities: mid-1980s to mid-1990s............................. 66 2. Public expenditure on agri-environmental goods, services and conservation: 1993 to 1998....................... 69 3. Shares of the main items in total agri-environmental expenditure: late 1990s.............................................. 70 4. Payments to farmers for agri-environmental purposes: United Kingdom, 1993 to 1999............................... 72 5. Share of public agri-environmental research expenditure in total agricultural research expenditure: 1985 to mid/late 1990s.................................................................................................... 73 Part II Farm Management and the Environment Chapter 1. Farm Management ............................................................................................................................................ 83 6 Highlights ....................................................................................................................................................................... 83 © OECD 2001 Table of Contents 1. Background ............................................................................................................................................................... 84 Policy context ........................................................................................................................................................... 84 Environmental context ............................................................................................................................................ 85 2. Indicators .................................................................................................................................................................. 89 Whole farm management ....................................................................................................................................... 89 Environmental whole farm management plans............................................................................................. 89 Organic farming.................................................................................................................................................. 93 Nutrient management ............................................................................................................................................. 96 Nutrient management plans............................................................................................................................. 96 Soil tests.............................................................................................................................................................. 97 Pest management .................................................................................................................................................... 99 Use of non-chemical pest control methods.................................................................................................... 99 Use of integrated pest management............................................................................................................... 101 Soil and land management .................................................................................................................................... 102 Soil cover............................................................................................................................................................. 102 Land management practices............................................................................................................................ 104 Irrigation and water management ........................................................................................................................ 107 3. Future challenges .................................................................................................................................................... 109 Notes .............................................................................................................................................................................. 111 Bibliography .................................................................................................................................................................. 112 List of Boxes Chapter 1 1. Whole Farm Management and Organic Farming under the Austrian Agri-environmental Programme .......................................................................................................................... 90 List of Tables Chapter 1 1. Environmental impacts offarm management practices .................................................................................. 86 2. Environmental farm management standards: late 1990s ............................................................................... 93 3. Share ofannual crop area tested fornutrient content: France andUnited States ...................................... 98 4. Share offarms conducting soil tests: Canada, 1995 ......................................................................................... 98 5. Nutrient management practices onplanted maize area: United States, 1990 to1995 ............................... 99 6. Pest control methods used byfarmers excluding theuse ofchemical pesticides: Canada, 1995 ............ 100 7. Land andsoil management practices: Canada, 1991 and1996 ..................................................................... 105 8. Environmental land management practices: United States, 1985-89 to1990-94 ........................................ 106 9. Share oftotal sown crop area using different land management practices: Australia, 1995 to1996 ......... 106 10. Environmental agricultural land management practices: France, 1989, 1994 and1998 ............................. 106 List of Figures Chapter 1 1. Linkages between OECD agri-environmental indicator areas related to farm management...................... 85 2. Share of farms with environmental whole farm plans: 1993 and 1997............................................................ 91 3. Share of the total agricultural area under organic farming: early 1990s and mid/late 1990s........................ 94 4. Share of the total number of farms with nutrient management plans: mid/late 1990s................................. 97 5. Share of the total arable and permanent crop land area under integrated pest management: mid/late 1980s and late 1990s.............................................................................................................................. 101 6. Number of days in a year that agricultural soils are covered with vegetation: mid/late 1980s and mid/late 1990s. 103 7. Agricultural soil cover index: Switzerland, 1991 to 1996................................................................................... 104 8. Share of total irrigated crop area using different irrigation systems: mid/late 1990s................................... 107 9. Volume of irrigation water used and storage capacity: United Kingdom, 1982 to 1995............................... 108 10. Matrix of sustainable farm management practices and the implementation index..................................... 109 7 © OECD 2001 Environmental Indicators for Agriculture: Methods and Results, Vol. 3 Part III Use of Farm Inputs and Natural Resources Chapter 1. Nutrient Use ....................................................................................................................................................... 117 Highlights ....................................................................................................................................................................... 117 1. Background ............................................................................................................................................................... 118 Policy context ............................................................................................................................................................ 118 Environmental context ........................................................................................................................................... 118 2. Indicators ................................................................................................................................................................... 120 Nitrogen balance ...................................................................................................................................................... 120 Nitrogen efficiency ................................................................................................................................................... 127 3. Related information ................................................................................................................................................. 128 Water pollution from nutrients ............................................................................................................................... 128 Air pollution from nutrient emissions .................................................................................................................... 128 Comparison of the OECD and OSPARCOM nitrogen balance calculations ....................................................... 129 4. Future challenges ..................................................................................................................................................... 129 Notes ............................................................................................................................................................................... 132 Bibliography ................................................................................................................................................................... 136 Chapter 2. Pesticide Use and Risks .................................................................................................................................. 141 Highlights ....................................................................................................................................................................... 141 1. Background ............................................................................................................................................................... 142 Policy context ............................................................................................................................................................ 142 Environmental context ............................................................................................................................................ 143 2. Indicators ................................................................................................................................................................... 144 Pesticide use indicator ............................................................................................................................................ 144 Pesticide risk indicators .......................................................................................................................................... 149 National examples of pesticide risk indicators .................................................................................................... 154 3. Related information ................................................................................................................................................. 161 4. Future challenges ..................................................................................................................................................... 162 Notes ............................................................................................................................................................................... 164 Bibliography ................................................................................................................................................................... 168 Chapter 3. Water Use ........................................................................................................................................................... 171 Highlights ....................................................................................................................................................................... 171 1. Background ............................................................................................................................................................... 172 Policy context ............................................................................................................................................................ 172 Environmental context ............................................................................................................................................ 172 2. Indicators ................................................................................................................................................................... 174 Water use intensity .................................................................................................................................................. 174 Water use efficiency ................................................................................................................................................. 180 Water stress ............................................................................................................................................................... 182 3. Related information ................................................................................................................................................. 184 Water pricing ............................................................................................................................................................. 184 4. Future challenges ..................................................................................................................................................... 186 Notes ............................................................................................................................................................................... 187 Bibliography ................................................................................................................................................................... 192 List of Boxes Chapter 1 1. Comparison of the OECD and OSPARCOM nitrogen balance calculations .................................................... 130 Chapter 3 1. Water use efficiency in irrigated agriculture in Australia .................................................................................. 182 8 2. Incorporating environmental needs into Defined Minimum Reference Flows for Rivers in Australia ............... 183 © OECD 2001

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