What possibilities for successful Land Management

1
What possibilities for successful Land Management?
European Council of Young Farmers
(CEJA)Brno/Czech Republic, 5 April 2008

• Dr Eduard Hofer, Vice-Director,
• Swiss Federal Office for Agriculture, Switzerland

Referenz/Aktenzeichen 2008-03-28/43
2
Overview

• The Swiss example
• Other conditions other solutions
• Future conditions future solutions

3
The Swiss exampleAgriculture in the Swiss economy
1.6 million ha 64 000 farms (60
full-time) Labour force 93 000 fte (3) Value
added less than 1 of GDP

• Degree of self-sufficiency (joules)
• Vegetable products 41
• Animal products 94
• Total 59
• Cheese 122

4
The Swiss exampleDifficult conditions for
agriculture

• High non-specific costs (wages etc.) reflecting a
  very competitive export-oriented economy
• Agricultural products raw materials gt
  differenciation is difficult (commodities)
• Competition from transition economies and
  developing countries
• Support policies in place in all industrialised
  countries
• Topographical disadvantages
• Geographically speaking, Switzerland is a
  small-structured country

5
The Swiss exampleFederal Constitution Art. 104

• 1 The Confederation shall ensure that
  agriculture contributes substantially by way of a
  sustainable and market-oriented production
• a. to the secure provision of food for the
  population
• b. to the conservation of natural resources and
  the upkeep of rural landscapes
• to a decentralized settlement of the country.

6
The Swiss exampleFederal Constitution Art. 104
3 It shall conceive the measures in such a way
that agriculture may fulfill its multiple
functions. Its powers and tasks shall
particularly be the following a. It shall
complement agricultural revenues by direct
payments, to secure a fair and adequate
remuneration for the services rendered, provided
that compliance with ecological requirements is
proven b.
7
The Swiss exampleGeneral direct payments

• Payments per hectare for total utilised
  agricultural area
• Payments for roughage consuming animals
• Additional payments in hills and mountains for
  sloping terrain and animals

8
The Swiss exampleEcological requirements

• animal welfare standards
• balanced use of fertilisers
• appropriate share of ecological compensation
  areas (7)
• crop-rotation
• soil protection
• selected and targeted application of plant
  protection products

9
The Swiss exampleExample Crop rotation
Farms with more than 3 ha of arable land gtAt
least four crops maximum share Cereals
(excl. corn and oats) 66 Wheat 50 Corn 4
0 Corn with under sown crops 50 Beets 25 Po
tatoes 25 Oilseeds, sunflowers 25 Peas 1
5
10
The Swiss exampleEcological direct payments

• Ecological compensations
• Extensive and less intensive meadows hedges
  copses flowering fallow fields tall fruit
  trees, etc.
• Payments for extensive production of cereals
  and rape-seed
• Organic farming
• Payments for animal welfare com- mitments
  (animal-friendly stables, daily access to open
  air)

11
The Swiss exampleQuality and transparency
measures

• Protected designations of origin and geographical
  indications
• Ban on battery hen cages, hormones feeding,
  antibiotics for production, GMO cultivation
• Declaration of country of origin
• Declaration of origin for production methods
  banned in Switzerland

12
The Swiss exampleResults
13
The Swiss examplePrice gap
Producer prices in the EU in comparison to
Switzerland 2002/04
14
The Swiss exampleScenarios
AP
WTO
FTAAEU
15
Source BFS, EZV, SNB
16

• In the future
• Decoupling from historical data
• Orientation towards performance
• modulation
• in general

17
Other conditions other solutionsDevelopment of
producer prices and EU direct support for wheat
in Germany
EUR/100 kg
30
Direct support
Producer price
25
20
15
10
5
0
1990/91
1992/93
1994/95
1996/97
1998/99
2000/01
2002/03
2004/05
2006/07
Note Average producer prices, excl. VAT, direct
support in the form of area payments, decoupled
as of 2005/06 2007/08 estimate.
Source A. Heissenhuber, Zur Zukunft der
Direktzahlungen, Weihenstephan 2009
18
Future conditions future solutionsVolume Food
/ Energy
Mio. t mineral oil-equivalents
12
10
Mineral oil
8
Coal
6
4
Natural gas
2
Timber
Hydropower
Nuclear power
Rest
Primary energy use
Source BMV, 2007 and own calculations
19
(No Transcript)
20
Future conditions future solutions Family
Farming
Source R. Helbling, Family Farming without State
Intervention, ... 1996
21
(No Transcript)
22
ConditionsAvoiding water pollutionAir
pollution as low as possiblePreservation of
natural habitats (buffer strips etc.)
23
Future conditions future solutionsRelationship
between payments, restrictions and regulations