The objectives of this study were to: (a) estimate milk and beef yields obtained from cows grazing pastures in different stages of degradation; (b) estimate income losses as a result of the degradation process; (c) estimate the proportion of pasture areas found in each stage of degradation within the six administrative regions of Honduras; and (d) identify different strategies and costs to recuperate degraded pastures. Data came from two surveys executed during a workshop carried out in March 2004. The subjective perceptions of 25 livestock producers and 8 extension agents of the 6 administrative regions of Honduras were obtained to estimate the losses of animal productivity within the farm, region, and country. A 4-level scoring of pasture degradation was defined -- where 1 was for the best condition (i.e., non-apparent degradation) and 4 was for the worst (i.e., severe degradation). Regressions, explaining the animal productivity losses at each level of pasture degradation, were generated according to the subjective and descriptive information. Comparing the perception of degraded areas, producers considered that in Honduras the extent of pasture degradation is lower compared with extension agents. According to producers, 29% of the pasture area in the country is at Level 1 (i.e., no degradation) compared with only 19% of extension agents. Moreover, producers perceived a lower proportion of pastures in severe degradation (i.e., Level 4, 27%) in comparison with almost 31% perceived by extension agents. In the intermediate degradation levels (i.e., Levels 2 and 3), both groups were similar. The country is forgoing milk and beef production due to the process of pasture degradation. According to estimations from producers, Honduras is loosing 284,106 tonnes of fluid milk and 48,271 tonnes of beef (live weight) annually for having pasture areas in Level 4 (i.e., severe degradation), equivalent to 48% of the annual production of milk and to 37% of beef. In economic terms, these losses in milk and beef yields are worth US$63 and US$48 million annually, respectively. The perception of extension agents is even more alarming. Honduras could produce 66% more milk and 50% more beef annually if livestock producers renovated their pastures before they reached level 4, equivalent to US$94 million in less revenues from milk sales and US$66 million from less beef sales. Both groups perceive that pastures, in an early stage of degradation (i.e., Level 2), are more economical, practical and rapid to recuperate. Also, as the process of degradation advances (i.e., to Levels 3 and 4), both cost and time of recuperating such pastures increase significantly. According to producers, the recuperation of a pasture from Level 4 to Level 1 costs $140/ha and takes almost a half year (i.e., 5.6 months). Extension agents estimate this cost of recuperation 27% higher ($178/ha) with 5% more time (i.e., 5.9 months). Producers perceive that grasses spend proportionately less time in going from Level 1 to 2 (i.e., 2.9 years) and as the process of degradation continues, pastures remain longer at advanced degraded levels (i.e., 3.1 years in going from level 2 to 3, and around 4.0 years in going from level 3 to 4). Moreover, producers think that the average productive life of improved grasses is about 10 years, while extension agents think that grasses degrade faster, with an average productive life of 8.4 years, 16% less than producers. According to producers and extension agents, pastures degrade at an annual rate of 10% and 12%, respectively. With these rates, Honduras would maintain its current level of degradation between levels 2.48 and 2.65. However, the renovation of pastures at an annual rate of 10-12% does not solve the problem, but maintains it. Producers argued that the current financial situation does not allow the necessary cash flow to renovate their plots, and the option of credit is not viable since real interest rates are high (ie., 10%). After simulating this scenario, it was demonstrated that farmers are able to generate the additional income necessary to pay a credit, but only if this credit is taken with interest rates similar to those found in the international market (ie., 3%). In order to eliminate the degraded areas found in Level 4 at the country level, it is necessary a one-time investment of $57 million according to producers and $84 million according to extension agents. The benefit obtained from this investment would result in a daily increase of 156,000 liters of milk and 26,500 kilograms of beef, equivalent to $22 millions/yr. Therefore, there are significant economic and productive incentives for the private and public sectors to develop and execute a plan of action to recuperate pasturelands in advanced stages of degradation.

It has been shown in previous studies that transaction costs (TC) of agri-environmental policy measures often are very large both in absolute terms and as a share of payments. As agri-environmental policy measures make up an increasingly large share of agricultural policies, not least within the European Union, it is becoming ever more important to improve the knowledge about the factors determining the level of transaction costs. This paper investigates the TC determinants of one Swedish agri-environmental policy measure. More specifically, it aims to investigate if the level of TC is attributable to economic factors, such as pasture density and distances, or if political factors, such as lobby groups and political majorities at the county level, influence the costs. To evaluate if the results are robust with respect to alterations in model specifications, a version of the extreme bounds analysis is applied. Although initial results indicate that political parties influence the level of transaction costs, the extreme bounds analysis reveals that those results are fragile. It shows that five of the economic variables are robust with respect to model specifications, but none of the political variables is.

The early adoption of the legume Arachis pintoi was studied in the State of Caquetá, located in Colombia’s Amazon region. Data came from 174 farmers randomly surveyed within the area of influence of Nestlé, a multinational milk-processing company. In addition, 52 farmers who had already adopted Arachis were surveyed separately to study their experiences, difficulties, and prospects with the legume. Results indicated that livestock activity is undergoing dynamic intensification. Since 1986, milk production per lactation has increased by 31%, cow fertility by 5%, herd size by 18%, and the area sown to improved pastures by 165%. Current adoption rate of Arachis is about 9.2%, with an estimated 3000 ha already planted. Two-thirds of farmers who had adopted Arachis said they would double, in the next year, the average area sown (9.6 ha/farm). Adopters tended to have larger farms and to have invested twice the capital than did non-adopters. The cost of seed for both grass and legume accounted for 40-52% of total establishment costs, making seed quality decisive in guaranteeing success. To promote Arachis, more information on the plant and its management in association with grasses must be disseminated. Mechanisms should also be sought to reduce establishment costs.

Same public goods can only be produced jointly with private goods. This paper focuses on the biological diversity that could be produced on semi-natural pastures through the assistance of grazing animals. The question that is being investigated is what shapes the total and marginal cost functions for biological diversity production on semi-natural pastures have if private goods are already being produced using livestock at farms near the pastures. The empirical analysis shows that a quadratic function describes the costs well and that the production is characterized by increasing marginal costs.

Results of the study showed the following: 1) There exists an extremely broad range of agricultural and agroforestry land-use alternatives to the current slash-and-burn systems but much work needs to be done. 2) There is a major need for scientific quantification of the many attributes of the most promising systems. 3) There is a need for national policy to discourage use of environmentally destructive systems and to encourage longer-term investment by finding solution to land tenure uncertainty. Innovative marketing approaches that open large market segments for agroforestry fruit products (such as the soft drink market) have been extremely successful but not well documented in many parts of Asia. 4) There is a need to "harness" and distribute the best farmers knowledge about integrated systems, but have little successful experience with this. 5) Finally, scientist must realize that the scientific knowledge base covering the range of options is frightfully narrow, and the scope for learning is enormous. The success stories of imaginative application of the many options give hope, but at the same time stretch our abilities, to understand and to properly apply the numerous technologies waiting for more widespread use