The paper focuses on the analysis of agricultural externalities and their valuation methods. Agricultural activity beyond supplying food and fibre, can also be instrumental in forming the landscape, providing natural resources, and preserving biodiversity. Furthermore, agriculture contributes to the achievement of societal goals such as the viability of rural areas and their development, food security, and preservation of cultural heritage. Positive externalities of agriculture assert in the form of public goods, whereas intensive environmentally unbalanced agricultural activity causes damage to the environment. The objectives of this paper are to define agricultural externalities and to analyse methods of their valuation. In order to achieve the research aim, characteristics of agricultural externalities in farming systems have been analysed; evaluation methods of the benefit and cost of externalities in farming systems, revealing their advantages and disadvantages have been examined, and scientific studies on evaluation of externalities have been reviewed. Methods of systemic and logic analysis were applied for analysis of agricultural externalities and their evaluation. The analysis has showed that stated preference methods are commonly used for determination of the positive externalities. The most limited methods are travel cost and hedonic pricing methods, which are suitable only for the evaluation of public goods related to recreation or leisure. For evaluation of negative externalities the external costs of agricultural activity are estimated.

The Baltic Sea problems in context of erosion always have been very topical and since ancient times have been caused by uncontrollable and unpredictable natural factors (storms). These factors combine with the impact of human economic activities of the direct effect of factors -building offshore and aquatorium, deficit of sediment and marine dredging and growth of recreational tourism growth that promote load of coastal vegetation and dune relief. The identification of costs and benefits is significant step for evaluation of the impact of the Project and usefulness of the costs. The positive impact or benefits can occur at once, after a while or long term perspective. The economic evaluation techniques particularly cost-benefit and cost-effectiveness analysis for coastal protection in this case used for ascertain the most effective alternative. The sensitivity analysis was made for verifying impact of alternatives on taken solution. The aim of research is to verify the economic methods for application to coastal management in Latvia. The world’s coastal scientists believe that the future of coastal policy will become increasingly polarized and discussed; therefore, gradual implementation of the assessment process and development of socio-economic indicators is recommended.

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.

Since the middle of the last century rapid intensification of agricultural production systems has resulted in dramatic increase in fertilizer consumption as fertilizer has been considered as one of the most important factors for increased yields. However, not all the nutrient ions in a fertilizer applied to soil are taken up by crops, thus certain amount of the applied fertilizer is lost from agricultural fields leading to increases in nitrogen surplus, nitrogen losses to the environment and harmful impacts on biodiversity, air and water quality. This study aims to focus on crop fertilisation planning which is based on the knowledge of physical and chemical properties of soil and involves performing soil tests, designing a fertilisation plan and its practical implementation as well as calculating the balance of N, and to evaluate crop fertilisation planning as a tool for achieving balanced economic and environmental benefits in crop farming, which play an important role in efficient farming. In this study, the authors have analysed current situation in Latvia regarding requirements for fertilization planning in crop farms and have assessed potential costs and benefits from fertilisation planning. The research finds out that total cost of introducing of fertilisation planning ranges from 34 to 22 EUR haE-1, however, fertilisation planning is a neutral measure where costs are compensated by savings from N inputs which ranges from 10 to 40 kg N haE-1.Fertilisation planning generates environmental benefits, i.e. – reduces direct N2 O emissions from agricultural soils by 47 – 187 kg CO2eq haE-1 through reduced N fertilizer inputs.

The economics of the tree plantation crops is summarized in this paper. Aleurites spp. cultivation gives good economic returns. However, the end product of this crop is an oil which is particularly used in industries. Therefore, it is highly dependent on external market forces. At present, most requirement of this oil is met from imports. This also necessitates that the cost of production should be minimal to warrant a competitive price. Poor infrastructure and hilly terrains put these traditional farmers at a disadvantage vis-a-vis their counterparts elsewhere. Still, Aleurites spp. had a good economic potential and support from the government can provide the required impetus to the cultivation of this crop. It can provide an alternative livelihood to shifting cultivators not only in Mizoram but in other states as well where agroclimatic conditions favor the growth of this tree. On Livistonia jenkinsiana, at present, the produce has a small market which can possibly expand in terms of its demand. However, large market expansion is impossible as the leaves must compete with modern house building materials. Thus, it can provide an alternative to shifting cultivation only to a limited extent. Intervention in terms of value addition and market expansion is desirable. Thysanolaena maxima, on the other hand, has a high benefit cost ratio and very good market, processing and value addition facilities have also come up in nearby lowland trading centers. As a result, T. maxima cultivation is expanding rapidly. Even without any external intervention, the farmers are getting good returns. In villages where the farmers have taken up the cultivation of this crop, within 10-15 years it has almost completely occupied all the lands previously used for shifting cultivation. T.maxima had low starting cost and quick returns (on the second year). The other two species have high cost on the first three years. In particular, Aleurites can give the highest income over six years

Dimensions of the nature, scope, and complexity of collective action in Kenya have evolved over many years. In studying collective action, the aim is to understand why and how people participate in networks of trust. The purpose of this study was to investigate the different objectives that farmers pursue through collective action with the aim of understanding the patterns of people’s participation in collective action, identify factors that influence people to join groups, and identify the costs and benefits of participating in activities of groups. The study was carried out in four sites spread across the highlands of central Kenya. Data was collected from a total of 442 households, focusing on whether members of those households belonged to groups and if so, what type of groups these were and their activities. In addition we looked at how these groups functioned and identified some of the contributions members make to these groups and the benefits from the same. The analysis shows that collective action is used to accomplish a range of activities for different socioeconomic categories and that the majority of households in central Kenya engage in some form of group activity.... The study suggests that where institutions and policies that promote individual or private sector growth are weak, collective action can help to overcome these weaknesses and connect individuals in these institutions and policies.