Does investment in palm oil trade alleviate smallholders from poverty in Africa? Investigating profitability from a biodiversity hotspot, Cameroon.

In this study we investigate whether the increasing investment in smallholder oil palm plantations that contributes to deforestation is motivated by financial gains or other factors. We evaluate the financial viability of smallholder farmers selling fresh fruit bunches (FFBs) to intermediaries or agro-industrial companies with mills, or processing the FFBs in artisanal mills to produce palm oil. We use data collected in four oil palm production basins in Cameroon and carried out a life cycle assessment of oil palm cultivation and CPO production to understand financial gains. We use payback period (PBP), internal rate of return (IRR), benefit cost ratio (BCR) and net present value (NPV) for 1 ha of oil palm plantation over 28 years at a base discount rate of 8% to asses viability. Our results show that smallholders make more money processing their FFBs in artisanal mills to produce CPO than selling FFBs to intermediaries or agro-industrial companies with mills. The sensitivity analysis show that land ownership is the single most important parameter in the profitability of investment in palm oil cultivation and trade. In addition to land cost, smallholders suffer from borrowing at high interest rates, high field management costs, while recording low on-farm FFB/processing yields. To improve the financial viability of smallholders investing in oil palm cultivation, measures are needed to encourage them to access land, get loans at reduced interest rates, reduce the cost of field management, adopt good agricultural practices to improve on-farm FFB/processing yields, as well as to generate additional revenue from the sale of other products.

Epidemics and the future of coffee production.

In this perspective, we draw on recent scientific research on the coffee leaf rust (CLR) epidemic that severely impacted several countries across Latin America and the Caribbean over the last decade, to explore how the socioeconomic impacts from COVID-19 could lead to the reemergence of another rust epidemic. We describe how past CLR outbreaks have been linked to reduced crop care and investment in coffee farms, as evidenced in the years following the 2008 global financial crisis. We discuss relationships between CLR incidence, farmer-scale agricultural practices, and economic signals transferred through global and local effects. We contextualize how current COVID-19 impacts on labor, unemployment, stay-at-home orders, and international border policies could affect farmer investments in coffee plants and in turn create conditions favorable for future shocks. We conclude by arguing that COVID-19's socioeconomic disruptions are likely to drive the coffee industry into another severe production crisis. While this argument illustrates the vulnerabilities that come from a globalized coffee system, it also highlights the necessity of ensuring the well-being of all. By increasing investments in coffee institutions and paying smallholders more, we can create a fairer and healthier system that is more resilient to future social-ecological shocks.

Management practices that influence the welfare of calves on small family farms.

In this Research Reflection we review management practices in small family farms with less than 100 cows. Small farms represent the majority of farms in the EU and the world, and they are of great importance for the economy of a country. On cattle farms, the welfare of calves is of primary importance for the profitability of the herd, and poor management is one of the main factors influencing calf health and survival. Data on the risk factors for calf welfare issues in small-scale farms are limited. For this purpose, the literature data from six world countries were presented and compared, including Serbia and Slovenia where a survey related to the issue was carried out within the COST Action FA1308, DairyCare. Some practices within the following areas in calf management were considered: calving management, care for new-born calves, use of painful procedures, colostrum management, cow-calf separation, calf feeding, weaning, calf housing, and general monitoring. In each of the countries, the health and welfare of calves are threatened by some omissions in rearing practices and the major are related to the new-born calf management, the feeding and watering management, and the application of hygienic measures. Many farmers are well aware of the importance of proper calf rearing; others would need more incentive to improve calf management. Each country should pay attention to the education of farmers about the most common deficiencies in calf management.

Diet type influences the gut microbiome and nutrient assimilation of Genetically Improved Farmed Tilapia (Oreochromis niloticus).

Nile tilapia, Oreochromis niloticus is the third most commonly farmed finfish species in the world, accounting for nearly 5% of global aquaculture production. In the past few decades much of the success of this species has been attributed to the development and distribution of Genetically Improved Farmed Tilapia (GIFT). Despite the increasing availability of GIFT, the productivity of small-scale farming remains highly variable, particularly in developing nations. Commercial fish-feed pellets can increase fish farm productivity; however, many small-scale farmers rely on other means of feeding fish due to the high cost and limited availability of commercial fish feed pellets. Therefore, understanding how locally-sourced feeds affect the production of GIFT is an important step towards improving feeding practices, particularly for farmers with low financial capital. This study used stable isotope analysis (SIA) and 16S rRNA gene sequencing to compare the effects of a locally-sourced vegetable-based diet and commercial pellet-based diets on the relative condition, nutrient assimilation patterns and gastrointestinal microbiota of GIFT. GIFT fed a locally-sourced diet were smaller, and in a significantly poorer condition than those fed with commercial fish feeds. SIA showed no differences in dietary carbon between the two diets; however, δ13C, poor fish condition and the abundance of specific bacterial taxa (of such as Fusobacteria) were correlated. SIA revealed that GIFT fed locally-sourced diets that predominantly consisted of vegetables were significantly enriched in δ15N despite a perceived lack of dietary protein. This enrichment suggests that GIFT fed a locally-sourced diet may be supplementing their diet via cannibalism, a behaviour representative of poor farming practice. Overall this study highlights the need to increase the availability of suitable GIFT feeds in developing nations. The development a low-cost feed alternative could improve the success of small-scale GIFT farmers in PNG, increasing both food and income security within the region.

Economic opportunities of using crossbreeding and sexing in Holstein dairy herds.

With the increasing availability of sexed semen, farms have the opportunity to select genetically superior dams to produce their replacement animals and to produce crossbred calves for beef production of higher economic value than the remainder of the herd. However, higher costs and reduced fertility of sexed semen complicate the decision of when and to what extent sexed semen should be applied in a herd. The objective of this study was to explore the economically optimal utilization of sexed semen and crossbreeding among North Rhine-Westphalian dairy farms in a holistic single-farm model. For the analysis, we derived a representative sample of farms from Latin Hypercube sampling based on the observed distribution of farm characteristics from official North Rhine-Westphalian Farm Structure Survey data. Market- and technology-related input parameters such as output prices and sexed semen accuracy and fertility were included in the sampling procedure. Modeling results of the systematic sensitivity analysis were evaluated in a statistical meta-model. We found that the profit-maximizing utilization of sexed semen and crossbreeding was highly heterogeneous among the farms. Farms with lower stocking densities, <2 livestock units (LU)/ha, were generally found to produce excess heifers for sale, whereas farms with stocking densities >2 LU/ha were producing crossbred calves and using sexed semen only to produce replacement animals. On average, female-sexed dairy semen was used on 25.3% of all inseminations. Beef semen (both sexed and conventional) for producing crossbred calves was used in an average of 21.5% of the inseminations. The combination of sexed semen and crossbreeding increased profits from €0 to €568 per cow per year, with an average of €79.42 per cow per year. Farms characterized by low stocking densities (<2 LU/ha) and above-average replacement rates (>40%) were found to have higher profit increases as a result of selling more heifers from the use of sexed semen. Overall, sexed semen and crossbreeding adoption were most sensitive to stocking density and average cow longevity, as well as to additional costs for sexed semen and sexed semen accuracy. Our results show the potential of modern breeding technologies to improve dairy farm profits and the need to judge their profitability in the light of farm-specific production settings.

Economic and environmental effects of double cropping winter annuals and corn using the Integrated Farm System Model.

Dairy farms have been under pressure to reduce negative environmental impacts while remaining profitable during times with volatile milk and commodity prices. Double cropping has been promoted to reduce negative environmental impacts and increase total dry matter yield per hectare. Three dairy farms that double cropped winter annuals and corn were selected from northern and western Pennsylvania. Data were collected from recorded crop and dairy records and financial data for 2016 and 2017. Farms ranged in size from 336 to 511 ha with 233 to 663 cows. Data were used to set parameters for the Integrated Farm System Model, which was then used to simulate 8 scenarios for each farm: current operation; 0, 50, and 100% of corn hectares double cropped; 30% feed price increase with and without double cropping; and 30% feed price decrease with and without double cropping at the farm's current level of double cropping. A 20-yr time period, using weather data that was representative of the actual farms, was used in the Integrated Farm System Model simulation to produce both financial and environmental outputs. Double cropping winter annuals and corn silage increased dry matter yield per hectare by 19%, when comparing 0 to 100% of the corn area double cropped. With all corn land double cropped, net return to management per hundredweight (45.36 kg) of milk increased by 1.8%, N leached per hectare per year decreased by an average of 4.5%, and phosphorus loss was reduced by an average of 9.2% across farms. When feed prices increased by 30%, double cropping increased net return over feed cost and net return to management by 1.6 and 2.2%, respectively, across farms. When feed prices decreased by 30%, double cropping decreased net return over feed cost and net return to management by smaller amounts of 0.13% and 0.11%, respectively, across farms. Modeling indicated that double cropping winter annuals with corn silage can have both environmental and economic benefits when winter-annual silage yields are enough to cover expenses.

Economic evaluation of 4 bovine leukemia virus control strategies for Alberta dairy farms.

Bovine leukemia virus (BLV) is a production-limiting disease common in North American dairy herds. To make evidence-based recommendations to Canadian dairy producers and their consultants regarding cost and financial benefits of BLV on-farm control, an economic model that takes the supply-managed milk quota system into account is necessary. Alberta-specific input variables were used for the presented analysis. A decision tree model program was used to evaluate economic aspects of decreasing a 40% BLV within-herd prevalence on dairy farms by implementing various control strategies over 10 yr. Investigated strategies were (1) all management strategies, including 3 options for colostrum management; (2) some management strategies; (3) test and cull; and (4) test and segregate. Each of these strategies was compared with a no control on-farm approach. The prevalence for this no-control approach was assumed to stay constant over time. Each control strategy incurred specific yearly cost and yielded yearly decreases in prevalence, thereby affecting yearly partial net revenue. Infection with BLV was assumed to decrease milk production, decrease cow longevity, and increase condemnation of carcasses at slaughter from cattle with enzootic bovine leukosis, thereby decreasing net revenue. Cows infected with BLV generated a yearly mean partial net revenue of Can$7,641, whereas noninfected cows generated Can$8,276. Mean cost for the control strategies ranged from Can$193 to Can$847 per animal over 10 yr in a 146-animal herd. Net benefits of controlling BLV on farm, as compared with not controlling BLV, per cow in a 146-animal herd over a 10-yr period for each strategy was: Can$1,315 for all management strategies (freezer); Can$1,243 for all management strategies (pasteurizer); Can$785 for all management strategies (powdered colostrum); Can$1,028 for some management strategies; Can$1,592 for test and cull; and Can$1,594 for test and segregate. Consequently, on-farm BLV control was financially beneficial. Even though negative net benefits were possible and expected for some iterations, our sensitivity analysis highlighted the overall robustness of our model. In summary, this model provided evidence that Canadian dairy farmers should be encouraged to control BLV on their farm.

Response to a selection index including environmental costs and risk preferences of producers.

Genetic improvement of animals plays an important role in improving the economic and environmental sustainability of livestock production systems. This paper proposes a method to incorporate mitigation of environmental impacts and risk preferences of producers into a breeding objective via economic values (EVs). The paper assesses the effects of using these alternative EVs of breeding goal traits on discounted economic response to selection and on environmental impacts at commercial farm level. The application focuses on a Brazilian pig production system. Separate dam- and sire-line breeding programs that supply parents in a 3-tier production system for producing crossbreds (fattening pigs) at commercial level were assumed. Using EVs that are derived from utility functions by incorporating risk aversion increases the cumulative discounted economic response to selection in sire-line selection (6%) while reducing response in dam-line selection (12%) compared with the use of traditional EVs. The use of EVs that include environmental costs increases the cumulative discounted social response to selection in both dam-line (5%) and sire-line (10%) selections. Emission of greenhouse gases, and excretion of nitrogen and phosphorus can be reduced more with genetic improvements of production traits than reproduction traits for the typical Brazilian farrow-to-finish pig farm. Reductions in environmental impacts do not, however, depend on the use of the different EVs (i.e., with and without taking into account environmental costs and risk). Both environmental costs and risk preferences of producers need to be considered in sire-line selection, and only environmental costs in dam-line selection to improve, at the same time, the economic and environmental sustainability of the Brazilian pig production system.

Defining health standards through economic optimisation: The example of colostrum management in beef and dairy production.

There is extensive literature addressing acceptable practices of colostrum distribution to new-born calves; however, no economic analyses are available concerning the profitability of this practice. Moreover, the health standards associated with colostrum management have been defined through the observation of reference farms without explicit reference to economic assessments. The objective of the current study was to evaluate the profitability of farm colostrum management and to define the optimal economic situations for given livestock systems and farm situations. The herd-level net value was calculated using the value of calf products, the cost of passive transfer failure and the cost of prevention. This value was determined for various beef and dairy scenarios and the various time periods spent managing colostrum. The maximal net values defined the optimal economic situations and enabled the determination of the optimal times for colostrum management and respective health standards (i.e., the prevalence of disorders at optimum). The results showed that the optimal time farmers should spend on colostrum management is approximately 15 min per calf. Furthermore, farmers should err on the side of spending too much time (> 15 min) on colostrum management rather than not enough, unless the cost of labour is high. This is all the more true that potential long term consequences of passive transfer failure on milk yields were not accounted for here due to scarcity of data, leading to consider this time threshold (15 min) as a minimal recommendation. This potential underestimation may arise from the greater nutrient content and bioactive compounds identified in colostrum although the passive immune transfer is here defined through immunoglobulins only. The present results show that for small farms that cannot hire colostrum managers, this work can be performed by the farmer after subcontracting other tasks. Moreover, the method proposed here-the definition of health standards through economic optimisation-is a promising approach to analysing health conventions in the cattle industry.

Coupling of pollination services and coffee suitability under climate change.

Climate change will cause geographic range shifts for pollinators and major crops, with global implications for food security and rural livelihoods. However, little is known about the potential for coupled impacts of climate change on pollinators and crops. Coffee production exemplifies this issue, because large losses in areas suitable for coffee production have been projected due to climate change and because coffee production is dependent on bee pollination. We modeled the potential distributions of coffee and coffee pollinators under current and future climates in Latin America to understand whether future coffee-suitable areas will also be suitable for pollinators. Our results suggest that coffee-suitable areas will be reduced 73-88% by 2050 across warming scenarios, a decline 46-76% greater than estimated by global assessments. Mean bee richness will decline 8-18% within future coffee-suitable areas, but all are predicted to contain at least 5 bee species, and 46-59% of future coffee-suitable areas will contain 10 or more species. In our models, coffee suitability and bee richness each increase (i.e., positive coupling) in 10-22% of future coffee-suitable areas. Diminished coffee suitability and bee richness (i.e., negative coupling), however, occur in 34-51% of other areas. Finally, in 31-33% of the future coffee distribution areas, bee richness decreases and coffee suitability increases. Assessing coupled effects of climate change on crop suitability and pollination can help target appropriate management practices, including forest conservation, shade adjustment, crop rotation, or status quo, in different regions.

Economic effect of reducing nitrogen and phosphorus mass balance on Wisconsin and Québec dairy farms.

Our objective was to explore the trade-offs between economic performance (farm net income, FNI) and environmental outcomes (whole-farm P and N balances) of dairy farms in Wisconsin (WI; United States) and Québec (QC; Canada). An Excel-based linear program model (N-CyCLES; nutrient cycling: crops, livestock, environment, and soil) was developed to optimize feeding, cropping, and manure management as a single unit of management. In addition to FNI, P and N balances model outputs included (1) the mix of up to 9 home-grown and 17 purchased feeds for up to 5 animal groups, (2) the mix of up to 5 crop rotations in up to 5 land units and c) the mix of up to 7 fertilizers (solid and liquid manure and 5 commercial fertilizers) to allocate in each land unit. The model was parameterized with NRC nutritional guidelines and regional nutrient management planning rules. Simulations were conducted on a typical WI farm of 107 cows and 151 ha of cropland and, a Southern QC farm of 87 cows and 142 ha of cropland and all results were expressed per kg of fat- and protein-corrected milk (FPCM). In absence of constraints on P and N balances, maximum FNI was 0.12 and 0.11 $/kg of FPCM for WI and QC, respectively, with P and N balances of 1.05 and 14.29 g/kg of FPCM in WI but 0.60 and 15.70 g/kg of FPCM in QC. The achievable reduction (balance at maximum FNI minus balance when the simulation objective was to minimize P or N balance) was 0.31 and 0.54 g of P/kg of FPCM (29 and 89% reduction), but 2.37 and 3.31 g of N/kg of FPCM (17 and 24% reduction) in WI and QC, respectively. Among other factors, differences in animal unit per hectare and reliance on biological N fixation may have contributed to lower achievable reductions of whole-farm balances in WI compared with QC. Subsequent simulations to maximize FNI under increasing constraints on nutrient balances revealed that it was possible to reduce P balance, N balance, and both together by up to 33% without a substantial effect on FNI. Partial reduction in P balance reduced N balance (synergetic effect) in WI, but increased N balance (antagonistic effect) in QC. In contrast, reducing N balance increased P balance in both regions, albeit in different magnitudes. The regional comparison highlighted the importance of site-specific conditions on modeling outcomes. This study demonstrated that even when recommended guidelines are followed for herd nutrition and crop fertilization, the optimization of herd feeding, cropping, and manure spreading as a single unit of management may help identify management options that preserve FNI, while substantially reducing whole-farm nutrient balance.