Multifunctionality in Agriculture

Evaluating the degree of jointness, policy implications

image of Multifunctionality in Agriculture

These proceedings examine the nature and strength of jointness between agricultural commodity production and non-commodity outputs from the perspective of three areas important to the agricultural sector: rural development, environmental externalities and food security. This workshop also examined whether the relationships among these non-commodity outputs were complementary or competing. Finally, the policy implications that could be derived from the findings of this workshop were also a key element in the discussions and are summarised in the Rapporteur’s summary.



Domestic and International Implications of Jointness for an Effective Multifunctional Agriculture

Some Evidence from Sheep Raising in Lozère

When agriculture is effectively multifunctional, the optimal policy is to provide society with an adequate level of non commodity output (NCO) at the lowest cost. Whether or not this policy affects the welfare of trading countries does not alter this definition of optimality from a national standpoint. For large trading countries, the terms of trade effects of domestic environmental policies on national welfare may alter the optimal levels of instruments (Krutilla, 1991; Peterson et al., 2002). In this case, the international dimension of environmental policies cannot be overlooked.


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