Closing productivity gaps among Dutch dairy farms can boost profit and reduce nitrogen pollution

Agricultural productivity growth can simultaneously increase profit and reduce pollution. Yet, the impact of productivity growth on both has not been quantified. The objective of our study was to develop an approach to quantify the extent to which agricultural productivity growth can increase profit...

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Main Authors: Melina Lamkowsky, Oene Oenema, Miranda P M Meuwissen, Frederic Ang
Format: Article
Language:English
Published: IOP Publishing 2021-01-01
Series:Environmental Research Letters
Subjects:
Online Access:https://doi.org/10.1088/1748-9326/ac3286
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author Melina Lamkowsky
Oene Oenema
Miranda P M Meuwissen
Frederic Ang
author_facet Melina Lamkowsky
Oene Oenema
Miranda P M Meuwissen
Frederic Ang
author_sort Melina Lamkowsky
collection DOAJ
description Agricultural productivity growth can simultaneously increase profit and reduce pollution. Yet, the impact of productivity growth on both has not been quantified. The objective of our study was to develop an approach to quantify the extent to which agricultural productivity growth can increase profit and reduce pollution. Focusing on nitrogen pollution, we applied the approach to a sample of 341 intensive Dutch dairy farms for the years 2006–2017. Using a Bennet–Lowe formulation, we measured economic and nitrogen productivities over time and across farms. We applied Data Envelopment Analysis to determine the potential for productivity growth from reducing economic and nitrogen inefficiencies and assessed the impact on profit and nitrogen pollution levels. Using a two-stage by-production model, we set profit maximisation as the overarching objective to account for the economic production behaviour of farmers. We found that if laggard farmers adopted the best practices of their best peers, they could on average increase annual gross profit by 34% and simultaneously reduce the N surplus by 50% during the time period, which is a win–win situation for farmers and the environment. The magnitude of these gains corroborates the suggestion that productivity growth could be a game-changer for agricultural sustainability.
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spelling doaj.art-12646363540c43c586cb790369d100882023-08-09T15:06:31ZengIOP PublishingEnvironmental Research Letters1748-93262021-01-01161212400310.1088/1748-9326/ac3286Closing productivity gaps among Dutch dairy farms can boost profit and reduce nitrogen pollutionMelina Lamkowsky0https://orcid.org/0000-0002-1021-5318Oene Oenema1https://orcid.org/0000-0002-9042-7504Miranda P M Meuwissen2https://orcid.org/0000-0001-6929-3743Frederic Ang3https://orcid.org/0000-0002-2323-7081Business Economics Group, Wageningen University , 6700 EW Wageningen, The NetherlandsWageningen Environmental Research , 6708 PB Wageningen, The NetherlandsBusiness Economics Group, Wageningen University , 6700 EW Wageningen, The NetherlandsBusiness Economics Group, Wageningen University , 6700 EW Wageningen, The NetherlandsAgricultural productivity growth can simultaneously increase profit and reduce pollution. Yet, the impact of productivity growth on both has not been quantified. The objective of our study was to develop an approach to quantify the extent to which agricultural productivity growth can increase profit and reduce pollution. Focusing on nitrogen pollution, we applied the approach to a sample of 341 intensive Dutch dairy farms for the years 2006–2017. Using a Bennet–Lowe formulation, we measured economic and nitrogen productivities over time and across farms. We applied Data Envelopment Analysis to determine the potential for productivity growth from reducing economic and nitrogen inefficiencies and assessed the impact on profit and nitrogen pollution levels. Using a two-stage by-production model, we set profit maximisation as the overarching objective to account for the economic production behaviour of farmers. We found that if laggard farmers adopted the best practices of their best peers, they could on average increase annual gross profit by 34% and simultaneously reduce the N surplus by 50% during the time period, which is a win–win situation for farmers and the environment. The magnitude of these gains corroborates the suggestion that productivity growth could be a game-changer for agricultural sustainability.https://doi.org/10.1088/1748-9326/ac3286Bennet–Lowe productivityDEAby-production modelnitrogenDutch dairy farms
spellingShingle Melina Lamkowsky
Oene Oenema
Miranda P M Meuwissen
Frederic Ang
Closing productivity gaps among Dutch dairy farms can boost profit and reduce nitrogen pollution
Environmental Research Letters
Bennet–Lowe productivity
DEA
by-production model
nitrogen
Dutch dairy farms
title Closing productivity gaps among Dutch dairy farms can boost profit and reduce nitrogen pollution
title_full Closing productivity gaps among Dutch dairy farms can boost profit and reduce nitrogen pollution
title_fullStr Closing productivity gaps among Dutch dairy farms can boost profit and reduce nitrogen pollution
title_full_unstemmed Closing productivity gaps among Dutch dairy farms can boost profit and reduce nitrogen pollution
title_short Closing productivity gaps among Dutch dairy farms can boost profit and reduce nitrogen pollution
title_sort closing productivity gaps among dutch dairy farms can boost profit and reduce nitrogen pollution
topic Bennet–Lowe productivity
DEA
by-production model
nitrogen
Dutch dairy farms
url https://doi.org/10.1088/1748-9326/ac3286
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AT oeneoenema closingproductivitygapsamongdutchdairyfarmscanboostprofitandreducenitrogenpollution
AT mirandapmmeuwissen closingproductivitygapsamongdutchdairyfarmscanboostprofitandreducenitrogenpollution
AT fredericang closingproductivitygapsamongdutchdairyfarmscanboostprofitandreducenitrogenpollution