Table Of Content«
AGRICULTURE AND FOOD
Environmental Indicators for Agriculture
VOLUME 3
Environmental
METHODS AND RESULTS
Indicators for
Overall the environmental performance of agriculture in OECD countries over the last 10 to 15 years
has been mixed. According to the indicators examined in this book pollution levels from nitrogen and
pesticide loadings in water remain relatively high, for certain regions within OECD countries. Agriculture
Environmental risks persist, such as soil erosion and water resource depletion, and agriculture’s impact
on biodiversity, wildlife habitats and landscape has been harmful in some cases.
VOLUME 3
Some positive developments have also occurred. There has been a decrease in nitrogen and pesticide
METHODS AND RESULTS
use in many countries with associated reductions in water pollution and greenhouse gas emissions.
Improvements in input use efficiency and farm management practices, such as conservation soil
tillage, has also enhanced environmental performance. Agriculture also generates environmental
AGRICULTURE AND FOOD
benefits and services, for example, conserving wildlife habitat, acting as a sink for greenhouse gases
and providing landscape amenity.
This book is the first comprehensive study to review and take stock in OECD countries of progress in
developing indicators to measure the environmental performance of agriculture. Using standard E
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indicator definitions and methods of calculation, the book provides results of the state and trends of
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environmental conditions in agriculture; interprets trends and highlights linkages between indicators; i
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and, outlines the limitations and key challenges for their future development.
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FURTHER READING n
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This book is part of a series of publications entitled Environmental Indicators for Agriculture. Volume 1, a
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Concepts and Frameworks, was released in 1997; Volume 2, Issues and Design, was published in 1999
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and provides the results of the OECD York Workshop (UK) that examined the design of suitable
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environmental indicators for policy purposes. i
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This book is accompanied by an Executive Summary and released simultaneously with the OECD t
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National Soil Surface Nitrogen Balances: Preliminary Estimates 1985-1997, available free of charge on r
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the OECD website at: www.oecd.org/agr/env/indicators.htm.
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ISBN 92-64-18614-X
51 2001 01 1 P -:HSTCQE=V][VY^:
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Environmental Indicators
for Agriculture
Methods and Results
Volume 3
2001
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
ORGANISATION FOR ECONOMIC CO-OPERATION
AND DEVELOPMENT
Pursuant to Article 1 of the Convention signed in Paris on 14th December 1960, and which came into
force on 30th September 1961, the Organisation for Economic Co-operation and Development (OECD)
shall promote policies designed:
– to achieve the highest sustainable economic growth and employment and a rising standard of
living in Member countries, while maintaining financial stability, and thus to contribute to the
development of the world economy;
– to contribute to sound economic expansion in Member as well as non-member countries in the
process of economic development; and
– to contribute to the expansion of world trade on a multilateral, non-discriminatory basis in
accordance with international obligations.
The original Member countries of the OECD are Austria, Belgium, Canada, Denmark, France,
Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain,
Sweden, Switzerland, Turkey, the United Kingdom and the United States. The following countries
became Members subsequently through accession at the dates indicated hereafter: Japan
(28thApril1964), Finland (28th January 1969), Australia (7th June 1971), New Zealand (29th May 1973),
Mexico (18th May 1994), the Czech Republic (21st December 1995), Hungary (7th May 1996), Poland
(22ndNovember 1996), Korea (12th December 1996) and Slovak Republic (14th December 2000). The
Commission of the European Communities takes part in the work of the OECD (Article 13 of the OECD
Convention).
Publié en français sous le titre :
INDICATEURS ENVIRONNEMENTAUX POUR L’AGRICULTURE
Méthodes et résultatt
Volume 3
© OECD 2001
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FOREWORD
The impacts of agriculture on the environment and the achievement of sustainable agriculture are
of major public concern in the context of agricultural policy reform, trade liberalisation, and multilateral
environmental agreements. This study is Volume 3 of the OECD project Environmental Indicators for
Agriculture. It is a stocktaking of the environmental performance of agriculture considering a range of
policy relevant agri-environmental issues in OECD countries. This Volume aims to review and take stock
of progress in developing agri-environmental indicators in OECD countries; build on earlier OECD work
in establishing standard definitions and methods of calculation for indicators; provide preliminary
results of the state and recent trends of environmental conditions in agriculture across OECD countries;
interpret indicator trends and highlight linkages between indicators; and outline the current limitations
and key challenges for their future development.
Part I of the study, Agriculture in the broader economic, social and environmental context, outlines a set
of contextual indicators which reveal the influence on agri-environmental relationships of macroeconomic
forces, the viability of rural areas, biophysical processes, land use changes, and farm financial resources,
including farm income and public and private expenditure on agri-environmental schemes. Part II, Farm
management and the environment, examines different farming practices and systems and their impact on
the environment, covering whole farm management, organic farming, as well as nutrient, pest, soil and
irrigation management practices. Part III, Use of farm inputs and natural resources, tracks trends in farm
input use, including nutrients, pesticides (including risks), and water use. Part IV, Environmental impacts of
agriculture, monitors the extent of agriculture’s impact on the environment including: soil quality, water
quality, land conservation, greenhouse gases, biodiversity, wildlife habitats and landscape. A Glossary, list of
Websites, and Index are also provided at the end of the study.
The study is the result of work carried out by the OECD Joint Working Party of the Committee for
Agriculture and the Environment Policy Committee. These committees approved the study in August 2000,
and agreed that it be published under the responsibility of the OECD Secretary-General. It is primarily
aimed at policy makers and the wider public, in both OECD and non-OECD countries. Volume 1, Concepts and
Frameworks, was released in 1997. Volume 2, Issues and Design was published in 1999 and provides the results of
the OECD York Workshop (UK) which examined the design of suitable agri-environmental indicators. This
study is accompanied by an Executive Summary published separately.
Acknowledgements
This study was prepared by the OECD Policies and Environment Division in the Food, Agriculture and Fisheries
Directorate, with the participation of Member countries, especially through a questionnaire in 1999 which provided
much of the data in the study. OECD wishes to acknowledge the many experts outside the Secretariat who have
helped in preparing and editing draft chapters of the study, in particular, Richard Arnold, Ben Ten Brink,
FrankClearfield, Robert Koroluk, Jonathan Lloyd, Eiko Lubbe, Katsuyuki Minami, Jamie Morrison, Andrew Moxey,
Leslie Russell, Jesper Schou, Nicola Shadbolt, Dirk Wascher, Daniel Zürcher and also Richard Pearce for editing the
complete text. The following Secretariat staff, under the overall guidance of Wilfrid Legg, contributed to drafting this
study: Kevin Parris, Yukio Yokoi, Outi Honkatukia, Seiichi Yokoi, Gérard Bonnis, Morvarid Bagherzadeh, Jeanne
Richards, Dan Biller and Myriam Linster, and many other OECD staff provided comments on the study. Technical
assistance was provided by Françoise Bénicourt, Theresa Poincet, Laetitia Reille, and Véronique de Saint-Martin, with
the production and marketing of the publication provided by Mubeccel Valtat-Gevher, Colette Goldstein and
Catherine Candea and their colleagues. 3
© OECD 2001
ACRONYMS AND ABBREVIATIONS
Acronyms
BMP Best Management Practice
CAP Common Agricultural Policy
CBD Convention on Biological Diversity
COP Conference of the Parties to the Convention
CVM Contingent Valuation Method
DDT Dichloro-diphenyl-trichloro-ethane
DSR Driving force-state-response
EUROSTAT Statistical Office of the European Communities
FAO United Nations Food and Agriculture Organisation
GDP Gross Domestic Product
GHG Greenhouse Gas
GIS Geographical Information System
GMOs Genetically Modified Organisms
GPS Global Positioning System
IPCC Intergovernmental Panel on Climate Change
IPM Integrated Pest Management
ISO International Standardisation Organisation
MRF Minimum Reference Flow
NCI Natural Capital Index
NOPAT Net Operating Profit After Tax
NVZ Nitrate Vulnerable Zone
OFSF Off-farm Sediment Flow
PNC Potential Nitrate Concentration
PSE Producer Support Estimate
SBI Soil Biodiversity Indicator
UN United Nations
UNFCCC United Nations Framework Convention on Climate Change
USLE Universal Soil Loss Equation
WRC Water Retaining Capacity
WTP Willingness-to-pay
WUE Water Use Efficiency
For an explanation of technical terms, see the Glossary at the end of the Report
Abbreviations and symbols
µg microgram N nitrogen
CH methane N O nitrous oxide
4 2
CO carbon dioxide NH ammonia
2 3
g gram NO nitrate
3
ha hectare NO nitrogen oxides
x
Kg kilogram P phosphorus
Km kilometre ppbv parts perbillion by volume
l litre ppmv parts permillion by volume
m3 cubic meter t metric tonne
mg milligram US$ United States dollar
mm millimetre yr/y year
4
© OECD 2001
TABLE OF CONTENTS
ExecutiveSummary ............................................................................................................................................................. 17
Highlights ...................................................................................................................................................................... 17
Background: Objectives and Scope of the Report ....................................................................................................... 19
1. Introduction .............................................................................................................................................................. 19
2. Objectives of the report ......................................................................................................................................... 19
3. Structure of the report ............................................................................................................................................ 20
4. Developing the indicators ...................................................................................................................................... 22
Identifying policy relevant issues which indicators should address ................................................................ 23
Developing a common framework to structure the development of indicators ............................................. 23
Establishing indicator definitions and methods of measurement ................................................................... 23
Collecting data and calculating indicators ........................................................................................................... 25
Interpreting indicators ............................................................................................................................................ 26
5. Future challenges .................................................................................................................................................... 27
Annex: Complete List of OECD Agri-environmental Indicators............................................................................ 30
Notes .............................................................................................................................................................................. 32
Bibliography .................................................................................................................................................................. 33
List of Boxes
1. Selected International andRegional Environmental Agreements Relevant
toOECD Agri-environmental Indicators ............................................................................................................ 20
2. Complete list ofOECD Agri-environmental Indicators .................................................................................... 21
3. Development of Agri-environmental Indicators in OECD Countries and Internationally ........................... 24
4. The Use of Agri-environmental Indicators in Recent OECD Studies and Activities .................................... 28
Part I
Agriculture in the Broader Economic, Social and Environmental Context
Chapter 1. Contextual Information and Indicators ........................................................................................................ 39
Highlights ...................................................................................................................................................................................... 39
1. Background ............................................................................................................................................................... 41
2. Agriculture and economic forces .......................................................................................................................... 41
Agricultural production and farm incomes ........................................................................................................... 41
Farm employment and education ......................................................................................................................... 43
Farm structures ........................................................................................................................................................ 45
Technology ............................................................................................................................................................... 46
Policies ...................................................................................................................................................................... 47
3. Agriculture and societal preferences .................................................................................................................... 49
4. Agriculture and environmental processes ........................................................................................................... 49
5. Land use changes .................................................................................................................................................... 51
Overview ................................................................................................................................................................... 51
Agricultural land use ............................................................................................................................................... 51
Notes .............................................................................................................................................................................. 54
Bibliography .................................................................................................................................................................. 60 5
© OECD 2001
Environmental Indicators for Agriculture: Methods and Results, Vol. 3
Chapter 2. Farm Financial Resources ............................................................................................................................... 63
Highlights ....................................................................................................................................................................... 63
1. Background ............................................................................................................................................................... 64
2. Indicators ................................................................................................................................................................... 65
Farm income ............................................................................................................................................................. 65
Related information ................................................................................................................................................. 67
Agri-environmental expenditure ............................................................................................................................ 68
Public and private agri-environmental expenditure...................................................................................... 68
Expenditure on agri-environmental research................................................................................................. 72
3. Future challenges ..................................................................................................................................................... 73
Notes ............................................................................................................................................................................... 75
Bibliography ................................................................................................................................................................... 78
List of Boxes
Chapter 1
1. Public perceptions of agriculture and the environment in Canada ................................................................ 49
2. Rural viability ......................................................................................................................................................... 50
List of Tables
Chapter 1
Annex Table 1. Key agricultural indicators ............................................................................................................ 55
Annex Table 2. National and agricultural land area: 1985-87 to 1995-97 ........................................................... 58
Annex Table 3. Agricultural land use: 1985-87 to 1995-97 .................................................................................... 59
Chapter 2
1. Value offarmland andbuildings: United States, 1989 to1996 ....................................................................... 68
Annex Table 1. Nominal net farm income from agricultural activities: 1984 to1998 ........................................ 76
Annex Table 2. Public expenditure onagri-environmental goods, services andconservation:
1985 to1998 .................................................................................................................................... 77
List of Figures
Chapter 1
1. Share of agriculture in Gross Domestic Product: mid-1990s ............................................................................ 42
2. Value of final agricultural output in constant 1990 US dollars Purchasing Power Parities:
1985-87 to 1995-97 ................................................................................................................................................. 42
3. Share of agricultural employment in total civilian employment: late 1990s................................................... 43
4. Share of new farmers entering agriculture by age and gender categories: late 1990s ................................. 44
5. Educational level of farmers: mid/late 1990s...................................................................................................... 45
6. Change in number of farms: 1985-87 to 1995-97................................................................................................. 46
7. Percentage Producer Support Estimate: 1986-88 to 1997-99............................................................................ 48
8. Share of agricultural land use in the total national land area: 1995-97............................................................ 52
9. Change in the agricultural land area: 1985-87 to 1995-97.................................................................................. 52
10. Agricultural land area by different use categories: 1995-97.............................................................................. 53
Chapter 2
1. Nominal and real net farm income from agricultural activities: mid-1980s to mid-1990s............................. 66
2. Public expenditure on agri-environmental goods, services and conservation: 1993 to 1998....................... 69
3. Shares of the main items in total agri-environmental expenditure: late 1990s.............................................. 70
4. Payments to farmers for agri-environmental purposes: United Kingdom, 1993 to 1999............................... 72
5. Share of public agri-environmental research expenditure in total agricultural
research expenditure: 1985 to mid/late 1990s.................................................................................................... 73
Part II
Farm Management and the Environment
Chapter 1. Farm Management ............................................................................................................................................ 83
6 Highlights ....................................................................................................................................................................... 83
© OECD 2001
Table of Contents
1. Background ............................................................................................................................................................... 84
Policy context ........................................................................................................................................................... 84
Environmental context ............................................................................................................................................ 85
2. Indicators .................................................................................................................................................................. 89
Whole farm management ....................................................................................................................................... 89
Environmental whole farm management plans............................................................................................. 89
Organic farming.................................................................................................................................................. 93
Nutrient management ............................................................................................................................................. 96
Nutrient management plans............................................................................................................................. 96
Soil tests.............................................................................................................................................................. 97
Pest management .................................................................................................................................................... 99
Use of non-chemical pest control methods.................................................................................................... 99
Use of integrated pest management............................................................................................................... 101
Soil and land management .................................................................................................................................... 102
Soil cover............................................................................................................................................................. 102
Land management practices............................................................................................................................ 104
Irrigation and water management ........................................................................................................................ 107
3. Future challenges .................................................................................................................................................... 109
Notes .............................................................................................................................................................................. 111
Bibliography .................................................................................................................................................................. 112
List of Boxes
Chapter 1
1. Whole Farm Management and Organic Farming under the Austrian
Agri-environmental Programme .......................................................................................................................... 90
List of Tables
Chapter 1
1. Environmental impacts offarm management practices .................................................................................. 86
2. Environmental farm management standards: late 1990s ............................................................................... 93
3. Share ofannual crop area tested fornutrient content: France andUnited States ...................................... 98
4. Share offarms conducting soil tests: Canada, 1995 ......................................................................................... 98
5. Nutrient management practices onplanted maize area: United States, 1990 to1995 ............................... 99
6. Pest control methods used byfarmers excluding theuse ofchemical pesticides: Canada, 1995 ............ 100
7. Land andsoil management practices: Canada, 1991 and1996 ..................................................................... 105
8. Environmental land management practices: United States, 1985-89 to1990-94 ........................................ 106
9. Share oftotal sown crop area using different land management practices: Australia, 1995 to1996 ......... 106
10. Environmental agricultural land management practices: France, 1989, 1994 and1998 ............................. 106
List of Figures
Chapter 1
1. Linkages between OECD agri-environmental indicator areas related to farm management...................... 85
2. Share of farms with environmental whole farm plans: 1993 and 1997............................................................ 91
3. Share of the total agricultural area under organic farming: early 1990s and mid/late 1990s........................ 94
4. Share of the total number of farms with nutrient management plans: mid/late 1990s................................. 97
5. Share of the total arable and permanent crop land area under integrated pest management:
mid/late 1980s and late 1990s.............................................................................................................................. 101
6. Number of days in a year that agricultural soils are covered with vegetation:
mid/late 1980s and mid/late 1990s. 103
7. Agricultural soil cover index: Switzerland, 1991 to 1996................................................................................... 104
8. Share of total irrigated crop area using different irrigation systems: mid/late 1990s................................... 107
9. Volume of irrigation water used and storage capacity: United Kingdom, 1982 to 1995............................... 108
10. Matrix of sustainable farm management practices and the implementation index..................................... 109 7
© OECD 2001
Environmental Indicators for Agriculture: Methods and Results, Vol. 3
Part III
Use of Farm Inputs and Natural Resources
Chapter 1. Nutrient Use ....................................................................................................................................................... 117
Highlights ....................................................................................................................................................................... 117
1. Background ............................................................................................................................................................... 118
Policy context ............................................................................................................................................................ 118
Environmental context ........................................................................................................................................... 118
2. Indicators ................................................................................................................................................................... 120
Nitrogen balance ...................................................................................................................................................... 120
Nitrogen efficiency ................................................................................................................................................... 127
3. Related information ................................................................................................................................................. 128
Water pollution from nutrients ............................................................................................................................... 128
Air pollution from nutrient emissions .................................................................................................................... 128
Comparison of the OECD and OSPARCOM nitrogen balance calculations ....................................................... 129
4. Future challenges ..................................................................................................................................................... 129
Notes ............................................................................................................................................................................... 132
Bibliography ................................................................................................................................................................... 136
Chapter 2. Pesticide Use and Risks .................................................................................................................................. 141
Highlights ....................................................................................................................................................................... 141
1. Background ............................................................................................................................................................... 142
Policy context ............................................................................................................................................................ 142
Environmental context ............................................................................................................................................ 143
2. Indicators ................................................................................................................................................................... 144
Pesticide use indicator ............................................................................................................................................ 144
Pesticide risk indicators .......................................................................................................................................... 149
National examples of pesticide risk indicators .................................................................................................... 154
3. Related information ................................................................................................................................................. 161
4. Future challenges ..................................................................................................................................................... 162
Notes ............................................................................................................................................................................... 164
Bibliography ................................................................................................................................................................... 168
Chapter 3. Water Use ........................................................................................................................................................... 171
Highlights ....................................................................................................................................................................... 171
1. Background ............................................................................................................................................................... 172
Policy context ............................................................................................................................................................ 172
Environmental context ............................................................................................................................................ 172
2. Indicators ................................................................................................................................................................... 174
Water use intensity .................................................................................................................................................. 174
Water use efficiency ................................................................................................................................................. 180
Water stress ............................................................................................................................................................... 182
3. Related information ................................................................................................................................................. 184
Water pricing ............................................................................................................................................................. 184
4. Future challenges ..................................................................................................................................................... 186
Notes ............................................................................................................................................................................... 187
Bibliography ................................................................................................................................................................... 192
List of Boxes
Chapter 1
1. Comparison of the OECD and OSPARCOM nitrogen balance calculations .................................................... 130
Chapter 3
1. Water use efficiency in irrigated agriculture in Australia .................................................................................. 182
8 2. Incorporating environmental needs into Defined Minimum Reference Flows for Rivers in Australia ............... 183
© OECD 2001
