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Is Lack of Fi Nance A Barrier for the Sustainability of Dutch Dairy Farms? : = An Analysis of Nitrogen Pollution and Profit.

Record Type:	Language materials, manuscript : Monograph/item
Title/Author:	Is Lack of Fi Nance A Barrier for the Sustainability of Dutch Dairy Farms? :/
Reminder of title:	An Analysis of Nitrogen Pollution and Profit.
Author:	Lamkowsky, Melina.
Description:	1 online resource (158 pages)
Notes:	Source: Dissertations Abstracts International, Volume: 85-08, Section: B.
Contained By:	Dissertations Abstracts International85-08B.
Subject:	Manures. -
Online resource:	click for full text (PQDT)
ISBN:	9798381452686

Is Lack of Fi Nance A Barrier for the Sustainability of Dutch Dairy Farms? : = An Analysis of Nitrogen Pollution and Profit.
Lamkowsky, Melina.

Is Lack of Fi Nance A Barrier for the Sustainability of Dutch Dairy Farms? :An Analysis of Nitrogen Pollution and Profit. - 1 online resource (158 pages)

Source: Dissertations Abstracts International, Volume: 85-08, Section: B.

Thesis (Ph.D.)--Wageningen University and Research, 2023.

Includes bibliographical references

Dutch dairy farmers are at a crossroads of multiple underlying forces that threaten the sustainability of their farms. For the past half-century, they experienced declining real milk prices and have responded by upscaling production to protect their profit margins. Still, the number of farms is strongly declining, around 30% earn below the national low-income threshold and many cannot find successors. The high concentration of livestock in the Netherlands has resulted in environmental challenges, particularly nitrogen pollution. To protect the native flora and fauna, the government has announced that it is targeting to reduce agricultural ammonia emissions by 50% by 2030. Several technological and structural solutions have been proposed, but it is questionable whether Dutch dairy farmers are able to finance the investments. Tight profit margins experienced by a share of farmers, high financial obligations from past investments, and stricter banking regulations are making it more difficult for farmers to access finance.The aim of this thesis is to assess if lack of finance is a barrier for the sustainability of Dutch dairy farms. The focus is on the potential implications of lack of accessible finance for farm profit and nitrogen pollution. This thesis makes a significant contribution by exploring the intersection of accessible finance for farms and its impact on farm sustainability. Practically, the findings of this thesis contribute to the ongoing political debate on reducing nitrogen pollution on Dutch dairy farms. Methodologically, approaches are developed to explore the potential of farm management to increase gross profit and reduce nitrogen surplus, to determine the foregone long-term profits from financial constraints and to assess the financeability of investments to reduce ammonia emissions. A double counterfactual is used to assess the impact of lack of finance on farm performance. This approach enhances the discussion on the extent to which finance is a limiting factor for farm performance by presenting an alternative view that emphasizes the potential of improving farm management to enhance farm performance. A long-term perspective is taken to study how finance is not only constraining current operations, but also constraining investments. Additionally, a method is developed to quantify the accessible finance to farmers based on a simulation of creditworthiness esteemed by banks, which are the main finance providers to Dutch farms. Knowing the borrowing capacity is crucial to assess the financeability of investments by the farmers.In research chapter 2, the potential to increase farm gross profit and reduce N surplus by improving farm management is quantified using data of 341 specialised Dutch dairy farms for the years 2006 to 2017 from the Farm Accountancy Data Network. Data Envelopment Analysis is applied, and Bennet-Lowe productivity indicators are used to measure productivity and productivity gaps over time and across farms. While technical and environmental efficiencies of Dutch dairy farms have been studied before, a DEA by-production model is used in this study, which allows for a better representation of the production processes of the farms and making behavioural assumptions of the farmers. The efficiencies are translated to productivities to allow for comparison over time and across farms. The analysis reveals that if laggard farmers adopted the best management practices of their best peers, they could on average increase annual gross profit by 34% and simultaneously reduce the nitrogen surplus by 50% between 2006 and 2017, which is a win-win situation for farmers and the environment.

Electronic reproduction.
Ann Arbor, Mich. :
ProQuest,
2024

Mode of access: World Wide Web

ISBN: 9798381452686Subjects--Topical Terms:

1000197
Manures.
Index Terms--Genre/Form:

554714
Electronic books.

Is Lack of Fi Nance A Barrier for the Sustainability of Dutch Dairy Farms? : = An Analysis of Nitrogen Pollution and Profit.
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502 $a Thesis (Ph.D.)--Wageningen University and Research, 2023.
504 $a Includes bibliographical references
520 $a Dutch dairy farmers are at a crossroads of multiple underlying forces that threaten the sustainability of their farms. For the past half-century, they experienced declining real milk prices and have responded by upscaling production to protect their profit margins. Still, the number of farms is strongly declining, around 30% earn below the national low-income threshold and many cannot find successors. The high concentration of livestock in the Netherlands has resulted in environmental challenges, particularly nitrogen pollution. To protect the native flora and fauna, the government has announced that it is targeting to reduce agricultural ammonia emissions by 50% by 2030. Several technological and structural solutions have been proposed, but it is questionable whether Dutch dairy farmers are able to finance the investments. Tight profit margins experienced by a share of farmers, high financial obligations from past investments, and stricter banking regulations are making it more difficult for farmers to access finance.The aim of this thesis is to assess if lack of finance is a barrier for the sustainability of Dutch dairy farms. The focus is on the potential implications of lack of accessible finance for farm profit and nitrogen pollution. This thesis makes a significant contribution by exploring the intersection of accessible finance for farms and its impact on farm sustainability. Practically, the findings of this thesis contribute to the ongoing political debate on reducing nitrogen pollution on Dutch dairy farms. Methodologically, approaches are developed to explore the potential of farm management to increase gross profit and reduce nitrogen surplus, to determine the foregone long-term profits from financial constraints and to assess the financeability of investments to reduce ammonia emissions. A double counterfactual is used to assess the impact of lack of finance on farm performance. This approach enhances the discussion on the extent to which finance is a limiting factor for farm performance by presenting an alternative view that emphasizes the potential of improving farm management to enhance farm performance. A long-term perspective is taken to study how finance is not only constraining current operations, but also constraining investments. Additionally, a method is developed to quantify the accessible finance to farmers based on a simulation of creditworthiness esteemed by banks, which are the main finance providers to Dutch farms. Knowing the borrowing capacity is crucial to assess the financeability of investments by the farmers.In research chapter 2, the potential to increase farm gross profit and reduce N surplus by improving farm management is quantified using data of 341 specialised Dutch dairy farms for the years 2006 to 2017 from the Farm Accountancy Data Network. Data Envelopment Analysis is applied, and Bennet-Lowe productivity indicators are used to measure productivity and productivity gaps over time and across farms. While technical and environmental efficiencies of Dutch dairy farms have been studied before, a DEA by-production model is used in this study, which allows for a better representation of the production processes of the farms and making behavioural assumptions of the farmers. The efficiencies are translated to productivities to allow for comparison over time and across farms. The analysis reveals that if laggard farmers adopted the best management practices of their best peers, they could on average increase annual gross profit by 34% and simultaneously reduce the nitrogen surplus by 50% between 2006 and 2017, which is a win-win situation for farmers and the environment.
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