ASSESSMENT OF THE STATE OS SUSTAINABILITY OF FARMING SYSTEMS IN CEEs

The measures of productivity, profitability, stability, diversity, flexibility, time dispersion, sustainability, complementarity and environmental compatibility and equality have been described in the sections "Concept of the sustainability of farming systems" and "Factors affecting the sustainability of farming systems".

Applying some of these properties as measures of the various dimensions of sustainability, it seems like the state of the sustainability of farming systems is not particularly good in most of the CEECs. A clear measurement is, however, lacking. It is not evident whether productivity, measured by output/input, has been maintained. Production has decreased in many of the former CEECs but so has input use. Profitability can be measured by gross margins for activities, by various whole-farm measures or by various discounting measures. It seems like profitability is generally very low in most CEECs. From the review, the state of stability (by which is meant the ability to maintain productivity arising from normal fluctuations and cycles in the environment) is not clear. Stability may vary from country to another. Diversity, flexibility, time dispersion are not settled issues. The current state of sustainability (using Conway’s definition of the ability of a system to maintain productivity when subject to stress or shock) does not seem to be in good condition. The situation regarding equitability (or the evenness of the distribution of the agrosystem’s productivity among human beneficiaries) is problematic, at least in terms of the evenness in the distribution of land. Finally, environmental compatibility is not present because many of the natural resources that are relied upon, such as soil and water, are being degraded.

Based on these conclusions, there seems to be much to do in order to improve the state of sustainability in the CEECs. In order to improve profitability and stability, the following institutional constraints need to be solved initially:

    1. Privatization programs must be completed. Property rights to land need to be clearly established through entitlement of ownership rights so that farmers will dare to make investments in land, facilities and equipment. A well functioning land market is lacking in many cases, partly because of incomplete entitlement of ownership rights. The property rights problems may be more quickly solved in some of the CEECs, in which private farming was common even during socialist time and has continued.
    2. Functioning credit markets are missing, are based on personal relations or excludes smaller- or medium-sized farms. Because of unstable conditions, farmers are also reluctant to take the financial risks offered by loans. Taking into account the liquidity constraints and high interest rates often demanded by private money lenders, it would be of utmost importance to improve credit markets, possibly through the establishment of micro-loan schemes, in a similar fashion to those provided by the Grameen Bank in Bangladesh.
    3. Extension systems, input and equipment supply and infrastructure are missing in most CEECs. In virtually all CEECs the extension system seems to be inadequate or insufficient. Farmers lack the technical assistance needed. Also infrastructure like sewage systems are missing.
    4. The educational background of farmers is poor. Vocational schooling must be improved. Education in farming has to be broadly based, giving foundations for crop and animal husbandry and basic farm management
    5. The CEECs should be given market access to the EU. This should be done in a careful way so as not to create enormous budget problems for the EU.
Sustainability and environmental problems, which limit productivity growth, are common in most of the CEECs. The most common environmental problems are: Care needs to be taken not to aggravate the environmental problems that potentially may arise. The review of environmental problems shows that they are widespread and in many cases severe, and thus the current resource base must be guarded for future generations. Some problems may be irreversible. Time is also short.

Many farming systems, however, are presenting low profitability, which makes farmers less motivated to take environmental factors into account. On the positive side, environmental degradation from the excessive application of fertilizers and pesticides has stopped.

The transition process has lead to low returns, which has forced farmers to decrease cost by reducing inputs. For instance, fertilizer use and pesticide use in all CEECs have declined tremendously. The strong reduction in fertilizer use has lead to a decrease in crop yields. Nutrient balances in all Eastern European countries were negative, in particular for potassium (K).(Andres, 1996).

In most cases, sustainability is not only a function of intensity levels but depends upon the management systems of nutrients and chemicals. In addition to the rather low application doses, nutrient leakages may be significant due to improper nutrient management systems, the lack of manure facilities and the improper use of manure. At the same time, large areas of arable land will be depleted of their nutrient content, which is an unsustainable development. The lacks of liming, equipment, seed and other necessities are obstacles to improving or sometimes even maintaining productivity. Severe financial problems (e.g. farmers’ struggles to survive) create a

situation in which farmers care less about environmental issues. One can expect, however, that if the situation improves and living standards increase, the demand for environmental services will increase since the income elasticity of environmental goods seems to be positive after reaching a certain level.

Adopting codes of good agricultural practices seem to be one advancement for virtually all the CEEC towards establishing sustainable farming systems in the long run. This adoption is the best method to reduce environmental problems caused by agriculture. In addition, profitability and stability can be accomplished through good agricultural practices. The CEECs, however, may have quite different possibilities and prerequisites for adopting such practices. In all cases it is likely that the completion of the privatization process and the building up of infrastructure, extension systems and farmers’ credit possibilities will be necessary before those good agricultural practices can be adopted. Equitability and the social sustainability dimension need to be solved at the policy level.



 
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