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The economic impact of multifunctional agriculture in The Netherlands:

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  • Heringa, Pieter W.
  • van der Heide, Martijn M.
  • Heijman, Wim J.M.
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    Abstract

    Abstract Multifunctional agriculture is a broad concept lacking a precise and uniform definition. Moreover, little is known about the societal importance of multifunctional agriculture. This paper is an empirical attempt to fill this gap. To this end, an input-output model is constructed for multifunctional agriculture in the Netherlands. The definition used includes four multifunctional agricultural activities: (i) green care, (ii) tourism, recreation and education, (iii) on-farm sales, and (iv) green services. Multiplier values – indicating the chain impacts of these multifunctional activities in the rest of the economy – are calculated for four Dutch regions. The results show that, in terms of output and employment, multifunctional agriculture is not a main driver for economic growth. Moreover, from the input-output model it appears that multifunctional agriculture leads in particular to more expenditures in the agricultural sector itself, rather than in any other economic sector. As such, the indirect feedback effects of multifunctional agriculture on the non-agricultural sectors in the Dutch economy are rather small. The input-output model also show that multiplier values differ over the regions, mainly due to differences in the composition of multifunctional activities. And although the absolute size of employment in multifunctional agriculture is very small, the employment per unit of output is high, especially when compared to the employment/production rate in primary agriculture.

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    Bibliographic Info

    Paper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 125593.

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    Date of creation: 2012
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    Handle: RePEc:ags:iaae12:125593

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    Keywords: Key words: input-output modelling; multifunctional agriculture; regional economics; multipliers; Netherlands; Agricultural and Food Policy; Community/Rural/Urban Development; Land Economics/Use;

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    1. Alan Randall, 2002. "Valuing the outputs of multifunctional agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(3), pages 289-307, July.
    2. Scott Loveridge, 2004. "A Typology and Assessment of Multi-sector Regional Economic Impact Models," Regional Studies, Taylor & Francis Journals, vol. 38(3), pages 305-317.
    3. Arild Vatn, 2002. "Multifunctional agriculture: some consequences for international trade regimes," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(3), pages 309-327, July.
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