Farmland Conversion
The Spatial Dimension of Agricultural and Land Use Policies
Land is a key input into agricultural production and the agricultural sector remains the main user of rural land in most OECD countries. How land is managed in agriculture, and the conversion of farmland to non-agricultural uses, are likely to have implications not only for the provision of food, but also for the supply of public goods such as rural amenities, as well as for the quantity and quality of water. Changes in agricultural, agri-environmental, land-use, and regional policies – together with factors such as climate and demographic changes – increasingly affect land use and management choices. This report examines the impact of several policies on farmland conversion using a combination of economic analysis and empirical case studies.
Introduction
In the report, a variety of factors that influence the conversion, or preservation, of farmland in OECD countries is considered. The stock of farmland shows slow declines in all countries, but this decline is considerably slower than might be expected given pressures for conversion of farmland to urban uses near cities, and persistent low levels of return available to farmers operating in more remote areas that are less favorable for agriculture. This suggests that while market forces are important in defining land use, there are other forces at work as well. Notably, these are: agricultural policy that alters the returns from agricultural activity, environmental policy that imposes restrictions on the way farmland is used to ensure that the natural environment is protected, and land use policy that determines which types of land use will be allowed by society on specific parcels.
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