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In wine grape production, growers decide between alternative management strategies of the vineyard that have direct consequences on competitiveness. Th e aim of this study is to evaluate the impact on economic performance of four management strategies: training system, reserve quality production, irrigation method, and mechanization of labors. The data used in the study comes from face-to-face interviews to 336 wine grape growers of Central Chile, which was complemented with climatic variables retrieved from Geographic Information Systems. A log-log regression model of total value product (TVP) for the main variety grown in the vineyard was estimated, using production factors, vineyards' attributes, management strategies and climaterelated conditions as explanatory variables. An interesting contribution of this study is the identifi cation of TVP functions for land, fertilizers, fungicides, other agrochemicals, labor, and age of vines. Our results show that the training system has the most impact on TVP, where tendone-trained vineyards demonstrated 63% higher TVP than those vertically trained when holding all other variables constant. Reserve quality production also has a positive eff ect on TVP, increasing it by 25% compared to vineyards producing varietal quality grapes. In contrast, the use of pressurized irrigation systems and mechanization in harvesting do not present a significant effect on TVP. The findings of this paper represent an advance in the understanding of the economic performance factors associated with wine grape growing and could serve to guide on-farm decisions and sectoral policies in pursuing the competitive development of wine grape growers. [ABSTRACT FROM AUTHOR]

Good leaders can greatly influence the effective governance of water resources, however, how their attributes relate to group cooperation in Water User Associations (WUAs) remains an open question. Using the case of Chile, we explore the factors of three non-cooperative behaviors in WUAs by performing a two-stage cluster analysis. The results describe four clusters that differ in structural and human characteristics, where highly cooperative WUAs are characterized by having presidents who dedicate more time to their duties, are more active in applying for governmental subsidies, are embedded in social organizations, have high levels of bridging social capital, and have a positive attitude toward the presidency. Our results add to the limited empirical knowledge about the role of leadership in fostering cooperation in the use of common-pool resources. This article sheds light on this matter as the results suggest that policy interventions should aim at strengthening social capital and providing incentives to increase the time dedication of presidents to the WUAs duties. [ABSTRACT FROM AUTHOR]

Volatile commodity prices have become commonplace in the world economy. Although is widely accepted that commodity‐rich countries are affected by this phenomenon, information about how commodity price shocks impacts their regional economies is scarce. This work analyses how shocks in copper prices impact the economies of the major copper‐producing regions in a developing country, such as Chile. To achieve this goal, a two‐step method is implemented. First, we estimate long‐term copper prices using the Wets and Rios approach (2015) and these estimates are then contrasted with those forecast by the Chilean public advisory committee. Second, a general equilibrium model is implemented to simulate the effects of both expansive and restrictive copper price cycles within major producing regions in Chile. Our results show that the proposed approach yields more homogeneous price projections than those made by the Chilean Government, which, in turn, are very close to variations in response to negative shocks. The price simulations confirm that price cycles affect the savings of government and business, which directly dampens regional production, mainly via investment, capital mobilisation and diversification of production. Because of this, fiscal revenues generated by copper sales act as a trade cycle term multiplier in regional economies. Overall, within copper‐producing regions, we suggest implementing long‐term policies to improve profit distribution efficiency. [ABSTRACT FROM AUTHOR]

Meteorologists predict that climate change will have an increasing impact on ecosystems and agricultural production; however, many farmers do not have a clear perception of climate change or how it may affect their crop yields and overall farming operation in the near future. This study examines climate change perceptions in four rural municipalities in Central Chile, and the effect that exposure to meteorological information has on such perceptions, using a survey conducted in 2011. It uses a probit model to identify the socioeconomic and productive factors associated with what we define as a 'clear perception' of climate change. Most farmers in this survey recognize that there have been changes in temperature and precipitation patterns during the last 24 years: About 62 % perceive that the average temperatures have increased; 93 % that precipitation has decreased; and 87 % that droughts are more frequent. The econometric model shows the significance of education and access to meteorological information for climate change perception. The results reveal that younger, more educated producers and those who own their land tend to have a clearer perception of climate change than older, less educated, or tenant farmers. From a policy point of view, it is important to give all farmers information that will help them to adapt to climate change using appropriate farming technologies and practices. Projects and programs designed to enhance understanding of the consequences of climate change will help farmers to develop the management ability to cope with climate risk. [ABSTRACT FROM AUTHOR]

Increasing agricultural water use efficiency has the potential to contribute significantly to hydrological sustainability and to coping with increasing water scarcity. This paper focuses on the role of the quantity of irrigation water applied and irrigation method used in explaining output in wine grape farms. We applied propensity score matching to reduce potential selection bias from observables that might mediate in the choice of irrigation system. Stochastic Production Frontier models are then estimated for a sample of 371 Chilean wine grape growers. The results show that pressurized irrigation leads to higher production at all levels of water applied; however, at lower levels the impact on TVP is more pronounced. Shadow values calculated at observed output for pressurized and gravity systems are 0.026 USD m−3 and 0.033 USD m−3, respectively. Significant differences are found between low (0.046 USDm−3), medium (0.027 USD m−3) and high (0.018 USD m−3) levels of water applied. The average technical efficiency for the sample is 70.4% and there is no significant difference between growers using pressurized and gravity methods. Our findings suggest that irrigation water can be saved without compromising output, which has important implications for sustainability given that agriculture is the most water demanding sector in the world. • Pressurized irrigation leads to a significant upward shift in the production frontier. • The effect of pressurized irrigation on output is higher at lower quantities of water. • Average technical efficiency is 70.4% and does not vary by irrigation method. • Significant differences in shadow values are found between low, medium, and high levels of water applied. • Pressurized irrigation in grape farming allows for water savings without compromising output. [ABSTRACT FROM AUTHOR]

Climate change represents one of the biggest threats to agriculture today. The aim of this paper is to analyze the decision and intensity of adaptation to this phenomenon among farmers in Central Chile and to identify the factors that influence the adoption of adaptation measures. The list of adaptation practices was created with the assistance of a panel of experts. A two-part hurdle model was used to identify the adoption and intensity of adoption. The decision to adapt is strongly influenced by land tenure security and access to weather information, which increase the probability of adaptation by 13% and 30%, respectively. The intensity of adaptation is highly influenced by affiliation to a farm organization or association, which tends to boost intensity by 72.2%. Land tenure also increases intensity by 44.5%. Years of experience in agriculture and the income obtained from crops in the previous season also have a positive impact. Empirical results reveal that the most effective way to reduce barriers to adaptation is to improve access to information, while a highly relevant mode to increase the intensity of adaptation is to encourage social networking. [ABSTRACT FROM AUTHOR]

Abstract: Studies reveal that 80% of the world''s agricultural land is showing signs of moderate levels of soil erosion. On the other hand, it is a fact that water is becoming a more scarce resource jeopardizing food security. Thus, conserving both water and soil are two of the most pressing issues in international agriculture and food production. This article examines the impact of natural, social, human, and financial capital variables on the adoption of water conservation and soil conservation (WC&SC) as a joint decision, using a bivariate model. Socioeconomic and production information was collected by surveying a random sample of 319 small-scale irrigated farms in central Chile in 2005. The results suggest that the adoption of WC&SC is a joint and complementary decision. The results also indicate that farm size, production system, access to credit, and government incentives are important variables associated with the adoption of conservation measures. From a policy stand point, the institutions in charge of providing incentives and administering instruments intended to promote conservation should take into account the complementarity of the adoption decisions. Program designs should incorporate incentives that jointly promote the adoption of WC&SC in order to enhance effectiveness. [Copyright &y& Elsevier]

Abstract: The agricultural sector accounts roughly for 63% of total annual water utilization worldwide and in developing countries the figure is much higher, with 90% of water use attributable to agriculture. Irrigation plays a crucial role in agricultural production efficiency, risk reduction, food security, and poverty alleviation. Recently, there has been growing concern over climate change and the associated uncertainty with respect to future water scarcity both globally and locally. Therefore, efficient management of water at the farm level is critical to the future sustainability of worldwide and regional agriculture. The objective of this paper is to determine the factors that contribute to the adoption of a number of water conservation practices by small-scale farmers in Central Chile. A survey conducted between October and December of 2005 was designed and implemented in order to determine the socioeconomic and production characteristics for 319 farmers in 32 watersheds. The number of water conservation practices implemented by farmers was examined using a Poisson count data model, and the types of practices were evaluated using Logit and Multinomial Logit models. The results of the econometric analysis show that social capital, farm size and land use play a key role in the adoption of management practices and in generating greater efficiency in water used for irrigation. [Copyright &y& Elsevier]

In Chile, small-scale farmers are classified according to old approaches from 1993 that do not include changes occurred in the last two decades. Maule is the region with most rural population in Chile which represents a significant stratum for development, innovation and competitiveness. This study explores a new approach of small-scale farmers -associated with Family Farm Agriculture (AFC) - classification in Chile and it describes a commercial profile or AFC-1 for famers of the Maule Region. A Cluster analysis to determine AFC-1 farmers is used. The analysis includes four association variables: Total Assets, Farm Income, Production Costs and Management Indicators. The results suggest that 16.4% of the farmers have a commercial profile and they could stay out support provided by the National Institute for Agricultural Development (INDAP). This group of farmers would not belong to AFC in short terms. This fact could bring restriction to AFC-1 farmers such as lack of credit access, less investment incentives and technical assistance. Thus, it would expect low process of technology adoption and welfare improvement. New agrarian policies must be warranted to support this important group of farmers with a commercial profile. [ABSTRACT FROM AUTHOR]

Extension services play a crucial role by improving skills and access to information that result in greater farm level innovations, especially on family farms which are the predominant form of agriculture in the world. This study analyzed the connection between strategies implemented by extension services and technology adoption on family farms. Using the case of the Servicio de Asesoría Técnica (SAT) Program, we developed a bottom-up adoption index (AI) for vegetable and berry farmers in three regions of Central Chile. We implemented 10 focus groups totaling 101 participants, all recipients of technical assistance from private extension companies (PECs) funded by the SAT Program. After the focus group sessions, we surveyed participating farmers to gather information on socio-economic attributes and adopted technologies. Using cluster analysis, we identified three groups of farmers according to their adoption intensity. The results indicate that extension strategies used by PECs have distinct effects on the adoption of new technologies. Higher adoption indexes were positively associated with the duration of the extension visits, the number of group activities, and the use of incentives and credits provided by the Chilean government. The value of production and farm size were positively associated with adoption intensity. [ABSTRACT FROM AUTHOR]

• A forestry subsidy implemented in Chile increased exotic forest plantations by small-scale landowners. • Forest expansion had a significant effect on land use changes, replacing pastures, crops and native forest. • Although forestry is an extensive activity, its increase was not correlated with a higher dependence on off-farm income. Forest plantations have increased rapidly in the last three decades, to a large extent due to direct and indirect financial incentives. At the farm level, forestry incentives can affect the investment decisions of small forest landowners and bring socioeconomic externalities or unintended effects associated with farm management. The purpose of this study is to assess the ex post impacts of a forestry subsidy on land use changes and off-farm income experienced by Chilean small forest landowners. A structural equation mediation model (SEM) was estimated using a time frame of 15 years (1998–2013). To reduce the selection bias, propensity score matching (PSM) was performed prior to the estimation of the SEM. Results indicate that the subsidy had a significant effect on land use changes, as it increases forest plantations and replaces pastures primarily, but also crops and native forest to a lesser extent. In addition, beneficiaries of the subsidy had a marginal increase in off-farm income not explained by the increase in forest plantation. [ABSTRACT FROM AUTHOR]

The development of sustainable agricultural systems is a challenge in the context of policies and incentives aimed to the conservation of natural resources, especially in rainfed areas. This study examines demographic and productive variables that influence the adoption of soil conservation technologies (terraces and infiltration trenches) in 90 small scale farmers in the rainfed area of Central Chile, at the municipalities of Pencahue and Curepto. A Probit regression model was used which associates the adoption of technologies with the variables such as: age of farmer, family size, farm size, form of land tenure; presence of: tree plantations, greenhouses, composting and animals on the farm; participation in training activities and marketing expertise of the producer. The estimated Probit model has a high predictive power, reaching up to 92,2% of the correctly classified observations. The econometrics results show that the participation in training activities, the farm size, the presence of forest plantations and use of compost influence significantly and positively on the adoption of soil conservation technologies. The analysis not only reveals a positive impact of training on the adoption of high investment conservation practices but also on the incidence of the simple technologies such as use of compost. [ABSTRACT FROM AUTHOR]

The growing demand for the consumption of organic foods at worldwide level presents sales increasing by over five thousand million dollars per year. Demands extended to development countries like it is the Chilean case, which exports 90% of its production getting an internal market with low development for this type of products. The research tries to identify the constructs to characterize the potential consumers of organic foods. A survey was applied to 422 consumers to carry out the research in the Maule Region, central Chile (C. I. = 95.5%; e = 3.0%). The Information was analyzed through multivariante technic denominated factor analysis of principal components. The main results of the research reveal the existence of four dimensions or constructs, corresponding to: (1) benefits of the organic agriculture; (2) healthy feeding; (3) lifestyles; (4) attribute of organic foods. These four factors influence in the attitude and purchase intention for the consumers toward the organic foods. In addition being key elements when formulating market strategies for organic products. [ABSTRACT FROM AUTHOR]

This paper examines the effectiveness of intrinsic and extrinsic motivations on the adoption intensity of sustainable agricultural practices (SAPs) among annual crop farmers in Chile. We use the farmers' attitude towards SAPs as a proxy of intrinsic motivation, while extrinsic motivation is represented by an economic incentive to promote the use of SAPs. The policy program we studied is administered by the Chilean Ministry of Agriculture under the name System of Incentives for the Agro-Environmental Sustainability of Degraded Soils (SIRSD-S. Sustainable behaviour was defined as the adoption of (1) minimum tillage, (2) improved fallow, (3) stubble incorporation, (4) use of manure, and (5) use of compost. A count model was estimated that showed that both sources of motivation, and the interaction between them, significantly predicted the adoption of SAPs. Farmers with low levels of intrinsic motivation depended largely on the SIRSD-S to adopt SAPs, while the incentive was ineffective for intrinsically motivated farmers who adopted more SAPs regardless the presence of extrinsic motivation. Finally, the perception of risk of soil erosion and perceived behavioural control of this risk were found to play a positive role in the adoption of SAPs. • A motivational model of sustainable behavior is estimated at the farm level. • Sustainable behaviour is driven by intrinsic and extrinsic motivations. • Motivations interact negatively, lessening one's effects as the other increases. • A monetary incentive does not affect behaviour when intrinsic motivation is high. • Risk perception and perceived behavioural control foster sustainable agriculture. [ABSTRACT FROM AUTHOR]