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Making a place for Environmental Management Systems in domestic corn and soybean production: evidence from abroad and from home

A report presented to the Institute for Agriculture and Trade Policy
Minneapolis, Minnesota

Lisa Schulman, Sherry Marin, and Wesley Kelman
Yale Environmental Protection Clinic
May, 2000

 

Table of Contents

Executive Summary

I. Introduction
II. Description of the ISO 14000 Program
III. Assessing the Viability of EMSs in Domestic Agriculture: Consumer Demand, Cost-Savings, Government Interventions, NGOs

A. Framework for Analysis
B. ISO 14000 as a Strategy to Increase Growers’ Revenues: An Analysis of Consumer Demand

1. Consumer Demand for More Eco-Friendly Corn and Soy
2. Is there a market failure?

a. Current eco-labeling practices
b. Current eco-labeling practices: life-cycle assessments
c. Literature assessing private eco-labeling regimes

3. What does ISO 14000 add to the current labeling environment (assuming no government support or other cost-savings)?

C. Cost-Savings

1. Operational Efficiencies
2. Loan and Insurance Discounts

D. Creating a Market for EMS: Interventions by Government and NGOs

1. Framework for Analysis
2. Taxes and Subsidies
3. Tradeable Pollution Permits
4. The Potential Role of NGOs and Trade Organizations
5. The Fear of Regulation

IV. Case Studies: A Review of Existing Voluntary Environmental Management Systems

A. Ontario Environmental Farm Plan
B. EMS in the Australian Grains Industry
C. Cotton Industry in Australia
D. Eco-Management and Audit Scheme
E. LEAF
F. The New Zealand Experience - NOSLaM
G. U.S. Farm *A* Syst Program
H. Gårdcertifiering: Farm Certification in Swedish Agriculture

V. Conclusions and Recommendations

Bibliography

 

Executive Summary

Our inquiry focused on the following questions and answers:

  1. Question Would the ISO 14000 protocol enable corn and soybean farmers to generate a price premium for their products that cannot be achieved under the eco-labeling regimes that are already in place?
  2. Answer We believe the answer to this question at present is "no". While there may be an unfilled niche for an eco-product that is less expensive than organic corn and soybeans, the third-party monitoring system that is currently in place seems more capable of filling this niche than ISO 14000. ISO 14000 would make eco-labeling too cumbersome and costly, owing to the do-it-yourself, process-oriented approach embodied in ISO 14000. However, if farmers could agree to an EMS with simple, substantive standards, such coordination might achieve a product differentiation (and a price premium) that is not currently occurring in the domestic marketplace.

  3. Question Would an ISO 14000 protocol enable farmers to take advantage of long-term cost-savings that could result from farming in a more sustainable and environmentally sound fashion? Are these cost-savings sufficient to offset the high implementation costs of ISO 14000 and other EMSs?
  4. Answer We have no sure answer to these questions. The potential for eco-grower cost-savings is not clear. To be sure, there are cost-savings associated with the operational efficiencies of EMSs, and there may be additional savings from loan and insurance discounts. But the costs of implementing ISO 14000 may be as high as $25,000 per farm, and that is rather high in a business where margins are razor-thin. The case studies suggest that the only way to surmount these costs is through some kind of public subsidy or regulation. A less formal, lower-cost EMS, in which compliance is verified at the group level rather than the individual farmer level, may be viable without subsidies.

  5. Question Does conventional farming produce negative environmental externalities that would justify public subsidies or regulation, and if so, does a subsidized EMS represent a more effective governmental intervention than traditional command and control regulatory approaches?
  6. Answer Here we believe the answer to both questions is "yes". EMS, and ISO 14000 in particular, would benefit from a subsidy helping farmers get over the initial cost hump. Subsidy-induced self-regulation allows farmers to tailor environmental goals to the ecological problems that are most pressing in their own fields. Moreover, more stringent command and control regulations are not on the political horizon.

  7. Question What does the evidence from EMSs initiated by farmers abroad indicate about their potential use in the United States agricultural sector?
  8. Answer. The evidence suggests that 1), ISO 14000 is too expensive and 2), more informal EMSs work best where there is a government subsidy, regulatory pressure, and/or high levels of consumer interest.

I. Introduction

This paper analyzes the circumstances under which voluntary environmental management systems (EMSs) could be successfully implemented in corn and soybean production in the United States. While we draw on evidence from EMS regimes implemented all over the world, a principal focus is on ISO 14000. ISO 14000 is a set of protocols developed by the International Standards Organization, which allows any operation to identify the most appropriate way to measure its environmental performance, and to monitor and improve this performance over time. Our overall conclusion is that existing market incentives are not likely to make ISO 14000 cost-effective for corn and soybean farmers. Absent subsidies or a threat of new regulation, United States agricultural markets would be better suited to a lower-cost EMS that is simpler to implement and more likely to present a uniform standard of environmental quality to consumers than ISO 14000.

Section II describes the ISO 14000 standards in brief. Section III explores market mechanisms and economic incentives for voluntary environmental stewardship in corn and soybean agriculture. Section III also explores the theoretical basis for interventions by government to encourage adoption of ISO 14000 and/or other EMSs. Section IV of this paper surveys case studies, to see how agricultural EMSs have worked elsewhere. Finally, Section V offers conclusions and recommendations for environmental management of Midwest agriculture.

II. Description of the ISO 14000 Program

Since our analysis is concentrated on assessing the viability of ISO 14000 for corn and soybean farmers, it makes sense to begin by describing some of the basic features of ISO 14000.

ISO 14000 is a series of internationally recognized standards, promulgated by the International Standards Organization in 1996 to address the environmental impacts of organizations. The series follows a process or systems approach and does not call for specific prescriptive measures. Instead, it provides general guidelines for developing an environmental management system (EMS) as well as guidance toward environmental auditing, environmental performance evaluation, life-cycle assessment, environmental labeling, and environmental aspects in product standards (ISO 14001, 1995).

ISO 14001 is the cornerstone, or the chief component of the ISO 14000 series, as it outlines the specifications for an environmental management system. There are several key elements within this section, all of which must be satisfied in order to gain registration. The following five principles are to be contained within an EMS: commitment and policy, planning, implementation, measurement and evaluation, and review and improvement. Each organization is required to issue an appropriate environmental policy statement consisting of a commitment to continuous improvement, pollution prevention, and conformance to the law and regulations. The planning portion shall define and clearly communicate the organization’s environmental targets and objectives. A management system must be designed for implementation and maintenance of the plan including information on roles and responsibilities. The measurement and evaluation piece is required to track performance and demonstrate conformance to objectives. A final management review verifies the operation of the EMS as originally planned and determines whether the target goals have been satisfied (Wall, 1997).

While ISO 14001 does not expect participants to achieve particular environmental outcomes, it does expect a commitment to continual improvement of the environmental management system. By following and improving management procedures, one will conceivably find improvements to environmental performance (Bell, 1995).

ISO certification, as granted through a third party auditor accredited by the International Standards Organization, signifies that the proper steps have been carried out toward the implementation of an EMS. It does not take the form of a green label indicating environmental specifications of a particular product for consumers, but instead certifies that a formal management plan has been put into effect. ISO registration does not come without a stiff audit cost, as extensive time and effort is required in review of the proposed organization’s conformance to ISO 14001 requirements. In addition, official documents, training records, EMS audit results, management review records, and results of monitoring and measurements are examined closely (Wall, 1997). These costs and burdens provide at least one explanation for the limited number of ISO 14000 certifications in the United States. By August 1997, only 25 United States companies had become certified under these standards. The fact that certification has been much more widespread in certain EU countries and Japan suggests that there are other factors driving the process.

ISO 14000 is not the only EMS framework that has been developed. A number of less formal voluntary EMS programs have been promulgated by non-profit organizations and governments in states and regions, domestic and foreign. Before considering such programs in detail, we will explore the potential incentives, as well as disincentives, for voluntary environmental management of Midwest agricultural lands.

III. Assessing the Viability of EMSs in Domestic Agriculture:
Consumer Demand, Cost-Savings, Government Interventions

This section focuses on whether corn and soybean farmers would gain anything by adopting ISO 14000 or (to a lesser degree) other EMSs, absent a subsidy or the threat of new regulation. We consider the possibility of a price premium for eco-friendly crops, increased access to foreign markets, and potential cost-savings that might accrue from the more careful husbanding of resources that is associated with ISO 14000 and other EMSs. For most of this section, we defer consideration of new regulation or of a subsidy from an outside source. These types of interventions into the market are considered separately, in Subsection D.

A. Framework for Analysis

For most private goods and services, we rely on the market to equate demand and supply. Without government intervention or regulation, appropriate quantities of products (or services) are produced according to the prices consumers are willing to pay. However, this convenient balancing breaks down when the products involved are public goods and services. Pollution is a public, jointly consumed good. It affects large numbers of heterogeneous victims. Absent mandated control, in theory, the victims of pollution will pay for the levels of abatement that they desire. In reality, however, these payments or bribes do not take place. Each individual’s harm is too insignificant to warrant action by that individual, and although cumulative harms are significant, it is too difficult and costly to bring about group action. With overburdening transaction costs, the market breaks down and provides for no pollution abatement.

Intervention is necessary to compensate for the lack of a "natural" market for pollution damage. Generally, it is the government that intervenes and sets regulations. It is possible, however, for NGOs, trade organizations, and other such groups to create the "artificial" market for pollution damage. In the case of United States agriculture, government intervention for environmental protection has been limited. United States agriculture remains largely untouched in terms of environmental regulations. The result is numerous externalities and environmental damages that are not assigned prices. Consequently, in most cases, there is a lack of a market for sustainably grown foods.

Where the government has intervened, for example in setting standards for organic foods, it has succeeded in creating a niche market. Could the same approach apply to sustainably grown commodities? Probably not, for two reasons. First, the environmental stewardship under study in this paper is fundamentally different than organic standards. This environmental stewardship involves standards of practice, known as Production Processes and Methods (PPMs), more than standards of product. Its provisions are less extreme than organics’, and its benefits do not apply as directly to the individual consumer. Second, as the market stands now, it is not plausible to track commodities, such as corn and soybeans, through the long chain of custody from farm to market. As intermediate goods, corn and soybeans are subject to numerous exchanges and frequent mixing, which preclude the separation of sustainably-grown commodities from those grown under less sustainable practices. Thus, it seems that ecolabels for agricultural commodities are not practical at the present time.

The debate over genetically modified organisms (GMOs), however, may change this paradigm. As more markets reject food that contains GMOs (or includes components produced from GMOs), the momentum builds for "identity preservation" of commodities. For example, Land O’Lakes and Cooperative Business International recently formed a venture, Specialty Grains LLC, that will provide producers "improved access to foreign markets for value-added and identity preserved grains," with an initial focus on identity preserved soybeans and white corn (http://www.farmcredit.com – Reference Library Directory). Moreover, as economist Mike Singer predicts, "next year’s GMO crops likely will need to be segregated, tested, labeled and regulated" (http://www.farmcredit.com – Reference Library Directory). If he is right, ecolabels for corn and soybeans may be a prospect in the near future. Nevertheless, the central question remains: Will consumers be willing to pay a price premium for an ecolabeled good?

B. ISO 14000 as a Strategy to Increase Growers’ Revenues:
An Analysis of Consumer Demand

In this section, we assume that: 1) farmers’ current practices are designed to maximize yield and quality and minimize production cost; and 2) it would be less efficient to engage in more environmentally friendly farming techniques. In fact, environmental management systems may result in cost-savings that were previously hidden, but we defer consideration of this contention until Subsection C, below. We also assume for the moment that state regulation or subsidies are not part of the equation: the question is thus purely whether consumers are willing to pay more of a premium than they already are for food that has been grown in more environmentally friendly ways. Our analysis of the problem indicates that:

1. Consumer Demand for More Eco-Friendly Corn and Soy

Since there is already a rapidly growing market for organic crops—which the federal government is poised to standardize, the most promising new opportunity would seem to be in production systems that do not conform to organic standards, but that afford environmental benefits beyond that typical for a given commodity crop (e.g., chemical fertilizers used, but more restricted use of pesticides). The most important questions are therefore: Are there consumers who might be interested in products in such a niche? How much more would these consumers be willing to pay for these products?

We have found no data answering these questions. However, more general facts suggest the potential viability of this niche. First, there are fairly good data indicating that people are beginning to think about the environment when they go shopping, at least up to a point. Although many consumers consider the relative environmental impacts when purchasing products, a smaller but still substantial number will actually pay a premium for such attributes. A data set gathered in 1991, during the first great wave of eco-labeling enthusiasm, was summarized by one observer as follows:

[The] poll found that seventy-five percent of those surveyed considered important the environmental reputation of a product manufacturer, but only fifty-four percent actually selected a more expensive product for environmental reasons. Similarly, fifty-eight percent of adult men in a separate survey said that aerosols should not be used; yet, eighty-seven percent had purchased aerosols in the previous six months. Nevertheless, the number of consumers considering environmental impacts in their purchasing decisions remains substantial. Nearly one in every two consumers has altered his or her purchasing decisions to help protect the environment.

(Church, 1994. pp. 253-54)

The high price of organic produce is another factor that suggests the viability of a non-organic niche for eco-friendly corn and soy products. On the one hand, food costs in the United States are such a small percentage of average personal income that there would seem to be some room to persuade consumers to pay something above the commodity price. This is supported by the 20% annual growth of the organic market during the last five years (Gutman, 1999). On the other hand, organic products cost considerably more than conventional—although the difference is becoming less pronounced. For example, food-grade soybeans sold for approximately $6 a bushel last year. Food-grade beans that were certified as having been grown chemically free (no pesticide or herbicide applied after planting) sold for approximately $7. Organic food-grade beans sold for $19 to $22 a bushel. (Interview with Pearcy Grain Services, a small family-owned processor of soybeans in Illinois). While the chemically free food-grade soybean market has traditionally been served by small, family-owned processors, the large agribusiness companies have recently made a strong push in the direction of all niche markets (Pearcy, 2000).

We are primarily concerned here with that segment of the corn and soy crop that is destined for human consumption in the form of oils, syrups, tofu, corn, etc., as opposed to animal feed and industrial uses. The human food uses are a small part of the corn crop. Of the portion sold domestically, less than 17% of the United States corn crop is for human consumption. Much of that is in the form of high fructose corn syrup sold to food processors to incorporate into their proprietary beverages, breakfast cereals, etc. About 75% of the crop is dent corn used as feed for livestock. Much of the remainder is used to make ethanol (National Corn Growers’ Association, 2000). Most soy, however, is ultimately fed to humans in the form of oil and foods such as tofu (American Soybeans Association, 2000).

It is unclear whether consumers will show the same level of concern as more transforming processes intervene between the crop and the consumer. On the other hand, the link between health issues and environmental issues is unusually strong with agricultural products. This factor may serve to heighten consumer interest to a higher level than has been observed with other products (e.g., paper products).

A final distinction may be relevant in assessing consumer demand for more eco-friendly corn and soybean products. This is the difference between practices that actually affect the qualities of the crop at the time it reaches the consumer (e.g., less pesticide residue), versus farming practices that include environmental PPMs, (e.g., lower water usage, less cultivation of riparian areas), but do not change the end-product. The industry sources we spoke to were quite adamant that the latter sort of improvements, known in the literature as improvements flowing from "life-cycle assessments," would not command a premium with consumers (Interview with Keith, 2000). However, "life-cycle" attacks have been successful on a few occasions, at least where the bad practice was visibly part of the product, as in the campaign to get McDonald’s to abandon polystyrene hamburger containers.

Some of these distinctions are borne out in the niche markets for more eco-friendly corn and soy products that already exist. These markets are discussed in the next subsection. Overall, we should stress that we have been unable to find any evidence confirming or denying the existence of still-unsatisfied demand for a more moderately priced, non-organic, eco-friendly corn and soybean crop. It is clear that there is cautious interest in this area among processors and retailers. The interest is even greater among growers—the sector least able to drive the market—as they are seeking opportunities to increase income and decrease reliance on undifferentiated commodities.

2. Is there a market failure?

Since consumer demand is the only driver being considered at this point in the analysis, it is logical to ask whether the market is already exploiting this demand effectively on its own. Three phenomena are relevant here: niche markets for eco-crops, identity preservation systems, and monitoring by third parties. Overall, the evidence suggests that markets are partially capable of matching the demand for moderately eco-friendly products with crops that meet that demand. However, this finding is limited to situations involving tangibly superior end products (e.g., fewer pesticides on the final product at the loading dock). Market mechanisms may be less capable of valuing "life-cycle" improvements that do not affect measurable qualities in the end product. However, as we noted in the previous sections, it is not clear that consumers are interested in products that have been grown in a more environmentally friendly fashion, and yet are not tangibly or even symbolically better in terms of health characteristics.

a. Current eco-labeling practices: pesticide-free corn and soybeans

There are already small niche markets for post-harvest, chemical free corn – corn that contains little or no pesticide residues when it is delivered from the farm – as well as certain types of soy products. These products are sold primarily for export to Europe and Japan. They are extremely small fractions of the total crop purchased by the major food processing companies. Our main sources of information here have been Cargill and Pearcy Grain Services (a small family-owned processor of soybeans in Illinois). We note that an ADM grain merchandising specialist also confirmed that ADM passes on to farmers requests from food processors for crops with certain environmental characteristics (Interview with Batchelder of ADM, 2000).

At Cargill, a food manufacturer or exporter may request certain environmental or other criteria, usually concerning pesticide residue (or use) or genetic modification. Cargill then passes on the criteria to farmers. Cargill also agrees to segregate the products, so they are not mixed with conventional products. In return for their added trouble, Cargill gets a premium, part of which is share with the farmer. In addition to the identity preservation system, Cargill operates a verification system to ensure that the farmer has complied with the demands of the Cargill customer. Cargill performs tests to detect pesticides and GMOs. One interesting aspect is that Cargill believes this process adds enough value that it has branded it-"Century Corn." This product has been available for approximately two years (Interview with Pocock, Cargill, 2000.)

Pearcy Grain Services, of Clare, Illinois, has shipped pesticide-free, food grade soybeans to Japan since at least 1995. Mr. Pearcy ships a sample of the soybeans to labs in New Orleans and Missouri where they test for 500 of the more common pesticides. "Chemically free" tags are affixed to the bags of raw soybeans when they are shipped to Japan, along with paperwork from the lab. Mr. Pearcy said that the tag served a function more symbolic than actual, since crops that have been grown in a conventional manner typically do not show post-harvest any residue of the many pesticides and herbicides that have been used on them (Interview with Pearcy, 2000). For evidence of more small operators exploiting the ecological niche for food-grade soybeans sold to Japan, see the listing at: www.ag.uiuc.edu/~stratsoy/ expert/niche95.html. [University of Illinois Extension, "Niche Market Soybeans - Opportunity for Some Soybean Growers in Illinois] Judging by this listing, there seems to be no interest in life-cycle improvements to the farming process that do not result, symbolically or actually, in improvements in soybeans’ chemical features when they are measured at the loading dock.

b. Current eco-labeling practices: life-cycle assessments

It appears that the market is less than adept at giving consumers information about PPMs or life-cycle information, i.e., information about the environmental impacts of agricultural practices that do not affect the quality of the end product. Some of the larger verification laboratories have indicated a willingness to undertake life-cycle assessments, but so far, these assessments have proved to be more controversial than the verification business. One of the testing groups is a privately held firm, Scientific Certification Systems (SCS). Its testing procedures are laid out at www.scs1.com/nutrihome. Like its non-profit competitor, Green Seal, SCS performs life-cycle assessments of the entire operation that produces a particular product.

Despite its availability, life-cycle testing appears not to have caught on – though the reasons for this failure do not indicate that more private sector coordination is the solution. Green Seal’s program appears so far to have limited its life-cycle assessment analyses to manufactured products (paper towels, automobiles). It is not clear whether SCS's life-cycle audits are limited in the same way. Moreover, the life-cycle assessments undertaken by these groups have been criticized for involving far more subjective policy assessments than either group lets on. Critics believe that such judgments are better left to democratically accountable public agencies such as the EPA. Is it better to use genetically modified crops that require fewer pesticides and fertilizers? What is an acceptable level of water usage? Of riparian land use? These trade-offs between cost and environment and between different environmental impacts have not been worked out by experts, let alone by the public. Until they are, it would be difficult to create an easy-to-read, uniform life-cycle standard to which farmers could adhere (Staffin, 1996). In this area, there is a clear market failure, though it is by no means easy to see how cooperation by non-governmental actors could remedy the failure.

c. Literature assessing private eco-labeling regimes

There are two views on whether the current, completely private eco-labeling regime is doing a good job. One view is that the replacement of the current panoply of private standards with a more unitary regime would actually result in less information being given to consumers and in less choice in the market (Church, 1994; Gutman, 1999). The other view is that some kind of government standard-setting is needed because consumers are overwhelmed with misleading information and producers cannot find a single target to concentrate on hitting (Wynne, 1994). The latter view seems to be the majority view among scholars who have approached this subject (Gutman, 1999).

This view – that greater simplicity is desired – appeals to us as well, at least in this context. Once health issues related to the product itself are out of the way, on-farm pollution is not, as yet, a high priority with American consumers in the same way that, say, saving dolphins was in the tuna fish label campaign. Given the current low emotional investment by consumers in the on-farm pollution problem and given further, the highly processed character of most corn and soy crops (discussed above), it is reasonable to surmise that consumers will factor environmental issues into their corn and soybean product purchases only if these issues are crisply presented.

3. What does ISO 14000 add to the current labeling environment (assuming no government support or other cost-savings)?

The key question is whether ISO 14000 would help overcome information deficits in the existing private market that may be hampering the development of domestic ecological niches for corn and soybeans. But in terms of labeling, ISO 14000 adds very little. It allows for certified farmers to develop their own labels, if they wish, and requires that claims on the label be proved either beforehand by auditors, or afterward by interested consumer groups (Stauffer, 1997; Lathrop & Centner, 1998). However, ISO does not provide any mechanism for farmers to develop a uniform label; that is, to supply the key information deficit in the marketplace. If anything, the ISO process encourages farmers to make environmental improvements that are specially tailored to each particular farm, or at best to a group of farms. It is true that under ISO, individual farmers might achieve substantive, self-defined goals that would otherwise have eluded them. However, it would be extremely difficult to convey this achievement to consumers, since each farmer would have different goals.

Nor can an identity preservation system solve this problem. Even where an identity preservation system is used for a niche crop, within that niche the processor will need to mix one farmer’s crops with the crops of many other farmers. All the farmers must come up to the standards of the niche if the standard is to have any meaning to the consumer. This would be impossible under the ISO 14000 regime, which operates on a pluralistic model antithetical to any ready summarization for casual consumers. Moreover, ISO 14000 has lots of (costly) requirements that would produce no tangible differences in the end product.

What about life-cycle assessments, that is, information about farming practices that do not affect the end product’s health characteristics? The market failure here is serious, but again ISO’s pluralistic model offers no real solution. Of course, ISO’s focus on record-keeping and improving the whole organization is a distinct advantage in implementing a life-cycle auditing regime. Indeed, ISO requires a life-cycle assessment, an area where the private sector appears to have fallen down. But what is not clear is that consumers value improvements in this area enough to be willing to pay for it in the supermarket. Additionally, it is uncertain that, even if consumers were willing to pay, that ISO is the appropriate vehicle to "sell" products that are the same as any others in their health and pesticide characteristics (but have been grown in an environmentally friendly fashion.) Again, the flexibility of ISO is the problem; consumers don’t know what they are getting for the money, and we believe they will want a simple label to tell them. The information complexity of a life-cycle assessment will require a lot of tricky judgments and simplifications, and ISO provides no consensus mechanism to accomplish this on a mass scale. Moreover, ISO specifically prohibits using labels advertising ISO certification itself (Interview with Castelnuovo, National Farm*A*Syst, Madison, Wisconsin, 2000).

Thus, we are pessimistic about the possible success of ISO 14000’s in the absence of some kind of government intervention, whether in the form of additional regulation or a subsidy. One study of ISO 14001 registration in the business and institutional furniture industry concluded: "ISO 14001 registration is seen as a non-value-added process with uncertain benefits" (Ruddell & Stevens, 1998). It is hard to see why this conclusion would be different in the food business, where the purchasing decisions by end-users are much more casual and price-driven. While the domestic corn and soybean market may have failed to identify and market an eco-friendly product for which there is latent consumer demand, and while a low-cost, simple, and substantive EMS may cure this failure, it is fairly clear to us that ISO 14000 is not such an EMS. The market failure with respect to "life-cycle assessments" is much more obvious, yet here the complexity of the issue, and the amount of consumer education that will need to occur, are such that private coordination efforts are not likely to succeed.

C. Cost-Savings

In general, the ISO system is predicated in part on the notion that businesses can run more efficiently if they can gather information and process it more scientifically. ISO 14000 is perhaps something of an exception to the general ISO rule, since some improvements in environmental efficiencies do not necessarily result in cost reductions for the private businesses that have undertaken the improvements. Yet there are some areas where cost reductions are in fact likely to flow from better environmental performance. In this section, we attempt to identify those areas.

1. Operational Efficiencies

Although environmental standards are generally perceived as additional economic burdens on farmers, many elements of EMSs, particularly those that aim at improving the efficiency of operations, present opportunities for cost savings. Conservation tillage, soil nutrient testing, and integrated pest management are examples of environmentally superior practices that may save farmers money (Runge, 1997). The former two practices reduce the need for fertilizer applications, while the latter practice reduces the need for pesticides. In addition, farmers who reduce their energy and water usage will save on utility bills. However, government subsidies counteract this incentive for water conservation.

Many small farmers do not have the resources to analyze and optimize their operations. With proper assistance, farmers who implement EMSs, are likely to identify wasteful practices. By reducing or eliminating these inefficiencies, farmers will realize cost-savings. "It is clear that ‘good management practices’ improve the economic results of the farmer through better utilization of resources like nutrients, chemicals, medicine, energy, water, etc." (Bergstrom et. al., 2000, p. 11).

If environmental management can translate into larger profits, why do Midwest farmers so rarely implement environmental management systems? First, it should be emphasized that not all elements of EMSs realize net cost savings. To the contrary, elements such as riparian buffer zones may significantly reduce production—in this case, by decreasing the acreage available for production. It is possible that more Midwest farmers would implement EMSs if the elements were restricted to those that generate cost-savings. However, the tradeoff would be a lower level of environmental protection for society, as certain, perhaps larger, environmental impacts are overlooked. The second barrier to EMSs is the large up-front cost of implementation. Our Cargill interviewee referred to an internal study indicating that it would cost a farmer $25,000 to win ISO certification – an amount approximately equal to many farmers’ annual net incomes (Pocock interview, 2000). While collaboration among farmers may spread out the record-keeping and auditing costs of certification, and while some costs may be offset by long-term payoffs, the costs are still high enough to discourage experimentation. Initially, farmers must be convinced that it is worth exploring the potential benefits of EMSs. Then, they (and where, applicable, their consultants) will need training in environmentally superior farming practices. These barriers could be surmounted through a coordinating body (government, NGO, or trade organization) that provides loans or assistance with start-up costs, disseminates information, and offers training workshops.

2. Loan and Insurance Discounts

Another potential economic incentive for environmental stewardship surfaces through agreements with loan and insurance agencies. These agencies may be willing to offer discounted insurance and/or loan rates to farmers who adopt EMSs or other environmental PPMs, if it can be shown that these practices increase profits or reduce risks. An environmental audit, for example, may address safety risks associated with the handling of hazardous materials (e.g., pesticide storage), while groundwater stewardship and water conservation may reduce liabilities associated with groundwater contamination, runoff, and flooding. These programs are "at the forefront of preventive insurance." This is the conclusion that the North Pointe Insurance Company reached after investigating Farm*A*Syst (FAS) and the Michigan Groundwater Stewardship Program (e-mail from Ruth Kline Robach, via Castelnuovo). In fact, they agreed to offer lower insurance premiums to farmers who completed FAS assessments. Three progressive stages of environmental management entitled farmers to 5%, 5%, and 10% premium reductions, respectively. Although North Point Insurance no longer participates in the program (they ceased their farm insurance programs altogether), another insurance company, Auto Owners, now offers the same discounts over an eight-state region. Moreover, the Antrim Conservation District of Michigan has received an EPA grant to expand this program. The District hopes to sign on the Farm Bureau, for nationwide coverage, and would like to see the program applied beyond liability insurance to include all pollution prevention programs. However, the District notes that they currently have limited resources to run this program and that more publicity and more farmers are needed to ensure its success (personal correspondence with Janet Person, Antrim Conservation District).

Benefits of the Farm*A*Syst program have also been recognized by AgriBank, a regional funding bank for Farm Credit Services. [an 80-year-old, a $60-billion, nationwide network of lending institutions—the largest single provider of credit to American agriculture.] They have included FAS as part of their due diligence process and, in some cases, are offering lower interest rates to farmers who employ "Best Management Practices" (personal correspondence with Castelnuovo, Farm*A*Syst).

Midwest farmers should work cooperatively, through a coordinating body and with the Antrim Conservation District, to locate insurance companies and banks that may be willing to offer insurance and loan discounts to farmers who implement EMSs.

3. Conclusion on Cost-Savings

Particularly at the implementation stage, EMSs are costly and ISO 14000 is very costly. Yet once farmers are over the implementation hump, thorough accounting and record-keeping of environmental practices may lead to some cost-savings, in the form of lower insurance costs, and more efficient and sparing use of soil, pesticide, and water resources. However, the critical question is about the size of these cost-savings and whether they outweigh the implementation costs and the cost of additional record keeping, year-to-year. The case studies (considered in section IV) are our best source of information on this question. They indicate that the financial benefits to the farmer do not greatly outweigh the bureaucratic costs – and thus, there is little incentive to go forward.

D. Creating a Market for EMS: Interventions by Government and NGOs

Since consumer-driven environmental stewardship for agricultural commodities is problematic (at least for now), this section focuses on interventions by government and NGOs. Specifically, it explores the potential to create a market for environmental stewardship via taxes, subsidies, and/or tradeable pollution permits. Each of these mechanisms presents the opportunity to assign prices to environmental harms and internalize their associated costs.

1. Theoretical Framework: Cost-savings to society through pollution prevention

EMSs are essentially a form of self-regulation, in which the farmer identifies his own environmental problems. This approach to fixing environmental problems has the advantage of early detection. For example, it is much cheaper to prevent a hazardous waste spill than it is to clean it up and pay for the damages it incurs. The proper handling of hazardous materials and reduced runoff and flooding has great potential to realize cost savings for society (or government) as a whole. Stated more generally, pollution prevention is cheaper than downstream (end-of-pipe) remediation (Runge, 1997). However, this is only true from the perspective of society as a whole. From the farmers’ perspective, the costs of pollution prevention are very real, while the cost-savings are virtually imperceptible (since they are shared with all of society). Pollution prevention and EMSs place a disproportionate burden on farmers without corresponding benefits. For farmers to justify economically their implementation of EMSs, the benefits (cost-savings) to society must be returned to the farmer in some form of economic incentives.

2. Taxes and Subsidies

A pollution tax assesses a fee for environmental damages. For agriculture, this fee may take a number of forms. It may, for example, be a charge per acre of fertilized (or pesticide-sprayed) soil, or it may be a tax on the fertilizers (or pesticides) themselves. Either way, if the tax is set appropriately, it will drive at least some farmers to reduce their use of fertilizers (or pesticides). It will also create a revenue stream, which the government may in turn reinvest in environmental incentive programs, for example, in subsidies for superior environmental management.

While agricultural pollution taxes may succeed by economic standards, they are likely to fail in the political arena. Historically, in United States agro-environmental policy, penalties have been rare (Runge, 1997). The federal government has far more frequently offered cost-sharing programs or subsidies to reward progressive environmental management, land conservation, or investments in environmental technology. A subsidy could take the form of a price paid to farmers per acre of land farmed under an environmental management system, or per acre of land that is not farmed. In this way, the subsidy compensates the farmer for any losses in crop yield associated with environmental management or land conservation. The federal government’s existing Conservation Reserve Program (CRP), "provides incentives and assistance to farmers and ranchers for establishing valuable conservation practices that have beneficial impacts on resources both on and off the farm. It encourages farmers to voluntarily plant permanent covers of grass and trees on land that is subject to erosion, where vegetation can improve water quality or provide food and habitat for wildlife" (http://www.fsa.usda.gov/dafp/ cepd/12crplogo/page3.htm). This program presents an opportunity for Midwest corn and soybean growers. However, note that "only the most environmentally-sensitive land, yielding the greatest environmental benefits", will be accepted into the program

Of course, the CRP aside, most federal subsidies have the effect of encouraging the over-utilization of resources, and thereby harming the environment. For example, by offering water to farmers at prices below market, government subsidies encourage over-irrigation and discourage water conservation.

3. Tradeable Pollution Permits

The difficulty with administering taxes or subsidies lies in setting the right prices to bring about the desired outcome or environmental target. This difficulty disappears when pollution rights are tradeable. In a tradeable permit system, a governing entity decides upon an aggregate level of pollution and then distributes "rights" to that pollution either freely or through an auction. This system creates a market for pollution (and abatement). The market, in turn, sets a price for the "right" to pollute. One could imagine such a system applied to agriculture. For example, farmers could be given permits for nutrient or fertilizer use. Farmers who reduce their usage below permitted levels could sell their excess rights to other farmers and, thus, increase their profits (Runge, 1997).

4. The Potential Role of NGOs and Trade Organizations

Although taxes, subsidies, and pollution rights are most commonly thought to come from government, it is possible for a private party to set up a similar system of incentives (and disincentives). A trade organization or NGO, for example, could offer its members cost-sharing or assistance for implementing environmental management systems. This alternative third party would need to generate revenue for such programs. They may seek funds from government or from outside investors, or they may set up a self-governing system. The latter option could be akin to the various Business Improvement Districts (BIDs) that have arisen in cities across the United States. These quasi-government groups consist of private property owners in a specified geographic area. The group’s members agree to impose a tax upon themselves and to use their tax-generated revenues for improvements to the neighborhood, including, for example, maintenance and lighting. It is reasonable to believe that a similar group and system could work for Midwest commodity farmers. A self-imposed tax could be collected and used to assist farmers with implementing EMSs or used to hire environmental consultants for group members. Although it is hard to imagine that farmers would choose to be taxed for the purposes of environment protection, it is possible that they would agree to such an arrangement if it were tied to other benefits. A BID-like organization may provide a forum for increased access to markets, information sharing, and other forms of assistance, tailored to sector and regional conditions.

5. Fear of Regulation

Often, industries are motivated to implement EMSs for fear of additional regulation. By pursuing improved environmental performance, businesses hope to avoid regulations and maintain a greater degree of control over their operations. Alternatively, we can think in terms of "getting ahead" of regulations. If a farm or factory starts taking appropriate steps on a voluntary basis, then when the regulations are promulgated, they may already be in compliance or close to it. The fear of regulation is strong and gaining momentum in the farm community as well. As we mentioned earlier, genetically modified organisms (GMOs) are one area where regulation seems to be on the horizon. There has also been discussion of "an EPA proposal to strictly regulate timber harvesting and other segments of agriculture as point sources of pollution using its ‘total maximum daily load’ plan" (http://www.farmcredit.com – Reference Library Directory). In sum, there is some basis to believe agricultural products and processes will be regulated more in the future than they are now, perhaps enough someday to induce farmers to participate in EMSs as a way to avoid government interventions. EMSs can also be used as a means to ease transition to a new regulatory regime. In fact, it is possible that EMSs may become part of the regulatory framework.

IV. Case Studies: A Review of Existing Voluntary Environmental Management Systems

Our assessment of the domestic situation is largely corroborated by a review of EMSs that have been implemented on a micro-scale in the United States, and on a larger scale in certain foreign states. These programs have often succeeded, but not without carrot-and-stick interventions by government and NGOs.

We have examined a number of international and domestic case studies addressing environmental issues and management in agriculture, in an effort to learn more about the various voluntary activities underway. The use of voluntary environmental management systems seems to be growing and catching on abroad quickly, often to avoid future regulation, but also in response to rising community concerns and demand for sustainable agricultural practices. Despite the heavy workload and sometimes exorbitant costs required to implement these environmental management systems, there are a number of very real benefits and rewards that may be reaped. Among the benefits are improved environmental conditions on farms, the power of self-regulation, demonstration of responsiveness and confidence to consumers, promotion of market access, competitive advantage, brand image, recognition, and community responsibility.

To date, many on-farm strategies have evolved to minimize environmental impacts and maximize environmental performance in the agricultural sector. In an effort to learn from past and current lessons, methodologies and approaches to several environmental management plans were reviewed. The following case studies reveal the various approaches to design, planning, implementation, and review of environmental performance in agriculture. Common elements that emerge from these case studies are lower levels of bureaucratic formality and lower costs, compared to the ISO 14000 protocol. As one scientist with the Australian project on sustainable grain production said, "For most broadacre farms, hitting them with ISO 14000 first off is like asking them to do a uni[versity] degree when they have not finished secondary school" (Personal communication with Ridley, 2000).

The following subsections are divided in two: each describes a prominent agricultural EMS that has been implemented somewhere in the world and then summarizes the key issues that are relevant to domestic corn and soybean farms.

A. Ontario Environmental Farm Plan

1. Description of program

The Ontario Environmental Farm Plan (EFP), a project of Canada, was developed in response to community environmental concerns. In an effort to forge ahead, local farmers, tired of continually falling short of governmental regulations, decided to mobilize themselves and set the agenda on environmental management issues on farms (Carruthers & Tinning, 1999). Farm leaders created the Ontario Farm Environmental Coalition (OFEC) and worked together with regulatory agencies and researchers in an effort to design a self-audit process for environmental management on farms. This process based on a whole-farm management approach is known as the Environmental Farm Plan, or EFP. EFP is a self-evaluation/best management practice approach whereby farmers complete a series of workshops on 23 modules related to environmental management. An action plan is then drafted, peer reviewed, and submitted for approval (Carruthers & Tinning, 1999).

OFEC requested and secured assistance from the government to provide technical assistance from field staff and development of printed information in the "Best Management Practices" series of publications. Federal funds were allocated for management of the plan, development of BMP publications, and financial aid to implement the plan in the form of an incentive payment to farmers. An incentive payment in the amount of $1500 per farm is distributed to those farmers who complete, implement, and secure approval of their participation in the EFP. To date, 15,000 out of 35,000 farmers have participated (Ridley et al., 1999a).

Interestingly enough, EFP has been directly compared to the ISO 14000 standard because of their similar elements and has been said to be quite compatible. The way it stands now, there are only a few changes that would be necessary in order to achieve ISO 14000 status, as the Ontario EFP is already very close to meeting the requirements. These additions would include the creation of an environmental policy, provisions for third party on-site auditing, and a continuous improvement commitment (Wall, 1998). Currently, Ontario is conducting a number of pilot projects with local farms to learn more about what is involved in actually certifying to ISO 14000 standards.

2. Key issues and policy implications

The Ontario Environmental Farm Plan is a particularly interesting EMS, since it was initiated by the farmers themselves in an effort to streamline and rationalize compliance with existing (and potential future) regulations. The program’s success is likely attributable to three forms of government intervention: tough environmental regulations, technical assistance (with BMP publications), and financial assistance. The third intervention provides for management of the program, as well as $1500 incentive payments to farmers who adopt EFP. The structure and content of EFP, including self-evaluations, workshops (farmer training), and action plans could serve as a model for environmental management of Midwest agriculture. However, the motivations in the United States would vary from those in Ontario. Since Unites States farmers are subject to relatively little environmental regulation, government would need to compensate for this lack with greater technical and financial assistance. It is likely that the incentive payment to United States farmers would need to be greater than the $1,500 offered to Ontario farmers.

B. EMS in the Australian Grains Industry

1. Description of program

New South Wales (NSW) Agriculture in coordination with the Grains Research and Development Corporation of Australia has been facilitating a three-year research project with five farmer groups to determine the likelihood of the adoption of an EMS by the grain industry (Green Marketing Prospect, 2000). By trying out a flexible approach to a voluntary EMS, it is hoped that farmers will recognize the benefits in taking responsibility for long-term sustainability of their farms and in the area in which they live. Among the benefits are the possibility of improved grain marketability and increased access into expanding international markets (Ridley et al., 1999a).

The program is designed to take place in three stages. The first stage involves a review of the current legislation, regulation, and environmental planning issues. Stage two is the facilitation of workshops to develop EMS guidelines for grain production management. This is followed by a third stage where farmers first review generic EMSs and then become involved in customizing and streamlining them for their own use through farm operation plans, monitoring programs, and corrective actions (Green Marketing Prospect, 2000).

By implementing such a program, grain growers may rest assured knowing that they are supporting sustainable farming practices by responding to community concerns of responsible stewardship and consumer expectations for clean and safe products. In addition, the adoption of these ideas may help to lower costs associated with environmental remediation resulting from poor resource management as well as provide the grains industry and growers with an effective and international standard for environmental issues.

A similar endeavor is underway by the Department of Natural Resources and Environment of Agriculture, Victoria, and the Institute for Integrated Agricultural Development of Agriculture, Victoria, to work with two groups of local farmers to develop a voluntary "on farm" environmental management scheme. The project hopes to determine whether a voluntary farm assessment scheme coupled with "best practice" methodology and group learning is an appropriate tool to deliver an effective environmental management system for grain production. Through the use of "best practice," the intent is that management practices will undergo a change from those in which yield of grain crops are maximized to those in which yields are optimized with regard for both profit and the environmental implications of grain production. The "best practice" approach may be thought of as a "bottom-up" self learning and empowerment approach rather than a traditional, more formal "top-down" approach which might stem from increased regulatory pressure (Ridley, 1999).

2. Key issues and policy implications

These projects serve as pilot investigations, which will continue for the next couple of years. The approaches are intended to evaluate the likelihood of the success of such voluntary environmental management schemes on a larger scale. This research is, in effect, the first step towards identifying the ability of farmers to implement "best practice" on farm and understanding their motivation to address environmental issues associated with grain production.

Project proponents realize that economic and social factors play a role in the success of such programs. As a result, further research is needed to highlight problems surrounding the lack of incentive payments, tax breaks, or subsidies to assist farmers with the costs of carrying out voluntary environmental management schemes in Australia. There is an example of partial tax rebates in one area. However, these may only be claimed after a farmer puts up the full sum of money first—an unrealistic expectation for many Australian farmers. Punitive measures have also been mentioned to help encourage EMS adoption. These include the restriction of farmer access to vital elements involved in running a farm such as water or chemicals. (e-mail, Carruthers, 2000).

C. Cotton Industry in Australia

1. Description of program

The Australian cotton industry is believed to be the most progressive and advanced sector in developing environmental management systems for agriculture. The Best Management Practices (BMP) program, as it is known, was developed, initially, to address the negative environmental image of cotton farming. It has been designed to meet community demands for environmental management by assisting industry with self-regulation through proactive implementation of a regulatory framework rather than reliance on conventional, and thus slower, reaction to increased legislation (Ridley et al., 1999b). A number of groups are responsible for the development and implementation of this program, including the Australian Cotton Cooperative Research Centre (CCRC), Cotton Australia, and the Australian Cotton Industry Council (Cotton Australia, 2000). In addition, cotton growers themselves significantly contribute to the program through compulsory and voluntary research levies on the order of $1.75/bale (matched by the federal government), which funds CCRC and $2/bale for Cotton Australia (e-mail, Williams, 2000).

Through the use of self-assessment worksheets, the BMP program aims to empower farmers to develop an EMS that meets the ISO 14001 standard by the year 2001. However, one observer noted that "ISO 14000 may be too big a jump at this stage." Currently, on farm action plans address high risk areas and strive for minimal environmental impact by focusing on people, soil, water, air, and waste. An audit process, consisting of three levels ranging from a self-audit to a third-party audit, evaluates the plan's effectiveness. The BMP committee hopes to develop credibility with outside industries and the general public through the use of the audit and a BMP Manual. The Manual consists of four modules: farm design and management, pesticide application, integrated pest management, and pesticide storage and handling. In an effort to seek continual improvement and encompass a more holistic approach, a few other modules (occupational health and safety, water management, and dryland cotton production) are under development (Carruthers, 1999b).

A pilot program with 34 growers is underway in an effort to evaluate this BMP approach. To date, at least one cotton farm in Australia, Southernstar Cotton, has secured ISO 14001 certification. The Australian Cotton Industry Council will officially launch this program later this year. They hope to achieve a 60% BMP audit rate of Australian cotton farms within 3 years and eventually, total participation by the remaining farms.

2. Key issues and policy implications

Australia’s BMP program encourages growers to take individual responsibility for environmental protection through continuous improvement. The implementation of BMPs may be thought of as a model for the commodity sector, for it combines sound science and practical farm management to help facilitate the adoption of environmentally responsible sustainable farming systems. While the self-regulation element of Australia’s BMP may be appealing to Midwest farmers, the lack of incentive payments and, especially, the farmer contributions to research are unrealistic. It is questionable whether the program will continue beyond the pilot stage in Australia. It is even more doubtful that such a program, without economic incentives, could succeed in the United States. However, feasibility studies are underway to investigate appropriate incentives and drivers in introducing ISO 14000 broadly across the cotton industry in Australia. A range of incentives is expected to be proposed, particularly related to technology access (email, Williams, 2000).

D. Eco-Management and Audit Scheme

1. Description of program

In 1995, the European Union adopted the Eco-Management and Audit Scheme (EMAS) to facilitate environmental policies with considerations for sustainable development of industry and free trade. EMAS has most often been applied to heavy industries in the EU. However, anticipated provisions will transition this plan to the agricultural sector. EMAS focuses on the improvement of environmental performance with a site-based approach, unlike ISO 14000, which is a system-improvement approach. EMAS includes measures toward environmentally sound management, including development and implementation of a formal environmental management system (EMS), auditing and verification of system and environmental performance, documentation and publication of a "Register of Environmental Impacts," and an annual environmental performance evaluation (Carruthers & Tinning, 1999). Additionally, it specifies the use of economically viable application of best available technology (EVABAT) which calls for technological solutions to problems even if they do not prove to be the best option for the situation (Bell, 1995).

The EMAS is in fact more prescriptive than ISO 14000 and commands more extensive levels of public disclosure on environmental performance. This is the result of pressure from government and non-governmental organizations to adopt EMS. Through a series of eight major steps, EMAS hopes to achieve continuous improvement in environmental performance by establishing policies, programs, and management systems (Carruthers, 1999b).

2. Key issues and policy implications

The EU government initiated EMAS in order to fuel competition and recognition in the EU market, facilitate industry’s participation in government procurement plans, and capitalize on benefits from deregulation. The adoption of EMAS by United States farmers would potentially increase their penetration in the EU market. However, the value of EMAS for domestic sales alone would not justify its implementation. By contrast to conditions in the EU, United States consumers are not willing to pay significant price premiums for sustainably grown agriculture, and the United States government has not made EMS a prerequisite for its procurement plans. This latter distinction highlights an opportunity for the United States government to encourage EMS. Perhaps in the future, agricultural procurement plans will specify the need for an EMS similar to the EU’s EMAS. Ideally, the United States program will replace the technology-based standards of EMAS with performance-based standards.

E. LEAF

1. Description of program

The Linking Environment and Farming Program (LEAF), begun in 1991, is a project of the United Kingdom and part of the European Initiative for Integrated Farming, an alliance of international NGOs and stakeholders focusing on integrated crop management activities. However, in response to public pressure placed on the environmental performance of agriculture, LEAF has since been expanded beyond Integrated Crop Management (ICM) to cover all aspects of farming, including organization and planning on-farm as well as livestock and biodiversity management (Carruthers, 1999b). LEAF is built upon a self-audit process designed to manage environmental issues on-farm. This voluntary whole-farm approach to environmental management affords farmers the freedom to choose the level of participation that is most appropriate for them as well as the security in knowing that the information they provide to LEAF is kept confidential (Ridley et al., 1999b).

The LEAF program aims to develop and promote a few keys areas: integrated crop management (ICM), demonstration farms used for community’s educational purposes, tools/guidelines for farmers, and training and technical information. However, the main component of the program is an audit developed to assist farmers with assessing their environmental performance. The audit includes a self-assessment questionnaire based on seven major areas: organization and planning, soil, crop protection, pollution control and waste management, energy, landscape and wildlife, as well as animal husbandry. Recommendations for areas of improvement and action plans are generated based on the results of the audit. The farmers then use this information to compare environmental performance on farm from year to year in addition to assessing and optimizing inputs in an effort to achieve maximum profits (Ridley et al., 1999b).

The UK agricultural sector views this EMS approach as a useful tool to prepare growers for future environmental responsibility and has responded favorably to it. Some UK food companies are even going so far as to require the completion of a LEAF audit and compliance with integrated crop management in order to enter many fresh produce products into processor or supermarket sales. In fact, companies such as Birdseye, Sainsbury’s, Tesco, and Safeway stores in the UK have released policies which "strongly suggest" completion of audits and protocols in order to gain market entry (Carruthers & Tinning, 1999). As a result, the LEAF brand has been registered and labeling is slated for the future. As of September 1999, the LEAF audit has assessed 10% of the agricultural land in the UK (Ridley et al., 1999a).

2. Key issues and policy implications

The success of this program has been attributed to the farmer-to-farmer support as well as the integrated management approach achieved through the inclusion of all sectors. LEAF suggests the viability of a policy that is cheaper and less formal than ISO 14000. It is a system initiated by NGOs and driven by consumer demand, as evidenced in the requests by food processors and grocery stores. United States agriculture can learn from the farmer-to-farmer support and cost-effectiveness of LEAF, as well as the role of NGOs in its implementation. However, implementation of a LEAF-like program is less likely in the United States (than in the UK) to be consumer driven. Our research, including conversations with United States food processors, indicates that it is unlikely for EMS demand to come from higher levels of the supply chain. Presumably, the processors are unwilling or unmotivated to require EMS, since they are not hearing this demand from their customers (the consumers).

F. The New Zealand Experience - NOSLaM

1. Description of program

In 1996, the North Ontago Sustainable Land Management Group (NOSLaM) from New Zealand developed "ENVIRO-AG" through a grant from the Ministry for the Environment. ENVIRO-AG is an environmental management scheme based on ISO 14001. It consists of a process for assessment and monitoring of farm activities relating to environmental, animal welfare, and product safety issues. Each farmer develops an "Environmental Farm Plan" based on continual improvement according to his or her individual farm needs. Farmers then audit themselves once a year to ensure compliance with the objectives they have previously outlined. In addition, farmers are also subject to audits by NOSLaM every three years and random audits by a third party called SGS New Zealand Ltd. ENVIRO-AG, supported by research funding from AGMARDT and the Ontago Community Trust, is not an accreditation scheme in itself, but it satisfies the requirements of ISO 14000 accreditation (Overview of NOSLaM, 2000). This has been proven to be cost-effective since system requirements for ISO 14000 are dealt with at a group level (Ridley et al., 1999b). Over 80 properties in New Zealand are now using ENVIRO-AG plans, with a few of the first farms having already advanced beyond the audit to become officially ISO 14000 certified. To date, six farms have achieved ISO status with many more applications pending. Talk of developing labels that state, "This product comes from an environmentally friendly farm" is also spreading (Overview of NOSLaM, 2000).

2. Key issues and policy implications

The NOSLaM program is farmer driven and goal-oriented. Its success may be attributed to strong partnerships between the farmer and community as well as the processors, producer boards, and other industry groups. Perhaps the key to NOSLaM’s success is the government grant and NGO assistance that got the program up and running. NOSLaM has also found the group accreditation scheme to be particularly effective based on the cost-effective nature of group coordination for certification of both ENVIRO-AG and ISO 14000 (Overview of NOSLaM, 2000). The lessons of NOSLaM are especially valuable for application to the United States agricultural sector. We believe that government and NGO assistance with start-up costs, as well as cost-savings from group coordination, are key to the success of EMS in Midwest agriculture.

G. US Farm*A*Syst Program

1. Description of program

The U.S. Farm*A*Syst (FAS) Program, begun in 1987 and operating in 46 American states today, is a partnership among government, universities, private businesses, and farmers (Ridley et al, 1999a). This program, developed in response to consumer and community concerns related to pesticide and groundwater contamination, helps farmers determine their risk. This program has since been expanded to whole farm management and provides guidance to farmers in an effort to achieve greater environmental performance and improvement without the fear of punishment from regulatory agencies. By providing direction without specific goals, U.S. Farm *A* Syst remains flexible and can be adapted in different forms by individual states.

This program’s platform, designed around a series of legislated performance standards and best management approaches, was used as the basis for the Ontario EFP and resembles LEAF (Carruthers, 1999a). It consists of fact sheets, questionnaires, worksheets, and action plans. Based on the responses, confidential scores are calculated and recommendations for improvement are formed. To date, 8500 farmers have participated, which is less than 1% of the farmers in America. However, 70% of the 8500 have changed their management practices and 80% have recommended the Farm *A* Syst program to others (Ridley et al., 1999a).

2. Key issues and policy implications

The U.S. Farm*A*Syst program is informal and low cost, centered primarily on the dissemination of information. The major benefits of FAS include improved management skills, reduced risk of regulation, health protection, better credit ratings with lenders, elevated public confidence, and expanded access to financial assistance. FAS is a sign of hope for environmental management of Midwest agriculture. It implies that there is United States demand for environmental management (PPMs), apart from end-product standards. However, the low rate implementation of Farm*A*Syst hints at the small size of this demand. Without consumer demand or subsidies, the incentives for FAS boil down to reduced liabilities and, potentially, insurance and loan discounts. Although these motivations are not currently enough for widespread implementation of Farm*A*Syst, we believe that the program is a scalable model that can be expanded into other regions with the addition of subsidies, expansion of insurance and loan discounts, and greater publicity.

H. Gårdcertifieringä : Farm Certification in Swedish Agriculture

1. Description of program

Gårdcertifieringä is a voluntary program that integrates quality assurance and environmental management, allowing farmers to gain simultaneously ISO 9002 and ISO 14001 certification. Elements of the program include a mapping of the farmer’s regulatory and contractual requirements, an understanding of the farm’s environmental impacts, guidelines for future actions, internal quality and environmental audits, and a commitment to continual improvement.

The underlying principle is management by objectives, which means that the manager himself defines the goals he wants to achieve. There is no prescribed level of compliance defined by the system itself, but existing laws and regulations are of course necessary to follow in order to be certified.

(Bergström et al., 2000, p. 3)

Through Swedish Farm Assured (SFA), a program started in 1997, 39 Swedish farms implemented farm certification. These farms included milk, hog, and vegetable production, and ranged in size from zero to more than five external employees. Farmers who participated in this project received financial support, which covered the costs of certification procedures. Several interesting findings arose from a case study of these farmers, as described in "Farm Certification: Implementing and using quality and environmental management systems in Swedish agriculture" (Bergström et. al., 2000). The most interesting observations for the purposes of this paper involve the motives of farmers. The smaller farmers, those with 5 or fewer external employees, "perceived the financial support as a prerequisite for them to work toward a certification at all…To many farmers two months labour [equivalent to the estimated cost of certification] is much more valuable than a farm certificate. Especially when the market signals still are weak" (Bergström et al., 2000, pp.4, 7). By contrast, the larger farmers perceived certification as a valuable tool to improve their management practices. Other motives for certification included product differentiation, price premiums, and expected future consumer demand. Some stakeholders, for instance local authorities, banks, and insurance companies, have responded positively to farms being certified (Bergström et al., 2000, pp.5).

2. Key issues and policy implications

Farm certification in Swedish agriculture is relatively complex and expensive compared to the EMS programs discussed above. For the purposes of their study, Swedish Farm Assured fully compensated farmers for implementation costs. Subsequent surveys of the farmers indicate that this compensation is essential to the program’s propagation. Most importantly, this case study demonstrates that most small farmers will not adopt an EMS as burdensome as ISO 14000 requires, without significant financial support.

V. Conclusions and Recommendations

If the analysis of current conditions in domestic agriculture provides grounds for pessimism, then the case studies provide some basis for optimism, which is perhaps the best way to conclude our report.

The preceding case studies make it clear that there are different styles and unlimited options for developing and implementing voluntary environmental management systems. It is also evident that an environmental management system need not be burdensome, time-consuming, expensive, and painful. Nonetheless, the case studies confirm our assessment of the domestic agricultural market – namely, that EMSs are expensive enough that some kind of carrot/stick intervention by government or NGOs is required, in the form of subsidies or cost internalizations such as regulation or taxes. Such inducements may be less necessary when and if consumer demand in the United States becomes strong enough to sustain more completely private forms of coordination. Moreover, such demand could allow EMSs to be gradually ratcheted up as consumer awareness grows. The value of an incremental approach is seen most clearly by Ontario Agriculture’s experience in moving towards ISO 14000.

Put more formally, the case studies prompt us to hypothesize that at least one of the following system conditions must exist to provide sufficient economic benefits for EMSs:

In most of the case studies, we observed a combination of the above system conditions. In the case of the Ontario Environmental Farm Plan, farmers are motivated both by tough regulations and an incentive payment. In the LEAF program, there is a stronger consumer demand component. Some caution should be exercised when applying these models to Midwest agriculture, since conditions in the United States vary from conditions abroad. Specifically, the United States is notable 1), for having fewer environmental regulations, and an overall lower threat of future regulation and 2), for there being less consumer demand for food that has been grown in an environmentally friendly fashion. While these drivers appear likely to grow over time, current conditions call for intervention by the government or some other third party that can provide financial assistance for EMS implementation.

In most cases, successful EMSs have been highly flexible and have allowed the farmers to determine, or at least participate in, the promulgation of standards. This latter feature, if expanded to allow farmers free rein in developing the EMSs that they will follow, is one way to circumvent the systems conditions. Presumably, the farmers will choose to implement only those environmental management practices that realize net cost savings. Thus, some level of environmental protection may be achieved without intervention; however, other environmental practices that reduce yields (including some that produce large environmental gains) must be compensated.

One overarching lesson from the case studies is that all of these attempts at implementing EMSs follow an iterative and evolving process. The demonstrated successes of these studies have been the result of an ongoing learning process. None of them has achieved success overnight and all of them show an understanding of the complexity involved in reaching a generic EMS or more importantly, one with ISO 14000 stature. As the Farm certification for Swedish agriculture demonstrates, ISO 14000 is too complex and expensive, at least as a first step for environmental stewardship.

We would like to note here the following conclusions:

The last point above alludes to the role that IATP or another NGO or trade organization may play in bringing EMSs to Midwest agriculture. Each of these organizations may serve as a coordinating body and a hub for information sharing, training workshops on environmentally superior farming techniques, cost-sharing and economies of scale (shared consultants, etc.), cooperative lobbying for government (financial) assistance, and cooperative negotiations for discounts from banks and insurance agencies.

The agriculture sector can forge ahead of government regulation to meet consumer and community environmental and sustainability expectations. Voluntary environmental management systems for agriculture have proven to be worthwhile in several places around the world. Similar programs are both realistic and worthwhile for Midwest corn and soybean growers, especially in light of predicted United States trends: increases in regulatory pressure and market demand for environmental management. Proactive, voluntary environmental stewardship may even ensure that small farmers are not squeezed out of the market when EMSs become mandatory.

 

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"Green Marketing Prospect". Grains Research & Development Corporation. 2000. http://www.innovateaustralia.com:80/spring99/grdc.html

Gutman, Benjamin N. Ethical Eating: "Applying the Kosher Food Regulatory Regime to Organic Food," 108 Yale L.F. 2351. 1999.

"ISO 14000 - Is it Time for Your Company to Become Certified?". Capaccio Environmental Engineering, Inc. 2000. http://www.iso14000.com/Implementation/iso14_cee_overview.htm

"ISO 14001 - Specifications for an EMSNational ISO 9000 Support Group. 1995. http://www.isogroup.iserv.net/14001.html

"Overview of NOSLaM". North Ontago Sustainable Land management Group. 2000. http://noslam.co.nz/welcome.html

Person, Janet. Antrim Conservation District. Personal communication. April, 2000.

Ridley, Anna and Department of Natural Resources and Environment, Agriculture Victoria. "Environmental Best Practice for Sustainable Grain Production". Full Proposal 1999-2000. 1999.

Ridley, Anna, Newton, Phillip, and Agriculture Victoria Rutherglen. "Environmental Best Practice, Farming for the Future". Riverina Farmer Group Notes. September, 1999a.

Ridley, Anna, Froelich, Veronique, and Agriculture Victoria Rutherglen. "What Sort of Environmental Management System Should We Develop?". Riverina Farmer Group Notes. Ocotber, 1999b.

Ridley, Anna. Personal Communication. 2000.

Ruddell, S. & Stevens, J.A. "The adoption of ISO 9000, ISO 14001, and the demand for certified wood products in the business and institutional furniture industry," Forest Products Journal, March, 1998.

Runge, C. Ford. "Environmental Protection from Farm to Market", in Thinking Ecologically, Marian R. Chertow and Daniel C. Esty (eds.), 1997.

Southern Star Cotton Pty. Ltd. 2000. http://www.southernstarcotton.com.au/s-star.htm

"Specialty Grains to focus on white corn, IP soybeans." Farm Credit Services, Reference Library Directory. 2000. http://www.farmcredit.com

Stavins, Robert and Bradley Whitehead. "Market-Based Environmental Policies," in Thinking Ecologically, Marian R. Chertow and Daniel C. Esty (eds.), 1997.

"The New Conservation Reserve Program." Farm Service Agency, USDA. 1997. http://www.fsa.usda.gov/dafp/cepd/12crplogo/page3.htm

"Timber, ag as ‘point source’ polluters." Farm Credit Services, Reference Library Directory. 2000. http://www.farmcredit.com

Wall, Ellen. "International Standards for Environmental Management Systems: Their Implications for North American Agriculture". Paper presented at the Annual Meeting for the Rural Sociological Society and the North American Systems Research and Extension Association Conference. 1997.

Wall, Ellen, Weersink, Alfons, Swanton, Clarence, Farming Systems Research Project and University of Guelph. "Ontario Agriculture and ISO 14000: Is the Time Right". Summary report for the Ontario Farm Environmental Coalition and Ontario Federation of Agriculture. March, 1998.

Wall, Ellen. Personal Communication. 2000.

Williams, Alan. Personal Communication. 2000.

Wynne, Roger D. "The Emperor’s New Eco-Logos? A Critical Review of Scientific Certification Systems Environmental Report Card and the Green Seal Certification Mark Programs," 14 Va. Environmental L. J. 51. 1994.

 

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ISO 14000 and AGRICULTURE: Incomplete Bibliography

Editors note: this bibliography is an incomplete listing of resources that will aid in searching for information regarding agriculture and ISO 14000 - worldwide. Special thanks to Magnus Ljung for contributing information on ISO in Sweden and to Genevieve Carruthers for contributing a list of papers she has authored. This bibliography does not include every reference cited in Appendix II.

Australian Competition and Consumers Commission. 2000. http://www.accc.gov.au
Search for "ISO and Agriculture" at this web site and you will access articles specific to happenings in Australia.

Capaccio Environmental Engineering, Inc. 2000. ISO 14000: Is it time for your company to become certified? http://www.iso14000.com/Implementation/iso14_cee_overview.htm

Carruthers, Genevieve. 1999. Development of environmental management systems for Australian agriculture. Paper presented to the 10th World Congress of Food Science and Technology. Sydney. October 3-8, 1999.

Carruthers, G. 1998. EMS and sustainable beef production (2 papers presented at two workshops). Armidale and Wagga Wagga, New South Wales.

Carruthers, G. and G. Tinning. 1998. Environmental management systems in agriculture. Proceedings of a National Workshop held in Ballina. May, 1998. RIRDC Publication 99/94 October, 1998. http://www.rirdc.gov.au:80/reports/ras/99_94.pdf or http://www.agric.nsw.gov.au

A national workshop on Environmental Management Systems (EMS) in Agriculture was held on 26-28 May 1999, in Ballina, NSW, Australia. The principal objective of the workshop was to bring together delegates and facilitate communication regarding EMS. The long-term goal of this process is the development of a national strategy for the adoption and implementation of environmental management systems in Australian agriculture.

The proceedings provide information on the use and development of EMS in agriculture, and indicate the need for the development of policy, regulations and strategies for the practical implementation and support of EMS. Prepared by Genevieve Carruthers and Gavin Tinning, both with NSW Agriculture, for the Rural Industries Research and Development Corporation.

Carruthers, G. and S. Murray. 1999. Environmental Management Systems and Agriculture: How can they be applied and what are the benefits? Paper No. PEM 002 presented at the 1999 Production and Environmental Monitoring Workshop, UNE, March 1999.

Carruthers, G. 1998. Encouraging farmers to adopt and implement environmental management systems. Paper presented to the Management for Ecological Sustainability Conference, University of Queensland, Brisbane. September 22-24 1998.

Carruthers, G. 1997. Environmental Management Systems and Marketing of Organic Produce. Paper presented to the Organic and Bio-Dynamic Products Workshop, University of Western Sydney. September 289-29,1997.

Carruthers, G. and G. Tinning. 2000. Landcare and Environmental Management Systems: shotgun wedding or match made in Heaven? Paper presented to the Landcare 2000 Conference, Melbourne. March 2-5, 2000.

globeNet: a comprehensive EMS source. 2000. http://www.iso14000.net/
globeNet has an agriculture database that features recent articles and case studies that are ISO 14000 and EMS related. For example, case studies and articles include, "Wisconsin Project Strives for Environmentally Friendly Potato’s with ISO 14000," "Australian Cotton Farm Strives to Produce Green Cotton EMS," and "Fresh Del Monte Produce Announces its Third ISO 14001 Certification."

You must subscribe to globeNet to access the articles and case studies. To subscribe to globeNet, call 301-284-3015.

Hillary, Ruth. 1999. Small and Medium-sized Enterprises and the Environment: Business Imperatives. The Network for Environmental Management and Auditing, UK. ISBN: 1-874719-22-5. 416 pp, hardback. 234x156mm.

This book tackles a largely neglected topic: Small and medium-sized enterprises (SMEs) and their environmental impact. Over 90% of all firms are SMEs. Their importance to the health of national and international economies is recognized. But what of their environmental impact? Individually, this may be small, but collectively, they pose a huge and largely unregulated threat to national and indeed the global environment. In 'SMEs and the Environment' Dr Ruth Hillary brings together an international collection of experts from government, international and national support agencies, academics and the business community to present arguments about the key environmental business imperatives facing the small firm sector.

The book is divided into five sections: In these sections, the book examines the threats such as trade, supply chain issues and legislative compliance but is also solution-oriented, with considerable discussion of the management tools smaller forms can use to improve their environmental performance. It aims to provide practical strategies for smaller firms and to that end includes a range of informative case studies from around the world

To order this book, contact: Samantha Self, Greenleaf Publishing
Aizlewood Business Centre, Aizlewood's Mill, Sheffield S3 8GG UK
Tel: +44 (0)114 282 3475, Fax: +44 (0)114 282 3476
e-mail: greenleaf@worldscope.co.uk, http://www.greenleaf-publishing.com

Institute of Environmental Management and Assessment. 2000. Eco Management & Audit Scheme (EMAS) Competent Body. United Kingdom. http://www.emas.org.uk/

This web site contains the latest information about the scheme and details on how to participate. You can download copies of the EMAS registers, including the register of local authorities who are participating in LA-EMAS. These are updated when new sites are added. You can also download the full text of the EMAS Regulation and copies of the European Commission's proposal to change the scheme, which will incorporate ISO 14001 as the environmental management system requirement and open the scheme to all types of organization.

International Organization of Standardization. 2000. www.iso.ch/
The ISO Survey (PDF format) gives the worldwide certification picture through 1998.

ISO 14000 and Ontario Agriculture: Is the Time Right? 2000. Conference held March 26, 1998. Arboretum Centre, University of Guelph. http://www.oac.uoguelph.ca/www/FSR/iso14000.htm

Topics include why farmers should be interested in Environmental Management Systems, such as ISO 14000, the benefits of ISO 14000 to farmers and the agricultural sector, the costs of implementing ISO 14000 and lessons learned from other certification initiatives. To order a copy of this book, visit the website or phone Ellen Wall: (519) 824-4120 ext 8480 Fax: (519) 763-8933 Email: EWALL@envsci.uoguelph.ca

Kerr, Robert, Aaron Cosbey, and Ron Yachnin. 1998. Beyond Regulation: Exporters and Voluntary Environmental Measures. International Institute for Sustainable Development, Canada.

Krut, Riva and Harris Gleckman. 1998. ISO 14001: A Missed Opportunity for Sustainable Global Industrial Development. Earthscan Publications Ltd, London.

Kuhre, W. Lee. 1995. ISO 14001 Certification: Environmental Management Systems. Upper Saddle River, NJ, Prentice Hall.

Kuhre, W. Lee. 1997. ISO 14020s: Environmental Labeling: Marketing. Upper Saddle River, NJ: Prentice Hall.

Lewis, K.A., and J. Tzilivakis. 2000. Evaluating a technique used to measure environmental performance within agriculture. Originally published in Eco-management and Auditing 5(3): 126-135. 1998. http://www.herts.ac.uk/natsci/Env/aeru/abst1.htm

Morrison, Jason, et al. 2000. Managing a Better Environment: Opportunities and Obstacles for ISO 14001 in Public Policy and Commerce. Pacific Institute for Studies in Development, Environment, and Security.

The Pacific Institute, an independent and non-profit center, that does research and policy analysis in the areas of environment, sustainable development, and international security. Their analysis covers the creation of the ISO standards and their implications for global commerce and environmental protection. Also addressed is the ISO 14001 EMS standard. Three case studies are provided, none of which are agriculturally related and finally, they offer conclusions and recommendations on how the ISO 14000 series standards might be integrated into existing commercial practices, regulatory structures, and trade regimes in a socially equitable and environmentally beneficial manner.

The Pacific Institute, 654 13th Street, Preservation Park, Oakland, CA 94612 www.pacinst.org 510-251-1600

National ISO 9000 Support Group. 1995. ISO 14001: Specifications for an EMS http://www.isogroup.iserv.net/14001.html North Ontago Sustainable Land Management Group. 2000. "Overview of NOSLaM".
http://noslam.co.nz/welcome.html

The North Otago Sustainable Land Management Group (NOSLaM) aims to have North Otago, New Zealand recognized in the market place, both nationally and internationally, as a community operating sustainable farming systems.

NOSLaM's major project is the development of the "ENVIRO-AG" Farm Environmental Certification scheme, modeled on ISO 14001 environmental certification. The "ENVIRO-AG" process helps farmers objectively assess the environmental impact of their farm practices, develop suitable management practices and monitoring methods, then prove their compliance. The farmer controls this process and tailors the plan to suit his or her own needs.

Ruddell, S. and Stevens, J.A. March 1998. The adoption of ISO 9000, ISO 14001, and the demand for certified wood products in the business and institutional furniture industry. Forest Products Journal.

Southern Star Cotton Pty Ltd. 2000. Cotton farm in Australia: ISO certified. http://www.southernstarcotton.com.au/

ISO and AGRICULTURE IN SWEDEN. SWEDISH FARM ASSURED (web site)
http://www.swedishfarmassured.com

Note: The paper we wrote was based on empirical data from farmers involved in this scheme. The product certification used in this market-oriented project, is based on the international standards for quality assurance (ISO 9002) and for environmental performance (ISO 14001). Since the aim of the present scheme is to create a simple and transparent system, these two existing standards have been brought together into an integrated plan for agricultural companies. One of the goals of the farm assurance scheme is to replace the numerous controls undertaken at present with a single, annual audit in order to eliminate unnecessary duplication of work at farm level. The result is a computerised quality assurance and environmental performance plan that can be implemented by all agricultural companies. The system is a template that can be modified according to conditions at the individual farm. This integrated quality assurance program allows complete "one corridor" traceability of all the products that carry its stamp – from their place of origin to the point of sale. By entering the food product code at the homepage, you can follow the product all the way back to the farmer.

SWEDISH SEAL (web site)
http://www.svenskt-sigill.com/eng/index.html

Note: Swedish Seal of Quality targets the food sector's processing industry, wholesalers and retailers, as well as large-scale kitchens and consumers. It is about precision agriculture, with a combination of quality, food safety and environmental sustainability, and a price that enables the concept to cover large volumes. The concept aims to create added value for producers, the processing industry, trade and consumers, while also fulfilling the market's high demands on a controlled, traceable quality raw product which has been produced with particular consideration to food safety and the natural environment. Swedish Seal will be developed in collaboration with producers, customers and consumer/environmental organisations, and marketed to become a well-established brand. Approximately 550 contract farmers produce 125,000 tonnes for Swedish Seal. The Swedish Seal system contains demands of documentation and checklists for control and audit purposes. Each year an independent accounting company, SEMKO Certifying AB (Ltd.), audits the accounts of at least 7% of the farms selected at random. In addition, our own Swedish Farmers' Supply and Crop Marketing Assoc. internal auditors also audit more about 33% of the farms. Audit reports act as a basis for SEMKO's certification of the entire Swedish Seal group of farms. SEMKO AB is generally regarded as Scandinavia's leading test and certification company.

SKÅNE DAIRY (web site - in Swedish)
http://www.skanemejerier.se/miljo/

Note: Skåne Dairy has app. 1400 milk producing suppliers. In Sweden they have been number one in many environmental areas. They were the first dairy industry to be certified according to ISO 14001, registered according to EMAS, implementing an environmental bonus system for their farmers (which will be obligatory), and had the first and currently have most milk producers certified according to ISO 9002 and ISO 14001. Today Skåne Dairy works with three different categories of milk; a) certified according to ISO 9002 and 14001, b) according to the environmental bonus scheme, and c) organic milk.

THE FEDERATION OF SWEDISH FARMERS (web site; mainly in Swedish)
http://www.lrf.se/pavag/gardcert/gardcert.htm

Note: The Federation of Swedish Farmers (LRF) has initiated and supported the implementation and use of quality and environmental management systems. On their homepage they tell us that an implementation is motivated from both a market perspective, as well as a management perspective. When it comes to details about their work, they link to the homepage below.

MILJÖLEDARNA CICCONIA AB (web site; mainly in Swedish)
http://www.ciconia.se/

Note: Miljöledarna Ciconia AB is a consulting company helping other companies and organisations to minimize the environmental effects of their activities. The carrying idea of the work is that there is a connection between financial and environmental issues. We help our customers by developing tailor-made systems where the organisation´s impact on the environment is translated into facts and figures. They have developed the concept of Farm Certification, which is a certifiable system according to ISO 9002 and ISO 14001, especially as applied to farms.

ISO-FAKTA NORDEN (web site; in English):
http://www.isofakta.com/

Note: On this homepage you can find information about companies certified according to ISO 9001/2 and ISO 14001 in all Nordic countries. If you search country by country or all countries at the same time, by using the SNI-code (for agriculture it is 01), you will get all certified companies listed with some additional information. When I did that today I got 67 farming/agricultural companies in Sweden, 60 in Denmark, 6 or 7 in Finland, and none in Norway and Iceland. Note that these are listed twice if they are certified according to both ISO 9002 and ISO 14001.

Swedish Farmers and ISO
All of the following websites are in Swedish, but its fully possible to contact the farmers below through their homepages and ask questions in English.

STAFVA GÅRD AB (Farmer: Patrik von Corswant)
http://www.gotlandica.se/stafva/ or
http://www.gotlandica.se/stafva/

WAPNÖ AB (Farmer: Lennart Bengtsson)
http://www.wapno.se/nyheter.htm or http://www.wapno.se/

HÖGESTA GÅRD AB
http://www.skanemejerier.se/webit/Websidor/visaSida.asp?idnr=-411

Richard Riddiford. 2000. The Living Wine Group: a group approach to ISO 14001. Living
Wine Group, New Zealand. http://martinborough-vineyard.co.nz/iso/

In February 1998, the Living Wine group from New Zealand became the 1st vineyard to become ISO 14001 certified. Living Wine is a cooperative group of four wineries. See Riddiford’s paper in the section titled "ISO 14001 and Agriculture: contributed papers" (Appendix II-E).

The Role of On-Farm Quality Assurance and Environmental Management Systems (QA/EMS) in Achieving Sustainable Agriculture and Sustainable Land Management Outcomes. 2000. Ministry of Agriculture and Forestry, New Zealand. http://www.maf.govt.nz/MAFnet/publications/qualsys/httoc.htm

This publication reports on research that investigated the linkages between on-farm Quality Assurance/Environmental Management Systems and the achievement of sustainable agriculture and sustainable land management in New Zealand.

Wall, Ellen. 1997. International Standards for Environmental Management Systems: Their Implications for North American Agriculture. University of Guelph. Ontario. http://www.iatp.org/labels/library/ad…/International_Standards_for_Environmental_Mana.html

Paper presented at the Annual Meetings for the Rural Sociological Society, Toronto, Ontario, Canada, Aug. 12-16, 1997 and the North American Farming Systems Research and Extension Association Conference "Food and Natural Resource Systems: Integrating Diversity, Action and People", Nov. 2-5, 1997. Paper provides general overview, concerns and the basics of ISO 14000 and 14001. The conclusion addresses some possible consequences for agricultural sector from adoption of ISO 14000.

Wall, Ellen, Alfons Weersink, and Clarence Swanton. 1998. Ontario Agriculture and ISO 14000. Farming Systems Research Project and University of Guelph. Summary report for the Ontario Farm Environmental Coalition and Ontario Federation of Agriculture.

The report is divided into four parts. The first is devoted to general background issues including the idea of standards and the role ISO has played in developing them. Part II of the report goes into more specific details concerning ISO 14001 such as requirements for certification. The report then reviews potential costs and benefits from ISO 14001 for the agriculture industry in Part III. Part IV serves as conclusion to the report and includes a number of implications concerning ISO 14000 and Ontario agriculture.

Welford, Richard. 1998. Corporate Environmental Management 1: Systems and Strategies. Second Edition. Earthscan Publications Ltd., London.

This second edition focuses upon EMAS and ISO 14001, while the auditing approach within the ISO 14000 series is also examined. The examination of strategy now places more emphasis on cost reduction and differentiation as a means to achieving a competitive advantage through environmental management, while many areas such as that on life cycle assessment, have been updated.

"Who Will Pay for On-Farm Environmental Improvements in the 21st Century?" 2000. Available at http://www.nal.usda.gov/wqic/ResourceGuide.html.

This guide was produced in support of a symposium that was recently held at the National Agricultural Library (NAL). The guide has two sections: The first contains literature citations selected from AGRICOLA--NAL's database of agricultural literature. Citations cover United States agriculture during the past five years. To find additional citations, search AGRICOLA at http://www.nal.usda.gov/ag98/. The second section contains annotated links to selected World Wide Web sites relevant to the topic.

Information sources in this guide focus on policies and programs related to agriculture and the environment. You'll also find items that examine how these broad policies interface with production factors and issues of environmental stewardship to influence farm-level decisions.

 

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Guidelines for Measuring IPM Adoption in Massachusetts

Craig S. Hollingsworth and William M. Coli
Department of Entomology
University of Massachusetts

In a general sense, integrated pest management (IPM) can be defined as a systematic approach to pest management that considers all factors affecting crop health, including plant nutrition, horticultural practices, and all suitable means of pest suppression. Pest management tactics may include biological, chemical, mechanical, and cultural methods, but different tactics are often required for different crops, pests and climatic situations. Given these broadly defined and variable characteristics, growers and extension specialists have been heard to state that the practice of IPM cannot be defined or measured. The Massachusetts IPM guidelines provides a means to measure the relative adoption of IPM.

The Massachusetts IPM Guidelines: Crop Specific Definitions are a series of research-based best management practices encompassing soil and nutrient management, cultural practices, pesticide application techniques, record-keeping, tactics for insect, disease and weed management and grower education. Specific practices are assigned points on the based on their importance to an IPM system. Bonus points are given for experimental techniques. Some advantages of the point system are: it allows flexibility to design site-specific systems; it encourages use of most desirable practices by weighting; and it allows partial credit for trying a practice on a portion of the farm.

The publication includes guidelines for apple, cole crops, cranberry, field and greenhouse tomato, blueberry, peppers, poinsettia, potato, pumpkin and winter squash, raspberry, strawberry, sweet corn and wine grape.

To assure practicality and relevance, the guidelines were developed with the cooperation of growers, university faculty and extension specialists, private IPM consultants, and commodity associations. Most crop guidelines were used, tested and adjusted through the USDA Farm Service Agency Integrated Crop Management cost-share program (SP-53) and through Massachusetts’ IPM certification program, Partners with Nature.

IPM guidelines can be used in a number of ways: 1) as an educational tool which describes the scope and complexity of IPM to farmers, government officials, community groups and the general public; 2) as a checklist for farmers to evaluate their on-farm pest management programs and identify areas where management can be improved; and 3) to verify and document that IPM is practiced on the farm.

The guidelines received extensive use as an objective tool to document IPM compliance in the Partners with Nature program, which certified over 600 crops on over 100 farms. A discussion of the PWN program is available at: http://www.umass.edu/umext/programs/agro/ipm/educert/pwn.htm

Another application of the Massachusetts IPM guidelines was the assessment of adoption of IPM by sweet corn growers in six northeastern states. The report for this study can be viewed at: http://www.umass.edu/umext/programs/agro/ipm/Reports/craig.html

Massachusetts IPM Guidelines: Crop Specific Definitions, UMass Extension publication IP-IPMA (66 pp.) can be ordered for $6.00 through the UMass Extension Bookstore, Draper Hall, UMass, Amherst MA 01003 and can be also be viewed at the UMass Extension website at: http://www.umass.edu/umext/programs/agro/ipm/ipm_guidelines/

Acknowledgements

The authors especially thank Vicki Van Zee for her important work during the early phases of this project.
Development of the Massachusetts IPM Guidelines was funded by University of Massachusetts Extension, Massachusetts Department of Food and Agriculture and USDA Extension Service under special project number 94-EPMP-1-0049.

Contact:
Craig Hollingsworth, Ph.D
Extension Educator
Department of Entomology
University of Massachusetts
Amherst MA 01003
Tel: 413-545-1055
Fax: 413-545-5858
chollingsworth@umext.umass.edu

 

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