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Organisation de Coopération et de Développement EconomiquesOrganisation for Economic Co-operation and Development__________________________________________________________________________________________
DIRECTORATE FOR FOOD, AGRICULTURE AND FISHERIES
Multifunctionality: Applying the OECD frameworkA review of literature in France
by
Dominique Vermersch
2
TABLE OF CONTENTS
MULTIFUNCTIONALITY: APPLYING THE OECD FRAMEWORK A REVIEW OF LITERATURE INFRANCE............................................................................................................................................31.Introduction: Multifunctionality between characteristics and objective..........................................32.Jointness and externalities: The scale rather than the scope...........................................................43.Answers to the questionnaire......................................................................................................7References........................................................................................................................................22
3
MULTIFUNCTIONALITY: APPLYING THE OECD FRAMEWORKA REVIEW OF LITERATURE IN FRANCE
by
Dominique Vermersch
1
1.Introduction: Multifunctionality between characteristics and objective
1.Faced with a potential supply of characteristics linked to agricultural production and a "demandfor multifunctionality" which should reflect collective preferences, France’s position on multifunctionalityis a delicate balance between continued support
in fine
which is not closely tied to intensive production anda redeployment of resources towards a multifunctional agriculture. Contrary to the "naturalist" approach tomultifunctionality which esteems that dissociation of commodity and non-commodity outputs should
a priori
be possible in most cases, the French position places greater emphasis on the social development of multifunctionality based on collective preference as expressed by a broad national consensus. This explainswhy France prefers to act through public intervention rather than by means of market dynamics.
Positive approach, normative approach
2.In the positive approach, multifunctionality is defined by the following specific characteristics of the agricultural production process:(i) The existence of multiple, commodity and non-commodity outputs which are jointly producedby agriculture.(ii) The fact that certain non-commodity outputs exhibit characteristics of externalities or publicgoods, the result being that the markets for these goods either do not exist or function badly.3.The normative approach to multifunctionality defines multifunctionality according to the multiplefunctions assigned to agriculture. Multifunctionality is a characteristic of the agricultural productionprocess but also has a value in itself, and has become a government policy objective destined "to preserveand reinforce the multifunctional character of agriculture, etc.", in particular using agro-food policies(OECD, 1998
a
). Indeed, "beyond its primary function of producing food and fibres, the agriculturalactivity can also create landscapes, supply environmental benefits such as the maintenance of soils, thesustainable management of renewable natural resources and the protection of biodiversity, as well ascontribute to the socio-economic viability of rural areas".4.These functions are not new but benefit from a renewed interest due to the fact that the currenttypes of agricultural production somewhat forsook them. Indeed, the evolution of production structureslargely results from differentiated price support. This evolution result in a reduction of the range of supplied goods, which generates both economies of scale associated with the productions benefiting from
1 .INRA Economie Rennes (Dominique.Vermersch@roazhon.inra.fr)
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