Enoch Owusu-Sekyere, Helena Hansson, Evgenij Telezhenko, Ann-Kristin Nyman and Haseeb Ahmed
The purpose of this paper was to assess the economic impact of investment in different animal welfare–enhancing flooring solutions in Swedish dairy farming.
Abstract
Purpose
The purpose of this paper was to assess the economic impact of investment in different animal welfare–enhancing flooring solutions in Swedish dairy farming.
Design/methodology/approach
The authors developed a bio-economic model and used stochastic partial budgeting approach to simulate the economic consequences of enhancing solid and slatted concrete floors with soft rubber covering.
Findings
The findings highlight that keeping herds on solid and slatted concrete floor surfaces with soft rubber coverings is a profitable solution, compared with keeping herds on solid and slatted concrete floors without a soft covering. The profit per cow when kept on a solid concrete floor with soft rubber covering increased by 13%–16% depending on the breed.
Practical implications
Promoting farm investments such as improvement in flooring solution, which have both economic and animal welfare incentives, is a potential way of promoting sustainable dairy production. Farmers may make investments in improved floors, resulting in enhanced animal welfare and economic outcomes necessary for sustaining dairy production.
Originality/value
This literature review indicated that the economic impact of investment in specific types of floor improvement solutions, investment costs and financial outcomes have received little attention. This study provides insights needed for a more informed decision-making process when selecting optimal flooring solutions for new and renovated barns that improve both animal welfare and ease the burden on farmers and public financial support.
Details
Keywords
Katarina Labajova, Julia Höhler, Carl-Johan Lagerkvist, Jörg Müller and Jens Rommel
People’s tendency to overestimate their ability to control random events, known as illusion of control, can affect financial decisions under uncertainty. This study developed an…
Abstract
Purpose
People’s tendency to overestimate their ability to control random events, known as illusion of control, can affect financial decisions under uncertainty. This study developed an artifactual field experiment on illusion of control for a farm machinery investment.
Design/methodology/approach
In an experiment with two treatments, the individual farmer was either given or not given a sense of control over a random outcome. After each decision, the authors elicited perceived control, and a questionnaire collected additional indirect measures of illusion of control from 78 German farmers and 10 farm advisors.
Findings
The results did not support preregistered hypotheses of the presence of illusion of control. This null result was robust over multiple outcomes and model specifications. The findings demonstrate that cognitive biases may be small and difficult to replicate.
Research limitations/implications
The sample is not representative for the German farming population. The authors discuss why the estimated treatment effect may represent a lower bound of the true effect.
Originality/value
Illusion of control is well-studied in laboratory settings, but little is known about the extent to which farmers’ behavior is influenced by illusion of control.