Andalusia (Spain)

With regards to the regional land use, according to the Yearly Handbook of Agricultural Statistics 2012, the land is distributed as follows: 44% agricultural land, 16% grasslands, 32% forest, natural and semi-natural land, 5% urban areas, and 3% other areas. Olive groves are the main crop, representing 40% of agricultural land (around 15,000 km² – one third of which is irrigated). Also of importance are herbaceous crops (9,000 km² rainfed and 4,000 km² irrigated), other permanent crops (mainly citrus, almond trees, vineyards, etc. totalling 3,000 km²) and coastal intensive irrigated crops (1,000 km²). Within forest land, the system is the agroforestry system “dehesa“, with around 12,000 km².

There are 242,016 farms and they have an average size of 21.1 hectares (14.7 hectares if only utilized agricultural area is considered). However, a large part of the farms is small (around 60% have less than 5 hectares indeed).

Within this case study region there are several hotspots of agricultural and forestry systems (AFS) worth to be empirical analysed because relevant issues regarding the provision of public goods and bads. However, based on stakeholders participating in PROVIDE workshops, the most interesting case study is the mountain olive groves, mostly located in central, northern and north-eastern parts of the region (in the mountainous ranges of Sierra Morena and Sierras Béticas, especially). According to the participants, most important public goods provided by this agricultural system is biodiversity, although fighting climate change and soil conservation are also relevant.

For the purposes of this research, the MOG is characterised as one growing under rainfed conditions in areas with slopes of 15% or more, and average olive yields equal to or less than 2,500 kg/ha. Thus defined, MOG cover 211,000 hectares in Andalusia, representing about 14% of the total area of olive groves in the region.

The low profitability of the activity and the difficulties in employing mechanised farming methods in this type of olive grove make it an extensive, “high nature value” farming system. Indeed, the low intensity work and limited use of agrochemicals, together with the maintenance of long-standing plantations and traditional elements such as walls, hedges, riverbank vegetation, etc. have enabled this system to continue providing environmental public goods, especially those related to biodiversity. In any case, the provision of the biodiversity public good by this agricultural system is under threat due to both the intensification processes aimed at improving productivity and profitability, and the abandonment of agricultural activity on those lands. This reveals the possible existence of a market failure, insofar as the level of biodiversity production is suboptimal from a public perspective, given the growing social demand for it. In such a case, public intervention would be justified in order to encourage the use of agricultural practices that improve the provision of this public good.