New Dimension: Agricultural Multifunctionality (AMF)

by Eugene Pek, 22 October 2008, UTAR Sg Long 

The conventional manner of defining agricultural has evolutionalised from only a single role of food supply to multiple roles to include non-food benefits, better termed as AMF. These extended roles include the functions of economic, social, environment, food security and cultural. They blend well with the concept of sustainable development with calls for not only the environmental concerns but also environmental sustainability, economic sustainability and socio-political sustainability. . The following discussion of the extended roles of agriculture is drawn from the work of Jamal et al. (2006):

1. Economic function

This role relates to the direct economic benefits accrued to farmers from crop planting activities. Jamal found that average farm projects in his sampling site have had slight positive effects on agricultural income and consequently, on total income generation in 2004 and 2005 relative to the previous years.

2. Social function

This function is discussed in three different contexts, i.e.:

2.1  Altruism value (AV)

This is the benefit derived from the traditional sharing of wealth made possible through paddy plantation especially in the muslim community. In the same work, Jamal estimated the AV to be USD10.3 million.

2.2  Employment opportunities

Even though agriculture contributes only 16 percent of the total employment in the country, paddy plantation specifically, does play its role in the provision of employment. On average each hired labourer received payment of some USD 7.90 per day and aggregate returns per annum or the value of employment opportunity benefits is highly substantial at USD 31 million.

2.3 Sheltering function (SF)

This function is critically important in times of economic recession as a taker of excess or unemployed workforce from urban areas. In Malaysia, agriculture has successfully played this role during the 1997 financial crisis. The SF aggregate value during the entire crisis period from 1997–2000 stands at USD 126 million.

3.  Environmental function

Alike the social function, this function is discussed in three different contexts, i.e.:

3.1 Flood mitigation function

Paddy fields are good rain water storage ‘tanks’ during the monsoon seasons, preventing floods in the nearby cities. Jamal asserted that this intangible value is one the most valuable contribution of paddy fields to the ecosystem. The estimated value of the flood mitigation function is approximately USD 0.034 million.

3.2 Heat mitigation function

Literatures show that paddy fields play an important role in heat mitigation. Empirical investigation found that USD 53,350 can be saved from the cost of cooling systems by the reliance of heat mitigation on the ecological function of paddy fields.

3.3 Air pollution reduction function 

Air pollution is one of the environmental problems in the country, much so with the presence of haze sent by the forest fires in the neighboring country, Indonesia during the dry seasons. Haze contains high density of dust particulate matter, PM₁₀. During the hazy days, the PM₁₀ concentration can reach up to 60 μg/m³, 20 percent higher than the standard level. Theoretically, air pollution in an area can be reduced with the presence of paddy fields, as the dust particles can be absorbed by the water retained in the fields. On average the state of Kedah, which is renowned for her paddy fields has lower Air Pollutant Index (API) reading than the more industrialized state of Selangor. Study has found that a total welfare improvement value of USD 2.03 million is accrued to the residents of Alor Setar, the capital city of Kedah state, due to the lower air quality resulted from the ecological functions of paddy fields.

4. Food security

This function of the AMF is to ensure adequate level of rice production in the country at all times for the ever increasing population. Report has found that with a simulation of 20 percent decline in rice production due to the liberalization of free trade, urban Malaysians are willing to pay (WTP) a price premium of 33 percent i.e. around USD 1 per month. As an aggregate the estimated value of this function is USD 9.2 million annually.

5. Cultural function

This cultural function is an addition to Jamal’s selected functions. Like Japan and many other countries, Malaysia values agricultural activities and rural landscape dearly not only for commercial reasons like food exports and tourism but the cultural values they offer that help create strong communal bonds. Agricultural is a way of life to the Japanese as evident in the work of Goda, Kada and Yabe (2006) which talks about these amenities as the pride and ‘brand name’ of their hometowns. Autumn festivals as thanksgiving of good harvest and ‘Obon’ reunion time are still being practiced widely in Japan where family members return to their hometowns in the rural areas to worship their ancestors. In Malaysia, the Gawai Day celebrated in June annually by the Dayaks (natives of Sarawak state) is held for the similar reason of thanksgiving to God for good harvest. Every year crowds of tourists enjoyed themselves in this celebration which is uniquely ‘agricultural-oriented’.

Acknowledging the increasing importance of these agriculture multifunctions, there are efforts in promoting these new dimensions in the country. Activities aim at inculcating more awareness and appreciation of the public are based on the objectives of making more multimedia awareness of AMF and a good example is the television advertisement of Sime Darby (the biggest oil palm producing company in the world), showing the importance of having sustainable palm oil production towards a more balanced growth.

These are important initiatives but may not be sufficient to drive more intervention from the government sector into recognizing AMF as a crucial element in sustainable development. The following sections discusses call for sustainable development (particularly in palm oil production) due to conventional reasons and offer some extended profound thoughts on AMF which may be worth deliberating.