(pdf) Difference between Multifunctional agriculture and Multifunctionality of a

3.3 Differences between Multifunctional agriculture and Multifunctionality of agriculture
Multifunctionality of agriculture and Multifunctional agriculture are clearly distinguished. Multifunctionality of agriculture is defined as the numerous benefits in agriculture which may have multiple outputs and accordingly may contribute to the achievement of several societal objectives at once (OECD, 2001). Multifunctional agriculture is defined as economic activities beyond agricultural production activities (VNG, 2011).
Table 2.2 Differences between Multifunctional agriculture and Multifunctionality of agriculture

MOA/MFA	Concepts and definition	Examples
Multifunctionality of Agriculture (MOA)	Social effects by economic activities in agriculture (OECD, 2001)	Landscape, Clean air, History, Flooding prevention, Culture,
Multifunctional Agriculture (MFA)	Economic activities beyond agricultural production (VNG, 2011)	Care farm, direct selling, natural management, eco-experience

 
When speaking about Multifunctional agriculture, it needs first to define the concept. The socio-economic literature on multifunctionality provides several definitions for this concept and uses different terms to describe the same phenomenon. Since this multitude of definitions hampers the research on the topic, impeding for example the search for appropriate literature, it gives an overview of the existing definitions and finally expresses an own viewpoint (Huylenbroeck et al., 2007).
In the broadest sense, Multifunctionality of agriculture includes four kinds of functions provided by agricultural enterprises. The green functions consist, amongst others, of landscape management and the upkeep of landscape amenities, wildlife management, the creation of wildlife habitat and animal welfare, the maintenance of biodiversity, improvement of nutrient recycling and limitation of carbon sinks. Other public benefits that can be created by agriculture are the blue services and contain water management, improvement of water quality, flood control, water harvesting and creation of (wind-) energy. A third kind is called yellow services and refers to the role of farming for rural cohesion and vitality, ambience and development, exploiting cultural and historical heritages, creating a regional identity and offering hunting, agro-tourism and agro-entertainment. Finally, many authors acknowledge the white functions produced by agriculture, such as food security and safety (Aldington, 1998; Dobbs and Pretty, 2001; Harwood, 2003; Moyer and Josling, 2002; Jongeneel and Slangen, 2004).
Many authors give a different interpretation of Multifunctional agriculture. Following Hediger (2004), the concept accounts that agriculture is an economic activity that, beyond its primary function of supplying food and fibre, provides various non-market outputs to society. Multifunctional agriculture is a way in social and spatial view to describe a different farming system that is more territorially embedded, making use of local resources and trying to build a new link between consumers and producers (Wilson, 2001; Renting et al., 2003; van der Ploeg and Roep, 2003). In a sense, this view links both the supply and demand side by relating it to the rural space and the whole agro-food system. Wilson (2004) speaks in this context of multifunctionality as a regime as it reflects a further transition after the shift from productivism to post-productivism in agriculture (Huylenbroeck et al., 2007). As an analytical concept, Multifunctional agriculture refers to the fact that one activity can have different outputs. It is thus related to an economic activity (either a single activity like the cultivation of wheat or a group of activities like food production), while diversification means that different economic activities (e.g. food production and tourism) are combined within the same management unit (in case of the farm or the agricultural sector). Pluri-activity refers to the fact that one person or a group (farmers or rural entrepreneurs) are involved in different activities (e.g. farming and non-farming) (Huylenbroeck et al., 2007). These economic activities are new economic activities that transcend the boundaries of agricultural production activities, and thereby serve as a connection between other agricultural-related companies and city dwellers.
To summarize, Multifunctionality of agriculture is an external effect that occurs in agricultural production activities or rural space, and the external effect is characterized by non-realness and non-exclusivity from consumers. Therefore, this effect can be used by anyone without payment. Meanwhile, Multifunctional agriculture is a program or some practical activities that convert the Multifunctionality of agriculture into economic income.
 
4. Conclusion
Agricultural activities produce external effects, such as the Multifunctionality of agriculture. In 2001, the OECD specified the Multifunctionality of agriculture as the numerous benefits in agriculture which may have multiple outputs and accordingly may contribute to the achievement of several societal objectives at once. This definition of the Multifunctionality of agriculture defines agriculture’s positive externalities, such as environmental goods and environmental preservation, as an additional form of production. Research on this multifunctionality has taken place since the 2000s. However, despite its non-rivalness and non-excludability, it has been failing in the market. Here, it suggest Multifunctional agriculture policies utilizing the Multifunctionality of agriculture as a viable solution to market failures alongside the existing subsidy and direct payment policies.
Multifunctional agriculture, a policy that utilizes the Multifunctionality of agriculture, was first suggested by van der Ploeg and Roep in the Netherlands in 2003. Multifunctional agriculture was defined as a policy that transforms the Multifunctionality of agriculture into one or more service activities. It was suggested that the agricultural market failures can be saved by implementing Multifunctional agriculture policies that transform the external effects of the Multifunctionality of agriculture into economic effects.
In this chapter, the theory and characteristics of Multifunctionality of agriculture and Multifunctional agriculture are clearly distinguished, and the relationship between the two is on the same line. The market failure caused by Multifunctionality of agriculture can be or possibly resolved by the farmers themselves, and it shows that agriculture should not end with simple agricultural production but should be developed as a spatial industry.
 
 
Source : Jung, H.H. 2022, A Valuation Study on Multifunctionality of Agriculture and Multifunctional Agriculture in South Korea: Beyond 6th Industrialization, Kyoto University Doctoral dissertation.
 

Reference link https://multifunctionality.tistory.com/8
 
 

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