New Economics Papers
on Agricultural Economics
Issue of 2005‒08‒13
thirteen papers chosen by

  1. The Impact on Farmers of the Privatization of Integrated Agricultural Monopsonies By Paul Makdissi; Quentin Wodon
  2. Dairy Food Consumption, Production, and Policy in Japan By Campo, Isabelle Schluep; Beghin, John C.
  3. Determinants of Agricultural and Non-Agricultural Livelihood Strategies in Rural Communities: Evidence from Eastern Nigeria By A. Bongo Adi
  4. Cash Rental Rates for Iowa 2005 Survey By Edwards, William M.; Smith, Darnell
  5. Farm Productivity and Market Structure. Evidence From Cotton Reforms in Zambia By Irene Brambilla; Guido G. Porto
  6. Comparing the Stock Market and Iowa Land Values: A Question of Timing By Duffy, Michael
  7. Doha Merchandise Trade Reform: What’s at Stake for Developing Countries? By Anderson, Kym; Martin, Will; van der Mensbrugghe, Dominique
  8. Price Liberalization and Farmer Welfare Under Risk Aversion: Cotton in Benin and Ivory Coast By Paul MAKDISSI; Quentin WODON
  9. How Substitutable is Natural Capital? By Anil Markandya; S. Pedroso
  10. Optimal Pest Control in Agriculture By Thomas Christiaans; Thomas Eichner; Rüdiger Pethig
  11. Dynamics of Biotechnology Research and Industry in India: Statistics, Perspectives and Key Policy Issues By Sachin Chaturvedi
  12. Land, Violent Conflict and Development By Henri-Bernard Solignac Lecomte Henri-Bernard Solignac Lecomte Henri-Bernard Solignac Lecomte; Nicolas Pons-Vignon
  13. The Willingness to Pay for Preventing Environmental Damage By Benno Torgler; Maria A. Garcia-Valiñas

  1. By: Paul Makdissi (Département d'économique, Université de Sherbrooke); Quentin Wodon (AFTPM, World Bank)
    Abstract: International Financial Institutions have advocated the privatization of integrated agricultural monopsonies in developing countries with the hope that competition between private firms under a contract farming system would reduce inefficiencies in production and enable farmers to obtain a higher share of world commodity prices. \ Using a very simple theoretical model, this paper shows however that the impact of privatization and contract farming may not be positive for all farmers.
    Keywords: Privatization, Cotton, Africa, Welfare
    JEL: O13 L1 D42
    Date: 2001
  2. By: Campo, Isabelle Schluep; Beghin, John C.
    Abstract: We explore and investigate Japanese dairy markets. We first provide an overview of consumer demand and how it evolved after World War II. Using historical data and econometric estimates of Japanese dairy demand, we identify economic, cultural, and demographic forces that have been shaping consumption patterns. Then we summarize the characteristics of Japanese milk production and dairy processing and policies affecting them. We next describe the import regime and trade flows in dairy products. The analysis of the regulatory system of the dairy sector shows how its incentive structure affects the long-term prospects of various segments of the industry. The paper concludes with policy recommendations of how to reform the Japanese dairy sector.
    Keywords: consumption, dairy, Japan, milk, policy, trade.
    Date: 2005–08–03
  3. By: A. Bongo Adi (Regional Economic Development, Appropriate Technology & Sciences for Sustainable Development, University of Tsukuba, Japan)
    Abstract: Using primary survey data from two agro-ecologically distinct rural communities in eastern Nigeria, this paper examines the determinants of livelihood diversification away from agriculture as well as the manner in which different agro-ecological determinants affect such diversification. The probability of participating in non-agricultural activities was estimated in an endogeneity-controlled, two-step probit model employing data on household assets, demographics, human capital, as well as a proxy for differences in agro-ecology. Results show that not many households remain undiversified as they combine activities within farming, commerce, skilled non-farm and low skilled non-farm sectors. Both human capital and the agro-climactic variables were found to determine the nature of diversification. Against the backdrop of the recent deagrarianisation thesis, the study found that despite high incidence of diversification, agriculture is not in any significant decline. Policies thus should be aimed at both agricultural and non- agricultural activities. Policies based on the assumption that agriculture is no longer relevant will hurt farming and retard development.
    Keywords: Diversification, Livelihood strategies, subsistence agriculture, agro-ecology, south-eastern Nigeria.
    JEL: D1 D2 D3 D4
    Date: 2005–08–02
  4. By: Edwards, William M.; Smith, Darnell
    Date: 2005–07–25
  5. By: Irene Brambilla (Economic Growth Center, Yale University); Guido G. Porto (The World Bank)
    Abstract: This paper investigates the impacts of cotton marketing reforms on farm productivity, a key element for poverty alleviation, in rural Zambia. The reforms comprised the elimination of the Zambian cotton marketing board that was in place since 1977. Following liberalization, the sector adopted an outgrower scheme, whereby firms provided extension services to farmers and sold inputs on loans that were repaid at the time of harvest. There are two distinctive phases of the reforms: a failure of the outgrower scheme, and a subsequent period of success of the scheme. Our findings indicate that the reforms led to interesting dynamics in cotton farming. During the phase of failure, farmers were pushed back into subsistence and productivity in cotton declined. With the improvement of the outgrower scheme of later years, farmers devoted larger shares of land to cash crops, and farm productivity significantly increased.
    Keywords: cotton marketing reforms, farm productivity
    JEL: O12 O13 Q12 Q18
  6. By: Duffy, Michael
    Abstract: Recent increases in Iowa farmland values and the turbulence in the stock market have resurrected a perennial question. Which is a better investment—the stock market or farmland?
    Date: 2005–07–25
  7. By: Anderson, Kym; Martin, Will; van der Mensbrugghe, Dominique
    Abstract: This paper provides new estimates of the global gains from multilateral trade reform and their distribution among developing countries in the presence of trade preferences. Particular attention is given to agriculture, as farmers constitute the poorest households in developing countries but the most assisted in rich countries. The latest GTAP database (Version 6.05) and the World Bank’s LINKAGE model of the global economy are employed to examine the impact first of current merchandise trade barriers and agricultural subsidies, and then of possible reform outcomes from the WTO’s Doha Development Agenda. The results suggest moving to free global merchandise trade would boost real incomes in Sub-Saharan Africa proportionately more than in other developing countries or high-income countries, despite a terms of trade loss in parts of that region. Net farm incomes would all rise substantially in that and other developing country regions, thereby alleviating rural poverty. A Doha partial liberalization could move the world some way towards those desirable outcomes, but more so the more developing countries themselves cut applied tariffs, particularly on agricultural imports.
    Keywords: computable general equilibrium; developing countries; multilateral negotiations; trade policy reform; WTO
    JEL: C68 D58 F13 F17 Q17
    Date: 2005–07
  8. By: Paul MAKDISSI (D´epartement d’´economique and CEREF, Universit´e de Sherbrooke, 2550 boulevard de l’Universit´e, Sherbrooke, Québec, Canada, J1K 2R1); Quentin WODON (LCSPR, World Bank, 1818 H Street, NW, Washington, DC 20433, USA)
    Abstract: Commodity producers in Africa often bene?t from guaranteed and relatively stable prices for their crops. This paper shows how to estimate the required increase in crop price necessary to o¤set the higher risk for farmers that price liberalization would entail due to large variations over time in world commodity prices.
    Keywords: Cotton, Price liberalization, Risk Aversion, Poverty, Benin, Ivory Coast.
    JEL: D81 D63 I30 O13
    Date: 2004
  9. By: Anil Markandya (Fondazione Eni Enrico Mattei, World Bank and University of Bath); S. Pedroso (World Bank)
    Abstract: One of the recurring themes in the sustainability literature has been the legitimacy of using an economic framework to account for natural resources. This paper examines the potential for substituting between different inputs in the generation of income, where the inputs include natural resources such as land and energy resources. A nested CES production function is used to allow flexibility in the estimated elasticities of substitution. Also, with this specification, natural resources and other inputs are combined in different levels of the function, thus allowing for different levels of substitutability. Institutional and economic indicators are also incorporated in the production function estimated. Results show that the elasticities derived from functions involving land resources were generally around one or greater. Furthermore, changes in trade openness and private sector investment have a statistically significant and direct relationship with income generation. No statistically significant relationship between income and any of the institutional indicators was found.
    Keywords: Wealth accounting, Natural resources, Nested CES production function
    JEL: O47 Q24 Q32
    Date: 2005–06
  10. By: Thomas Christiaans; Thomas Eichner; Rüdiger Pethig
    Abstract: Based on economic methodology we model an ecosystem with two species in predator-prey relationship: mice feed on grain and grain feeds on a resource. With optimizing behaviour of individual organisms a short-run ecosystem equilibrium is defined and characterized that depends on the farmer’s use of fertilizer and on the mice population which, in turn, is affected by pesticides. In that way, a microfounded agricultural production function is derived. Linking a sequence of short-run ecosystem equilibria yields the growth function of the mice population which is thus derived rather than assumed. In each period the farmer harvests all grain in excess of some given amount of seed. If she maximizes her present-value profits, optimal farming is shown to depend on the prices of pesticide and grain. It is either optimal to use no pesticide or a moderate amount of pesticide or to apply a chattering control. Pest eradication is never optimal. On the other hand, if the farmer takes into account steady state mice populations only, it may be optimal to eradicate mice or to use no or a moderate amount of pesticide depending on prices as well as on the shape of the grain production function which is determined by micro parameters of grain reproduction.
    Keywords: pesticides, agriculture, predator-prey, chattering pest control
    JEL: Q24 Q57
    Date: 2005
  11. By: Sachin Chaturvedi
    Abstract: The purpose of this paper is twofold. First, an inventory is made of biotechnology data collection in India. This will include an assessment of how the need for biotechnology related statistics is being addressed, mainly in terms of patent data, commercialisation of genetically modified organisms, R&D allocations for biotechnology and industry statistics. In general, limited efforts have been made by different Indian agencies to collect statistics on biotechnology. One of the reasons for this scarcity of statistics is a missing consensus in India on a definition of biotechnology. However, initiatives are underway to address this and to establish a measurement framework. A second objective of this document is to present a broad overview of the status of biotechnology in India, with a focus on the agricultural and the health sector. First the funding and research programmes of various institutions are discussed, followed by an overview of human resources development and training possibilities in the country. A third section discusses capital venture funding and the role of financial institutions, while the last two sections look at initiatives by state governments and the policy regulations in place. <P>Dynamique de la recherche et de l'industrie biotechnologiques en Inde Cet ouvrage répond à un double objectif. Il vise tout d’abord à faire le point sur la collecte des données relatives aux biotechnologies en Inde, notamment à travers une évaluation des solutions apportées aux besoins de statistiques dans les domaines suivants : brevets, commercialisation d’organismes génétiquement modifiés, crédits de R-D consacrés aux statistiques des biotechnologies et de l’industrie. Les différentes instances indiennes concernées ont en général relativement peu investi dans la collecte de statistiques, entre autres parce qu’il n’existe en Inde aucun consensus sur la définition des biotechnologies. Des initiatives ont toutefois été engagées dans le but d’y remédier et d’établir un cadre d’analyse. Cette publication a par ailleurs pour ambition de présenter un vaste panorama des biotechnologies en Inde, en privilégiant plus particulièrement les secteurs de l’agriculture et de la santé. Sont tout d’abord décrits les dispositifs de financement et les programmes de recherche de diverses institutions, puis est présenté un tour d’horizon des perspectives de développement des ressources humaines et de formation. Une troisième section est consacrée à l’analyse du financement du capital-risque et du rôle des institutions financières, tandis que les deux dernières sections passent en revue les actions engagées par les autorités publiques des Etats et les réglementations en place.
    Date: 2005–05–31
  12. By: Henri-Bernard Solignac Lecomte Henri-Bernard Solignac Lecomte Henri-Bernard Solignac Lecomte; Nicolas Pons-Vignon
    Abstract: <P>Land dynamics are context specific and rapidly changing, and conflicts related to them do not systematically escalate into violence. One way of framing the discussion is to consider change in the structures of power governing the management of resources in rural areas as necessary to achieve greater efficiency and equity. Since such change will be opposed by beneficiaries of the system in place, the transformation of agriculture is bound to be marred by conflicts of various intensity levels. At the heart of these conflicts lies land because of its very high material <I>and</I> symbolic values. Evidence shows that (a) whether they result from pre-existing agrarian tensions or not, conflict situations in rural societies deeply affect the politics of land, and (b) whether it is at the heart of a conflict or gets dragged into it, land requires a careful approach by policy makers because it is a central element in the evolution of societies. As a result, policies pertaining to land can ...</P> <P>Les dynamiques foncières sont en mutation permanente et s’inscrivent dans des contextes spécifiques. S’il est vrai qu’elles provoquent des conflits, ceux-ci ne deviennent pas systématiquement violents. Pour mieux comprendre les liens entre terre et conflit, on peut s’intéresser aux structures de pouvoir qui gouvernent la gestion des ressources naturelles : leur transformation est en effet une étape nécessaire à l’amélioration de l’efficacité économique de l’agriculture et à la réduction des inégalités. Parce qu’elle menace les intérêts dominants, une telle transformation provoque toujours des conflits d’intensité variable. Or la question foncière est au coeur de ces conflits, à cause des valeurs économique et symbolique attachées à la terre. A cet égard, deux enseignements peuvent être retenus : d’une part, quelle que soit leur origine, les conflits dans les sociétés rurales affectent profondément les systèmes fonciers ; d’autre part, qu’elles soient à l’origine du conflit ou ...</P>
    Date: 2004–02
  13. By: Benno Torgler; Maria A. Garcia-Valiñas
    Abstract: Since the 70s, an increasing number of studies investigating environmental preferences have been made. However, papers related to a country and its regions or its development over time are still largely lacking, although it is a promising line to search empirically for factors that have been strongly neglected in previous studies. This paper therefore aims at reducing such shortcomings, and analyzes the willingness to pay (WTP) in Spain and its regions for the periods 1990, 1995 and 1999/2000, with data from the World Values Surveys and the European Values Surveys. The results indicate strong regional differences and strong differences between the first and the second half of the 90s. This paper also shows the relevance of strongly neglected variables such as political interest and social capital.
    Keywords: Environment; Willingness to Pay; Regional and Time Preferences; Political Interest; Social Capital
    JEL: Q26 R22 Z13 I21
    Date: 2005–07

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.