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on Agricultural Economics |
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Issue of 2008‒11‒04
35 papers chosen by |
| By: | Headey, Derek; Bezemer, Dirk; Hazell, Peter B. |
| Abstract: | "Contrary to conventional economic theories, the relationship between income growth and the share of the population within the rural or agricultural sector is extremely diverse, even among regions starting from similar levels of development, such as Asia and Africa. The pattern in developing Asia is characterized by fast growth and slow urbanization, primarily as the result of labor-intensive agricultural growth and strong farm–nonfarm linkages. But for all its success to date, Asia appears to be increasingly vulnerable to rising inequality and jobless growth patterns. Africa presents a divergent pattern of slow growth with rapid urbanization stemming from urban-biased policies, low rural population density, and high rates of population growth. But whereas Africa's path of urbanization without growth presents problems like unemployment, congestion, and food-price inflation, it may also provide new development possibilities through greater political empowerment, lower fertility rates, and agglomeration externalities. The paper concludes with a discussion of how development strategies can address these agricultural exit problems." from authors' abstract |
| Keywords: | economic growth, structural change, Urbanization, agricultural exits, rural to urban migration, rural non-farm employment, Inequality, employment, agglomeration externalities, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:802&r=agr |
| By: | Arne Bigsten (Department of Economics, University of Gothenburg, Gothenburg, Sweden.); Sven Tengstam (Department of Economics, University of Gothenburg, Gothenburg, Sweden.) |
| Abstract: | 1) One can achieve poverty reduction in rural areas of Zambia by both growth and inequality reduction, but growth must be the main driver; 2) Rural income growth does not come from agriculture alone so options to diversify income are very important and should be pursued; 3) But careful attention is required to focus on improved endowments and reduced constraints facing households trying to improve agriculture directly as well as trying to improve possibilities of income diversification away from agriculture; and 4) Land per labourer, education, and location (market access and infrastructure) are key dimensions to understand and figure out how to improve. |
| Keywords: | food security, food policy, Zambia, small holder, poverty, income |
| JEL: | Q20 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:msu:icpbrf:zm-fsrp-pb-030&r=agr |
| By: | David Tschirley (Department of Agricultural, Food and Resource Economics, Michigan State University); T.S. Jayne (Department of Agricultural, Food and Resource Economics, Michigan State University) |
| Abstract: | Concern about humanitarian crises in southern Africa, especially in light of the surge in world food prices since 2007, has been accompanied by calls for direct government action in food markets. This paper reviews how Zambia, Malawi, and Mozambique handled private food markets during the food crises of 2001/02, 2002/03, and 2005/06, which may provide important lessons for the management of future crises. Lack of trust between government and traders can lead to behavior that undermines the interests of each and harms consumers and farmers; Malawi and Zambia have persistently fallen into this trap while Mozambique has partially avoided it. Empirical policy analysis can make an important contribution to resolution only within a consultative process involving a broad range of (often fractious) stakeholders. |
| Keywords: | Southern Africa, Malawi, Mozambique, Zambia, markets, emergency response, trust |
| JEL: | Q18 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:msu:idpwrk:094&r=agr |
| By: | Arne Bigsten (Department of Economics, University of Gothenburg, Gothenburg, Sweden.); Sven Tengstam (Department of Economics, University of Gothenburg, Gothenburg, Sweden.) |
| Abstract: | This paper investigates the relationship between income diversification and income change within Zambian smallholder households, and investigates what the constraints of income diversification are in this group. A panel data set of roughly 7000 smallholder farmer households interviewed in 2001 and 2004 is used. Different combinations of the four main income generating activities – farm income, agricultural wage work, non-agricultural wagework, and own-business income – are analyzed. |
| Keywords: | food security, policy, Zambia, Africa, smallholder, income |
| JEL: | Q18 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:msu:icpwrk:zm-fsrp-wp-031&r=agr |
| By: | Hanley, Nick; Jacobsen, Jette Bredahl |
| Abstract: | This paper is concerned with the empirical relationship between biodiversity conservation values and income. We use random effects panel models to examine the effects of income, and then GDP per capita, on willingness to pay for habitat and biodiversity conservation. In a meta-analysis, 145 Willingness To Pay estimates for biodiversity conservation where existence value plays a major role were collected from 46 contingent valuation studies across six continents. Other effects included in the meta-analysis were the study year; habitat type; continent; scope as presented to respondents; whether WTP bids were for preventing a deterioration or gaining an improvement in conservation, whether a specific species or specific habitat was protected; whether the questionnaire used a dichotomous choice or an open-ended format; distribution format; and the choice of payment vehicle. GDP per capita seemed to perform as well as an explanatory variable as respondent's mean stated income, indicating that it is wealth in society as a whole which determines variations in WTP. Our main conclusion is that the demand for biodiversity conservation rises with a nation's wealth, but the income elasticity of demand is less than one. |
| Keywords: | Environmental Kuznets Curve; existence values; contingent valuation; income effects; meta-analysis |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:stl:stledp:2008-03&r=agr |
| By: | Nhemachena, Charles; Hassan, Rashid M. |
| Abstract: | "Agricultural production remains the main source of livelihood for rural communities in Sub-Saharan Africa, providing employment to more than 60 percent of the population and contributing about 30 percent of gross domestic product. With likely long-term changes in rainfall patterns and shifting temperature zones, climate change is expected to significantly affect agricultural production, which could be detrimental to the region's food security and economic growth. An assessment of the factors influencing farm-level adaptation can facilitate the formation of policies and investment strategies that help moderate potential adverse consequences of long-term climate change. Because smallholder farmers tend to have a low capacity to adapt to changes in climatic conditions, policies that help these farmers adapt to global warming and associated climatic extremes are particularly important. This brief is based on a study that assesses smallholder farmers' adaptation to climate change in southern Africa. The study identifies farmers' perceptions of climate change and the determinants of farm-level adaptation strategies, and recommends policies that could help stabilize national and regional food production given the anticipated adverse effects of climate change." from text |
| Keywords: | Climate change, Small farmers, farm-level adaptation strategies, credit policies, barriers to research information, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:resbrf:15(7)&r=agr |
| By: | Deressa, Temesgen; Hassan, Rashid M.; Ringler, Claudia |
| Abstract: | "This study analyzes the vulnerability of Ethiopian farmers to climate change based on the integrated vulnerability assessment approach using vulnerability indicators. The vulnerability indicators consist of the different socioeconomic and biophysical attributes of Ethiopia's seven agriculture-based regional states. The different socioeconomic and biophysical indicators of each region collected have been classified into three classes, based on the Intergovernmental Panel on Climate Change's (IPCC 2001) definition of vulnerability, which consists of adaptive capacity, sensitivity, and exposure. The results indicate that the relatively least-developed, semiarid, and arid regions—namely, Afar and Somali—are highly vulnerable to climate change. The Oromia region—a wide region characterized both by areas of good agricultural production in the highlands and midlands and by recurrent droughts, especially in the lowlands—is also vulnerable. The Tigray region, which is characterized by recurrent drought, is also vulnerable to the negative impacts of climate change in comparison with the other regions. Thus, investing in the development of the relatively underdeveloped regions of Somali and Afar, irrigation for regions with high potential, early warning systems to help farmers better cope in times of drought, and production of drought-tolerant varieties of crops and species of livestock can all reduce the vulnerability of Ethiopian farmers to climate change." from authors' abstract |
| Keywords: | Climate change, Vulnerability, adaptive capacity, regional states of Ethiopia, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:806&r=agr |
| By: | Block, Paul J.; Strzepek, Kenneth; Rajagopalan, Balaji |
| Abstract: | "Ethiopia possesses abundant water resources and hydropower potential, yet less than 5 percent of irrigable land in the Blue Nile basin has been developed for food production, and more than 80 percent of Ethiopians lack access to electricity. Consequently, the Ethiopian government is pursuing plans to develop hydropower and irrigation along the Blue Nile River in an effort to tap into this underused potential. Although approximately 84 percent of the inflow to Lake Nasser at Aswan, Egypt, initiates from Ethiopia through the Blue Nile and Atbara Rivers, Ethiopia has limited rights to use these resources. Egypt and Sudan, through the Agreement of 1959, are allotted 55.5 and 18.5 billion cubic meters each year, respectively, with no allotment to Ethiopia. In 1998 the Nile Basin Initiative was created to stimulate cooperation among all countries in the Nile basin and work toward amicable alternatives and solutions for water resources benefits. This brief is based on a paper that analyzes potential hydropower generation and irrigation supply for four large-scale dams and reservoirs along the Blue Nile River within Ethiopia—Karadobi, Mabil, Mendaia, and Border—as proposed by the United States Bureau of Reclamation in 1964. The total installed hydropower capacity would be 5,570 megawatts of power, about 2.5 times the potential of the Aswan High Dam in Egypt. Irrigation associated with the Mendaia and Border reservoirs could expand by 250,000 hectares or 35 percent of the estimated total irrigable land in the Blue Nile basin. The challenges of implementation, however, are not inconsequential. The proposed reservoirs not only raise financing, investment, political, and institutional challenges, but may also require many years to fill, which will affect downstream flows depending on variable climate and climate change conditions. Using a model for hydropower and irrigation analysis, the paper explores dam implementation viability under various policy options." from text |
| Keywords: | Integrated water resource management, Irrigation, Hydropower, Climate variability, Climate change, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:resbrf:15(14)&r=agr |
| By: | Arndt, Channing; Benfica, Rui; Tarp, Finn; Thurlow, James; Uaiene, Rafael |
| Abstract: | "Large private investments in biofuels are presently underway in Mozambique. This paper uses an economywide model to assess the implications of these investments for growth and income distribution. Our results indicate that biofuels provide an opportunity to enhance growth and poverty reduction. Overall, the proposed biofuel investments increase Mozambique's annual economic growth by 0.6 percentage points and reduce the incidence of poverty by about six percentage points over the 12-year phase-in period. However, the benefits depend on production technology. Our results indicate that an outgrower approach to producing biofuels is more pro-poor, due to the greater use of unskilled labor and accrual of land rents to smallholders in this system, compared with the more capital-intensive plantation approach. Moreover, the expected benefits of outgrower schemes will be further enhanced if they result in technology spillovers to other crops." from authors' abstract |
| Keywords: | Biofuels, economic growth, Poverty, Developing countries, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:803&r=agr |
| By: | Admassie, Assefa; Adenew, Berhanu; Tadege, Abebe |
| Abstract: | "The potential adverse effects of climate change on Ethiopia's agricultural sector are a major concern, particularly given the country's dependence on agricultural production. Securing Ethiopia's economic and social well-being in the face of climate change requires that policymakers and stakeholders work together to integrate climate change adaptation into the country's development process. Three stakeholder discussion forums held in 2006 in Addis Ababa, Awassa, and Bahir Dar as part of the project, “Food and Water Security under Global Change: Developing Adaptive Capacity with a Focus on Rural Africa,” were attended by representatives of the government, civil society, business sector, and local communities. The forums elicited information to enable policymakers to make more informed decisions related to climate change adaptation. The forums complemented ongoing efforts to develop the National Adaptation Program of Action (NAPA), which is overseen by a steering committee representing government, nongovernment, academic, and research institutions. Under NAPA, multidisciplinary technical working groups have been formed to assess the country's vulnerability to the adverse consequences of climate change, gauge current adaptation efforts, and identify ways in which public agencies could assist in minimizing the adverse impacts of climate change. In addition, two national and eight regional workshops were conducted involving nearly 500 participants with various areas of expertise. Like the stakeholder forums, the workshops solicited information to create greater awareness of climate change, assess the extent of the area's vulnerability, and help identify adaptation options. This brief is based on a paper that presents findings from the stakeholder discussion forums, as well as NAPA's technical working groups and workshops. These meetings explored stakeholders' perceptions of vulnerability to climate change and considered ways in which adaptation measures could be further integrated into Ethiopia's development process." from text |
| Keywords: | Climate change, Vulnerability, Policy recommendations, Adaptation measures, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:resbrf:15(6)&r=agr |
| By: | Equipe Técnica do SIMA |
| Abstract: | This flash presents the perspectives of economic agents active in agricultural marketing of the 2007/2008 crop year compared to previous years. According to the agents interviewed, the current marketing season can be characterized by the following: 1) poor production and low yields for maize, beans, and other crops; 2) early start to the marketing season ; 3) very high prices at the beginning and increases during the period when prices usually decline; 4) strong competition between the formal and informal private sector agents particularly in areas with cell phone coverage; 5) active markets along the routes with best access and with good communication and transport networks; and 6) new economic agents (animal ration industry growing; new maize mills, new export alternatives, local purchase for food aid). With these observations, the agents predict high prices into the future. |
| Keywords: | food security, food policy Mozambique, marketing |
| JEL: | Q18 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:msu:icpbrf:mz-minag-rl-51e&r=agr |
| By: | Gaasland, Ivar; Garcia, Robert; Vardal, Erling |
| Abstract: | "As a result of the Uruguay round, Norway was committed to reducing its domestic support for agriculture, in particular its aggregate measurement of support (AMS), which was to be reduced by 20 percent. We show that Norway has complied with its WTO commitments. However, Norway's AMS and total support have remained stable during 1995-2007, implying that the reduction commitment amounted to no more than reducing the “water under” an inflated AMS bound rate. Thus, the reductions in domestic support have neither affected agricultural policy nor the programs implemented. In fact, Norway has even managed to expand agricultural output relative to the 1986-1988 base upon which agricultural reforms are measured under the Uruguay round agricultural agreement. We analyze the implications of the proposed modalities for reduction commitments on agriculture under the Doha round of WTO negotiations in the Norwegian context. Simulation modeling is conducted to examine the consequences for the Norwegian agricultural sector based on the proposed reduction commitment scenarios. We find that Norway will be able to sustain a high level of agricultural support, thereby maintaining its current agricultural activity and production levels. To achieve this, however, Norway will have to change the composition of domestic support from market price support, paid for by consumers in the form of higher prices, to budgetary support. Market price support will be lower because of lower levels of tariff protection, but this can be offset by exploiting the scope for green box support." from authors' abstract |
| Keywords: | Norwegian agricultural policies, WTO Doha round, WTO compliance, Notification of domestic support, Globalization, Markets, AMS Support, Administered Prices, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:812&r=agr |
| By: | Crewett, Wibke; Bogale, Ayalneh; Korf, Benedikt |
| Abstract: | "Ethiopia experiences a fierce political debate about the appropriate land tenure policy. After the fall of the socialist derg regime in 1991, land property rights have remained vested in the state and only usufruct rights have been alienated to farmers – to the disappointment of international donor agencies. This has nurtured an antagonistic debate between advocates of the privatization of land property rights to individual plot holders and those supporting the government's position. This debate, however, fails to account for the diversity and continuities in Ethiopian land tenure systems. This paper reviews the changing bundles of rights farmers have held during various political regimes in Ethiopia, the imperial, the derg and the current one, at different times and places. Our analysis indicates the marked differences in tenure arrangements after the fall of the empire, but identifies some commonalities in land tenure regimes as well, in particular between the traditional rist system and the current tenure system." authors' abstract |
| Keywords: | Land tenure, Property rights regime, Bundles of rights, Legal pluralism, Devolution, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:worpps:91&r=agr |
| By: | Deressa, Temesgen T.; Hassan, Rashid M.; Ringler, Claudia; Alemu, Tekie; Yesuf, Mahmud |
| Abstract: | "Ethiopia's agricultural sector, which is dominated by smallscale, mixed-crop, and livestock farming, is the mainstay of the country's economy. It constitutes more than half of the country's gross domestic product, generates more than 85 percent of foreign exchange earnings, and employs about 80 percent of the population. Unfortunately, Ethiopia's dependence on agriculture makes the country particularly vulnerable to the adverse impacts of climate change on crop and livestock production. Thus, a deeper understanding of the complex interdependence between changing climatic conditions and Ethiopia's agricultural sector— together with adaptation options—is crucial. Additional information about farmers' awareness of climate change and current adaptation approaches would assist policymakers in their efforts to decrease the country's vulnerability to the adverse impacts of climate change. This brief is based on a study that endeavors to guide policymakers on ways to promote greater adaptation by identifying the household characteristics that increase farmers' awareness of climate change and influence farmers' decision to adapt." from text |
| Keywords: | Climate change, Small farmers, farm-level adaptation strategies, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:resbrf:15(9)&r=agr |
| By: | Yesuf, Mahmud; Bluffstone, Randy |
| Abstract: | "Agricultural production remains the main source of livelihood for rural communities in Sub-Saharan Africa, providing employment to more than 60 percent of the population and contributing about 30 percent of gross domestic product. With likely long-term changes in rainfall patterns and shifting temperature zones, climate change is expected to significantly affect agricultural production, which could be detrimental to the region's food security and economic growth. An assessment of the factors influencing farm-level adaptation can facilitate the formation of policies and investment strategies that help moderate potential adverse consequences of long-term climate change. Because smallholder farmers tend to have a low capacity to adapt to changes in climatic conditions, policies that help these farmers adapt to global warming and associated climatic extremes are particularly important. This brief is based on a study that assesses smallholder farmers' adaptation to climate change in southern Africa. The study identifies farmers' perceptions of climate change and the determinants of farm-level adaptation strategies, and recommends policies that could help stabilize national and regional food production given the anticipated adverse effects of climate change." from text |
| Keywords: | Risk aversion, farm-level adaptation strategies, Small farmers, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:resbrf:15(16)&r=agr |
| By: | Katrina Mullan (University of Cambridge, Department of Land Economy); Pauline Grosjean (Department of Agricultural and Resource Economics, University of California); Andreas Kontoleon (University of Cambridge, Department of Land Economy) |
| Abstract: | This paper examines the impacts of the Chinese Household Responsibility System, which governs rural land tenure, on rural-urban migration. Migration in China has traditionally been limited by the hukou system of household registration, under which individuals who wish to change their place of residence must gain approval from government authorities. This system is currently being relaxed in an attempt to reduce inequalities between rural and urban areas. However, migration will not increase if additional constraints remain for potential migrants. Using a model of the relationship between land tenure arrangements and migration of household members, we examine whether those with greater tenure security and formal rental rights for agricultural or forest land are more likely to participate in labour markets outside the village. The finding that greater tenure security increases migration suggests that the current system of property rights, in which land is periodically reallocated, acts as a constraint on migration. This strengthens the case for further tenure reform for agricultural and forest land. |
| Keywords: | Land tenure security; land rental rights, rural-urban migration, China |
| JEL: | J61 O15 P32 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:lnd:wpaper:200837&r=agr |
| By: | Shewmake, Sharon |
| Abstract: | "This paper uses farmers' responses to exogenous weather shocks in South Africa's Limpopo River Basin to gauge how farmers are apt to respond to future climate change-induced shocks, in particular drought. Droughts are expected to increase in both frequency and intensity as a result of climate change. This study examines the costs of drought today and who it affects the most, in an effort to guide policy adaptations in the future. A combination of descriptive statistics and econometric analysis is used to approximate the potential impact of droughts on rural South African households. This paper also estimates household vulnerability. After controlling for household heterogeneity using propensity score matching, it is noted that there is no statistically significant impact of droughts on income, thus suggesting households have already adapted to living in a drought-prone environment. The types of households that were more vulnerable to climate shocks are analyzed using two measures of vulnerability: the probability of falling below income of 7,800 South African Rand (R), and the probability of income falling below 16,000 R. Residents of the Limpopo province were the least vulnerable under both metrics. Setswana and SeSwati households were more vulnerable than other ethnic groups. Households that do not own livestock and households that rely on rainfed agriculture were also more vulnerable than other households." from authors' abstract |
| Keywords: | Vulnerability, Climate change, drought, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:804&r=agr |
| By: | Ana María Iregui; Jesús Otero |
| Abstract: | This paper applies stationarity tests to examine evidence of market integration for a relatively large sample of food products in Colombia. We fi nd little support for market integration when using the univariate KPSS tests for stationarity. However, within a panel context and after allowing for cross sectional dependence, the Hadri tests provide much more evidence supporting the view that food markets are integrated or, in other words, that the law of one price holds for most products. |
| Date: | 2008–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:col:000092:005102&r=agr |
| By: | Peter Grösche; Colin Vance |
| Abstract: | Understanding the determinants of home-efficiency improvements is significant to a range of energy policy issues, including the reduction of fossil fuel use and environmental protection.This paper analyzes retrofit choices by assembling a unique data set merging a nationwide household survey from Germany with regional data on wages and construction costs. To explore the influence of both heterogeneous preferences and correlation among the utility of alternatives, conditional-, random parameters-, and error components logit models are estimated that parameterize the influence of costs, energy savings,and household-level socioeconomic attributes on the likelihood of undertaking one of 16 renovation options.We use the model coefficients to derive household-specific marginal willingness-to-pay estimates, and with these assess the extent to which free-ridership may undermine the effectiveness of recently implemented programs that subsidize the costs of retrofits. |
| Keywords: | Heterogenous preferences, residential sector, revealed-preference data |
| JEL: | C25 D12 Q4 |
| Date: | 2008–08 |
| URL: | http://d.repec.org/n?u=RePEc:rwi:repape:0058&r=agr |
| By: | Antony Chapoto (Agricultural, Food and Resource Economics Department, Michigan State University); Steven Haggblade (Agricultural, Food and Resource Economics Department, Michigan State University); Julius Shawa; Thomas Jayne (Agricultural, Food and Resource Economics Department, Michigan State University); Michael Weber (Agricultural, Food and Resource Economics Department, Michigan State University) |
| Abstract: | 1) Maize prices are rising rapidly in 2008 and are fast approaching import parity levels. 2) Maize traders, millers and farmers all agree that Zambia will likely require imports by early 2009 in order to avoid domestic maize supply shortages. 3) Official food balance sheets appear to have underestimated the demand for maize this year. They may also have slightly overestimated the size of the 2007/08 maize crop. Hence the slow government recognition of the need for maize imports. 4) As of late September 2008, neither the Government of Zambia (GRZ) nor the private sector have arranged to import maize from South Africa. Trade sources suggest informal imports from Tanzania are helping to relieve the likely shortfall. 5) Zambian policy makers face a delicate balancing act: they need to maintain remunerative prices for farmers, in order to stimulate maize supply response during the coming 2008/09 production season, while at the same time moderating maize meal price increases to protect urban consumers and the many rural households who are net buyers of maize. 6) The time to respond to this balancing act challenge is now rather than later in the marketing season when costs of supplies and transport will increase. 7) Several policy actions offer potential win/win options for balancing these twin concerns: |
| Keywords: | food security, food policy, Zambia, maize, marketing |
| JEL: | Q20 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:msu:icpbrf:zm-fsrp-pb-031&r=agr |
| By: | Isaac Minde; T.S. Jayne (Department of Agricultural, Food and Resouce Economics, Michigan State University); Eric Crawford (Department of Agricultural, Food and Resouce Economics, Michigan State University); Joshua Ariga (Department of Agricultural, Food and Resouce Economics, Michigan State University); Jones Govereh (Department of Agricultural, Food and Resouce Economics, Michigan State University) |
| Abstract: | It is generally agreed that increasing agricultural productivity is critical to stimulating the rate of economic growth in Africa. There are many important and often complementary determinants of agricultural productivity. In this brief and the full paper it draws from, the focus is on fertilizer and improved seed, without intending to imply that they are the only or most significant productivity determinants. Promoting the use of fertilizer and improved seed involves addressing the supply and demand constraints that keep usage rates low, especially among smallholder farmers. Such inputs must be available, affordable, and profitable—for suppliers and farmers alike—without creating untenable financial risks. Agricultural research, input market development, and direct promotion of input use through provision of credit and subsidized distribution are used to improve access to improved inputs and the incentive to use them. Recently, the role of input subsidies in stimulating growth and addressing food security and poverty alleviation objectives has re-emerged as an important agricultural policy debate. Sharp increases in world food and fertilizer prices in 2007 and 2008 have created a sense of urgency in meeting productivity and social welfare goals, and have put fertilizer promotion programs and fertilizer subsidies high on the list of options for government and donor responses to the crisis. |
| Keywords: | Africa, food security, food policy, fertilizer |
| JEL: | Q18 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:msu:polbrf:083&r=agr |
| By: | Birthal, Pratap S.; Jha, Awadhesh K.; Tiongco, Marites; Narrod, Clare |
| Abstract: | "Contract farming is emerging as an important form of vertical coordination in the agrifood supply chain in India, and its socioeconomic consequences are attracting considerable attention in public policy debates. This study is an empirical assessment of the costs and benefits of contract farming in milk using information generated through field surveys in the western state of Rajasthan. Contract farming is found to be more profitable than independent production. Its major benefits come from a reduction in marketing and transaction costs, which are otherwise much higher in the open markets. Contract farming also contributes toward improving milk yield and reducing production costs, albeit not significantly. Dairy producers also benefit from provision of services and technical advice by integrators/firms who secure milk supplies from farmers through contract. The benefits of contract farming vary by scale of operation. Economies of scale are also important determinants of competitiveness, in which large farms (both contract and independent) have lower per unit cost due to buying of inputs in bulk and greater access to markets. Smallholders, on the other hand, derive significant benefits from a reduction in marketing and transaction costs due to their participation in contract farming." from authors' abstract |
| Keywords: | Contract farming, smallholder dairying in India, marketing and transaction costs, milk supply chain, treatment effects model, mass balance approach, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:814&r=agr |
| By: | W.J. Burke (Department of Agricultural, Food and Resource Economics, Michigan State University); T.S. Jayne (Department of Agricultural, Food and Resource Economics, Michigan State University) |
| Abstract: | The goals of this study are: 1) to determine the relative importance of spatial factors in explaining household wealth; 2) to identify the spatial characteristics of the chronically poorest, the consistently well off, and households escaping from poverty as well as descending into poverty; 3) to determine effects of compound disadvantages on the likelihood of chronic poverty; and 4) to assess the evidence of spatial poverty traps (SPTs). Quantitative analysis is conducted using panel data collected from 1275 households, each surveyed four times with a structured questionnaire over an 11 year period from 1997 to 2007. We identified four distinct groups. The chronically poor are defined as households remaining consistently in the bottom third (tercile) of households ranked by wealth in each of the four survey years. Roughly 12.9% of the nationwide sample was found to be chronically poor. The consistently non-poor are defined as households consistently in the upper tercile of households ranked by wealth, and this group formed 16.2% of the total sample. The third and fourth groups were those households found to have risen from poverty (starting in the bottom tercile and ending in the top tercile, the ascending) and those who were in the top asset tercile in 1997 and fell to the bottom tercile by 2007 (the declining). Relatively few households in the sample were in either the upwardly mobile category (3.8%) or the downwardly mobile category (3.6%). |
| Keywords: | Africa, food security, kenya, poverty, spatial |
| JEL: | Q18 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:msu:idpwrk:093&r=agr |
| By: | Quisumbing, Agnes; Meinzen-Dick, Ruth Suseela; Bassett, Lucy; Usnick, Michael; Pandolfelli, Lauren; Morden, Cheryl; Alderman, Harold |
| Abstract: | "The current food price crisis has received widespread attention, but discussions to date have largely overlooked the gender dimensions of the crisis. More than 15 years of rigorous research on gender and intrahousehold resource allocation suggest not only that men and women will be affected differently by the global food crisis, but also that, as both consumers and producers, they will have different stocks of resources with which to respond to rising prices. Although the current situation calls for an urgent national and international response, urgency is not an excuse for misguided policies that fail to address the gender implications of the crisis. Instead, decisionmakers should take this opportunity to incorporate what is known about women's roles in agricultural production and household welfare, and the specific challenges they face, both to craft more effective policy responses and to enable women to respond better to the current challenges and opportunities." from Author's text |
| Keywords: | Food prices, Women, Gender, Social protection, Female farmers, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:polbrf:7&r=agr |
| By: | Jones Govereh (Department of Agricultural, Food and Resource Economics, Michigan State University); T.S. Jayne (Department of Agricultural, Food and Resource Economics, Michigan State University); A. Chapoto (Department of Agricultural, Food and Resource Economics, Michigan State University) |
| Abstract: | The economic reforms in maize marketing and trade policies implemented during the 1990s have been highly controversial, and there remains a lack of solid empirical investigation on the impacts of these reforms on national food security, price stability and rural income growth. This study aims to provide a detailed evidence-based analysis of the impacts of maize marketing and trade policies on smallholder agricultural production growth, access to food by consumers, and other important national policy objectives. These insights from Zambia can hopefully move forward the continuing debate in the region on how maize marketing and trade policies should be structured in the future. |
| Keywords: | food security, policy, Zambia, Africa, maize, trade |
| JEL: | Q18 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:msu:icpwrk:zm-fsrp-wp-033&r=agr |
| By: | Henning, Christian H.C.A. |
| Abstract: | "This paper explores the role of political institutions in determining the ability of agriculture to avoid taxation in developing countries or attract government transfers in industrialized countries. The utilized model is based on a probabilistic voting environment, wherein rural districts are less ideologically committed than urban districts in industrialized countries, and the reverse is true in developing countries. As a consequence, in industrialized (developing) countries rural (urban) districts are pivotal in determining the coalition that obtains a majority, whereas urban (rural) districts are pivotal within the majority itself. In bargaining at the level of the legislature, this generates a conflict between a government that tends to favor rural (urban) districts, and a parliamentary majority that is dominated by urban (rural) concerns. As district size grows and the electoral system converges to a purely proportional system, both of these biases are attenuated. Overall, we see opposing nonlinear relationships between district size and agricultural subsidies on the one hand and district size and taxation on the other. In developing countries, taxation of agriculture first increases and then decreases with district magnitude; in industrialized countries, agricultural subsidization first increases and then decreases with district magnitude. Moreover, the impact of district magnitude on the level of agricultural subsidization is attenuated in presidential versus parliamentary systems, while the level of agricultural taxation is amplified in presidential systems. In the present paper, these findings are first theorized and then empirically confirmed by a cross-country analysis of data from 37 countries over a 20-year period." from authors' abstract |
| Keywords: | political economy of agricultural protectionism, Agricultural policies, Urban-rural differences, political institutions, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:805&r=agr |
| By: | Benin, Samuel; Mogues, Tewodaj; Cudjoe, Godsway; Randriamamonjy, Josee |
| Abstract: | "Using district-level data on public expenditures from 2000 to 2006, and household-level production data from the 2005/06 Ghana Living Standards Survey, this paper estimates the returns to different types of public investments across four agro-ecological zones of Ghana. We then assess the amount of public agricultural expenditures required to raise agricultural growth to 6.9 percent per year until 2015, as this is the target growth needed for Ghana to achieve its goal of middle-income status. The results reveal that provision of various public goods and services has substantial impact on agricultural productivity. A one percent increase in public spending on agriculture is associated with a 0.15 percent increase in agricultural labor productivity, with a benefit-cost ratio of 16.8. Spending on feeder roads ranks second (with a benefit-cost ratio of 8.8), followed by health (1.3). Formal education was negatively associated with agricultural productivity. The estimated marginal effects and returns differ across the four agro-ecological zones. For Ghana to achieve middle income status by 2015, agricultural public spending should grow at an estimated rate of 19.6 percent per year, or by a total amount of GH¢264 million (or US$478 million) per year in 2000 prices over the 2005–2015 period. These requirements are lower if the government is able to achieve a higher efficiency in its public spending than the estimated elasticity of 0.15; this could potentially be achieved by reforming public institutions to improve the provision of agriculture-related public goods and services." from authors' abstract |
| Keywords: | Agricultural development, Public spending, Investments, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:811&r=agr |
| By: | Watson, Fiona; Kriström, Bengt; Colombo, Sergio; Hanley, Nick |
| Abstract: | In contingent valuation, despite the fact that many externalities manifest themselves as costs to some and benefits to others, most studies restrict willingness to pay to being non-negative. In this paper, we investigate the impact of allowing for negative, zero and positive preferences for prospective changes in woodland cover in two UK national parks, the Lake District and the Trossachs. An extended spike model is used to accomplish this. The policy implications of not allowing for negative values in terms of aggregate benefits are also investigated, by comparing the extended spike model with a simple spike making use of only zero and positive bids, and a model which considers positive bids only. We find that ignoring negative values over-states the aggregate benefits of a woodland planting project by up to 44%. |
| Keywords: | spike models; negative WTP; national parks; contingent valuation |
| Date: | 2008–06 |
| URL: | http://d.repec.org/n?u=RePEc:stl:stledp:2008-10&r=agr |
| By: | Diao, Xinshen; Doukkali, Rachid; Yu, Bingxin |
| Abstract: | "This study evaluates the potential impact of the recent rise in world food prices on the Moroccan economy and possible policy options to respond to it. The study focuses mainly on the poverty effects of such an external shock and the possible policy responses to it. A new social accounting matrix (SAM) and a computable general equilibrium (CGE) model have been developed for this study based on micro-level data in combination with sectoral and economywide data. The CGE model simulations show that while increased world food prices hurt poor consumers, the general equilibrium effect of welfare loss is modest. Agricultural producers gain, and benefits to small farmers are especially large. The simulation of import subsidies shows that while such policy options can temporarily stabilize domestic prices, the benefits to consumers are at the expense of producers. However, the model results indicate that there are win-win options for Morocco if policies are based on a longer-term objective. Direct transfers to poor consumers, combined with increased public investment in agriculture to improve agricultural productivity, is a win-win strategy that the government should consider. Low productivity in staple crop production is the dominant reason for poverty among Moroccan farmers. Improving this productivity can also benefit poor consumers by lowering domestic food prices." from authors' abstract |
| Keywords: | Food prices, Agricultural policy, Social accounting matrix, Computable general equilibrium (CGE), Small farmers, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:813&r=agr |
| By: | Block, Paul J.; Strzepek, Kenneth; Rosegrant, Mark; Diao, Xinshen |
| Abstract: | "Numerous studies indicate that agricultural production is sensitive to climate variability, and lack of infrastructure in developing countries increases vulnerability to extreme climate events. In Ethiopia, the historical climate record indicates frequent droughts and floods, which can devastate agricultural production and existing infrastructure. Too much precipitation can flood crops, rot or suffocate roots, and wash out roads, creating similar economic conditions to those resulting from drought. With 85 percent of the population living in rural areas, and most people depending on rainfed agriculture, Ethiopia's social and economic welfare depends heavily on climatic conditions. This brief is based on a paper that uses an economywide, multi-sector, and multi-regional model to assess the impact of climate variability on the outcomes of prospective investment strategies for Ethiopia, as well as on the country's gross domestic product growth rates and poverty rates." from text |
| Keywords: | Climate variability, infrastructure, Investment, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:resbrf:15(12)&r=agr |
| By: | O'Donoghue, Cathal; Hanley, Nick; Hynes, Stephen |
| Abstract: | This paper considers the use of spatial microsimulation in the aggregation of regional environmental benefit values. The developed spatial microsimulation model uses simulated annealing to match the Irish Census of Agriculture data to a Contingent Valuation Survey that contains information on Irish farmers' willingness to pay (WTP) to have the corncrake restored as a common sight in the Irish countryside. We then use this matched farm survey and Census information to produce regional and national total WTP figures, and compare these to figures derived using more standard approaches to calculating aggregate environment benefit values. The main advantage of the spatial microsimulation approach for environmental benefit value aggregation is that it allows one to account for the heterogeneity in the target population. Results indicate that the microsimulation modelling approach provides aggregate WTP estimates of a similar magnitude as those produced using the usual sample mean WTP aggregation at the national level, but yields regional aggregate values which are significantly different. |
| Keywords: | corncrake conservation; willingness to pay; aggregation spatial microsimulation; Environmental benefit value |
| Date: | 2008–06 |
| URL: | http://d.repec.org/n?u=RePEc:stl:stledp:2008-08&r=agr |
| By: | Steven Haggblade (Department of Agricultural, Food and Resource Economics, Michigan State University); Misheck Nyembe (Department of Agricultural, Food and Resource Economics, Michigan State University) |
| Abstract: | Cassava production has grown rapidly in Zambia since the early 1990’s. Available evidence suggests that volumes of traded cassava have been increasing roughly twice as fast as production. Yet this cassava production boom could stall unless commercial markets for it develop. To help accelerate commercial development of cassava and cassava-based products at the national level, Zambia’s Agricultural Consultative Forum (ACF) initiated an Acceleration of Cassava Utilization (ACU) Task Force, beginning in August 2005. At a regional level, efforts such as the Cassava Transformation in Southern Africa (CATISA) project aim to complement national efforts and help facilitate regional spillovers, so that new products, new technologies or new lessons can help to accelerate cassava-based commercial growth throughout the region. This paper aims to provide empirical content in support of both the ACU Task Force and CATISA activities. |
| Keywords: | food security, policy, Zambia, Africa, cassava |
| JEL: | Q18 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:msu:icpwrk:zm-fsrp-wp-032&r=agr |
| By: | Graham M Turner; Timothy M Baynes; Bertram C. McInnis (CSIRO Sustainable Ecosystems, Australia) |
| Abstract: | This paper describes a water accounting system (WAS) that has been developed as an innovative new tool for strategic long-term water management. The WAS incorporates both disaggregated water use and availability, provides a comprehensive and consistent historical database, and can integrate climate and hydrological model outputs for the exploration of scenarios. It has been established and tested for the state of Victoria in Australia, and can be extended to cover other or all regions of Australia. The WAS is implemented using stock-and-flow dynamics, currently employing major river basins as the spatial units and a yearly time step. While this system shares features with system dynamics, learning is enhanced and strategic management of water resources is improved by application of a Design Approach and the structure of the WAS. We compare the WAS with other relevant accounting systems and outline its benefits, particularly the potential for resolving tensions between water supply and demand. Integrated management is facilitated by combination with other stocks and flows frameworks that provide data on key drivers such as demography, land-use and electricity production. |
| Keywords: | water accounts, stocks and flows, water budgets, decision support systems, strategic management |
| JEL: | C61 Q25 |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:cse:wpaper:2008-14&r=agr |
| By: | Gruere, Guillaume; Mehta-Bhatt, Purvi; Sengupta, Debdatta |
| Abstract: | "Suicides in general, including farmers' suicides, are a sad and complex phenomenon. Hence, their underlying causes need to be addressed within an equally complex societal framework. Here, we provide a specific case study on the potential link between technological choices and farmer suicides in India. Although officially recognized for having increased production and farmers' income, Bt cotton, genetically-modified, insect-resistant cotton, remains highly controversial in India. Among other allegations, it is accused of being the main reason for a resurgence of farmer suicides in India. In this paper, we provide a comprehensive review of evidence on Bt cotton and farmer suicides, taking into account information from published official and unofficial reports, peer-reviewed journal articles, published studies, media news clips, magazine articles, and radio broadcasts from India, Asia, and international sources from 2002 to 2007. The review is used to evaluate a set of hypotheses on whether or not there has been a resurgence of farmer suicides, and the potential relationship suicide may have with the use of Bt cotton. We first show that there is no evidence in available data of a “resurgence” of farmer suicides in India in the last five years. Second, we find that Bt cotton technology has been very effective overall in India. However, the context in which Bt cotton was introduced has generated disappointing results in some particular districts and seasons. Third, our analysis clearly shows that Bt cotton is neither a necessary nor a sufficient condition for the occurrence of farmer suicides. In contrast, many other factors have likely played a prominent role. Nevertheless, in specific regions and years, where Bt cotton may have indirectly contributed to farmer indebtedness, leading to suicides, its failure was mainly the result of the context or environment in which it was planted. We close the paper by proposing a conceptual framework for empirical applications linking the different agricultural and institutional factors that could have contributed to farmer suicides in recent years in certain districts of Central and Southern India." from authors' abstract |
| Keywords: | Cotton, Genetically modified crops, farmer suicides, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:808&r=agr |
| By: | Ringler, Claudia |
| Abstract: | "Over the coming decades, global change will have an impact on food and water security in significant and highly uncertain ways, and there are strong indications that developing countries will bear the brunt of the adverse consequences, particularly from climate change. This is largely because poverty levels are high, and developing-country capacity to adapt to global change is weak. Furthermore, the rural populations of developing countries—for whom agricultural production is the primary source of direct and indirect employment and income—will be most affected due agriculture's vulnerability to global change processes. The agricultural sector is the largest consumer of water resources, and variability in water supply has a major influence on health and welfare in poor areas. With water scarcity and extreme weather events expected to increase under climate change, water security could decline significantly in rural areas. Consequently, it is important to understand the impacts of global change (in terms of climate, demography, technology, and so on) on agriculture and natural resources in developing countries and to develop adaptive capacity to respond to these impacts. Moreover, there is a need to develop informed and effective adaptation measures and investment options that can be taken now to alleviate adverse impacts of global change in the future." from text |
| Keywords: | Climate change, food security, Climate variability, Global change, Water security, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:resbrf:15(1)&r=agr |