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on Agricultural Economics |
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Issue of 2009‒04‒18
seventeen papers chosen by |
| By: | Betty Kibaara; Joshua Ariga; John Olwande; T.S. Jayne |
| Abstract: | Agriculture continues to be a fundamental instrument for sustainable development, poverty reduction and enhanced food security in developing countries. Agricultural productivity levels in Sub Sahara Africa are far below that of other regions in the world, and are well below that required to attain food security and poverty reduction goals. On the other hand, the rate of agricultural productivity growth since the early 2000s has been quite impressive in many African countries, including Kenya, yet this is no cause for complacency. Sustained and accelerated growth requires a sharp increase in productivity of smallholder farmers. The Strategy to Revitalize Agriculture (SRA), Kenya Vision 2030, Comprehensive African Agricultural Development Program (CAADP) and Alliance for Green Revolution in Africa (AGRA) have underscored the importance of increasing agricultural productivity in the fight against poverty. In the past, agricultural production was largely a function of acreage, but further growth in production will have to be driven by productivity growth. |
| Keywords: | Africa, Kenya, productivity |
| JEL: | Q10 |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:msu:icpwrk:icpw_ke_tegemeo_wp_029&r=agr |
| By: | Jones Govereh; Steven Haggblade; Hunter Nielson; David L. Tschirley |
| Abstract: | Over the next generation, growing trade in food staples appears poised to dwarf that in all other African agricultural markets. Currently, the market value of Africa’s food staples amounts to $50 billion per year, or nearly three-fourths of the value of all agricultural production (Table 1). Given growing urbanization and the highest rates of poverty in the world, Africa’s market demand for food staples will grow dramatically in coming decades. As a result, production of food staples -- for growing urban markets and food-deficit rural areas -- represents probably the largest growth opportunity available to African farmers. Facilitating expansion of these markets will, therefore, be critical for efforts at stimulating agricultural production growth, broad- based income expansion and poverty reduction. |
| Keywords: | Africa, markets, maize |
| JEL: | Q13 |
| Date: | 2008–06 |
| URL: | http://d.repec.org/n?u=RePEc:msu:icpwrk:wb_001&r=agr |
| By: | Msuya, Elibariki Emmanuel; Hisano, Shuji; Nariu, Tatsuhiko |
| Abstract: | Using a stochastic frontier production model proposed by Battese and Coelli (1995), the paper estimates the levels of technical efficiency of 233 smallholder maize farmers in Tanzania and provides an empirical analysis of the determinants of inefficiency with the aim of finding way to increase smallholders’ maize production and productivity. Results shows that smallholder productivity is very low and highly variable, ranging form 0.01t/ha to 6.77t/ha, averaging 1.19t/ha. Technical efficiencies of smallholder maize farmers range from 0.011 to 0.910 with a mean of 0.606. Low levels of education, lack of extension services, limited capital, land fragmentation, and unavailability and high input prices are found to have a negative effect on technical efficiency. Smallholder farmers using hand-hoe and farmers with cash incomes outside their farm holdings (petty business) are found to more efficient. However, farmers who use agrochemicals are found to be less efficient. Policy implications drawn from the results include a review of agricultural policy with regard to renewed public support to revamp the agricultural extension system, and interventions towards improving market infrastructure in order to reduce the transaction element in the input and output marketing. |
| Keywords: | Productivity variation; smallholder farmers; technical efficiency; maize; tanzania |
| JEL: | Q12 D24 |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:14626&r=agr |
| By: | Isaac Minde; T.S. Jayne; Eric Crawford; Joshua Ariga; Jones Govereh |
| 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 paper, we focus on fertilizer, without intending to imply that it is the only or most significant productivity determinants. Other key factors are seed technology, adequate water availability, labor, agronomic and other farmer management practices, and choice of crops to grow. |
| Keywords: | fertilizer, Africa, Malawi, Zambia, Kenya |
| JEL: | Q18 |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:msu:icpwrk:resakss_pb001&r=agr |
| By: | Philippe Delacote (Laboratoire d'Economie Forestière, INRA - AgroParisTech) |
| Abstract: | Incompleteness of insurance markets is a crucial weakness of developing countries. In this context, the poor households of rural regions often exploit common property resources, such as forests, as insurance in case of economics stress. The aim of this paper is to derive the implications of this insurance use on the forest cover, and thus on deforestation. The land-use choice between agricultural land and forest therefore resembles a portfolio diversification. However, I also show that this insurance strategy may lead to resource overexploitation and constitute a poverty trap. |
| Keywords: | deforestation, household model, risk aversion, agricultural expansion, forest products |
| JEL: | O12 O13 Q12 Q15 Q23 |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:lef:wpaper:2008-04&r=agr |
| By: | Jones Govereh; Emma Malawo; Tadeyo Lungu; T.S. Jayne; Kasweka Chinyama; Pius Chilonda |
| Abstract: | This paper assesses the level and composition of the Zambia’s public expenditures in the agricultural sector from 2000 to 2008. By measuring the size of public agricultural expenditures, the study will answer whether the Government of Zambia met CAADP’s target of allocating 10% of national budget to agriculture in 2008. Furthermore, examining what the fund is being spent on will shed light on the extent to which spending contributes to agricultural growth. This review will also characterize the spatial patterns of expenditures across provincial boundaries. The results of this work will hopefully lay a foundation for future analysis of the impacts of public agricultural spending on sector performance. |
| Keywords: | food security, policy, Zambia, Africa, public finance, growth |
| JEL: | Q18 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:msu:icpwrk:zm-fsrp-wp-36&r=agr |
| By: | Reyes, Celia M; Domingo, Sonny N.; Gonzales, Kathrina G.; Mina, Christian D. |
| Abstract: | <p>Seasonal climate forecast (SCF) is one of the tools that could help farmers and decisionmakers better prepare for seasonal variability. However, a cloud of uncertainty looms over the true value of SCF to its target users. To shed light on the true value of SCF in local agricultural decisionmaking and operations, farm and household level survey was conducted. A total of 85 corn farmers from the plains and highlands of Echague and Angadanan, Isabela were interviewed.</p> <p>Results showed that climate and climate-related information were undoubtedly among the major factors being considered by farmers in their crop production activities. All aspects explored on the psychology of corn growers pointed to the high level of importance given to climatic conditions and SCF use. This was evident on the farmers’ perceptions, attitudes, and decisionmaking processes. Though the high regard of farmers on climate forecast and information cannot be questioned, actual application of such information seemed still wanting. Reliable indigenous knowledge on climate forecasting was scarce. With corn farmers in Isabela still thirsting for climate-related information, the delivery of appropriate information and accurate forecasts should be addressed through proper extension and provision of support.</p> |
| Keywords: | seasonal climate forecast (SCF), corn productivity, Isabela corn industry, climate variability, climate information and corn farming |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2009-06&r=agr |
| By: | Reyes, Celia M; Gonzales, Kathrina G.; Predo, Canesio D.; de Guzman, Rosalina G. |
| Abstract: | <p>Rainfall variability greatly influences corn production. Thus, an accurate forecast is potentially of value to the farmers because it could help them decide whether to grow their corn now or to delay it for the next cropping opportunity. A decision tree analysis was applied in estimating the value of seasonal climate forecast (SCF) information for corn farmers in Isabela.</p> <p>The study aims to estimate the value of SCF to agricultural decisionmakers under climate uncertainty. Historical climatic data of Isabela from 1951 to 2006 from PAGASA and crop management practices of farmers were used in the Decision Support System for Agrotechnology Transfer (DSSAT) to test the potential impact of climate change on corn. The approach is developed for a more accurate SCF and to be able to simulate corn yields for wet and dry seasons under different climatic conditions. While SCF may potentially affect a number of decisions including crop management practices, fertilizer inputs, and variety selection, the focus of the study was on the effect of climate on corn production. Improving SCF will enhance rainfed corn farmers’ decisionmaking capacity to minimize losses brought about by variable climate conditions.</p> |
| Keywords: | seasonal climate forecast (SCF), decision tree analysis, climate uncertainty, Decision Support System for Agrotechnology Transfer (DSSAT) |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2009-05&r=agr |
| By: | Isaac Minde; T.S. Jayne; Eric Crawford; Joshua Ariga; Jones Govereh |
| 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. |
| Keywords: | fertilizer, Africa, Malawi, Zambia, Kenya. |
| JEL: | Q18 |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:msu:polbrf:pol083&r=agr |
| By: | Reyes, Celia M; Mina, Christian D. |
| Abstract: | <p>This paper documents the activities of the National Food Authority (NFA), particularly on rice marketing, in realizing its mandates of buying high and selling low. Because the Philippine agriculture is greatly affected by extreme climate events such as El Niño and La Niña, this paper highlights the importance of seasonal climate forecast (SCF) information as input to the formulation of various policy decisions of the NFA. Among these important policy decisions are: how much volume of paddy rice to procure from farmers to be able to defend its support price; how much volume of rice to maintain in order to achieve stability in the supply and consumer price; and how much volume of rice, as well as when is the best time, to import to be able to position the optimal level of stocks in time for the lean season.</p> <p>It is also argued in the paper that importation has been playing a significant role in the rice supply-demand situation of the country since 1990, making it one of the most significant government interventions in the rice sector. Based on historical data assessment, some of the worst events in the past such as the 1995 rice crisis and over-importation during the 1997-1998 El Niño could have been avoided if policy decisions, particularly on the volume and timing of rice importation, were linked to SCF. Indeed, linking crop production and import decisions more systematically with SCF would enhance the usefulness of these forecasts at a more practical level.</p> |
| Keywords: | distribution, rice, seasonal climate forecast (SCF), National Food Authority (NFA), importation, storage |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2009-09&r=agr |
| By: | Jacinto F. Fabiosa (Center for Agricultural and Rural Development (CARD); Food and Agricultural Policy Research Institute (FAPRI)) |
| Abstract: | Many studies on the impact of biofuels on greenhouse gas emissions do not consider indirect land-use change and land use avoided because of co-products utilization. This paper provides estimates of the land-use credit for corn ethanol when its by-product—distillers dried grains with solubles (DDGS)—is used in swine feed rations to substitute for corn and soymeal. The range of estimates used here covers the land-use credit used in the literature. Moreover, this study departs from earlier studies because feed rations from a least-cost optimization are used rather than rations from feeding trials, and DDGS nutrient profile variability is fully accounted for. As a result, displacement rates and the land-use credit can be better characterized using a distribution rather than a single point estimate. The land-use credit for corn ethanol for DDGS used in swine feed rations ranges from -0.367 to -0.596 hectares, whereby substitution for corn in the feed ration accounts for 56.09% and soymeal substitution contributes 48.46%. Variability of the land-use credit is contributed more by the variability of land use from the substitution of soymeal than that of corn. Finally, when feed compounders discount the DDGS nutrient profile to ensure they are at or above any realized nutrient profile 90% of the time, the land-use credit for corn ethanol declines by 8.47% for DDGS in a swine feed ration. |
| Keywords: | biofuel, DDGS quality, displacement rate, greenhouse gas accounting, land-use credit, optimal, stochastic LP, swine grower-finisher optimal feed ration. |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:ias:cpaper:09-wp489&r=agr |
| By: | Joshua Ariga; T.S. Jayne; Betty Kibaara; J.K. Nyoro |
| Abstract: | This study uses nationwide household panel survey data from 1996/97 to 2006/07 to examine trends in fertilizer use on maize by smallholder maize growers. The paper also compares these findings with fertilizer use rates according to other recent surveys in Kenya to assess comparability. We also examine the correlation between household fertilizer use and indicators of welfare such as wealth and landholding size. In addition, we use econometric techniques applied to household survey data to identify the main household and community characteristics associated with fertilizer purchases. Lastly, the study considers alternative policy strategies for maintaining smallholders’ access to fertilizer in the current context of substantially higher world fertilizer prices. |
| Keywords: | fertilizer, Africa, Malawi, Kenya, small holders |
| JEL: | Q13 |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:msu:icpwrk:icpw_ke_tegemeo_wp_027&r=agr |
| By: | BONNET, Céline; DUBOIS, Pierre; OROZCO, Valérie |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:ide:wpaper:11070&r=agr |
| By: | Valerie Kelly; David L. Tschirley |
| Abstract: | This Policy Brief summarizes evidence reported in a recent study on the links between seed cotton market structures and selected cotton sector performance indicators in nine African countries Tschirley et al. 2008). The purpose of the study is to contribute to better design and implementation of cotton sector reforms by building a reliable, broad assessment of cotton sector performance from detailed empirical information collected and analyzed by independent researchers and cotton sector experts. |
| Keywords: | Africa, cotton, seed, market structure |
| JEL: | Q13 |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:msu:icpbrf:wacip_pb002f&r=agr |
| By: | Marielle Brunette; Laure Cabantous (Nottingham University Business School); Stéphane Couture (Laboratoire d'Economie Forestière, INRA - AgroParisTech); Anne Stenger (Laboratoire d'Economie Forestière, INRA - AgroParisTech) |
| Abstract: | This article presents the results of an experiment designed to test theoretical predictions about the impact of public compensation schemes and ambiguity on insurance and self-insurance decisions. Consistent with theory, we find that government assistance significantly reduces willingness to pay (WTP) for insurance and self-insurance (compared with a free insurance market). As expected, we also find significant differences between WTPs for insurance under different types of government compensation programs. For example, results from our experiment confirm the prediction that the WTP for insurance is smaller under a “Fixed Help” program than under a “Contingent Fixed Help” program where the government assistance is conditioned to the purchase of an insurance policy. Thirdly, we find that ambiguity, i.e., uncertainty about probability, significantly increases WTPs for insurance. This result, which indicates that decision-makers are ambiguity averse, is in line with previous results on the impact of ambiguity on insurance demand for low probability risks. Lastly, our experiment provides a clear support for the hypothesis that attitude to risk and attitude to ambiguity are two independent phenomena. In fact in this experiment, decision-makers are both risk-seekers (i.e., the mean WTP for insurance is on average smaller than the expected value of the loss) and ambiguity averse (i.e., the mean WTP for insurance is on average higher for an ambiguous risk than for a ’risky’ risk). |
| Keywords: | Experimental Economics, Insurance, Self-Insurance, Public Policy, Forest, Ambiguity, Risk |
| JEL: | C91 D81 Q23 |
| Date: | 2008–10 |
| URL: | http://d.repec.org/n?u=RePEc:lef:wpaper:2008-05&r=agr |
| By: | Andrew Reeson; Karel Nolles (CSIRO Sustainable Ecosystems, Australia) |
| Abstract: | Incentives, regulations and other policy interventions intended to promote sustainability work through influencing human behaviour. There is therefore much to be gained from a thorough understanding of exactly how various policy interventions relate to the decision-making process. Experimental economics, and the closely related fields of behavioural economics and behavioural finance, apply an empirical approach to study how people act when faced with a range of economic and social scenarios. The experimental approach was pioneered by Vernon Smith and Daniel Kahneman and others, building on early studies by Chamberlin (1948). In recognition of this work, Kahneman and Smith were awarded the 2002 Nobel Prize in Economic Sciences. This paper briefly reviews the applications and methods of experimental economics, relates some key research findings and describes some examples of its use in informing environmental policy. |
| Keywords: | Experimental economics; Behavioral economics; Environmental economics; Environmental markets; Market-based instruments; MBIs |
| JEL: | C90 Q50 Q58 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:cse:wpaper:2009-03&r=agr |
| By: | Pete Liapis |
| Abstract: | This paper examines whether the growth in agricultural trade of 69 countries between 1996 and 2006 has taken place at the intensive or the extensive margin. The paper addresses the questions: have agricultural exports during this period expanded more through the intensive margin (more exports of established goods to traditional partners) or through the extensive margin (new trade flows in new products and/or to new partners)? At the intensive margin, do richer countries export greater volumes, or do they receive higher prices for their goods? At the extensive margin, are new trade flows the result of an expanded variety of products or the result of exporting established products to more destinations? |
| JEL: | C25 F14 F19 Q17 |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:agraaa:14-en&r=agr |