nep-agr New Economics Papers
on Agricultural Economics
Issue of 2013‒11‒02
23 papers chosen by
Angelo Zago
University of Verona

  1. Agricultural commercialization, land expansion, and homegrown land-scale farmers: Insights from Ghana: By Chapoto, Antony; Mabiso, Athur; Bonsu, Adwinmea
  2. Agricultural mechanization patterns in Nigeria: Insights from farm household typology and agricultural household model simulation: By Takeshima, Hiroyuki; Nin-Pratt, Alejandro; Diao, Xinshen
  3. Land constraints and agricultural intensification in Ethiopia: A village-level analysis of high-potential areas: By Headey, Derek D.; Dereje, Mekdim; Ricker-Gilbert, Jacob; Josephson, Anna; Taffesse, Alemayehu Seyoum
  4. The impact of food prices shocks in Uganda: First-order versus long-run effects: By Van Campenhout, Bjorn; Pauw, Karl; Minot, Nicholas
  5. Are mega-farms the future of global agriculture? Exploring the farm size-productivity relationship for large commercial farms in Ukraine By Klaus Deininger; Denys Nizalov; Sudhir K Singh
  6. Links between tenure security and food security: Evidence from Ethiopia: By Hagos, Hosaena Ghebru; Holden, Stein
  7. Economywide impact of maize export bans on agricultural growth and household welfare in Tanzania: A Dynamic Computable General Equilibrium Model Analysis: By Diao, Xinshen; Kennedy, Adam; Mabiso, Athur; Pradesha, Angga
  8. Assessing the Socio-Economic Consequences of the Rise of Organic Farming in the European Union By Charalampos Konstantinidis
  9. Investment, awareness, supermarkets, and profits: heterogeneous chili farmers in Indonesia By Han-Hsin Chang; Charles van Marrewijk; Randy Stringer; Wendy Umberger
  10. Cambodian agriculture: Adaptation to climate change impact: By Thomas, Timothy S.; Ponlok, Tin; Bansok, Ros; De Lopez, Thanakvaro; Chiang, Catherine; Phirun, Nang; Chhum, Chhim
  11. Agricultural Commodity Price Volatility and Its Macroeconomic Determinants: A GARCH-MIDAS Approach By Emiliano Magrini; Ayca Donmez
  12. Assessment of the capacity, incentives, and performance of agricultural extension agents in western Democratic Republic of the Congo: By Ragasa, Catherine; Ulimwengu, John M.; Randriamamonjy, Josee; Badibanga, Thaddée
  13. Efficiency and productivity differential effects of land certification program in Ethiopia : Quasi-experimental evidence from Tigray: By Hagos, Hosaena Ghebru; Holden, Stein
  14. Can Fat Taxes and Package Size Restrictions Stimulate Healthy Food Choices? By E. HUYGHE; A. VAN KERCKHOVE
  15. The influence of information sources on inter- and intra-firm diffusion: evidence from UK farming By Waters, James
  16. Women’s empowerment and nutrition: An evidence review: By van den Bold, Mara; Quisumbing, Agnes R.; Gillespie, Stuart
  17. How does profitability get affected by working capital management in food and beverages industry? By Thapa, Priya Darshini Pun
  18. Quality Labels and Firm Survival: Some First Empirical Evidence. By Bontemps, Christophe; Bouamra-Mechemache, Zohra; Simioni, Michel
  19. A wavelet-based copula approach for modeling market risk in agricultural commodity markets By RIADH ALOUI; MOHAMED SAFOUANE BEN AISSA; DUC KHUONG NGUYEN
  20. Dynamic management of water transfer between two interconnected river basins By Francisco Cabo; Katrin Erdlenbruch; Mabel Tidball
  21. Cost-benefit analysis of the african risk capacity facility: By Clarke, Daniel J.; Hill, Ruth Vargas
  22. Climate Change and Carbon Capture and Storage By Moreaux, Michel; Withagen, Cees
  23. The Role of Standards in Eco-innovation: Lessons for Policymakers By Herman R.J. Vollebergh; Edwin van der Werf

  1. By: Chapoto, Antony; Mabiso, Athur; Bonsu, Adwinmea
    Abstract: The past decade has seen several African countries increasing their agricultural growth, a trend largely underpinned by increases in land area cultivated instead of productivity increases. Meanwhile, scholars debate whether Africa should pursue a strategy of large-scale or smallholder farms, paying little attention to a special group of smallholder farmers who have transitioned to become medium- and large-scale farmers. This study, therefore, begins to analyze this group of farmers, using qualitative data from in-depth interviews and focus group discussions in Ghana. We analyze their characteristics, ingredients of farm-size expansion, and commercialization.
    Keywords: Farm size, large scale farming, Commercialization, Agricultural productivity, Land acquisitions,
    Date: 2013
  2. By: Takeshima, Hiroyuki; Nin-Pratt, Alejandro; Diao, Xinshen
    Keywords: mechanization, households, productivity, Typology, Cluster analysis,
    Date: 2013
  3. By: Headey, Derek D.; Dereje, Mekdim; Ricker-Gilbert, Jacob; Josephson, Anna; Taffesse, Alemayehu Seyoum
    Abstract: Highland Ethiopia is one of the most densely populated regions of Africa and has long been associated with both Malthusian disasters and Boserupian agricultural intensification. This paper explores the race between these two countervailing forces, with the goal of informing two important policy questions. First, how do rural Ethiopians adapt to land constraints? And second, do land constraints significantly influence welfare outcomes in rural Ethiopia?
    Keywords: Smallholders, Population density, Farm size, Intensification, Agricultural productivity, Land use, Land allocation, Land management,
    Date: 2013
  4. By: Van Campenhout, Bjorn; Pauw, Karl; Minot, Nicholas
    Abstract: We look at the immediate effects of these shocks faced by households in Uganda on their poverty and well-being. In addition, we look at the economywide impact in the long run when all markets have settled at a new equilibrium. We find that in the short run, poverty has increased substantially. However, in the longer run, we find welfare levels of rural farm households in particular to rise sharply, primarily as a result of increased returns to farm labor and agricultural land coupled with improved market prices for output sold.
    Keywords: Food prices, Wellbeing, Poverty, Computable general equilibrium (CGE), Agricultural development, Commodities,
    Date: 2013
  5. By: Klaus Deininger (World Bank); Denys Nizalov (Kyiv School of Economics/ Kyiv Economics Institute); Sudhir K Singh (World Bank)
    Abstract: With farms cultivating tens or hundreds of thousands of hectares, Ukraine is often used to demonstrate the existence of economies of scale in modern grain production. Panel data analysis for all the country’s farms with more than 200 hectares in 2001-2011 suggests that higher yields and profits are due to unobserved factors at rayon (district) and farm level rather than economies of scale. Productivity growth was driven not by farm expansion but by exit of unproductive and entry of more efficient farms. Higher initial shares of area under farms with more than 3,000 or 5,000 hectares at the rayon level significantly reduce subsequent exit, suggesting that land concentration reduces productivity growth. The paper draws implications for global evolution of farm structures.
    Keywords: Land reform, transition, agricultural productivity, Ukraine, market structure
    JEL: O13 Q15 Q18
    Date: 2013–09
  6. By: Hagos, Hosaena Ghebru; Holden, Stein
    Abstract: This study, thus, uses five rounds of household panel data from Tigray, Ethiopia, collected in the period 1998–2010 to assess the impacts of a land registration and certification program that aimed to strengthen tenure security and how it has contributed to increased food availability and thus food security in this food-deficit region.
    Keywords: Land tenure, food security, land tenure reform, certification, basic needs, Gender, Women, household data, land registration,
    Date: 2013
  7. By: Diao, Xinshen; Kennedy, Adam; Mabiso, Athur; Pradesha, Angga
    Abstract: We study the impact of export bans in Tanzania using a computable general equilibrium model. We find that although maize is an important food crop in Tanzania, its contribution to food price inflation is rather limited, and that banning cross-border maize exports lowers the national food price index by only 0.6-2.4 percent compared with the free-export scenario. The benefits of lower prices are captured primarily by urban households, but maize producer prices decrease by 7-26 percent, depending on the region. We also find that the export ban decreases the wage rate for low-skilled labor and the returns to land, while returns to nonagricultural capital and wage rate for the skilled labor increase, further hurting poor rural households and thus increasing poverty for the country as a whole.
    Keywords: exports, Commodities, staple crops, maize, Computable general equilibrium (CGE), export bans, trade policies, food price crisis, Food prices, price spikes, Commodity markets,
    Date: 2013
  8. By: Charalampos Konstantinidis
    Abstract: Although organic farming is considered the poster child of rural development in Europe, there is little empirical evidence assessing its success in achieving the ambitious socio-economic objectives of support for small farms and employment generation that it is purported to assist. I present empirical evidence from the growth of organic farming in Europe over the past two decades that questions the highly optimistic claims of policy makers. I show that the rise in a region's share of agricultural land farmed under organic methods is associated with higher average farm size. Additionally organic farms in Europe display larger average sizes and lower rates of labor intensity than their conventional counterparts. Since the agricultural labor intensity in a region (the labor application per hectare) is not positively related with the share of organic area, the efficacy of organic farms to generate employment is set in doubt. I assert that this these developments point to the "conventionalization" of organic farming and present a serious challenge to European policy-making. Finally I suggest that the success of organic farming should be evaluated by the numbers of organic farmers, rather than by area covered, as has been the predominant approach so far.
    Keywords: organic farming, agricultural policy, European Union
    JEL: O13 Q18 R11
    Date: 2013–10
  9. By: Han-Hsin Chang; Charles van Marrewijk; Randy Stringer; Wendy Umberger
    Abstract: Changes in the distribution channels for food production in developing countries raises the demand for high quality products sold through supermarkets at higher prices. We model the willingness of farmers to invest in high quality production, taking the role of traders into consideration. We test our model using data for Indonesian chili producers and find that (i) there is self-selection into high cost investment for production quality which leads to higher profits, (ii) there is a positive and significant income effect for participating in the modern (supermarket) retail channel, and (iii) the awareness of farmers regarding their product participation in the retail channel significantly affects their profits. We thus find both a 'real access gap' and a 'market efficiency gap'.
    Keywords: Supermarkets, Farmers, High-value Agriculture, Indonesia, Heckman self-selection
    JEL: D2 I3 L1 O1 Q1
    Date: 2013–10
  10. By: Thomas, Timothy S.; Ponlok, Tin; Bansok, Ros; De Lopez, Thanakvaro; Chiang, Catherine; Phirun, Nang; Chhum, Chhim
    Abstract: Cambodia has been identified as one of the most vulnerable countries to climate change, given the predicted changes in temperature and precipitation, the share of labor in agriculture, and the country’s low adaptive capacity due to widespread poverty. In this study, we use climate data from four general circulation models (GCMs) to evaluate the impact of climate change on agriculture in Cambodia by 2050. We used the Decision Support System for Agrotechnology Transfer crop modeling software to evaluate crop yields, first for the 1950–2000 period (actual climate) and then for the climates given by the four GCMs for 2050.
    Keywords: Climate change, Adaptation, Agriculture, General Circulation Models GCM, Crop yields, Droughts,
    Date: 2013
  11. By: Emiliano Magrini (European Commission – JRC - IPTS); Ayca Donmez (European Commission – JRC - IPTS)
    Abstract: This paper investigates the main drivers of the agricultural commodity price volatility using the GARCH-MIDAS model of Engel et al. (2013), a new class of component models that allows for isolating the low-frequency component of volatility and taking into consideration macroeconomic factors via mixed data sampling. We show that modelling the agricultural price volatility as the product of high and low frequency components is more efficient than filtering it through a standard GARCH(1,1) model. After combing wheat, corn and soybean daily prices with monthly market-specific and common macroeconomic drivers over the period 1986-2012, it appears that supply-demand indicators and conventional speculation proxies are crucial in explaining the low-frequency component of volatility while monetary factors and energy markets play significant but less important role. Nevertheless, when we consider only the period following the recent price spikes (2006-2012), the monetary factors –especially interest rate – become essential to describe agricultural price fluctuations, suggesting also that the heterogeneity in the effects of the drivers on different crops is decreasing.
    Keywords: Price Volatility; Agricultural Commodities; GARCH-MIDAS; macroeconomic indicators; speculation
    JEL: C53 C58 Q11 Q14
    Date: 2013–10
  12. By: Ragasa, Catherine; Ulimwengu, John M.; Randriamamonjy, Josee; Badibanga, Thaddée
    Abstract: This paper provides an in-depth review of the agricultural extension system of DRC including an analysis of its policies and legal framework, organization, and management; links to critical institutions; and capacity and incentive of different actors in the system. This review involved document analyses, interviews with key informants, and surveys of 107 extension organizations and 162 extension agents in 156 randomly selected villages in western DRC. This review suggests serious funding constraints, human resource management problems, no linkage and coordination within the extension system and with research and education systems, and a majority of underserved communities and farmers. This review also highlights a good opportunity given the huge human resources (more than 11,000 agents) deployed into the sectors and territories as part of the Ministry’s agricultural inspection system.
    Keywords: Agricultural extension services, Capacity building, Incentives, agricultural transformation, Reform, advisory service,
    Date: 2013
  13. By: Hagos, Hosaena Ghebru; Holden, Stein
    Abstract: Taking advantage of a unique quasi-experimental survey design, this study analyzes the productivity impacts of the Ethiopian land certification program by identifying how the investment effects (technological gains) would measure up against the benefits from any improvements in input use intensity (technical efficiency). For this purpose, we adopted a data envelopment analysis–based Malmquist-type productivity index to decompose productivity differences into (1) within-group farm efficiency differences, reflecting the technical efficiency effect, and (2) differences in the group production frontier, reflecting the long-term investment (technological) effects.
    Keywords: Land tenure, productivity, Land productivity,
    Date: 2013
    Abstract: Consumers prefer bonus packs, as opposed to price discounts, for healthy foods, but they want a price discount rather than a bonus pack for indulgent foods (Mishra & Mishra, 2011). This study conceptually replicates and extends this finding to show that consumers are more responsive to changes in price than to changes in package size for indulgent food options, whereas they are more responsive to changes in package size than to changes in price for healthy food options.
    Keywords: sales promotion, packaging, price, food, vice, virtue
    Date: 2013–08
  15. By: Waters, James
    Abstract: We study the effect of different information sources on diffusion between and within companies. Our model of economically optimising farmers replicates results from dual process persuasion theory, and predicts that inter-firm diffusion will be primarily affected by reliable, easily accessible information while intra-firm diffusion will be influenced by technical information. The results are tested on UK farming data. Consistent with our model, information from agents, suppliers, farmers, and agricultural magazines influences inter-firm adoption, from buyers influences intra-firm adoption, and from crop consultants, academics, government, and an industry body influences both.
    Keywords: Innovation; Intra-firm diffusion; Information acquisition; Organic farming; Dual process persuasion theory
    JEL: D83 O33 Q12 Q16
    Date: 2013–10–25
  16. By: van den Bold, Mara; Quisumbing, Agnes R.; Gillespie, Stuart
    Abstract: This paper starts by reflecting on the concept and measurement of women’s empowerment and then reviews some of the structural interventions that aim to influence underlying gender norms in society and eradicate gender discrimination. It then proceeds to review the evidence of the impact of three types of interventions—cash transfer programs, agricultural interventions, and microfinance programs—on women’s empowerment, nutrition, or both.
    Keywords: Gender, Women, Empowerment, Microfinance, Agriculture, Nutrition,
    Date: 2013
  17. By: Thapa, Priya Darshini Pun
    Abstract: This study examines the working capital management of the Food and Beverage Corporations from the U.S.A. and Canada during the 10 years study period from year 2000 to 2009. Firstly, unlike previous studies which advocate a linear relationship between the working capital management and profitability, it investigates the existence of a possible non-linear relationship. Secondly, the efficiency of working capital management was checked using performance index, utilization index and efficiency index rather than using the conventional turnover ratios. Thirdly, the distribution of working capital measure i.e. cash conversion cycle and factors affecting viz. leverage, growth, size, age, cash flow and fixed assets to total assets ratio has been studied. The results suggest the existence of concave relationship between the working capital management and profitability. The findings also revealed that the corporations were efficient during the study period.
    Keywords: Working capital management, profitability, food and beverage industry, optimal level of working capital
    JEL: M40
    Date: 2013–08–28
  18. By: Bontemps, Christophe; Bouamra-Mechemache, Zohra; Simioni, Michel
    JEL: L10 Q13 Q18
    Date: 2013
  19. By: RIADH ALOUI (LAREQUAD & FSEGT, University of Tunis El Manar, B.P 248 El Manar II 2092 Tunis, Tunisia); MOHAMED SAFOUANE BEN AISSA; DUC KHUONG NGUYEN (Dept. of Finance and Information Systems, ISC Paris School of Management, 22, Boulevard du Fort de Vaux, 75017 Paris, France)
    Abstract: We consider the problem of accurate market risk modeling for agricultural commodity products over heterogeneous investment horizons using copulas and wavelet methods. Our results indicate that the degree and structure of the dependence of daily commodity returns on the three market risk fac- tors (federal funds rate, USD/Euro exchange rate, and world stock market ?uctuations) vary according to the time scale. Changes in the USD/EUR exchange rate and the stock market index are the dominant risks for agri- cultural commodity markets. Moreover, the tail dependence on the daily re- turns of the three market risk factors is also scale-dependent, and frequently asymmetric. Finally, there is evidence to suggest that the application of the wavelet-copula model improves the accuracy of VaR estimates, compared to traditional approaches.
    Keywords: Agricultural commodities, Extreme-value copula, Wavelet, VaR, CVaR
    JEL: Q14 C52 C58 G11 G17
    Date: 2013
  20. By: Francisco Cabo; Katrin Erdlenbruch; Mabel Tidball
    Abstract: This paper analyzes the dynamic interaction between two regions with interconnected river basins. Precipitation is higher in one river- basin while water productivity is higher in the other. Water transfer increases productivity in the recipient basin, but may cause environmental damage in the donor basin. The recipient faces a trade-o between paying the price of the water transfer, or investing in alternative water supplies to achive a higher usable water capacity. We analyze the design of this transfer using a dynamic modeling approach, and compare solutions with dierent information structure with the cooperative solution. Contrary to standard games, where decision variables dier among players, we assume that both players take the decisions concerning the water transfer. The equilibrium between supply and demand determines the optimal transfer price and amount. If the problem were set as a static game, the non-cooperative solution would match the cooperative solution. However, in a more realistic dynamic setting, in which the recipient uses a feedback information structure, the cooperative solution will not emerge as the equilibrium solution. The transfer amount is lower than in the case of cooperation, while the investment in usable water capacity is higher. Finally we numerically compare our results to the Tagus-Segura water transfer described in Ballestero (2004).
    Date: 2013–10
  21. By: Clarke, Daniel J.; Hill, Ruth Vargas
    Abstract: The African Risk Capacity (ARC), has been proposed as a pan-Africa drought risk pool to insure against drought risk in Africa south of the Sahara. If fully operationalized, the ARC will mark a major change in how donors fund emergency support to countries in Africa during times of need. In this paper, we undertake a cost-benefit analysis of the ARC pool and discuss how lessons can inform the design of the ARC.
    Keywords: Natural disasters, Risk management, drought,
    Date: 2013
  22. By: Moreaux, Michel; Withagen, Cees
    Date: 2013–04
  23. By: Herman R.J. Vollebergh (CentER and Tilburg Sustainability Centre, Tilburg University, PBL Netherlands Environmental Assessment Agency, CESifo); Edwin van der Werf (Wageningen University, CESifo)
    Abstract: This paper aims to help policy makers identify how standards can contribute to the effective and cost-efficient development and deployment of eco-innovations (innovations that result in a reduction of environmental impact). To that end we discuss what standards are, how the process of standardization works, and how standards are related to induced innovation and diffusion in different type of markets, e.g. markets for add-on technologies versus markets for integrated resource- or emission-saving technologies. This broad perspective enables us to identify interesting economic dimensions of standards, such as their contribution to positive network externalities, and the extent to which they are substitutes or complements to environmental policy instruments. Finally we discuss how governments might contribute to eco-innovation by selecting, stimulating or creating (inter)national standards.
    Keywords: Standards, Technological Change, Eco-innovation, Environmental Policy Instruments
    JEL: Q38 Q55 Q58
    Date: 2013–09

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