|
on Agricultural Economics |
Issue of 2016‒11‒13
78 papers chosen by |
By: | Akudugu, Mamudu Abunga; Nyamadi, Ben Vas; Dittoh, Saa |
Abstract: | Agriculture in Africa is dominated by smallholder farmers who mostly undertake rain-fed agriculture. Unfortunately, the current trends of unpredictable rainfall patterns is putting the livelihoods of these smallholder farmers under threat. To overcome this threat, governments across Africa relentlessly invest in water harvesting strategies for irrigation purposes. Thus, the provision of irrigation facilities in strategic locations across Africa is deemed an important component of the agricultural transformation agenda being pursued in the continent. This paper therefore examines the role of irrigation in transforming smallholder agriculture in Africa by assessing the different impact pathways of irrigation, using Ghana as the case. The paper employs mixed methods that provide the opportunity for triangulation and cross validation. Qualitative and quantitative data were collected using focus group discussions, key informant interviews and household survey questionnaires. The impacts of irrigation were analysed using propensity score matching (PSM) and narrations. The results indicate that irrigation has significant and positive impacts on farm output, income, employment, consumption, food security and non-farm businesses. The impacts of irrigation on health and environmental sustainability are mixed - the positive being the ability of irrigators to pay for improved healthcare for themselves and their families and the negatives include the outbreak of waterborne diseases associated with irrigation water. Construction of irrigation facilities causes destruction to the environment but improves provisioning ecosystem services. It is generally concluded that access to irrigation is associated with higher farm outputs, income levels, employment, consumption, food security, and engagement in non-farm business activities. |
Keywords: | Africa, Agriculture Transformation, Ghana, Irrigation, Livelihoods, Consumer/Household Economics, Environmental Economics and Policy, Production Economics, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:249285&r=agr |
By: | Bokelmann, Wolfgang; Adamseged, Muluken E. |
Abstract: | Agriculture dominates the economy of the Sub-Saharan African countries. Main producers of agricultural commodities are smallholders who depend strongly on the sector for incomes, food security and employment. These goods reach consumers via multilevel marketing systems, not directly from production. Thus, the fights to achieve food and nutrition security as well as prosperity for these countries will be won or lost by the way agricultural value chains are coordinated. However, value chains in developing countries face series of impediments in many of the cases smallholder farmers are disadvantaged. In recent years activities and actors to be coordinated along the value chain have increased significantly. These include a change in consumer demands, climate change, water scarcity, stringent market standards, including food safety, production and processing technologies to minimize post-harvest losses, information and communication technologies and new or emerging markets. Such dynamics will lead to a changing business environment and change relationships between actors in the chain. Thus, it is essential to realize the dynamic change, problems, risks and necessary changes combined with it. Lack of comprehensive strategies along the entire value chain affect the potential benefits that smallholder farmers might obtain from it. The strategies could range from improving productivity through increasing access to inputs to increasing access to markets through strengthening value chain relationships and improving an enabling environment. The strategies should also incorporate activities and actors out of the value-chain like universities and research centres to support the poor smallholder farmers in sub-Saharan Africa. |
Keywords: | Agricultural and Food Policy, Farm Management, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:249334&r=agr |
By: | Kropff, Martin |
Abstract: | Our ability to deliver food security to the world’s poor in a sustainable way depends on three converging global challenges: climate change, population growth, and limited available natural resources. Understanding the severity of these challenges, and the actions that must be taken to successfully tackle them, is high on the international research agenda. Although the future is uncertain, it is possible to construct a range of likely scenarios, which are determined by a number of factors. This paper discusses changing trends, and provides recommendations for one of the principal factors driving the future of development: investments in international agricultural research. CIMMYT contributes to sustainable agriculture, rural development, and value chains for maize and wheat agri-food systems, with projects in more than 50 countries. Although most research has long been funded by public sector donors and philanthropic foundations, cooperation with the private agricultural industry is increasingly necessary to achieve desired development impacts. More specifically, cooperation between public and private sector institutions is essential to develop and utilize new technologies that address current and future food security challenges. Delivering joint, high-quality research will not only improve food products for clients and build farmers’ capacity, but also ensure that all partners benefit from cost-sharing and complementary technical expertise in precompetitive domains. Research will remain an academic undertaking, unless it is informed by real problems on farms and efforts are made to deliver solutions to real users. As compared to the traditional, separated approach, public-private collaborations will have the greatest impact on both agricultural productivity and long-term food security. |
Keywords: | Food Consumption/Nutrition/Food Safety, Food Security and Poverty, |
Date: | 2015–08 |
URL: | http://d.repec.org/n?u=RePEc:ags:cfcp15:245058&r=agr |
By: | Vandercasteelen, Joachim; Tamru, Seneshaw; Minten, Bart; Swinnen, Johan |
Abstract: | Due to the rapid growth of cities in Africa, a larger number of farmers is living in the rural hinterland providing food to urban residents. However, empirical evidence on how urbanization affects these farmers is scarce. To fill this gap, this paper explores the relationship between proximity to a city and the production behavior of rural staple crop producers. More in particular, we analyze unique data from teff producing farmers in major producing areas around Addis Ababa, the Ethiopian capital. We find that farmers more closely located to Addis Ababa face higher wages and land rental prices, but because they receive higher teff prices they have better incentives to intensify production. Moreover, we observe that modern input use, land and labor productivity, and profitability in teff production improve with urban proximity. There is a strong and significant direct effect of urban proximity, which is suggested to be related with more use of formal factor markets, less transaction costs, and better access to information. In contrast, we do not find strong and positive relationships of rural population density increases - as an alternative source of agricultural transformation - as they seem to lead to immiserizing effects in these settings. Our results show that urban proximity should be considered as an important determinant of the process of agricultural intensification and transformation in developing countries. |
Keywords: | Agricultural Transformation, Crop Intensification, Urbanization, Cities, Ethiopia, Sub Saharan Africa, Community/Rural/Urban Development, Crop Production/Industries, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246963&r=agr |
By: | Houessionon, Prosper; Balana, Bedru; Zahodogo, Pam; Thiombiano, Noël; Bossa, Aymar |
Abstract: | This paper describes the results of a choice experiment measuring social benefits for sustainable management practices related to water and resource recovery and reuse solutions in agricultural in Burkina-Faso for ecosystem services preservation. Sustainable management is conceptualized with four illustrative practices that impact water availability, water save, soil restoration, soil fertility improvement and productivity growth: storing water with small water infrastructure in rainy season, complete fresh water with waste water from household, watering crop with drip irrigation and fertilizing with organic matter of sludge from septic tank (human faeces). Data for a choice experiment are collected using a face-to-face survey of farmers practicing off-season production in two region (Dano and Ouagadougou) in Burkina- Faso. Results identify substantial benefits for ecosystem services preservation, the use of small water infrastructure, drip irrigation, waste water and organic matter from human faeces. Results also suggest that the estimated household benefits of all fours sustainable management practices combined are similar in magnitude to the benefits from ecosystem services alone. Based on model results, policy and future research may wish to examine possibilities for subsidizing sustainable management practices in urban-influenced areas as a more cost-effective means of providing benefits similar to those realized through ecosystem services sustainability. |
Keywords: | Choice experiment, Water, Organic matter, Drip irrigation, Burkina-Faso, Land Economics/Use, Resource /Energy Economics and Policy, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:249343&r=agr |
By: | Haile, Mekbib G.; Wossen, Tesfamichael |
Abstract: | Agriculture is one of the key drivers and victims of climate change. Climate-resilient agriculture is therefore vital for achieving enhanced food security—which is a crucial component of the sustainable development goals (SDGs). This paper provides answers to questions that are prerequisite for policies that address agriculture and climate change. We analyze the determinants of global average crop production for maize, wheat, rice, and soybeans over the period 1961–2013. We find strong and statistically significant supply elasticities for all four crops with respect to own crop prices. Our results also underscore the relevance of output price volatility for the supply of these key global agricultural staple crops—especially on production of wheat and maize. Comparing the standardized effect sizes of own price and price volatility estimates, the effects are on par for wheat production while the price volatility effect is only a fifth of the own price effect on maize production. In agreement with previous studies, we also find that climate change has significant adverse effects on production of the world’s key staple crops. More importantly, this study finds that weather extremes—both in terms of temperature and precipitation shocks— during the growing months have significant adverse impacts on the production of the abovementioned food crops. Price and weather extremes do not only adversely affect average global food production, they also positively contribute to the year-to-year fluctuations of food availability. Thus, combating climate change using both mitigation and adaptation technologies is crucial for global production and hence food security. |
Keywords: | Food supply, climate change, price volatility, staple crops, global, Crop Production/Industries, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, Q11, Q15, Q54, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246374&r=agr |
By: | Boere, Esther; Mosnier, Aline; Bocqueho, Geraldine; Krisztin, Tamas; Havlik, Petr |
Abstract: | Ethiopia’s agricultural sector is highly diverse and subject to change due to different factors such as climate and population growth. Consequently, competition for available land, water, energy, and other inputs increases, posing pressure on the rural population’s livelihoods and food security. It is therefore imperative to analyze farmer’s production choices under these changing circumstances. The objective of this paper is to develop a methodology to establish country-wide farm typologies allowing for both a spatial and temporal analysis of the evolution of the agricultural sector, and in particular smallholders' food security and income in Ethiopia. First, household survey data is employed to categorize smallholder farming systems according to their agro-ecological zone, farm size, main activities and degree of intensification. Second, farming systems are extrapolated using a multinomial logit-regression. Resulting combinations of farming-system occurrence and their production activities are harmonized with national statistics and subsequently equipped with the potential to intensify. Compared with other typologies that commonly only focus on the distribution of farming systems, this study fills the typology with data, allowing for the analysis of income and food security over space and time. It is concluded that livestock-oriented systems are less profitable than crop-oriented systems and more prone to food-insecurity. Increased input intensification is one way to reduce pressure on cropland expansion caused by the expected increase in population, but has to go together with other methods to fully alleviate pressure on land and thereby poverty and food insecurity. |
Keywords: | Consumer/Household Economics, Food Security and Poverty, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246924&r=agr |
By: | Paul Feichtinger; Klaus Salhofer (Institute for Sustainable Economic Development, University of Natural Resources and Life Sciences Vienna) |
Abstract: | This paper contributes to the discussion on the extent of the capitalization of decoupled direct payments into land rental prices. Based on a dynamic panel model and an extensive dataset for Bavaria for 2005 to 2011, we show that a significant number of Single Farm Payments (SFPs) of the European Union (EU) Common Agricultural Policy (CAP) are captured by landowners rather than by active farmers. However, the degree of capitalization varies considerably among regions, from almost 0 to 56 cents per each additional Euro paid. |
Keywords: | capitalization, decoupled subsidies, Common Agricultural Policy, land rental prices |
JEL: | H22 Q15 Q18 |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:sed:wpaper:652016&r=agr |
By: | Berre, David; Ndegwa, Michael; Karuiki, Sarah; De Groote, Hugo |
Abstract: | In the first phase of the CCAFS Program (Climate Change, Agriculture and Food security), climate-smart agriculture practices (CSAP) were identified and needed to be tested. In the semi-arid maize-growing areas of Kenya, dry-tolerant varieties and maize-legume intercropping appeared as the most appropriate CSAP, and this paper presents farmer’s evaluation of these farming systems. During on-station and on-farm trials in Makueni County, participatory evaluation of intercropping systems of five maize varieties and four beans varieties was conducted. In total, 150 farmers participated; they scored each variety on the basis of several phenotypic criteria and provided an overall score for the variety. Results emphasized the complexity of their varieties’ perception. In order to explain the overall score by different agronomic and socio-economic factors, a cumulative mixed model effect was estimated, including random effects for each farmer. Dry-tolerant varieties had a significant lower score, as GLP92 for beans and TEGO for maize. Socio-economic factors including age and gender of the participants influenced the overall score of varieties. We demonstrated that farmers who already purchased improved seed tended to give lower score. Finally, an OLS regression allowed exploring the weight of each phenotypic criterion in the overall score of a maize or bean varieties. This analysis revealed that farmer’s perception of a good variety is complex and rely on multiple criteria unlike most of the breeding program mainly based on yield oriented indicators |
Keywords: | Ordinal regression, Participatory evaluation, maize-bean intercropping, climate-smart agriculture, Crop Production/Industries, Environmental Economics and Policy, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:249266&r=agr |
By: | Tillie, Pascal; Louhichi, Kamel; Paloma, Sergio Gomez Y |
Abstract: | Small irrigation schemes have become very popular in many African countries as a policy measure to boost agriculture and farm income given their relatively low capital investment compared with to large irrigation infrastructures and the shorter time required for the project design and implementation. This paper attempts to explore the likely impacts of a program of small irrigation development in Niger on land allocation, agricultural production, food security and poverty reduction on a nationally representative sample of farm households. A farm-household model, named FSSIM-Dev (Farm System Simulator for Developing Countries), is used to achieve this objective. This static positive programming model was applied to every individual farm household included in the 2011-2012 LSMS-ISA survey sample – around 2300 farm households – in order to guarantee the highest representativeness of the farming systems and to capture the full heterogeneity across farm households. Results show that irrigation has a large impact on agriculture production and income of smallholder farmers, mainly during the dry season and in the regions with high potential irrigable land. Farm income would increase by around 7 % at country level if small irrigation was made available to all farmers. At the regional and individual farm levels the impact is more pronounced (reaching more than 80 % in one region). Additionally, the income impacts are larger for those households with the lowest agricultural income in the baseline, showing the large potential impacts of small irrigation in terms of poverty and inequality reduction. |
Keywords: | Consumer/Household Economics, Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:249267&r=agr |
By: | Kafle, Kashi; Jolliffe, Dean; Winter-Nelson, Alex |
Abstract: | This paper estimates differentiated effects of household asset ownership on educational outcomes of children ages 6 and above in Tanzania. The paper contributes to the literature by providing a theoretical framework that portrays a mechanism for different assets to have differential effects on child education. We use data from Living Standard Measurement Study – Integrated Surveys on Agriculture (LSMS-ISA) in Tanzania which provides panel data on both household wellbeing and agricultural practices and resources. Use of the LSMS-ISA data allows us to disentangle the complicated relationship between child education and agricultural assets in ways which would not be possible using traditional cross-sectional surveys of either household wellbeing or farm practices. We use the Hausman-Taylor instrumental variable (HTIV) panel-data estimator to efficiently control for time-invariant variables omitted from our specifications while allowing us to identify the effects of fixed controls while correcting for the endogeneity of assets. We find that, controlling for household income, different asset types have opposing effects on child educational outcomes. Household durables and housing quality characteristics have positive effects but agricultural assets have adverse effects on highest grade completed and test scores. We demonstrate that the negative effect of agricultural assets emerges from higher opportunity cost of schooling and that the effect is more pronounced among boys and children from poor households, grain crop farmers, and rural residents. |
Keywords: | asset ownership, child education, highest grade completed, test scores, Consumer/Household Economics, Teaching/Communication/Extension/Profession, I25, J22, D13, O12, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:249273&r=agr |
By: | Emokaro, C.O.; Oyoboh, D.E. |
Abstract: | Smallholders with total farm holdings of less than five hectares constitute about 70% of the farming population in Nigeria, producing most of the food crops thereby contributing to food security and poverty reduction. This huge contribution not withstanding they are faced with the challenges of inadequate agricultural infrastructure, much needed for optimal productivity. There is therefore a need to improve the general livelihood of these largely agrarian rural poor. The impact of the Community Driven Development (CDD) approach of Edo State Government Community and Social Development Project (CSDP) in meeting the overall development objective of sustainably increasing access of the poor to rural infrastructure was evaluated in this study. The study was carried out in 44 communities spread across the three Senatorial Districts of Edo State. A stratified sampling procedure was employed in selecting the 22 treatment communities and their corresponding counterfactuals for this study. Fifteen households were selected from each of the 44 communities to give a total sample size of 660 respondents. Descriptive and quantitative techniques such as frequency tables, means, standard deviation, percentages, comparative cost ratios and Difference-in-Differences (DD) were employed in analyzing the data generated. Results of the socioeconomic characteristics of respondents showed that they were mainly smallholder farmers with mean farm size and annual income of 0.23ha and N 133,500, respectively. Their average age and household size were 45 years and eight persons respectively. Over 60% of the respondents were men and about 40% of them had formal education up to secondary school level. Results of the economic analysis indicated that the cost of all the Micro Projects embarked upon by Edo State CSDP averaged about N4,867,704.11. The estimated comparative cost ratio showed that the cost of CSDP Micro Projects were, at the least, about a third of the average alternative cost of similar projects embarked upon by the State Government, Local Government Areas (LGAs) and the Niger Delta Development Commission (NDDC). The highest comparative cost ratio of 4.55, was recorded in the skills acquisition project. The lowest ratio of 1.6 was however recorded in the town hall (civic center) project. Results of the causality between CSDP Micro Projects (MPs) and outcomes in the six sectors considered showed that the education sector had a reduction of 29.72 minutes in the average time taken by students to get to school and 0.69 kilometers in average distance to school due to Edo State CSDP intervention in the construction and rehabilitation of schools. In the water sector, a DD of 425 persons fetching water for domestic purpose was recorded, a 47% reduction in the cost of buying water with 65% of the community members now having access to portable water as a result of CSDP intervention in the provision of motorized boreholes. Average distance to water source equally reduced by 5.82 kilometers, while average time spent in fetching water reduced by 10. 56 minutes. The result also showed a 61% reduction in reported cases of water borne diseases, with 70% of the respondents opining that there is a change in personal hygiene after the provision of water facilities by Edo State CSDP. In conclusion, the effectiveness of the CDD process in improving the lives of the agrarian populace in Edo State has been shown empirically. Effort should be made by stakeholders in agricultural development to embrace this process and ensure the sustainability of these gains. |
Keywords: | Counterfactual, Difference in Difference, Food Security, Hygiene, Optimal, Poverty, Consumer/Household Economics, Food Security and Poverty, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246314&r=agr |
By: | Ramsden, Jessica |
Abstract: | The development and adoption of new innovation in livestock production (including products, practices and genetics) can help farmers produce more food, more sustainably. Conservation organisations, among others, are calling for the need to freeze the environmental footprint of agriculture, particularly animal agriculture. In so doing, food can also be kept more affordable. This is an achievable goal. For example, with existing innovations, such as improved animal welfare, nutrition and genetics, we can raise the average annual increase in global milk yield from 13.5 litres/yr/cow to 24 litres. Realising this potential involves a combination of commercial opportunity, corporate responsibility and responsiveness to post-farm gate consumer dynamics. It also requires predictable science-based policy to support innovation across diverse production systems, and to facilitate global food trade. |
Keywords: | Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Livestock Production/Industries, |
Date: | 2015–08 |
URL: | http://d.repec.org/n?u=RePEc:ags:cfcp15:245052&r=agr |
By: | Asfaw, Solomon; Carraro, Alessandro; Davis, Benjamin; Handa, Sudhanshu; Seidenfeld, David; Zambia Cash Transfer Evaluation Team |
Abstract: | Cash transfer programmes are increasingly being utilized in order to combat poverty and hunger as well as to building the human capital of future generations. Even though most of these programmes are not explicitly designed to help households manage climate risk, there are good reasons to expect that cash transfers can be good instrument to build household resilience against climatic risk. The goal of this study is to provide an empirical analysis of the effect of weather risk on rural households’ welfare using impact evaluation data from the Zambia Child Grant Programme (CGP) together with set of novel weather variation indicators based on interpolated gridded and re-analysis weather data that capture the peculiar features of short term and long term variations in rainfall. In particular, we estimate the impact of weather shocks on a rich set of welfare and food security indicators (including total expenditure, food expenditure, non-food expenditure, calorie intake and dietary diversity) and investigate the role of cash transfer for managing climate risk. We find strong evidence that cash transfer programmes has a mitigating role against the negative effects of weather shocks. Our results in fact highlight how important the receipt of social cash transfer is for households lying in the bottom quantile of consumption and food security distributions in moderating the negative effect of weather shock. Hence, integrating climate change and social protection tools into a comprehensive poverty reduction and social protection strategy should be of primary interest for policy makers and government when setting their policy agenda. |
Keywords: | cash transfer, impact, weather shock, experimental design, Zambia, Africa, Agricultural Finance, Financial Economics, Research Methods/ Statistical Methods, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246280&r=agr |
By: | Berhe, Melaku; Hoag, Dana; Tesfay, Girmay; Oniki, Shunji; Kagatsume, Masaru |
Abstract: | The varying circumstances driven by climate threats and the consequences posed on the environment and humans of dry-land regions, where pastorals and agro-pastorals dominantly live have become the prior policy concerns in Africa. Hence, this study was tended to investigate the effects of various adaptation measures on the income level of pastorals and agro-pastorals in northern Ethiopia. Data were gathered using semi-structured questionnaires including qualitative ideas obtained from group discussants and key informants. The study revealed that repeated droughts caused by climate change left the pastorals and agro-pastorals with herd decimation due to lack of animal feed. In responding this, they applied various adaptation actions such as water harvesting schemes; fodder production, feed purchase, migration, livestock diversification and animal restocking. Using such measures, cattle owners generated income from livestock, cropping, sales of fuel-wood, agricultural wages, remittance and relief aid. Thus, it is concluded that sustainable income creation via various adaptation methods is an important pathway to enable the pastoral and agro-pastoral communities while they respond to the adverse effects of climatic change. |
Keywords: | Adaptation, cattle, climate change, income, pastoral, Environmental Economics and Policy, Land Economics/Use, Livestock Production/Industries, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246974&r=agr |
By: | Aragie, Emerta; Pauw, Karl; Pernechele, Valentina |
Abstract: | Restrictions on exports of staples or cash crops are frequently imposed in developing countries to promote food security or industrial development goals. By diverting production to the local market, these policies reduce prices and increase supply of food or intermediate inputs to the benefit of consumers or downstream industrial users. Although export restrictions reduce aggregate welfare they are attractive to policymakers: governments gain support when they are seen to keep consumer prices low; likewise, politicians are swayed by industrial lobbyists who promise increased value addition in exchange for access to cheaper inputs. This study weighs in on the debate around the desirability of export restrictions by simulating the economy-wide effects of Malawi’s longstanding maize export ban as well as a proposed oilseeds export levy intended to raise value addition in processing sectors. Our results show that while export restrictions may have the desired outcome in the short run, producers respond to weakening market prospects in the longer run by restricting supply, often to the extent that the policies become self-defeating. More specifically, maize export bans only benefit the urban non-poor, with poor farm households experiencing income losses and reduced maize consumption in the long run. The oilseeds export levy is equally ineffective: even when export tax revenues are used to subsidize processors, gains in industrial value addition are outweighed by declining agricultural value addition as the fledgling oilseeds sector is effectively decimated. The policy is further associated with welfare losses among rural households, while urban non-poor households benefit marginally. |
Keywords: | Food Security and Poverty, International Relations/Trade, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246391&r=agr |
By: | Cockx, Lara; De Weerdt, Joachim |
Abstract: | Sub-Saharan Africa is currently in the midst of an unprecedented wave of urbanization that is expected to have wide-ranging implications for food and nutrition security. Though this spatial transformation of the population is increasingly put forward as one of the main drivers of changes in food consumption patterns, empirical evidence remains scarce and the comparative descriptive design of existing research is prone to selection bias as urban residence is far from random. Based upon unique longitudinal data from the Tanzania National Panel Survey and the Kagera Health and Development Survey, this study will be the first to assess the impact of urbanization on food consumption through comparing individuals’ food consumption patterns before and after they have migrated from rural to urban areas. We find that even after controlling for individual fixed heterogeneity, baseline observable characteristics and initial household fixed effects, urbanization is significantly associated with important changes in dietary patterns, including a shift away from traditional staples towards more processed and ready-to-eat foods. While there is some evidence of changes that can be deemed beneficial from a nutritional point of view - including increased consumption of vegetables and animal source foods - the results also largely confirm concerns about the association between urbanization and heightened consumption of sugar and fats. In addition, we find no support for the hypothesis that urbanization is associated with more diverse diets. Finally, the results clearly indicate that rural-urban migration significantly contributes to reducing volatility in food consumption. |
Keywords: | Community/Rural/Urban Development, Crop Production/Industries, Food Consumption/Nutrition/Food Safety, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:249270&r=agr |
By: | Willy, Daniel Kyalo; Muyanga, Milu; Jayne, Thomas |
Abstract: | The Boserupian theory holds that population density growth can be accompanied by sustainable agricultural intensification (Boserup, 1965). However, it is not certain whether the positive link between population density and environmental/economic benefits associated with agricultural intensification are indefinite. The current study utilizes cross sectional data from a random sample of farm households drawn from two densely populated Counties in Kenya to assess whether Boserupian agricultural intensification is sustainable at high population densities. The study utilizes a robust approach that incorporates soil quality parameters into economic analysis to assess the effect of population density on soil quality and crop productivity. It employs non- parametric regression, OLS regression and asymmetric trans-log production function estimation methods. Results indicate that at low a population density, endogenous sustainable agricultural intensification occurs, which is associated with improvements in soil quality and crop yields. However, as population densities exceed 600 persons/Km2, soil quality attributes such as soil texture, soil pH levels and fertility indicators such as soil organic matter (SOM) and electrical conductivity (EC) start to deteriorate. The end result of deteriorating soil quality is binding of critical nutrients and thus reduction in the crop yield response to fertilizer application. This reduces crop productivity and consequently returns to agriculture. These findings have imperative policy bearing on livelihoods and smallholder agriculture considering that a large proportion of sub-Saharan Africa’s population is dependent on rain-fed agriculture and population densities continue grow. |
Keywords: | Population density, Intensification, soil quality, crop productivity, Crop Production/Industries, Land Economics/Use, Productivity Analysis, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246433&r=agr |
By: | Gebremariam, Gebrelibanos; Wünscher, Tobias |
Abstract: | Sustainable agricultural practices are being promoted across Africa. While literature provides robust evidence on their welfare impacts in isolation, there is limited evidence on how combinations of sustainable agricultural practices contribute to households’ welfare. Due to complementary and substitution effects and cost involved in adopting SAPs, combinations may have impacts that are higher or lower than individual effects. To shed light on this question we employ cross-sectional data from northern Ghana, which was collected from 421 households and 1229 plots. We investigate the adoption and impacts of sustainable agricultural practices (SAPs) on net crop income per acre and consumption expenditure per capita. We employed a maximum simulated likelihood estimation of a Multinomial Endogenous Treatment Effect Model (METEM) to account for observable and unobservable heterogeneity that influences SAP adoption decisions and the outcome variables. Our results reveal that adoption decisions are affected by household and plot level characteristics. We find that adoption of SAPs significantly increase net crop income and consumption expenditure except when soil & water conservation is adopted in isolation. Contrary to some previous studies elsewhere in Africa on this area, we find that SAPs have a stronger effect on income and expenditure when adopted as a package (all together) rather than in isolation or in sub groups. |
Keywords: | Net crop income, consumption expenditure, SAPs, multinomial endogenous treatment effect, Agricultural Finance, Crop Production/Industries, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246452&r=agr |
By: | Fowler, Cary |
Abstract: | Today agriculture faces threats that are arguably more daunting than in any previous era. The basic components of food production – land, water, nutrients, climate and crops – all appear poised to undermine rather than improve food security and thus threaten national security and peace. This address enumerated the impediments to crop production and posed the question of whether we are prepared to help crops adapt and flourish in these changed conditions. Dr Fowler concluded with a virtual tour of the Svalbard Global Seed Vault – a notable effort to fashion a long-term solution to the loss of the genetic diversity upon which agriculture will depend in the future. |
Keywords: | Agricultural and Food Policy, Crop Production/Industries, Land Economics/Use, |
Date: | 2015–08 |
URL: | http://d.repec.org/n?u=RePEc:ags:cfcp15:245046&r=agr |
By: | Mignouna, Djana; Akinola, Adebayo A.; Abdoulaye, Tahirou; Maroya, Norbert |
Abstract: | A bold step to addressing myriads of constraints affecting yam productivity was achieved through Yam for Income and Food Security in West Africa (YIIFSWA) project. The project has embarked on a series of activities culminating in the development, deployment and disseminating intervention options/technologies in Nigeria and Ghana. This paper assesses the potential economic impacts, the number of beneficiaries and poverty reduction through these agricultural technologies/intervention options. The land area coverable by the technologies ranged 320,000–650,000 ha in the two countries. The land area under varieties for adaptation to environments with low soil fertility was the highest followed by resistance to nematode cultivars. The net present value (NPV) ranged $144 million–$616 million and was highest for YIIFSWA diagnostic tool and temporary immersion bioreactor. Crop management and postharvest practices option had the lowest benefit-cost ratios of 6.0 and 20.03 while the aeroponics option had the highest benefit cost ratio of about 36.90. Not less than 750, 000 would be brought out of poverty by these technologies. The technologies are expected to reach not less than 20 million households by 2037 in Nigeria and Ghana. The technologies are more responsive to change in adoption rate than change in costs. Overall, while the potential economic gains are considerable, realization of these gains depends on the efficiency and effectiveness of extension and input supply systems. Concerted extension efforts are needed to drive the use of these intervention options. Moreover, considerable technical advice would also be needed to explain how to apply them |
Keywords: | Production Economics, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246453&r=agr |
By: | Amy Julia Thornton; Murray Leibbrandt (SALDRU, University of Cape Town); Cally Ardington (SALDRU, University of Cape Town) |
Abstract: | South Africa is food secure at the national level; however widespread food insecurity persists at the household level. To understand the dynamics of micro-level food insecurity this paper investigates how two different aspects of 'food access' – diet quality and diet quantity – affect two outcomes of 'food utilisation' – hunger and nutrition. Diet quantity is captured by food expenditure in Wave 1 of the National Income Dynamics Study (NIDS). To capture diet quality I use dietary diversity, which is not directly available in NIDS. I build and test a food group dietary diversity score and a food variety dietary diversity score using NIDS Wave 1. Both dietary diversity indicators are found to usefully summarise information about food security in South Africa by using methods found in the dietary diversity literature. The paper then turns to testing whether the theoretical differences between diet quality and quantity play out empirically in the case of nutrition (adult BMI) and hunger (self-reported household hunger). The results reveal that food variety and food quantity are complementary in explaining the chance of household hunger, with food quantity having a slightly more important effect. The pathways to BMI differ by gender. Dietary diversity and food expenditure are substitutes in the case of male BMI; however, food variety and food expenditure are complementary to explaining female BMI when food expenditure enters into the model as a quadratic. Overall, food variety proved to be a stronger and more significant correlate of both outcomes than the food group dietary diversity score. |
Date: | 2016 |
URL: | http://d.repec.org/n?u=RePEc:ldr:wpaper:190&r=agr |
By: | Nyaga, John; Nyikal, Rose N.; Busienei, John R. |
Abstract: | Fish and fishery products are valuable sources of protein and essential micronutrients for balanced nutrition and good health. In Kenya, farmed fish is an integral nutrition, income earning and employment commodity for rural households. In 2010, the Government of Kenya initiated Economic stimulus program to encourage fish farming. Farmers took up the activity as a source of food and income. However, where adopted as business there were little returns (Kimathi et., al 2013). Farmers used diverse marketing channels that apparently posted different profit margins. Descriptive research design involving 147 fish farmers within Kirinyaga County, in 5 sub counties was used and data analyzed using multinomial logit model. It characterized market channels for fish farmers and analyzed the determinants of choice of marketing channel by farmers. The study identified 3 main channels; neighbors, direct market, traders and accounting for 49 percent, 29 percent, and 22 percent respectively. Gender of the household head, distance to market; marketing cost, land tenure, number of fish ponds owned, access to extension services, cost of marketing, membership to a fish farming group, access to inputs, household income, price of fish and type of fish reared had significant influence on farmers’ choice of market channel. Despite the government support, farmers faced challenges of predators, inadequate extension services and access to information. The conclusion is that county Governments and other stakeholders need to facilitate vibrant extension services and market support to the practicing farmers in their localities. |
Keywords: | Fish farming, Fish Marketing, Marketing channels, Kirinyaga County, Livestock Production/Industries, Marketing, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:249338&r=agr |
By: | Zulu-Mbata, Olipa; Jayne, Thomas S.; Kirsten, Johann F. |
Abstract: | Marketing margin analysis has usually been used to examine the behaviour and competitiveness of markets and the share of a retail commodity price accruing to farmers. Most studies examining marketing margins have typically considered margins to vary either spatially or temporally; with little attempt to understand how or why marketing margins may vary across households holding both space and time constant, even though inter-household variability has been observed in most rural maize marketing areas. This article determines the relative importance of spatial, temporal, and household-specific factors in the maize prices received by farmers in Zambia and in the associated farm-to-retail marketing margin under the assembly trader channel. We find that spatial factors account for the largest source of explained variation (72%) in the maize marketing margin and farm-gate prices obtained by farmers followed by temporal factors (16.7%). Household-specific factors account for the smallest source of explained variation (11.3%) in marketing margins, with marital status, kinship ties to the chief or village elders, and access to price information being the most important. Wide inter-household variation in farm-gate prices within the same locality and month suggest the importance of unobserved household-specific factors. These results hence indicate that the prices that maize farmers in Zambia obtain are not fully exogenous to farmers as often assumed. Programs that generate and improve farmers’ access to timely market information can raise prices that farmers obtain, while improved road infrastructure in areas where marketing margins are high could significantly improve farm-gate prices. |
Keywords: | Marketing Margin, Maize, Traders, Zambia, Crop Production/Industries, International Relations/Trade, Marketing, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246966&r=agr |
By: | Bidogeza, JC; Afari-Sefa, V.; Endamana, D.; Tenkouano, A.; Kane, GQ |
Abstract: | Vegetables have high farm gate values and their consumption can alleviate malnutrition. A study was conducted to analyze vegetable value chains in selected locations of Cameroon. Data were collected from key vegetable value chain actors and stakeholders using structured questionnaires customized for 162 producers, 65 traders, 12 exporters, 30 processors and 29 transporters in the humid tropics of Cameroon. The analysis included value chain mapping, detailed description and quantification of value chains, and economic evaluation of value chains. Most vegetable crop value chains are relatively simple, and involve only five main groups: producers, transporters, traders, processors and exporters (for traditional leafy vegetable value chains); input suppliers are a sixth category for standard vegetable chains. Vegetables are produced under different production systems adapted to the agroecological and climatic conditions of various regions. Most vegetable farmers generally have poor access to input and output market support services, including agricultural credit; this lowers their capacity to invest in their farms. What limited credit is available is typically obtained through the informal credit system, which tends to be more easily accessible by men than women. This may explain the fact that men who are engaged in vegetable farming earn much higher incomes than women. Our economic analysis of the value chain shows a benefit-cost ratio > 1 for vegetable production, processing and marketing. This indicates the vegetable sector is generally profitable for all actors along the chain, although there are wide disparities in earnings as different actors are subject to site-specific market conditions, constraints, and circumstances. |
Keywords: | Value chain mapping, Marketing efficiency, Horticultural value chains, African traditional vegetables, commodity value chains, human nutrition, Crop Production/Industries, Food Consumption/Nutrition/Food Safety, Marketing, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246381&r=agr |
By: | Ochenje, I.M.; Ritho, C.N.; Guthiga, P.M.; Mbatia, O.L.E. |
Abstract: | In the face of climate change, a number of climate variables such as temperature, precipitation, wind speed, humidity and solar radiation tend to affect water resources. This has led to changes in soil moisture, reduced stream run off, reduced ground water recharge and increased transpiration which ultimately causes deterioration of on-farm water resources. Deteriorating water resources at farm level as a result of climate change has led to decreased crop yields in sub Saharan Africa and threatens food security, livelihoods as wells as water security. Understanding factors affecting farmers’ perception of climate change effects on water resources is key in informing policies that can transform smallholder agriculture in Africa to be more resilient to the effects of climate change. This study assesses farmers’ climate change perceptions on water resources at farm-level in Kakamega County, Kenya. Using data collected from 159 farm households in Kakamega County, ordered probit was employed to assess factors affecting farmers’ perception of climate change based on water resources. The results indicate that gender, farm size, distance to the main water source, extension services, access to climate change information through radio and wealth status significantly explained levels of farmers’ perception of climate change based on water resources. The findings inform policies aimed at increasing awareness of climate change effects on on-farm water resources and consequently enhance adaptive water management strategies among smallholder farmers. |
Keywords: | perception, climate change, ordered probit, water resources, Environmental Economics and Policy, Resource /Energy Economics and Policy, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:249339&r=agr |
By: | Eskesen, Alison |
Abstract: | By 2050, a global population of 9 billion will demand 70% more food than is consumed today. Feeding this expanded population nutritiously and sustainably will require substantial improvements to the global food system—one that provides livelihoods for farmers as well as nutritious products for consumers. To achieve on-the-ground improvements, the World Economic Forum launched the Grow Africa and the Grow Asia partnerships. Grow Asia, launched in April 2015, is a partnership among leading companies, national governments and civil society to enable sustainable and inclusive agricultural development in South East Asia. The partnership facilitates multi-stakeholder collaboration to develop the productivity and profitability of smallholder farmers and to improve the environmental sustainability of agriculture. |
Keywords: | Agricultural and Food Policy, International Development, International Relations/Trade, |
Date: | 2015–08 |
URL: | http://d.repec.org/n?u=RePEc:ags:cfcp15:245057&r=agr |
By: | Bishu, Kinfe; O'Reilly, Seamus; Lahiff, Edward; Steiner, Bodo |
Abstract: | This study analyzes cattle farmers’ perceptions of risk and risk management strategies in Tigray, Northern Ethiopia. We use survey data from a sample of 356 farmers based on multistage random sampling. Factor analysis is employed to classify scores of risk and management strategies, and multiple regression is then used to investigate the relationship of scores and farmers’ characteristics. The results demonstrate that shortage of family labor, high price of fodder and limited farm income were perceived as the most important risks. Use of veterinary services, parasite control and loan utilization were perceived as the most important strategies to manage risks. Livestock disease and labor shortage were perceived as less of a risk by farmers who adopted the practice of zero grazing compared to other farmers, pointing to the potential of this practice for risk reduction. We find strong evidence that farmers engage in multiple risk management practices in order to reduce losses due to cattle morbidity and mortality. The results suggest that government strategies that aim at reducing farmers’ risk need to be tailored to specific farm and farmer characteristics. Findings from this study have potentially important policy implications for risk management strategies in developing countries. |
Keywords: | risk perception, risk management, livestock farming, multivariate analysis, Ethiopia |
JEL: | C83 D13 D81 Q12 |
Date: | 2016–07–11 |
URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:74954&r=agr |
By: | Larochelle, Catherine; Katungi, Enid; Cheng, Zhen |
Abstract: | Pulses are vital for nutrition security and considered a cost-effective option for improving the diets of low-income consumers in developing countries. Sub-Saharan Africa has the highest proportion of people living in extreme poverty and highest per capita pulse consumption in the world. Most studies on pulse demand have largely depended on aggregated data at regional level and there is little information on household level consumption patterns across sub-population groups within the same geographical location. This study uses the most recently collected LSMS-ISA data in Uganda, which is nationally representative, to analyze household food demand, with a focus on bean (Phaseolus vulgaris L.) consumption in order to unmask differences between poorer and better-off households in urban and rural areas. An augmented Quadratic Almost Ideal Demand System (QUAIDS), accounting for censoring, is used to estimate household food demand, where bean is included as its own food group. Household spending on bean increases with wealth but food budget share spent on bean declines with wealth. As household expenditure increases, demand for bean increases, however the magnitude of this increment decreases as income rises and is of smaller magnitude in urban areas; an indication that urbanization has led to changes in consumer preferences. Demand for bean among rural and urban poor households is more responsive to changes in price compared with urban non-poor households, making the former more vulnerable to price volatility. |
Keywords: | Consumer/Household Economics, Crop Production/Industries, Demand and Price Analysis, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246457&r=agr |
By: | Omotilewa, Oluwatoba J.; Ricker-Gilbert, Jacob; Ainembabazi, Herbert; Shively, Gerald |
Abstract: | Many poverty alleviation and development programs focus on increasing agricultural production and productivity through the use of improved seed varieties and chemical fertilizer; but ignore what happens in the postharvest season. However, increasing productivity without proper postharvest grain management practices will also increase quantity and quality losses. In this study, we use a randomized control trial implemented among 1190 farm households across the maize growing regions of Uganda to examine the impact of improved storage technology on household storage decisions at harvest, and on their input use. We exogenously treated one group of farm households providing them with hermetic storage bags. The control group continued to use traditional storage techniques. However, since the study is still on-going and post intervention data is not yet available, we used chemical protectant as a proxy for improved storage technology, and used panel estimation techniques to control for unobserved heterogeneity using our baseline data. Our results indicate that on average, protectant use increases maize storage by about 150 kilograms of maize at harvest with statistical significance. We also find that the use of storage protectant increases the length of storage for consumption by 3.7 weeks on average. Since the average length of hungry season per households’ in our dataset is 9 weeks, these findings are important to household food security. |
Keywords: | Consumer/Household Economics, Research and Development/Tech Change/Emerging Technologies, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246454&r=agr |
By: | Aragie, Emerta A.; Balie, Jean |
Abstract: | This research work follows the recent trend in most African countries in introducing (or strengthening) price support programs for selected cereals. Under this background, this study examines the impact of a potential implementation of a minimum support price MSP) policy on cereals in Ethiopia. To that end, positive and negative productivity shocks were considered under alternative producer and consumer pricing policies backed-up by public storage services. The quantitative analysis show that the effectiveness of price policies and government intervention in the commodity market depends on the nature of the productivity changes. Producer price floors are effective only when there are productivity gains which would ultimately decrease producer prices, suggesting the productivity enhancing role of this policy option. Also, producer price support works against consumers as prices of target commodities could not fall anymore beyond the level dictated by the support program. On the other hand, price ceiling on commodities is effective only when there are productivity losses since consumer prices tend to increase. Consumer price support policies help urban households since they slightly dampen increases in consumer prices and declines in incomes to these households. However, rural households lose more welfare mainly due to further losses in incomes as the control in consumer prices limit the increase in producer prices for cereals. The price policy of keeping producers prices of cereals within a 5% floor does not effectively affect the economy since producer prices tend to increase significantly if productivity is falling by the simulated levels due to exogenous shocks, such as extreme weather conditions. |
Keywords: | minimum price support, price stabilization, storage, agriculture, CGE, Financial Economics, Labor and Human Capital, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246387&r=agr |
By: | Wainaina, Priscilla; Tongruksawattana, Songporne; Qaim, Matin |
Abstract: | Global demand for food and farm commodities continues to grow, while land and other natural resources are becoming increasingly scarce. Sustainable intensification is often seen as a new paradigm for increasing agricultural productivity in a socially and environmentally responsible way. Sustainable intensification requires a broad portfolio of technologies, including improved seeds, fertilizers, and various natural resource management (NRM) practices. However, possible synergies between different types of technologies are not yet sufficiently understood. Here, we address this knowledge gap. Using representative data from small farms in Kenya and a propensity score matching approach, we analyze income effects of various technologies and technology combinations. When adopted alone, some innovations produce positive effects, while others do not. Effects of certain technology combinations are larger. The largest income gains occur when improved seeds are adopted together with organic manure and zero tillage practices. This points at important synergies between input-intensive and NRM technologies. Yet, the number of farmers that have adopted such promising technology combinations is relatively small, implying that synergies are not yet fully exploited. More impact studies that explicitly account for possible synergies can add to the knowledge that is needed for designing and promoting technology combinations suitable for particular contexts. |
Keywords: | Agricultural technology, Sustainable intensification, Economic impact, Maize farming, Sub-Saharan Africa, Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246380&r=agr |
By: | Charles Palmer; Luca Taschini; Tim Laing |
Abstract: | Acre State in Brazil is at the forefront of efforts to institutionalize jurisdictional-scale policies that aim to reduce emissions from deforestation and forest degradation (REDD+). Given limited REDD+ funds and uncertain returns from alternative land uses, this paper estimates the minimum incentive payment Acre’s government would have to pay forest landowners in each of its 22 municipalities to ensure forest conservation. Despite low profits but with relatively low conversion costs and stable returns over time, pasture generates the highest returns in 19 municipalities. Municipalities are ranked according to their relative policy costs, a ranking which is compared to the distribution of forest carbon stocks across Acre. Finally, the relative cost per ton of carbon is derived, which enables the identification of a group of 13 municipalities with the greatest potential for ‘carbon bang’ for a given ‘buck’. |
Date: | 2016–10 |
URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp254&r=agr |
By: | Verburg, H.E. Gerda |
Abstract: | To produce 70% more food by 2050 to feed the expected 9 billion people, it can’t be business as usual. We simply don’t have the energy or water to sustain such an increase. A world without hunger is within our reach if we are smarter in the way that we use the resources, tools, and technology available to us, and if we are willing to move away from working in silos and embrace a crosscutting and multi-stakeholder approach. There is growing global attention/recognition on the need to transform agriculture and food systems. The way to do this means that each and every stakeholder must play their role and at the same time open up to collaboration with other stakeholders – from big companies, to family farmers, advocacy organisations, research institutions etc. The Committee on World Food Security (CFS) and the World Economic Forum’s New Vision for Agriculture are leading the charge on this transformation by bringing together governments, private sector actors, civil society representatives, leading research organisations, financing institutions and many others in order to contribute to the birth of a diversity of solutions to feed the 1 billion people still living in extreme poverty and the 2 billion suffering from malnutrition. Now more than ever, as we are set to agree on the Sustainable Development Goals (SDGs), exploring how we can intensify our existing collaboration and expand the opportunities to build on each other’s strengths is necessary if we are to be successful at bridging the projected annual investment deficit of $2.5 trillion. Addressing food security and nutrition has at times been a minefield of polarising debates, when in fact the best solutions are often found when we can combine and build on ideas and options from across the spectrum. Not shying away from addressing contentious issues in a multi stakeholder dialogue – like the role of genetic engineering, or the role for smallholders in intensification, how to optimize land use, or how we can combine traditional knowledge with innovation and technology – is the only way to build consensus and truly create food systems, where sustainability and profitability are inextricably linked. |
Keywords: | Food Consumption/Nutrition/Food Safety, Food Security and Poverty, |
Date: | 2015–08 |
URL: | http://d.repec.org/n?u=RePEc:ags:cfcp15:245050&r=agr |
By: | Shimon, Otieno Peter; Ogutu, Chris Ackello; Mburu, John; Nyikal, Rose Adhiambo |
Abstract: | The need to minimize farm-level greenhouse gas (GHG) emissions from Kenya’s smallholder French bean production is gaining increased attention. French beam production has over the years adopted private voluntary standards notably Global-GAP that regulates both environmental and food safety aspects among farmers. Despite increasing global warming concerns, the impact of Global-GAP policy on smallholder farmers’ GHG emissions is unclear. This paper documents effects of Global-GAP policy on GHG emissions among French bean farmers in Central and Eastern regions of Kenya using household data collected between September and October 2013 from a random sample of 616 farmers. The study used a combined linear programming (LP) and life cycle assessment (LCA) models to examine the economic and environmental metrics and ordinary least squares (OLS) regression method to analyze factors affecting farm-level GHG emissions. Eco-efficiency, defined as net farm income divided by global warming potential, was used as an integrated indicator for assessing the economic and environmental feasibilities. There was a significant (p>0.05) higher eco-efficiency in Kenya Shillings per ton of carbon dioxide equivalence (Kshs per tCO2e) among Global-GAP policy complying farmers compared to non-complying farmers due to a reduced GWP (by 7 percent) and a higher net farm income given the optimum activity level used. The Global-GAP regulatory measures on the management practices seems to have caused economic advantage in exchange for environmental advantage (lower emissions in tCO2e by 7 percent). The regression model results found that Global-GAP compliance negatively and significantly affect GHG emissions. It further found that region of the farmer, French bean yields, gasoline fuel use, DAP fertilizer application and French bean seed positively and significantly affected smallholder farmer’ GHG emissions. More explicitly, the model using these explanatory variables indicates that smallholder farmers complying with Global-GAP policy are more likely to emit less GHG compared to non-complying farmers. The paper recommends inclusion of Global-GAP compliance and these other significant socio-economic factors in the smallholder French bean greenhouse gas emission reduction strategies by the government and industry stakeholders. |
Keywords: | Global-GAP, Greenhouse gas emissions, Eco-efficiency, LCA model, LP model, smallholder, French beans, Central region, Eastern region, Kenya, Crop Production/Industries, Farm Management, Production Economics, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246437&r=agr |
By: | Ochieng, Justus; Afari-Sefa, Victor; Karanja, Daniel; Rajendran, Srinivasulu; Silvest, Samali; Kessy, Radegunda |
Abstract: | Traditional African vegetables have recently received considerable attention for their contribution to food and nutrition security and opportunities for enhancing smallholder livelihoods. Promoting the production and consumption of traditional vegetables is expected to enhance household nutrition among urban and rural households. The Good Seed Initiative (GSI) program promoted production and consumption of nutrient-dense traditional African vegetables in Arusha region in Tanzania to reduce malnutrition through diet diversification. This study estimated the impact of the program on households, women of childbearing age, and children’s dietary diversity. The study used cross-sectional data from 258 program participants and 242 non-participants households and applied matching techniques to control for problems associated with unobserved heterogeneity, which could otherwise bias the outcome estimates. We compared our findings with the inverse probability of treatment weighting to correct for selection bias. We found that households participating in traditional vegetable promotion program had significantly higher dietary diversity of children under five and women in reproductive age. We found no significant impact of promotion program on households’ dietary diversity. The policy implication is that scaling up promotional activities to encourage consumers to grow and eat traditional vegetables would be an important element in initiatives to increase dietary diversity, particularly for children under five and women of childbearing age in Tanzania. |
Keywords: | Food Consumption/Nutrition/Food Safety, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246912&r=agr |
By: | Tsvakirai, C.Z.; Leibenberg, F.; Kirsten, J.F.; Chaminuka, P. |
Abstract: | Literature is awash with strategies of how the farm productivity of the smallholder agricultural sector can be transformed to equal that of the commercial sector. Policy options that have been suggested to transform smallholder agriculture have centred on increasing state financial investments in areas such as infrastructural development, mechanisation and market access. However, this paper provides a practical demonstration of how prioritising investment in research and development (R&D can achieve this goal. It particularly focuses on how consistent funding towards breeding can lead to the establishment of a strong industry that can remain productive in face of various changes in the market, production environment and institutional domains. Using the Cost-Benefit variation of the Economic Surplus Approach, the paper shows that the use of new locally bred peach varieties, as opposed to obsolete and imported varieties has yielded benefits estimated to range around R61.2 million (inflation adjusted to 2013 values). The results suggest two conclusions. First, R&D investment plays a pivotal role in enabling agricultural production to remain lucrative through various industry dynamics and will be important in the transformation of the smallholder agricultural sector. Second, increasing research investment can help countries achieve goals of economic growth in the domestic economy as the benefits of breeding investment were found to benefit local producers. Recommendations are made encouraging the prioritisation of R&D investment in all African agricultural industries as locally developed technologies are more likely to address Africa’s production problems rather than imported technologies. |
Keywords: | Crop Production/Industries, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246445&r=agr |
By: | Diro, Samuel; De Groote, Hugo; Gunarata, Nilupa |
Abstract: | Quality Protein Maize (QPM) has been fortified with lysine and tryptophan to improve the poor protein quality of conventional maize. For farmers to adopt QPM, there needs to be a market for it. This paper studies how nutritional information and sensory quality affects WTP for QPM grain, white and yellow, among rural consumers farmers in Jimma zone, Ethiopia. The study used affective tests, both central location test (CLT) and modified home-use (MHUT), and the Becker-DeGroot-Marschak (BDM) experimental auction mechanism to estimate WTP. The CLT was conducted with 192 participants, while 210 mothers with children aged 6-23 months participated in the MHUT. To analyze the effect of information on WTP, the participants were randomly assigned to two treatment groups; first group was also provided with information after the BDM, and the BDM was repeated after information was provided. The results of the affective tests preparations of white and yellow QPM were significantly more appreciated than those of their white and yellow conventional maize counterparts. The BDM mechanism results revealed that respondents were willing to pay more for QPM grain than for conventional maize. Further, nutritional information boosted bids for white and yellow QPM grain and reduced the bids of white and yellow CM grains. The main factor affecting WTP for QPM was its sensory quality. The study, finally, recommends marketers and food processors to use the QPM’s favorable sensory characteristics to penetrate in to the market and to emphasize on formal and non-formal information dissemination mechanisms for its wider adoption and dissemination. |
Keywords: | Sensory evaluation, willingness to pay, Becker-DeGroot-Marschak, central location test, modified home-use test, Consumer/Household Economics, Demand and Price Analysis, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246979&r=agr |
By: | Sibiko, Kenneth W.; Veettil, Prakashan C.; Qaim, Matin |
Abstract: | Smallholder farmers are particularly vulnerable to climate shocks but often lack access to agricultural insurance. Weather index insurance (WII) could reduce some of the problems associated with traditional, indemnity-based insurance programs, but uptake has been lower than expected. One reason is that WII contracts are not yet sufficiently tailored to the needs and preferences of smallholders. This study combines survey and choice-experimental data from Kenya to analyse the experience with an existing WII program and how specific changes in contractual design might increase insurance uptake. Many smallholders struggle with fully understanding the functioning of the program, which undermines their confidence. Better training and communication are needed. Regular provision of relevant rainfall measurements and thresholds would significantly increase farmers’ willingness to pay for WII. Mechanisms to reduce basis risk are also valued by farmers, although not to the same extent as higher levels of transparency. Finally, offering contracts to small groups rather than individual farmers could increase insurance uptake. Group contracts may help to reduce transaction costs. Farmer groups can also be important platforms for learning about complex innovations, including novel risk transfer products. While the concrete results are specific to Kenya, they provide some broader policy-relevant insights into typical issues of WII in a small-farm context. |
Keywords: | Climate risk, smallholder farmers, crop insurance, discrete choice experiment, Africa, Environmental Economics and Policy, Farm Management, Research and Development/Tech Change/Emerging Technologies, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246399&r=agr |
By: | Binswanger-Mkhize, Hans P.; Johnson, Timothy; Samboko, Paul Chimuka; You, Liangzhi |
Abstract: | To estimate the impact of urban growth on agricultural and rural nonfarm income growth we develop an urban gravity variable that reflects the economic activity of a city– total nighttime light emitted – which is a proxy income of each city. The light intensities were transformed into urban gravity variables depending on the distance of sample villages from the city, and their growth rates used for the analysis in regression equations. The key findings are as follows: Equal urban growth in all locations has an elasticity of 0.50 on agricultural income growth, and of 0.19 on rural non-farm income growth. Urban growth also has a large effect on education, followed by commercialization and then on the use of modern varieties. These in turn have a strong impact on agricultural and rural non-farm income. National urban growth has a larger impact on agricultural and rural non-farm growth than local urban growth. Once we account for the other control variables (roads, education, commercialization, modern varieties), the urban growth impact on agricultural growth is cut in half and for rural non-farm growth the urban growth impact disappears. For non-farm income almost the full impact of urban growth can be explained by its impacts on education. The elasticities of urban growth with respect to agricultural incomes via education, commercialization and HYV are 0.12, 0.10 and 0.05 respectively. Curiously, we cannot show an impact of agricultural growth on rural non-farm income growth. |
Keywords: | Community/Rural/Urban Development, Land Economics/Use, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:249274&r=agr |
By: | Rao, E.J.O.; Mtimet, N.; Twine, E.; Baltenweck, I.; Omore, A. |
Abstract: | Dairy business hubs present opportunities for efficiently linking farmers to input and output markets. Yet participation by smallholder dairy farmers in these hubs will only be realized if the hub options are adapted to fit the needs of farmers. In this study we have analyzed preference for dairy business hubs in Tanzania where ILRI is currently implementing adapted hub options. Using survey data from smallholder dairy producers from Tanga and Morogoro and applying the choice experiment method we find significant preference for hub options with higher milk prices and payment for milk on a fortnight rather than cash basis. Farmers also prefer hub options that bundle milk marketing with input provision. For bundled inputs, smallholder dairy farmers prefer hub options that allow payment for such inputs via credit or check-off rather than cash. Our analyses also reveal significant heterogeneity in preference among farmers hence the need for advanced analytical approaches that can handle such heterogeneity. Emerging dairy hubs in Tanzania should be supported to either establish in-house input provision arrangements or to enter into contracts with major agro-input dealers in their environs. |
Keywords: | Livestock Production/Industries, Marketing, Research and Development/Tech Change/Emerging Technologies, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246961&r=agr |
By: | Onyango, Mercy; Otieno, David Jakinda; Nyikal, Rose Adhiambo; Ojiem, John |
Abstract: | Grain legumes have great potential for improving smallholder farmers’ productivity in Sub-Saharan Africa (SSA) though their potential has not been fully exploited due to critical problems including high insect pests and disease infestation. As part of the process of addressing these challenges, the Collaborative Crop Research Program (CCRP) of the McKnight Foundation in collaboration with Cornell University and Kenya Agricultural and Livestock Research Organization (KALRO) recently introduced crop and soil enhancing strategies in Western Kenya. One of the strategies introduced included use of multipurpose grain legumes species in Nandi County (Koibem, Kapkerer and Kiptaruswo sites). Through this initiative, various legume species including common bean, cowpea, groundnuts, lablab and soybean of different varieties are being promoted at the farm level. However, no empirical study has assessed the economic benefits that farmers are likely to obtain if they adopt the legume species. In order to address the aforementioned knowledge gap, the present study sought to evaluate economic profitability from the production of grain legumes. Gross margins and profits were computed from farm-level data gathered from a random sample of 163 legume farmers in the above CCRP sites. Results showed that grain legumes species differed in terms of their gross margins; beans, groundnuts, cowpeas and soybean had positive gross margins while lablab had a negative gross margin. Further, the farm-area under grain legumes, age of the farmer, access to extension services and access to credit had significant influence on the amount of gross margin obtained by a farmer. The results point to the need for recruitment of more extension staff at local levels to enhance extension service delivery. Also, there is need for the county government to promote credit awareness and establish credit associations, which can boost farmers’ access to credit. |
Keywords: | Legumes, gross margins, profitability, Kenya, Agricultural Finance, Crop Production/Industries, Demand and Price Analysis, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246921&r=agr |
By: | Scheiterle, Lilli; Birner, Regina |
Abstract: | Maize is one of the most important crops produced and consumed in Ghana, accounting for 58% of local cereal production. Increasing food prices worldwide and the gap between production and consumption of maize in recent years in Ghana present the country with growing import bills and higher prices for consumers. The purpose of this study was to analyze whether farmers in the northern sector of Ghana have a comparative advantage in the production of maize as import substitution. The effect impact of the fertilizer subsidy program on the yield itself and consequently on the private and social profitability has been tested. Fertilizer subsidy programs are one of the most popular policy programs in Africa. In the mid-90s many countries introduced them to increase crops yield. Household survey data of the cropping season 2010 were collected and complemented with data from different institutions. We applied the Policy Analysis Matrix (PAM), to assess policy effects on production systems, and the Cobb-Douglas production function to identify factors affecting the output of each system. The results suggest that production systems with yields above the national average of 1.5 Mt/ha are profitable at private level and contribute to growth of the national economy. Farming systems producing below this threshold report negative social profits, implying that they do not use scarce resources efficiently in the production of maize and depend on government intervention. Policy implications are drown and, in conclusion, we consider essential to combine single policy tools and used in synergy to realize the full efficiency of each. |
Keywords: | Policy Analysis Matrix, Cobb-Douglas, comparative advantage, Ghana, maize, Crop Production/Industries, Production Economics, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:249277&r=agr |
By: | Bisimungu, Emmanuel; Kabunga, Nassul |
Abstract: | Agricultural productivity is still lower in Africa. This is largely attributed to the lower than expected adoption of modern agricultural technologies. Existing on studies are marred by univariate analyses on single technologies over a limited scope while assuming that the uniform effects of the explanatory variables across farm households. In this study, we use a large dataset that typically covers a wider geographical and agricultural scope to describe modern technology use in Uganda. Using statistical data reduction approaches, we show distinct classes of farmers based on the package of modern technologies mix used. Overall, we find that improved seeds, pesticides and fertilizer are the most commonly used crop technologies while veterinary drugs are the most commonly used technology for livestock farmers. We also find that the majority of farmers, 61% do not use any modern agricultural technology and thus consider them as non-adopters. On the other hand, we find only 5% of farmers belonging to the intensified diversifiers, adopting most of the commonly available agro technologies across crop and livestock enterprises. Using multinomial regression analysis, show that education of the household head, access to extension messages and affiliation to social groups, but with varying intensities, are the key factors that drive switching from the non-adopter reference class to the other three preferred classes that use modern agricultural technologies to varying levels. |
Keywords: | technology adoption, latent class analysis, multinomial regression, Uganda, Research and Development/Tech Change/Emerging Technologies, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:249347&r=agr |
By: | Obisesan, Adekemi A.; Amos, Taiwo T.; Akinlade, Roseline J. |
Abstract: | This study examined credit accessibility, technology adoption and the impact on output and income of cassava farming households in Southwest Nigeria. Data were collected using structured questionnaire through a multi-stage sampling procedure. Ondo and Ogun states were randomly selected from the six States in Southwest, Nigeria. The next stage involved the random selection of four Local Government Areas from each State. Finally, a total of five hundred and forty cassava farmers were randomly selected from both States. Propensity Score Matching, descriptive statistics and Tobit regression model were employed in the analysis. There were 387 respondents with similar characteristics. Majority of the farmers were males with mean household size of six members. Average area of land cultivated was about 1 hectare. Credit accessibility was higher among the adopters. Credit access had a positive and significant (p<0.01) influence on level of adoption. Cassava yield and income (14.92 tonnes/ha and ₦321,758.00 respectively) of adopters with credit was higher than their counterparts (13.06 tonnes/ha and ₦287,110.90) without credit access. The impact of technology adoption was higher among adopters with credit access. Technology adoption increased cassava yield and income of adopters with credit access by 4.68tonnes/ha and ₦64,945.19 respectively compared with 2.57 tonnes/ha and ₦33,964.79 for those without access. This suggests that access to credit and technology adoption have the potential to transform smallholder agriculture in Nigeria. The study recommends that government should invest more on technology advancement and dissemination among smallholder farmers. Policy measures should also be oriented towards the improvement of rural credit. |
Keywords: | Cassava, Credit, Income, Technology, Southwest Nigeria, Financial Economics, Research and Development/Tech Change/Emerging Technologies, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246443&r=agr |
By: | Juma, Charity Nabwire; Otieno, David Jakinda; Oluouch-Kosura, Willis; Gyau, Amos; Oduol, Judith Auma |
Abstract: | Geographical indication (GI) is an important measure for revealing the origin of a product and communicating the salient site-specific practices embedded in the value chain. For most products and services, recent literature has extensively documented consumer concerns for GI and other quality attributes especially in the developed nations. However, in the developing countries there is very limited empirical analysis of these aspects; in fact there is a complete lack of research insight on GI for honey in Kenya. The present study contributes to fill this knowledge gap through a choice experiment survey of consumer perceptions and preferences for GI and other important quality attributes in honey. The study applied the random parameter logit (RPL) model to analyze data from a random sample of 478 honey consumers drawn from three distinct areas in Kenya: a rural semi-arid honey producing area, Kitui; a humid production-consumption area, Nakuru and; a cosmopolitan net consuming area, the city of Nairobi. Results show that consumers have significant positive preferences for GI labelling, floral source disclosure, organic production methods and joint public-private certification of honey quality. The middle income category of consumers and the relatively aged ones have a specifically strong preference for organic honey. These insights should be integrated in the improvement of honey value chains. |
Keywords: | Geographical indication, quality-attributes, honey, consumers, Kenya, Consumer/Household Economics, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246915&r=agr |
By: | Tomas Balint (Centre d'Economie de la Sorbonne); Francesco Lamperti (Scuola Superiore Sant'Anna di Pisa - Institute of Economics and LEM); Antoine Mandel (Centre d'Economie de la Sorbonne - Paris School of Economics); Mauro Napoletano (OFCE-Sciences Po and SKEMA Business School (Sophia-Antipolis)); Andrea Roventini (Scuola Superiore Sant'Anna di Pisa - LEM and OFCE); Alessandro Sapio (University Parthenope of Naples) |
Abstract: | We provide a survey of the micro and macro economics of climate change from a complexity science perspective and we discuss the challenges ahead for this line of research. We identify four areas of the literature where complex system models have already produced valuable insights: (i) coalition formation and climate negotiations, (ii) macroeconomic impacts of climate-related events, (iii) energy markets and (iv) diffusion of climate-friendly technologies. On each of these issues, accounting for heterogeneity, interactions and disequilibrium dynamics provides a complementary and novel perspective to the one of standard equilibrium models. Furthermore, it highlights the potential economic benefits of mitigation and adaptation policies and the risk of under-estimating systemic climate change-related risks |
Keywords: | climate change; climate policy; climate economics; complex systems; agent-based models; socio-economic networks |
JEL: | C63 Q40 Q50 Q54 |
Date: | 2016–07 |
URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:16058&r=agr |
By: | Samuel Fankhauser; Nicholas Stern |
Abstract: | The past three decades have seen an unprecedented increase in world living standards and a fall in poverty across many fundamental dimensions. Increased confidence in what was possible together with greater acceptance of moral responsibilities led to the adoption of the Millennium Development Goals (MDGs) at the turn of the century. They provided a real basis for international cooperation and development. In the Sustainable Development Goals (SDGs), agreed in September 2015, there is now a common platform for the next phase of the fight against poverty. The SDGs make it clear that environmental protection will be a key feature of this next phase and increasingly intertwined with poverty reduction. Thirteen of the 17 SDGs are directly concerned with the natural environment, climate or sustainability. Environment, climate and sustainability were not prominent in the MDGs. With hindsight we can now see that this was a mistake. A key factor in all this is climate change. Climate change is not the only environmental problem we face, nor is it the only threat to global prosperity. But climate change is unique in its magnitude and the vast risks it poses. It is a potent threat-multiplier for other urgent concerns, such as habitat loss, disease and global security (IPCC 2014) and puts at risk the development achievements of the past decades (World Bank 2016). If unchecked, climate change could fundamentally redraw the map of the planet, and where and how humans and other species can live. Climate change is also unique in the scale of the response that is needed. Reducing climate risks requires cooperation from all countries, developed and developing, to reorient their economic systems away from fossil fuels and harmful land-use practices. This reorientation is urgent. Our activities in the next two decades will determine whether our successes in development will be sustained or advanced, or whether they will be undermined or reversed in a hostile environment. The nature of the climate problem has implications for economic analysis. Economics has much to offer, and indeed continues to provide important insights, but there has been a dangerous tendency to force climate change into narrow existing ways of thinking. This must change. We need to construct theories and models that reflect the structure and scale of the problem and the contexts in which it occurs. Climate change also has implications for development policy. In the Paris Agreement – negotiated at the end of 2015 – there is now an international platform through which global climate action can be advanced and coordinated. The Paris Agreement sets out a process through which the rise in global mean temperatures may be curtailed to “well below†2oC above pre-industrial levels and perhaps as low as 1.5oC. These are the central long-term objectives of the agreement. Meeting the Paris objectives requires sustained action over many decades. It also requires the reorientation of investment. At least US$ 100 trillion will be invested over the next two or three decades into buildings and urban infrastructure, roads, railways, ports and into new energy systems. It is imperative that these investment decisions are taken with climate change in mind. If they are there will be substantial benefits for development and poverty reduction – living spaces where we can move, breathe and be productive, better protection for fragile ecosystems, as well as the fundamental reduction of the risks of climate change. Putting the SDGs and Paris together, the agreements of 2015 have given us, for the first time, a global agenda for sustainable development applying to all countries. This paper sets out the implications of this agenda, and climate change in particular, for development economics and development policy. It emphasizes the nature of the required changes and their implications. We start with an examination of what economics has had to say about the link between economic prosperity and the environment. We then explain why climate change is a different kind of problem and why it requires a new approach to both analysis and policy. The final two sections explore how this new approach might look. |
Date: | 2016–10 |
URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp253&r=agr |
By: | Murendo, Conrad; Gwara, Simon; Mpofu, Nkululeko; Pedzisa, Tarisayi; Mazvimavi, Kizito; Chivenge, Pauline |
Abstract: | Climate change and variability and soil fertility depletion are among the main biophysical limiting factors for increasing per capita food production for smallholder farmers in developing countries. To tackle these challenges, the adoption of sustainable agricultural practices (SAPs), has become an important policy topic among donors and development agencies in developing countries. This paper examines the adoption decisions for SAPs, using recent primary data collected in 51 villages in 3 districts of Zimbabwe. The article employs a multivariate probit regression to model simultaneous interdependent adoption decisions by farm households. The analysis reveals that education, farm experience, farm size, income, access to information and agroecology influence the adoption of SAPs. Policies that are aimed at improving household income and enhancing access to information can increase the uptake of SAPs by smallholder farmers. Extension messages should aim to emphasize the complementarities between different SAPs. This information could help policy makers and extension agents to formulate and promote a package of SAPs. |
Keywords: | Sustainable agricultural practices, multiple adoption, multivariate probit, Zimbabwe, Food Consumption/Nutrition/Food Safety, Land Economics/Use, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246383&r=agr |
By: | Apata, T.G.; Sanusi, R.A.; Obaisi, A.; Ajani, O. |
Abstract: | Public expenditure in the form of budget is making a provision for development for today and in the future. Over the year’s sustainable budget provisions has been a contentious issue in Economic development. Public expenditure is a fiscal instrument that government uses to sustain the economy. The question is “what is to be sustained” and “what is to be developed”. This is the rationale for this study. Literature has revealed that Nigeria and Malaysia are comptemporaries in terms of development in the 1960s, recent findings revealed that Malaysia is advanced in economic development than Nigeria. The study answer two precise questions: policy settings under which public spending contributes to agricultural growth? and public spending mechanisms that have a clearer and longer-lasting influence on agricultural growth? The study aim to establish a link to public spending in Malaysia and provide lessons regarding the level and composition of public spending that can be useful for Nigeria. Secondary data used and sourced from FAOSTAT and International Monetary Fund's Government Finance Statistics (various issues) from 1970 to 2010. Simple version endogenous growth theory adopted. Government expenditures as a percentage of GDP in Nigeria witnessed massive public funding in Agriculture in the 1960s-1980s but decline in 1990s-2010, while Malaysian experienced consistency, both in public funding in agriculture and growth. Malaysia as the better manager in terms of components of growth than Nigeria. Malaysia reflects a clear predominance of productive spending, which is sustained through the decades of analysis, while Nigeria predominance of unproductive spending. |
Keywords: | Public spending, growth model, policy, economy development, Nigeria and Malaysia, Consumer/Household Economics, Financial Economics, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246922&r=agr |
By: | Tomas Balint (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Francesco Lamperti (Scuola Superiore Sant'Anna [Pisa], LEM - Laboratoire d'Economie et de Management - UNS - Université Nice Sophia Antipolis - CNRS - Centre National de la Recherche Scientifique); Antoine Mandel (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics); Mauro Napoletano (OFCE - OFCE - Sciences Po, SKEMA Business School - SKEMA Business School); Andrea Roventini (Scuola Superiore Sant'Anna [Pisa], LEM - Laboratoire d'Economie et de Management - UNS - Université Nice Sophia Antipolis - CNRS - Centre National de la Recherche Scientifique); Alessandro Sapio (DISAE - Universita degli studi di Napoli "Parthenope" [Napoli]) |
Abstract: | We provide a survey of the micro and macro economics of climate change from a complexity science perspective and we discuss the challenges ahead for this line of research. We identify four areas of the literature where complex system models have already produced valuable insights: (i) coalition formation and climate negotiations, (ii) macroeconomic impacts of climate-related events, (iii) energy markets and (iv) diffusion of climate-friendly technologies. On each of these issues, accounting for heterogeneity, interactions and disequilibrium dynamics provides a complementary and novel perspective to the one of standard equilibrium models. Furthermore, it highlights the potential economic benefits of mitigation and adaptation policies and the risk of under-estimating systemic climate change-related risks. |
Keywords: | climate change,climate policy,climate economics,complex systems,agent-based models,socio-economic networks |
Date: | 2016–07 |
URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-01390694&r=agr |
By: | Darko, Francis Addeah; Ricker-Gilbert, Jacob; Kilic, Talip; Florax, Raymond; Shively, Gerald |
Abstract: | This study assessed the profitability of fertilizer use by farmers in rural Malawi using a two-wave nationally representative panel data. We find that fertilizer use is generally unprofitable at prevailing market conditions when farmers are assumed to be risk averse. In order for fertilizer use to be profitable on average, the nitrogen use efficiency (NUE) – the kilograms of maize obtained from a kilogram of nitrogen – would have to increase by 136%, 141% and by 50% if maize output is valued at farm gate price, harvest season market price and lean season market price respectively; or fertilizer ought to be subsidized at a rate of at least 72.43%, 71.67% and 41.34% respectively. Although fertilizer subsidy improves the profitability of fertilizer by increasing the maize-nitrogen price ratio, we find that at all rates of subsidy, unless farmers can store their produce and sell during the lean season where output price is relatively higher, they would be at least MK 66.16 and MK 61.81 per kg of subsidized nitrogen better off with the cash equivalent of the subsidy than with subsidized fertilizer when maize is values at farm gate price and harvest season market price respectively. We also find that the government recommended rates of fertilizer application is too high to be profitable at prevailing market conditions, but profitability at this rate of fertilizer application is over 100% higher than profitability at actual rate of application. |
Keywords: | Maize, Fertilizer profitability, Nitrogen use efficiency, Malawi, Fertilizer subsidy, Crop Production/Industries, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies, C52, C81, Q12, Q18, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:249269&r=agr |
By: | Gutu, Tekalign |
Abstract: | This study investigates the trends, patterns and prospects of youth involvement in agriculture in Ethiopia, by gender. It also analyses the determinants of youth labor supply in agriculture using household and youth sample survey data collected during 2010/11 and 2014/15 main agricultural seasons in Oromia, one of the designated high agricultural potential area of Ethiopia. Labor supply is measured as the total annual working days (in adult equivalent) of male and female youth members of the household allocated to on-farm and off-farm work. Based on this data the marginal products (shadow wages) of youth workers of each gender and net income (shadow income) are estimated, using a structural time-allocation models. Then the estimated shadow wages and shadow income are used as regressors in a structural model of youth labor supply. The results indicate that trends and patterns of youth involvement in agriculture vary across gender and work locations, and so do their marginal products. Whilst the on-farm participation of youth is declining across time irrespective of gender, the participation in off-farm agricultural activities is increasing for both. There is statistically no significant decrease in the total agricultural labor supply of both male and female youths. Further, we find that the effect of own shadow wage on labor supply is positive for male youth members, suggesting an upward sloping labor supply. However, the effect of own marginal product of female youth labor is negative, suggesting that female youth agricultural labor supply is backward bending. The findings challenge the presumption that youth are abandoning agriculture, at least in the survey areas. Policy implications of the results would be that changes in economic incentives such as shadow wages and shadow income matter for youth involvement in agriculture and off-farm agricultural employment opportunities could help to reduce youth underemployment. |
Keywords: | male youth, female youth, shadow wage, shadow income, agricultural labor supply, Consumer/Household Economics, Financial Economics, Labor and Human Capital, D13, J22, J23, Q12, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246925&r=agr |
By: | Willson, Matt |
Abstract: | The majority of a company’s environmental impacts exist outside its operational footprint—in its supply chain and typically in the production and harvesting of raw materials for food for human and animal consumption, fuel and materials. The impacts of commodities like palm oil, soy, timber, and pulp and paper on iconic places like the forests of the Amazon and Borneo are well known; a similar magnitude of impact is being felt globally with approximately 50% of the loss of biodiversity being due to primary production. These impacts also pose some of the most significant threats to a company’s security of supply of key inputs, brand reputation and bottom line. These risks are increasingly leading some companies, particularly multinational food, beverage and grocery companies and brands, to implement wide-ranging strategies for sourcing raw materials more sustainably. WWF’s analysis shows that around 500 companies control or influence roughly 70 per cent of global markets for commodities. Initial steps toward improved sourcing include using tools to better understand environmental and social risks in their supply chains and prioritising focus areas for risk mitigation. With this information companies are developing transition programs for key commodities, including publishing time-bound targets for the purchase of credibly certified commodities, engaging primary producers, and partnering with NGOs to improve their understanding of social and environmental issues. Others are going further by supporting collaborative action to shift their sectors and influence government, for example, through multi-stakeholder initiatives and roundtables or joint advocacy with NGOs and other private sector actors. |
Keywords: | Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, |
Date: | 2015–08 |
URL: | http://d.repec.org/n?u=RePEc:ags:cfcp15:245056&r=agr |
By: | Laibuni, Nancy Munyiva; Neubert, Susanne; Bokelmann, Wolfgang; Gevorgyan, Emil; Losenge, Turoop |
Abstract: | African Indigenous Vegetables (AIVs) have the potential to contribute substantially to food and nutrition security in Kenya because of their high nutritious value for alleviating the wide spread hidden hunger. However there is a limited pool of knowledge on the AIV-innovations, this exploratory study introduces a graph-theoretic method for assessing linkages between organisations along the AIV value chains with an aim of identifying pathways of interactions between organisations. Information sharing, knowledge and resource flows were used as proxies to connote linkage. Empirical results show that the linkages between the organisations do exist, the pathway in the AIV value chain was found to be top-down approach, the organsations giving grants set the agenda with the research organisations after which information, knowledge and resource flows were passed to the marketing and extension service organisation. Then next can the processing and policy organisation and finally to the producer organisations. In this system, the producer organisation did not demand for information, knowledge and resources and thus the agenda was set for them, implying that there limited information sharing, knowledge and resource flows along the ALV value chain organisations. The role of policy is creating an enabling environment - in this study interpreted as access to information, knowledge and resources - is critical in ensuring that the organisation along the value chain have access to the information and resources needed to promote the production and utilisation of these vegetables. The envisioned optimal pathway then would be one that provides for a feedback mechanism and may not follow a linear one-sided module. Strengthening and empowering producers, extension service and marketing organisations is critical for the uptake and adaptation of inclusive innovations and technologies along the AIV value chains. |
Keywords: | African Indigenous Vegetables, Organisational linkages, Graph theory, Value chain, information and knowledge exchange, Crop Production/Industries, Teaching/Communication/Extension/Profession, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:249345&r=agr |
By: | Adeyemo, Temitayo Adenike; Amaza, Paul; Okoruwi, Victor; Abass, Adebayo |
Abstract: | Although cassava economic and development significance is gaining ground in Nigeria, the smallholding nature of production, processing, marketing and utilization persists. The smallholding and subsistence nature of most agricultural households in Nigeria means that welfare attributes may not be achieved. Operating within the concept of an economic based biomass value web is expected to increase both the productive capacity and food security outcome of the smallholders in the cassava web. The study examined the extent to which smallholders in the cassava system are involved in its biomass value web using a sample of 260 cassava smallholder households selected through a multistage sampling procedure in Edo state, Nigeria. The extent of participation in the value web was done using the composite score method; food security status of households was determined using the Foster, Greer and Thorbecke framework and covariates of food security determined through a probit regression. The results showed only about 28% of the smallholders are high level participants in the value web. While about 84% of the respondents are food insecure; food insecurity level is lowest among high level of participation in the value web. The probit regression shows that increasing levels of participation in the value web, education, and high monthly income increases food security, while household size, marital status and male headed household headship reduces food security. Policy implications suggests provision of infrastructure that help promote multiple involvement in the cassava value web. |
Keywords: | Cassava, Food Security, Biomass Web, Smallholders, Nigeria, Consumer/Household Economics, Food Security and Poverty, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:249319&r=agr |
By: | Robert S. Pindyck |
Abstract: | An estimate of the social cost of carbon (SCC) is key to climate policy. But how should we estimate the SCC? A common approach is to use an integrated assessment model (IAM) to simulate time paths for the atmospheric CO2 concentration, its impact on global mean temperature, and the resulting reductions in GDP and consumption. I have argued that IAMs have serious deficiencies that make them poorly suited for this job, but what is the alternative? I present a more transparent approach to estimating an average SCC, which I argue is a more useful guide for policy than the marginal SCC derived from IAMs. I rely on a survey through which I elicit expert opinions regarding (1) the probabilities of alternative economic outcomes of climate change, including extreme outcomes such as a 20% or greater reduction in GDP, but not the particular causes of those outcomes; and (2) the reduction in emissions required to avert an extreme outcome. My estimate of the average SCC is the ratio of the present value of damages from an extreme outcome to the total emission reduction needed to avert such an outcome. I discuss the survey instrument, explain how experts were identified, and present results. I obtain SCC estimates of $200/mt or higher, but the variation across experts is large. Trimming outliers and focusing on experts who expressed a high degree of confidence in their answers yields lower SCCs, $80 to $100/mt. |
JEL: | D81 Q5 Q54 |
Date: | 2016–11 |
URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:22807&r=agr |
By: | Kamdem, Cyrille Bergaly |
Abstract: | The objective of this study is to evaluate the effect of Farmer Field Schools (FFSs) on cocoa yield in the Centre and South-west regions in Cameroon. The evaluation of FFSs is important for improving cocoa production by agricultural research and extension. This evaluation is done by using the “Propensity Score Matching” technique and Rosenbaum bounds sensitivity analysis method to ensure robustness of results. The data comes from IITA surveys conducted in 2009 and concerned 201 cocoa farmers in the Centre and South -West Regions in Cameroon for the 2008/2009 cocoa season. The sample cocoa farmers contain participants and non participants to FFSs. Results show that participate to FFSs have a positive and significant effect on the cocoa yield per hectare. This effect is estimated at about 97 kilograms per hectare. This effect is statistically significant at 10%, only for the kernel matching but not for the five nearest neighbors matching. This weak significant of FFS impact could be lead to the fact that farmers who joined FFS are those who have low capacity in cocoa production compare with those who did not joined FFS. This can also lead to the poor quality of FFSs training. The first recommendation is to promote the FFSs in the area where there is no FFSs by highlighting agricultural extension service. The second recommendation is to improve the quality of training in Farmer Fields Schools in other to increase their impacts on cocoa yield. In the current context of agricultural intensification challenges in developing countries, this analytical framework is of interest for policy makers for identifying conditions of farmer participation to FFSs and designing effective motivation strategies. |
Keywords: | Farmer Field School, intensification, participation, impact, cocoa yield, Cameroon, Crop Production/Industries, Productivity Analysis, Teaching/Communication/Extension/Profession, Q16, Q18, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246388&r=agr |
By: | Me-Nsope, Nathalie M.; Staatz, John M. |
Abstract: | Food demand parameters are necessary for informed food policy making. In this paper we specify a Quadratic Almost Ideal Demand System and estimate a complete demand system for rice, sorghum, millet and maize in rural and urban Mali using Mali’s 2006 household budget survey data. Elasticities are estimated by per capita income groups and by rural and urban residence. We use these estimates to measure the welfare effects of cereals price shocks observed from 2008 to 2011 by means of a proportional compensating variation that allows for second-order demand responses to price changes. Our results suggest that substitution occurs between rice and coarse grains in both the rural and the urban areas and across income groups. Across income groups and place of residence, the second-order effect on welfare of cereals price shocks are only slightly lower than the first-order effect, reflecting a limited scope for substitution to “cheaper” cereals when all cereals prices are rising sharply. In both rural and urban areas, the relative income loss from observed price changes was greater for poorer than richer households, but the absolute income loss was greater for the higher income groups. The findings suggest a scope to encourage ongoing diversification of staple food sources to give consumers more opportunity for substitution and choice. Price transmission across cereals suggests a need for a cereals policy rather than just, for example, a rice policy. The results suggest strong future growth in demand and a need to focus on driving down unit costs throughout the food system. |
Keywords: | food demand, expenditure elasticity, price elasticity, Mali, Demand and Price Analysis, Food Consumption/Nutrition/Food Safety, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246397&r=agr |
By: | Sumra Abbas (Pakistan Institute of Development Economics, Islamabad); Attiya Yasmin Javid (Pakistan Institute of Development Economics, Islamabad) |
Abstract: | This study investigates extent of market efficiency and presence of day of week effect in stock market indices and volume and volatility in four major SAARC countries, namely Pakistan, Bangladesh, India and Sri Lanka for the period 1999 to 2014. The day of week anomaly is detected by using day of week dummies in return and volume model with ARMA specification estimated by Ordinary Least Square. The day of week effect in volatility is captured by GARCH model with days of week dummies in conditional mean and variance equations. The GARCH-M model is applied to see that investor is getting reward for facing volatility risk. The asymmetry in volatility is estimated by TGARCH-M and EGARCH-M. The evidence shows the presence of day-of-theweek effects in returns and volume in Pakistan, India, Bangladesh and Sri Lanka. The results also indicate that asymmetric volatility behaviour is present in all of four markets. However, day of week effects and asymmetric effects detected in these markets may be possibly to due to over-reaction and underreaction of investors on particular day of week. |
Keywords: | Day-of-the-Week Effect, Market Efficiency, Investor Overreaction, Stock Returns, Volume, Asymmetric Volatility, GARCH-M Model |
Date: | 2015 |
URL: | http://d.repec.org/n?u=RePEc:pid:wpaper:2015:129&r=agr |
By: | Babatunde, R.O.; Salami, M.F.; Mohammed, B.A. |
Abstract: | This study examines the determinants of yield gap in rain fed and irrigated rice production systems in Kwara state, Nigeria. The objectives of the research are to; estimate the Profitability of rice production under rain fed and irrigated rice production systems; determine the technical efficiency of the farmers and to assess the determinants of yield gap in both production systems. These objectives were analyzed using: Gross Margin Budgetary analysis, Stochastic Frontier and Linear Regression Model respectively. The result shows that the gross margin for rain fed production system is ₦28,147.88 per hectare while, that of irrigated rice production system is ₦45,944.91 per hectare. The technical efficiency of rain fed rice production in the study area is 0.830 while that of irrigated rice production is 0.927. The determinants of yield gap in rain fed rice production system are: household size, family labour usage, urea fertilizer usage, farm size and variety of seed planted. The determinants of yield gap in irrigated rice production system are: farming experience, membership of association, farm size, and variety of seed planted. It was concluded that rice production in the study area is more profitable under the irrigated rice production system than the rain fed production system. This research therefore recommends that irrigation facilities and farm inputs (urea fertilizer, improved rice variety) should be made available to farmers as and when due. |
Keywords: | Yield gap, Irrigation, Production systems, Rice, Crop Production/Industries, Production Economics, Productivity Analysis, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246400&r=agr |
By: | Gollin, Douglas; Hansen, Casper Worm; Wingender, Asger |
Abstract: | We examine the impact of the Green Revolution, defined as the diffusion of high-yielding crop varieties (HYVs), on aggregate economic outcomes in developing countries during the second half of the 20th century. We use time variation in the development and diffusion of HYVs of 10 major crops, and the spatial variation in agro-climatically suitability for growing them, to identify the causal effects of adoption. In a sample of 84 counties, we estimate that a 10 percentage points increase in HYV adoption increases GDP per capita by about 15 percent. This effect is fully accounted for by a combination of the direct effect on crop yields, factor adjustment in agriculture, and structural transformation. Our analysis also reveals that the Green Revolution reduced fertility and that the reduction was only partly offset by decreasing mortality rates. The net effect on population growth was therefore negative. |
Keywords: | agriculture; Green Revolution; High Yielding Variety crops; macoeconomic development; productivity shock |
JEL: | N50 O11 O13 O50 Q16 |
Date: | 2016–11 |
URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11611&r=agr |
By: | Yusuf, T.M.; Ballogun, O.L.; Tiamiyu, S.A. |
Abstract: | Poverty is one of the Nigeria’s policy challenges stalling all efforts to develop rural areas and transform agriculture. Although, poverty is an endemic problem in Nigeria, available evidence shows that rural areas in the country are the most affected. This study advocates off-farm employment for poverty reduction in the rural areas. An empirical investigation was carried out among farming households in Kwara State, Nigeria to analyze the potentials of off-farm employment in poverty reduction. Kwara state is among the six poorest states in Nigeria. A four-stage sampling technique was employed to select 200 farming households used as sample for the study. Three analytical tools including: descriptive statistics, regression analysis, and Foster, Greer and Thorbecke (FGT) classes of poverty measures were used for data analysis. The result of the study shows that a typical household comprised more than 10 persons with a male household head. The average age of the household heads was 45.5 years. 73.3% practiced farming with off-farm work. Poverty analysis was disaggregated into age, marital status, household size and primary occupation. Poverty incidence and severity are more among households with farming as the sole occupation. Households combining off-farm jobs with farming are non-poor. Age, literacy level, household size and occupation were the determinants of off-farm employment of the farming households. Policy options which will increase rural productivity, reduce rural poverty and encourage youth participation in rural economy were suggested. |
Keywords: | Off- Farm jobs, Farming households and Poverty, Consumer/Household Economics, Food Security and Poverty, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246386&r=agr |
By: | Haile, Mekbib G.; Algieri, Bemardina; Kalkuhl, Matthias; Gebreselassie, Samuel |
Abstract: | This study assesses the degree of vertical price transmission along the wheat-bread value chain in Ethiopia. This is pursued by applying a vector error correction model (VECM) and an impulse response analysis using monthly price data for the period 2000 –2015. The empirical findings indicate that significant cointegration exists across prices of the different stages along the value chain. In particular, there is a strong price shock transmission for the price pair international–local wholesale wheat prices. This suggests that international wheat price shocks could have significant consequences for the Ethiopian economy, given that the country is not only a net importer of wheat but it also imports a sizable amount vis-à-vis the domestic production. Although price shocks are transmitted along the value chain to a different extent, the speed of adjustment is quite slow. For instance, less than 6% of the disequilibrium in bread prices is eliminated in one month, implying that it takes longer that one year for bread price to virtually restore to its long-run equilibrium value after a shock. The results also reveal that causal relationships exist between prices at different market stages. To this end, the impulse response analysis shows diverse responses to shocks, with some shocks producing weak and temporary adjustments while others producing stronger and persistent changes. We found that producer and wholesale market levels play a dominant role in the wheat value chain, implying that policies may give particular attention to these markets. |
Keywords: | Value chain, price transmission, impulse response, wheat, Ethiopia, Financial Economics, Q02, Q11, Q13, L11, M31, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246312&r=agr |
By: | Ciobo, Steven |
Keywords: | Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, |
Date: | 2015–08 |
URL: | http://d.repec.org/n?u=RePEc:ags:cfcp15:245047&r=agr |
By: | Martin Distekamp (GWS - Institute of Economic Structures Research); Mark Meyer (GWS - Institute of Economic Structures Research) |
Abstract: | Though the sustainability research community as well as international decision makers seem to share the conviction that, akin to the challenges of climate policy, a great transi-tion will also be needed in order to decouple human wellbeing from resource use over the next decades, there exist only scarce quantitative assessments of possible transition scenarios which do also concern this matter. Our paper is intended to advance this branch of research by a presentation of key scenario insights from the global simulation model GINFORS which take account of the complex interrelations between different environmental objectives. Whereas a multitude of publications already applied various MRIO databases for ex post assessments of resource-related national footprint indicators, there exist only scarce ex ante assessments of possible transition scenarios concerning this matter. The modelling framework of GINFORS also rests on a MRIO database. Thus, GINFORS is also able to map quantitative indicators of material extractions embedded in regional consumption activities over the global supply chain. |
Keywords: | raw material consumption, RMC, raw material input, RMI, CO2 emissions, macro-econometric model, GINFORS, MRIO, WIOD, policy simulations, resource-efficiency, low-carbon economy |
JEL: | Q34 Q37 Q51 Q56 |
Date: | 2016 |
URL: | http://d.repec.org/n?u=RePEc:gws:dpaper:16-10&r=agr |
By: | Lowder, Sarah K.; Bertini, Raffaele; Karfakis, Panagiotis; Croppenstedt, Andre |
Abstract: | For select countries in sub-Saharan Africa, we compare various sources of information on agricultural land in an attempt to determine what share of total agricultural land may be operated by corporate farms or government enterprises. We also combine various data on agricultural land and households in order to gain a better understanding of the number and distribution of household and non-household farms and farmland in sub-Saharan Africa and Asia. We also examine changes in farmland distribution among household farms for select countries in sub-Saharan Africa and Asia. Whereas most literature on changes in farm size focuses on the average farm size, we go beyond looking at averages to consider the entire distribution of household farms. We find that a significant share of agricultural land is likely operated by non-household farms in a select set of African countries. There is a need to redouble efforts to conduct surveys of all farms as opposed to simply household farms; efforts such as the Agricultural Information System (AGRIS) are timely. LSMS and DHS data confirm the finding that average farm sizes have decreased in many countries of sub-Saharan Africa, although the decrease results from various types of changes in farmland distribution. Previous estimates of the number of farms in sub-Saharan Africa are out of date and we estimate that there are more than 77 million farms in that region. |
Keywords: | farm size, farmland distribution, household farm, land cover, Consumer/Household Economics, Land Economics/Use, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246969&r=agr |
By: | Ahmed, Mohamed M.; Balie, Jean |
Abstract: | An abundant literature exists on measuring the effects pricing and trade policy on agricultural commodity prices since the seminal work by Krueger, Schiff and Valdes (1991) and then the massive worldwide project led by Kym Anderson (2009) on distortions to agricultural incentives. Much less empirical analysis is available on the effects of market and policy failures on production incentives or disincentives. This is most likely due to the difficulty of disentangling the effects of explicit policy instruments from other factors influencing price levels. In addition, this topic is much less relevant for high income countries where most of the OECD type of policy measurement work has occurred. Important challenges related to data scarcity in developing countries as well as methodological options have also prevented researchers from further investigating this topic. In this paper, these other factors are described as the Market Development Gap. The Market Development Gap is a concept that refers to the excessive marketing costs and inefficient price transmission resulting from poorly functioning market, inadequate market structure and uncompetitive behavior of agents in the value chains. The paper attempts to identify the major sources of market development gap in African commodity markets and proposes a methodological framework to measure it as a residual of price gap and the estimated policy-induced price gap. This methodology is applied to several commodities in Uganda. We find a number of cases where the estimation of the market development gap helps to better understand the factors driving the important disincentives affecting producers. |
Keywords: | Policy measurement, policy support, market failures, market development gap, Uganda, Agricultural and Food Policy, Community/Rural/Urban Development, Marketing, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246446&r=agr |
By: | Anonymous |
Keywords: | Agribusiness, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, |
Date: | 2015–08 |
URL: | http://d.repec.org/n?u=RePEc:ags:cfcp15:245048&r=agr |
By: | John C. Whitehead; Daniel K. Lew |
Abstract: | We develop econometric models to jointly estimate revealed preference (RP) and stated preference (SP) models of recreational fishing behavior and preferences using survey data from the 2007 Alaska Saltwater Sportfishing Economic Survey. The RP data are from site choice survey questions, and the SP data are from a discrete choice experiment. Random utility models using only the RP data may be more likely to estimate the effect of cost on site selection well, but catch per day estimates may not reflect the benefits of the trip as perceived by anglers. The SP models may be more likely to estimate the effects of trip characteristics well, but less attention may be paid to the cost variable due to the hypothetical nature of the SP questions. The combination and joint estimation of RP and SP data seeks to exploit the contrasting strengths of both. We find that there are significant gains in econometric efficiency, and differences between RP and SP willingness to pay estimates are mitigated by joint estimation. We compare a number of models that have appeared in the environmental economics literature with the generalized multinomial logit model. The nested logit “trick” model fails to account for the panel nature of the data and is less preferred to the mixed logit error components model that accounts for panel data and scale differences. Naïve (1) scaled, (2) mixed logit, and (3) generalized multinomial logit models produced similar results to a generalized multinomial logit model that accounts for scale differences in RP and SP data. Willingness to pay estimates do not differ across these models but are greater than those in the mixed logit error components model. Key Words: discrete choice experiment, generalized multinomial logit model, hypothetical bias, revealed preference, stated preference, travel cost method |
Date: | 2016 |
URL: | http://d.repec.org/n?u=RePEc:apl:wpaper:16-22&r=agr |
By: | Mekonnen, Daniel Ayalew; Gerber, Nicolas; Matz, Julia Anna |
Abstract: | This paper examines the existence of social learning in agriculture in Ethiopia. We use a ‘random matching within sample’ technique to collect data on social networks and elicit details of the relationships and information exchange between network members, complementing the analysis with information on self-reported networks. We find that, while kinship or membership in certain groups, informal forms of insurance, or having frequent meetings with network members are all associated with a higher probability of forming an information link, none of these are correlated with observed innovative behavior such as the adoption of row-planting. This may suggest that behavior is more likely to be affected by the nature of information that passes through the network, rather than the number of information links. In support of this, we find that information links that exclusively involve discussions on farming or business matters are indeed associated with a higher likelihood of adopting row-planting. We use econometric strategies to isolate social learning from that of correlated and contextual effects. After controlling for factors that might otherwise generate spurious correlation, we find a strong evidence of network externalities in the adoption of row-planting techniques and also in farm productivity. Our results imply that extension services and other programs that promote agricultural innovations and seek yield improvement may benefit from social networks but they may be more effective if they identify the ‘right’ networks, that is, the ones that exclusively involve information exchange regarding agriculture. This further implies that investment in group formation, rather than simply using existing networks, may be a beneficial strategy. |
Keywords: | Social networks, innovations, row planting, agriculture, Ethiopia, Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies, Q1, D02, O33, D83, D62, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246436&r=agr |
By: | Otieno, David Jakinda; Kerubo, Daniella Maroma |
Abstract: | Understanding consumer desires is important for effective positioning of goods and services in various market segments. Comprehensive analyses of chicken consumers’ behaviour are limited in the literature; with none in the Kenyan market. This study assessed chicken consumers’ preferred purchase outlets, forms of chicken purchased, frequency and timing of consumption in the peri-urban areas of Nairobi city, Kenya. A random sample of 200 chicken consumers was interviewed at various purchase and consumption places using structured questionnaires. Qualitative methods were applied in the data analysis. Results showed that most respondents buy chicken from roadside markets than other outlets, broilers are preferred to local chicken, consumers prefer fresh slaughtered chicken rather than other forms such as live or cooked, and over two-thirds of the consumers buy chicken less frequently - after a week or longer duration. Further, more than three-quarters of respondents reported that they consume chicken at home compared to when in transit or while away at work. Over two-thirds of the consumers considered cleanliness of place of sale and the seller, price and accuracy of the quantity offered as the main issues that they are concerned with when making purchase decisions. More than half of the consumers also reported that they preferred naturally reared chicken without growth hormones/stimulants. These findings offer useful insights for chicken producers and traders to provide chicken with acceptable features, in the right quantities and timing that fits within consumers’ desires. This will enhance consumer safety and satisfaction, as well as ensure responsible business practices. |
Keywords: | Chicken, consumer, purchase, behaviour, Kenya, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Livestock Production/Industries, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:249320&r=agr |
By: | Dlamini, Thula; Nalley, Lanier; Tisboe, Francis; Shew, Aaron; Barkley, Andrew |
Abstract: | This study estimates the proportion of dry bean yield increase in South African Agricultural Research Council (ARC) released dry bean cultivars that are attributable to genetic improvements through the ARC breeding program. Using data from 32 test plots across South Africa, the study quantifies the yield and yield variance evolution attributable to the breeding program. In addition, this study calculates the economic benefits to small landholder’s attributed to the ARC dry bean breeding program. Results indicated that by releasing modern dry bean cultivars, the ARC dry bean breeding program increased average producer yield by 11.42 kg/ha annually. During the period of 1972 to 2014, the ARC Breeding Program contributed 489.36 kg/ha cumulatively (11.42*42) to dry bean yields solely from genetic improvements, which is equivalent to a 23.15% (489.36/1130.78) increase in producer yields. The benefits associated only with the genetic gains from the breeding program are estimated to be 701.4 million Rand (46.8 million USD) from 1992-2014. Using historic ARC breeding costs the benefit cost ratio was estimated to be 5.67:1. Like every other country in the world South Africa continuously has to battle for agricultural R&D funds to support programs like ARC whose role is to help small scale producers in Africa. As such, we find the annual genetic gain attributed to the ARC Breeding Program has increased, and the returns to the breeding program continue to play a large role for dry bean farmers and consumers in combating food insecurity. |
Keywords: | dry beans, breeding program, cost benefit, Crop Production/Industries, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:246382&r=agr |
By: | Lorenzo Casaburi; Rocco Macchiavello |
Abstract: | Organizations depend on members' "loyalty" for their success. Studying a cooperative's attempt to increase deliveries by members, we show that the threat of sanctions leads to highly heterogeneous response among members. Despite the cooperative not actually enforcing the threatened sanctions, positive effects for some members persist for several months. Other members "exit," stopping delivering altogether. Among non-compliant members we document substantial heterogeneity in beliefs about the legitimacy of the sanctions. This lack of common understanding highlights the role played by managers in organizations and provides a candidate explanation for lack of sanctions enforcement documented by Ostrom (1990) and other studies. |
JEL: | D83 O13 P13 Q13 |
Date: | 2015 |
URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:68218&r=agr |
By: | Maina, FW; Mburu, J |
Abstract: | Consumers are increasingly demanding for information on product quality, methods and characteristics of geographical region of production. As such, protecting unique products as geographical indications is on the increase. Geographical indications identify a product as originating from a region where a given quality, reputation or other characteristic desired by consumers, is essentially or exclusively attributable to its geographical origin. Having the legal legislation is necessary but not sufficient factor in protection of products as geographical indications (GI). Other essential factors include the producers’ awareness of the uniqueness and willingness to register the product for protection and marketing. Their perceived benefits and other characteristics will influence their decision to register the product as a GI. The study sought to understand underlying variables describing producers’ perceptions of the quality of coffee in Muranga and mango in Makueni as potential geographical indications. At least 132 producers randomly sampled were interviewed in each county using semi-structured questionnaires. The study applied factor analysis to summarise producers’ perceptions and regressed the resulting factors against a set of explanatory variables to determine factors influencing these perceptions. Six and five underlying variable (factors) were identified for coffee and mango producers’ perceptions respectively. The factors explained at least 75.3% and 71.5% of the variance in the original variables for coffee and mango producers’ perceptions respectively. The regression results with varying Fstatistics showed the importance of conducting specific analysis for each product in each region to identify the potential for protecting the products as GI. |
Keywords: | Factor analysis, geographical indications, producer perceptions, coffee, apple mango, Crop Production/Industries, Environmental Economics and Policy, Land Economics/Use, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:249344&r=agr |
By: | Enni Ruokamo (Finnish Environment Institute (SYKE); Department of Economics); Mikołaj Czajkowski (Faculty of Economic Sciences, University of Warsaw); Nick Hanley (Department of Geography and Sustainable Development, University of St Andrews); Artti Juutinen (Department of Economics, Oulu Business School; Natural Resources Institute Finland (Luke)); Rauli Svento (Department of Economics, Oulu Business School) |
Abstract: | Choosing a specific heating system is a complex and difficult decision for homeowners as there exists a wide array of heating technologies with different characteristics that one can consider before purchasing. We include multiple heating technologies and attributes in our Choice Experiment design and explore the effect of perceived choice complexity on the randomness of choices. In particular, we investigate how different self-evaluated factors of choice complexity affect mean scale and scale variance. Our findings suggest that perceived choice complexity has a systematic impact on the parameters of econometric models of choice. However, there are differences between alternative self-evaluated complexity-related covariates. Results indicate that individuals who report that answering the choice tasks was difficult have less deterministic choices. Perceptions of the realism of home heating choice options also affect scale and scale variance. |
Keywords: | Home heating, Choice experiment, Choice modelling, Scale heterogeneity, Generalized mixed logit, Complexity |
JEL: | D12 Q40 Q48 Q51 Q55 |
Date: | 2016 |
URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2016-30&r=agr |
By: | Yami, Mesay; Meyer, Ferdi; Hassan, Rashid |
Abstract: | The central market hypothesis or price leadership role is an important concept of market integration, and it has relevant policy implications because it simplifies market price monitoring and intervention in the grain market. Knowledge about the presence of a central market and its price dynamic effects on satellite markets will assist the effectiveness of food assistance and other humanitarian food price support interventions. This is of particular interest to constant food aid recipients such as Ethiopia. This article intends to empirically investigate as to whether or not there is a central maize market that dictate and lead price information flow over the regional wholesale maize markets in Ethiopia. If such dominant maize market exists, then how does its price affect the maize grain prices of major regional wholesale maize markets in Ethiopia? The extended VAR procedure of Toda and Yamamoto Granger Causality approach is used to test the central maize market hypothesis. Furthermore, we use the system of seemingly unrelated regression model to examine the effects of the central market price on three wholesale regional maize market prices in Ethiopia. The results indicate that Addis Ababa wholesale maize market influences the maize price formation of all regional maize markets examined in this study. Therefore, interventions targeting the central wholesale market can successfully provide a buffer for local maize surplus and consumption markets against undesirable price shocks from the central market. |
Keywords: | Central market, Granger Causality, Maize, Price shocks, Price stabilisation, Agricultural and Food Policy, Demand and Price Analysis, |
Date: | 2016–09 |
URL: | http://d.repec.org/n?u=RePEc:ags:aaae16:249439&r=agr |
By: | Dickmann, Richard |
Abstract: | Asia is a strategic growth area and Bayer has taken a significant role in many publicprivate partnerships, including being a founding member of Grow Asia in Indonesia, with CIMMYT in India, NATESC/MOA in China and a broad coalition of groups in Vietnam. Bayer supports sustainable intensification of agriculture via developing and promoting integrated crop production packages. Its Much More programs deliver substantial benefits for growers and the community. Significant increases in rice yields and income have been demonstrated across Asia and the program has now been extended to coffee, citrus, integrated shrimp production and other crops. |
Keywords: | Crop Production/Industries, Food Security and Poverty, International Development, |
Date: | 2015–08 |
URL: | http://d.repec.org/n?u=RePEc:ags:cfcp15:245053&r=agr |