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on Agricultural Economics |
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Issue of 2018‒06‒11
eleven papers chosen by |
| By: | Jasmien De Winne; Gert Peersman |
| Abstract: | For a panel of 75 countries, we find that increases in global agricultural commodity prices that are caused by unfavorable harvest shocks in other regions of the world significantly curtail domestic economic activity. The effects are much larger than for average global agricultural price shifts. The impact is also considerably stronger in high-income countries, despite the lower shares of food in household expenditures these countries have compared to low-income countries. On the other hand, we find weaker effects in countries that are net exporters of agricultural products, have higher shares of agriculture in GDP or lower shares of non-agricultural trade in GDP; that is, characteristics that typically apply to low-income countries. When we control for these country characteristics, we find indeed that the effects on economic activity become smaller when income per capita is higher. Overall, our findings imply that the consequences of climate change on advanced economies are likely larger than previously thought. |
| Keywords: | agricultural commodity prices, economic activity, climate change |
| JEL: | E32 F44 O13 O44 Q11 Q54 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7037&r=agr |
| By: | Holden, Stein T. (Centre for Land Tenure Studies, Norwegian University of Life Sciences); Tilahun, Mesfin (Centre for Land Tenure Studies, Norwegian University of Life Sciences) |
| Abstract: | Continued high population growth in already densely populated rural areas in parts of SubSaharan Africa makes it harder for youth to choose agriculture as their main source of income. We investigate whether near landless youth can still access rented land as a complementary source of income. We utilize a unique data set of rural youth that have been allocated rehabilitated communal land to form formalized business groups for joint business activity. They rely on complementary sources of income and land renting is one of these. Using data from a sample of 1138 youth business group members from 119 youth groups in five districts in the Tigray region of Ethiopia, we find that land renting is a complementary income source for 29% of these youth. It is the most important source of income for 16.8% of the youth and the second most important source of income for 14% of the youth. Access to rented land is constrained, however. Male youth who own oxen and ploughs are much more likely to be able to rent land. Utilizing a trust game to elicit trust and trustworthiness of the youth, we also found a positive association between trust and access to rented land. Trust reduces transaction costs and more trustworthy youth have better access to rented land. The importance of trust is also illustrated by the dominance of kinship contracts and contracts with close neighbors reducing the costs of monitoring tenants. The dominance of sharecropping contracts also contributes to rationing and low allocation efficiency in the market. The prohibition of land sales also limits the potential of the “agricultural ladder” to facilitate youth climbing out of poverty through purchase of land. |
| Keywords: | Income sources; land-poor rural youth; youth business group members; access to rented land; trust; Ethiopia |
| JEL: | Q15 |
| Date: | 2018–06–06 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nlsclt:2018_006&r=agr |
| By: | J. Lankoski (OECD); H. Lehtonen; M. Ollikainen (University of Helsinki); S. Myyrä |
| Abstract: | This paper develops theoretical and quantitative analysis to identify the potential synergies and trade-offs inherent in various policy instruments that address agricultural productivity, climate change mitigation and adaptation, and water quality objectives. The theoretical model used describes crop production choices made by farmers given different sets of government policies and whereby crop yields can be impacted by climate change. Quantitative results on the basis of Finnish data show that decoupled area payment appears to provide more trade-offs than other policy instruments as it increases greenhouse gas (GHG) emissions and nutrient runoff, and decrease total factor productivity and social welfare relative to a situation with no policy. Nitrogen fertiliser tax, a soil GHG emission tax, and a subsidy for green set-aside perform well with respect to all other objectives with the exception of adaptation to climate change. These policy instruments significantly reduce GHG emissions and nutrient runoff, and thus their social welfare performance is high. |
| Keywords: | adaptation, crop insurance, decoupled payment, emission tax, fertilizer tax, mitigation, nutrient runoff, Risk |
| JEL: | Q18 Q54 Q58 |
| Date: | 2018–06–12 |
| URL: | http://d.repec.org/n?u=RePEc:oec:agraaa:111-en&r=agr |
| By: | Fecke, Wilm; Danne, Michael; Mußhoff, Oliver |
| Abstract: | The internet is playing an increasing role in the development of rural areas. For farmers in particular, reliable internet access creates opportunities concerning farm management decisions. Hence, the goal of this study was to investigate German farmers' willingness to buy inputs online. Primary data was collected by conducting a discrete choice experiment about the purchase of crop protection products. Selection decisions of 165 arable farmers were analyzed by a generalized multinomial logit model (GMNL) resulting in willingness to accept (WTA) space estimation. WTA estimates show that farmers are willing to switch to an online merchant if they are offered a significantly lower price. However, word-of-mouth-reputation and consultation offered via traditional media do not influence farmers' WTA for an online merchant. In contrast, delivery time significantly affects farmers' WTA for inputs purchased online. We also show that farmers' risk attitudes, prior online shopping experiences, and education are influential factors for the WTA for an online merchant. Surprisingly, age and farm size do not impact farmers' WTA. Since e-commerce has not been widely established in agriculture yet, these results are of great practical importance. The findings of this study give online merchants of agricultural inputs a first orientation for choosing appropriate marketing measures. Moreover, results are interesting for education policy. |
| Keywords: | Internet use,E-commerce,Input purchasing,Online merchants,German farmers |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:daredp:1803&r=agr |
| By: | Marion Krämer (Department of Economics, University of Goettingen, Germany); Santosh Kumar (Department of Economics and International Business, Sam Houston State University); Sebastian Vollmer (Department of Economics & Centre for Modern Indian Studies, University of Goettingen, Germany) |
| Abstract: | We present experimental evidence on the impact of delivering double-fortified salt (DFS), salt fortified with iron and iodine, through the Indian school-feeding program called “mid-day meal” on anemia, cognition, and math and reading outcomes of primary school children. We conducted a field experiment that randomly provided a one-year supply of DFS at a subsidized price to public primary schools in one of the poorest regions of India. The DFS treatment had significantly positive impacts on hemoglobin levels and reduced the prevalence of any form of anemia by 20 percent but these health gains did not translate into statistically significant impacts on cognition and test scores. While exploring the heterogeneity in effects, we find that treatment had statistically significant gains in anemia and test scores among children with higher treatment compliance. We further estimate that the intervention was very cost effective and can potentially be scaled up rather easily. |
| Keywords: | Double-fortified salt, education, anemia, school feeding, India, and randomized controlled trial |
| JEL: | C93 I15 O11 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:shs:wpaper:1803&r=agr |
| By: | Romain Houssa (CRED, University of Namur); Paul Reding (CRED, University of Namur); Albena Sotirova (CRED, University of Namur) |
| Abstract: | We attempted to investigate the impacts on enterprise performance of two agricultural subsidy projects carried out by the BTC-Benin in 2008-2015. During the working process we encountered several problems. First, the data on the activities of entrepreneurs is incomplete and of poor quality. Second, there are various methodological problems related to the design of the projects that do not allow a clear identification of control and treatment groups for the projects. As a result, we cannot infer any observed difference in performance of entrepreneurs to the project. We were therefore not able to assess the impact of these past projects. Instead, we successfully launched a collaboration with BTC-Benin to design a randomized impact evaluation on a new project that started in January 2016. In order to facilitate the design of the evaluation on the new project this paper concentrates on two issues. First, we present a background on the agricultural crops supported by BTC-Benin as well as some stylized facts about access to external finance in Benin. Second, we analyze the selection process of beneficiaries for the projects by BTC-Benin in 2008-2015. Subsequently, in a companion paper we estimate the determinants of land productivity. |
| Keywords: | Agriculture, Benin, External financing, MSMEs |
| JEL: | Q12 Q14 O16 |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:nam:befdwp:0120&r=agr |
| By: | Benito Arruñada |
| Abstract: | This paper analyzes social choice with respect to the demarcation of land boundaries, distinguishing between physical and legal demarcation. In contrast with the influential “land administration” literature and the World Bank’s policy guidelines, the analysis supports voluntary—instead of mandatory—demarcation as well as non-integrated services for land administration. Consistent with these theoretical arguments, the paper empirically verifies that demarcation conflicts play a lesser role in title-, land- and property-related litigation, which seems to increase in all these areas after physical demarcation is made mandatory. Relying on World Bank data, it also observes that linking and merging cadastres and land registries does not correlate with lower transaction costs. |
| Keywords: | land, property, boundaries, surveying, cadastres, land registry, land administration. |
| JEL: | D73 K11 K34 K41 L85 O17 O18 Q15 Q24 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:upf:upfgen:1611&r=agr |
| By: | Tristan Kenderdine |
| Abstract: | China's agricultural support policies are moving towards market institutions through a quasi†market transition. Ten years of direct minimum purchase price procurement on agricultural commodities resulted in overcapacity, oversupply, mixed†market signals and grey†market imports. The Insurance Plus Futures (ä¿ é™© + 期货) policy pilot in agricultural price reform is a leading indicator of reform in China's agricultural production and rural finance architecture. State procurement of staple crops is now ending, and an interim governance structure is in place for the transition to market prices. This article assesses the historical institutional development of three key economic institutions in Chinese agricultural production: agricultural prices, insurance and futures. It examines government plans to move from a centrally procured to a provincially variable agricultural production model, examines the provincial sectoral target†price mechanisms constructed in 2016–2018 as interim price†setting mechanisms, looks at the emergence of government mandated agricultural insurance as a measure to cover the subsidy previously served by the minimum purchase price system and assesses the prospects for institutional development of futures contracts, commodities exchanges and price formation institutions in China. |
| Keywords: | China agriculture, futures markets, agricultural insurance, agricultural subsidies, agricultural commodities |
| Date: | 2018–05–21 |
| URL: | http://d.repec.org/n?u=RePEc:een:appswp:201824&r=agr |
| By: | Sunde, Tafirenyika |
| Abstract: | The study investigated the dynamic relationship between CO2 emissions, economic growth, and energy consumption for the period 1991:q1-2016:q4 in Namibia. The study applied the ARDL and Granger causality analysis to investigate the long run and causal relationships among these variables, respectively. The study confirmed a long run relationship between CO2 emissions, economic growth, and energy consumption. The results showed that the Environmental Kuznets Curve (EKC) is found in both long and short runs in Namibia and that all the variables Granger cause each other. These results imply that economic growth can be a remedy for environmental degradation which means that the exploitation of natural resources to realize economic growth can be accepted until the turning point of the EKC curve is reached. The study recommends that actions to slow down the release of CO2 emissions and the raising of awareness about environmental concerns should wait until the economy reaches high-income levels. |
| Keywords: | Environmental Kuznets Curve; CO2 emissions; economic growth; energy consumption; ARDL-ECM; Granger causality; Namibia. |
| JEL: | Q43 Q48 |
| Date: | 2018–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:86507&r=agr |
| By: | Crosetto, P.; Lacroix, A.; Muller, L.; Ruffieux, B. |
| Keywords: | NUTRITIONAL LABELS;EXPERIMENT;FRONT-OF-PACK |
| JEL: | C93 Q18 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:gbl:wpaper:2018-11&r=agr |
| By: | Shukkri AHMED (FERDI); Craig MCINTOSH (University of California at San Diego); Alexandros SARRIS (Université d'Athènes) |
| Abstract: | We present the results of an experiment introducing commercial rainfall index insurance into drought-plagued farming cooperatives in Amhara State, Ethiopia. We introduce a market-priced rainfall deficit insurance product through producer cooperatives, and test a number of potential ways to kick-start private demand. Takeup of the insurance at market prices is very low, between .5% and 3% across seasons, but a low-cost promotion at baseline increases willingness to pay for multiple seasons. When we use a randomized experiment to distribute small free insurance contracts to farmers, 39% of subsidized individuals enroll but this fails to stimulate input use, yields, or income, and nor does it enhance demand in subsequent seasons. Our experience in interlinking credit with insurance shows that while serious logistical challenges need to be overcome, real demand can exist for state-contingent credit in this context. |
| Keywords: | Index Insurance, Randomized Experiments, Ethiopian Agriculture |
| JEL: | O13 G22 C93 |
| Date: | 2017–08 |
| URL: | http://d.repec.org/n?u=RePEc:fdi:wpaper:4288&r=agr |