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on Agricultural Economics |
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Issue of 2018‒12‒03
100 papers chosen by |
| By: | Fetene, G.M.; Getehun, T.D. |
| Abstract: | Using a unique panel data, we investigate whether the technologies that the farmers adopted three and five years ago have effects on food and nutrition security of the adopters. Secondly, we analyze the adoption decisions of a comprehensive of eight modern inputs and labor-intensive technologies including improved seed varieties, inorganic fertilizer, chemicals, organic fertilizer, extension service, irrigation, soil conservation and mechanism of planting seeds. Finally, we investigate the determinants of adoptions. The results reveal that the higher the number of technologies that the farmers adopted, the higher the likelihood of food and nutrition security, implying that farmers have to get a package of inputs to best benefit from the technologies. Most of the technologies have statistically significant effects on food and nutrition security individually as well. We also find complementarity between modern inputs and labor-intensive technologies, perhaps indicating that adoption of modern inputs induces farmers to adopt labor-intensive technologies. The results further reveal that farmers who adopt technologies once are more likely to adopt the technologies again, perhaps indicating that adoption of these technologies is profitable. Acknowledgement : |
| Keywords: | Food Consumption/Nutrition/Food Safety |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277332&r=agr |
| By: | Kumar, A.; Mishra, A.; Joshi, P.; D'Souza, A. |
| Abstract: | Demand for organic basmati rice (OBR), both at home and abroad, coupled with policy reforms in India have given rise to contract farming (CF) production in that nation. OBR production, however, is highly susceptible to weather and pest risks. This study investigates the impact of smallholders perceived production risks on their adoption of CF in OBR farming. We also assess the impact of CF in OBR production on yields, prices received, and the livelihood of OBR producers. We use farm-level data from smallholder basmati rice farms in India and the endogenous switching regression method to account for heterogeneity. Although CF in OBR led to lower yields, it increased the prices producers received and improved the livelihood of OBR producers. The impact of CF varied with farmers revealed risk attitudes. Risk-loving OBR growers with CF experienced the highest loss in yields, and risk-averse OBR growers with CF received the highest prices. We find that the OBR growers who did not adopt CF would benefit from adopting it, regardless of their risk attitudes, especially when it comes to prices received and livelihood. Acknowledgement : The project was supported by IFPRI. |
| Keywords: | Food Security and Poverty |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277008&r=agr |
| By: | Sibande, L. |
| Abstract: | The dilemma most governments face is how to balance implementation of various policies in the absence of research-based evidence of their impact. For the Malawi Government, the dilemma is how to balance budgetary support to farm input subsidies and other policies in the agricultural sector. This article estimates the effects of the residence of an agricultural extension officer in the community, receipt of extension advice and subsidised fertiliser on household dietary diversity, dietary variety and per capita consumption of macro and micro nutrients using the Intergrated Household Panel Survey data of 2010 and 2013 for Malawi. Empirical analyses employ fixed effects models and the results suggests that the residence of an agricultural extension officer in the community has positive effects on food and nutrition security. The results also show consistently insignificant effects of subsidised fertiliser and receipt of extension advice. However, subsidised fertiliser is found to have positive effects only on food security when it is combined with receipt of extension advice. These results suggests that policies which focus on promoting availability of agricultural extension officers in the community might be more effective and efficient in addressing food and nutrition insecurity and demonstrate the importance of synergies in policies' implementation. Acknowledgement : |
| Keywords: | Agricultural and Food Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277166&r=agr |
| By: | Lloyd, Simon J.; Bangalore, Mook; Chalabi, Zaid; Kovats, R. Sari; Hallegatte, Stèphane; Rozenberg, Julie; Valin, Hugo; Havlik, Petr |
| Abstract: | Background: In 2016, 23% of children (155 million) aged 1 million under the poverty/high climate change scenario. The projected impact of climate change on stunting was greater in rural vs. urban areas under both socioeconomic scenarios. In countries with lower incomes and relatively high food prices, we projected that rising prices would tend to increase stunting, whereas in countries with higher incomes and relatively low food prices, rising prices would tend to decrease stunting. These findings suggest that food prices that provide decent incomes to farmers alongside high employment with living wages will reduce undernutrition and vulnerability to climate change. Conclusions: Shifting the focus from food production to interactions between incomes and food price provides new insights. Futures that protect health should consider not just availability, accessibility, and quality of food, but also the incomes generated by those producing the food |
| JEL: | I3 |
| Date: | 2018–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:90594&r=agr |
| By: | Kimhi, A. |
| Abstract: | This paper combines a micro-level structural econometric model of farmland allocation and a market-level equilibrium supply-demand model in order to simulate the effects of climate changes on agricultural production, food prices and social welfare. The estimation accounts for corner solutions associated with disaggregated land-use data, whose usage enables treating prices as exogenous. We employ the model for assessing climate-change impacts in Israel, in which agriculture is protected by import tariffs. We find that projected climate changes are beneficial to farmers, particularly due to the positive impact of the forecasted temperature rise on field crops. Fruit production are projected to decline, and reduce consumer surpluses, but to a lower extent than the increase in total agricultural profits. Nearly 20% of the profit rise is attributed to farmers adaptation through land reallocation. Adaptation to the projected reduction in precipitation by increasing irrigation is found warranted from farmers perspective; however, it is not beneficial to society as a whole. Abolishing import tariffs effectively transfers surpluses from producers to consumers, but its impact on social welfare becomes positive only under large climate changes. Acknowledgement : |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:276972&r=agr |
| By: | Basu, J.P. |
| Abstract: | In India 700 million rural people directly depend on climate-sensitive sectors like agriculture, forest and other natural resources for their subsistence and livelihood. Of these about 300 million rural poor are dependent on forest for their livelihood and more than half of them are tribal who depend on non-timber forest products (NTFPs). It also tries to estimate the factors responsible for the decisions of adaptation to climate change using the probabilistic model of Heckman s two-step process. Both socio-economic and climatic factors play a role in this decision-making process. This paper has important policy implications for poverty, livelihood vulnerability and migration. Acknowledgement : In India 700 million rural people directly depend on climate-sensitive sectors like agriculture, forest and other natural resources for their subsistence and livelihood. Of these about 300 million rural poor are dependent on forest for their livelihood and more than half of them are tribal who depend on non-timber forest products (NTFPs). It also tries to estimate the factors responsible for the decisions of adaptation to climate change using the probabilistic model of Heckman s two-step process. Both socio-economic and climatic factors play a role in this decision-making process. This paper has important policy implications for poverty, livelihood vulnerability and migration. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277218&r=agr |
| By: | Torres, M.; Howitt, R.; Rodrigues, L. |
| Abstract: | Fluctuations in water availability, either in the form of precipitation or stored water in surface and groundwater bodies, will affect agricultural productivity and farmers income. Climate science tells us that much of these fluctuations will be in the form of shifts in the timing and intensity of precipitation. Understanding these relationships and the accurate estimation of their economic effects may, therefore, help in the designing of effective agricultural public policies to mitigate drought and climate change impacts on agriculture. In this context, this paper introduces a novel hydro-economic model in which the timing of rainfall and supplementary irrigated water supplies affect the productivity of a partially irrigated agricultural system. The specification of the production function and water availability is designed to reflect shifts in monthly precipitation totals and to show how the opportunity cost of supplementary irrigation supply varies with changes in the timing of precipitation. Results show that shifts in monthly precipitation parterns have indeed significant impacts on agricutltural income and that the coarser the temporal resolution that the modeler chooses, the lower is her ability to precisely measure them. Acknowledgement : |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:276947&r=agr |
| By: | Ogunlesi, Ayodeji; Bokana, Koye; Okoye, Chidozie; Loy, Jens-Peter |
| Abstract: | Food supply fluctuations remain a major challenge in Sub-Saharan Africa (SSA). In this regard, this study empirically examined the impact of agricultural productivity on food security stability in 37 selected countries in SSA from 1990 to 2016, using the pooled, least square dummy variable (LSDV), random and system generalized methods of moments (SYS-GMM) models. The study adopted per-capita food supply variability (PCFSV) as a measure of food security stability while agriculture value-added contribution to gross domestic product (AGVA) and crop production (CRPROD) were selected indicators of agricultural productivity. The LSDV and SYS-GMM model estimations revealed that agricultural productivity and the control factors contributed significantly, though with a mix of positive and negative effects, to food security stability in the selected countries in SSA during the period under review. The LSDV model showed that AGVA had no statistically significant positive effect on food security stability, however, this was corrected in the SYS-GMM model, but with a positive impact. The study concludes that stability in food security is achieved and sustained by improving agricultural productivity. Based on the findings, the study recommended that food security stability should be improved by enhancing agricultural productivity through ensuring effective implementation of pro-agriculture growth policies in SSA |
| Keywords: | Food Supply variability, Agricultural Productivity, Sub-Saharan Africa, Panel System GMM |
| JEL: | E00 O1 O13 Q1 Q18 |
| Date: | 2018–01–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:90204&r=agr |
| By: | Emanuele Massetti; Steven Van Passel; Camila Apablaza |
| Abstract: | We estimate a Ricardian model of Western European agricultural land values using farm-level data. We model the effect of temperature on land values using a flexible specification of daily mean temperature to test if there are temperature threshold effects. Results indicate that there are no temperature thresholds beyond which agricultural land values suddenly drop. The results are robust to alternative model specifications. Adaptation explains why a smooth aggregate response function is compatible with sharply non-linear crop yield functions. With adaptation, the effect of warming on Western European agriculture is likely to be smooth. |
| Keywords: | agriculture, climate change, extreme temperature, Ricardian, threshold, Europe |
| JEL: | Q12 Q21 Q51 Q54 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7286&r=agr |
| By: | Nana Yamoah, A.-A. |
| Abstract: | This paper presents the empirical proof of the economic impacts of climate change on smallholder farmers in a semi-arid agro-ecological district in Ghana. We employ the Trade-off Analysis Minimum Data (TOA-MD) Model simulated yield projections from five climate model scenarios HADCM, CGCM, CSIRO, NCAR and MIROC with farm survey data to estimate the economic impacts of climate change on smallholder farmers in the Lawra district of Ghana with and without adaptation.. The findings reveal that smallholders in the district will suffer losses in net revenue, per capita income and increased poverty rates without adaptation. Adaptation will however, reverses the losses and results in potential gains with per farm net revenues and per capita incomes increasing between 10% to 17% and 1% to 7% respectively, while poverty rates decline by 13-20% for upland farms. Lowland farms are expected to experience a reduction in poverty of between 2-10%. Overall, adaptation has the potential of reducing poverty rates by as much as 8 -16% for all farms. The study recommends improving irrigation access to smallholder farmers in both upland and lowland areas to enable them adapt to water scarcity due to climate change. Key words: Climate change, small holder farmers, poverty reduction, TOA-model, Ghana Acknowledgement : |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277224&r=agr |
| By: | Owusu, V. |
| Abstract: | , preferences for crop insurance programs are closely linked to credit market imperfections. Understanding the credit constraints of small holder farmers and their attribute non-attendance in the preferences for crop insurance products provide better assessments of policy-relevant instruments needed to ensure participation in crop insurance policies and reduction of agricultural production risks in sub-Saharan Africa. We analyze farmers preferences for different non-indexed crop insurance alternatives using Discrete Choice Experiment (DCE) data on cocoa farmers from southern Ghana, whilst recognizing the endogeneity of attribute non-attendance (ANA) of the respondents in the choice tasks, and the impact of liquidity constraints on farmers choice for the crop insurance products in the ANA framework. The results indicate that credit-constrained farmers attend more to premium and payment mode attributes of the crop insurance products, and that credit-constrained farmers tend to exhibit lower willingness to pay (WTP) estimates for the crop insurance attributes. We provide fruitful policy recommendations in the paper. Acknowledgement : The author thanks the Alexander von Humboldt Foundation for financial support for the study. |
| Keywords: | Risk and Uncertainty |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:276967&r=agr |
| By: | Basurto-Hernandez, S.; Maddison, D.; Banerjee, A. |
| Abstract: | This paper investigates the effect of climate change on crop and livestock choices using two discrete choice models: Multinomial Logit (MNL) and Nested Logit (NL) models. Taking advantage of a new-plot level dataset for Mexico we identify the effect of climate on agriculturalists observed choices. Using Geographical Information Systems (GIS) we combine data on 31 types of crops and livestock encountered in 219,985 and 168,265 plots corresponding to the 2012 and 2014 agricultural years with climate data. Also included in the analysis are the expected output and input prices, soil types, indicators of access to markets and information, socio-demographic characteristics of the farmer, and subsidy payments. We find strong evidence about the inappropriateness of the Independence of Irrelevant Alternatives (IIA) assumption underpinning the MNL model. This finding leads to remarkable differences in the predictions from the MNL and NL models. Speculations about the effect of climate change on farmers choices suggest that in the event of a warmer and drier future, Mexican agriculturalists will move their production efforts from alfalfa, cacao, beef cattle, grapes, onions, oranges, red tomato, soy, and sugar cane to bananas, barley, lemon, squash and potatoes. Acknowledgement : |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277517&r=agr |
| By: | Bogale, A. |
| Abstract: | Smallholder farmers which contribute the majority of food production in Africa are in the frontline of the impacts of El Ni o and climate change related risks. The ecosystems on which they rely are increasingly degraded and their access to suitable agricultural land and water resources is declining. In 2015/16, the African agriculture sector was ravaged by drought that has devastated crop yields, scorched grazing land and undermined the resilience of the production systems and livelihoods. Rising food prices reduced real income, forced the poor to sell their assets, decrease food consumption, and further create poverty traps. By the end of 2015, an estimated 60 million people across sub-Saharan Africa didn t have enough to eat. Since there is convincing scientific evidence that the 2015/16 El Ni o was not the first and will not be the last and will obviously result in recurrent disasters in Africa, there is compelling need for the continent to learn from past and prevent similar disasters and strengthen response and recovery efforts. This paper examines response strategies proposed by African countries to build their resilience and explore the appropriate preventative and risk reduction measures and enhance knowledge on effective response and recovery policies and strategies. Acknowledgement : |
| Keywords: | Food Security and Poverty |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:276991&r=agr |
| By: | Ogunlesi, Ayodeji |
| Abstract: | Public expenditure on the agricultural sector targeted towards raising investments for increased agricultural productivity has been low in most countries in Sub-Saharan Africa (SSA). Also, existing empirical evidence on the impact of fiscal and trade policies on the improvement of agricultural systems remains mixed and inconclusive. In view of the above, this study employs a three-variable Panel Structural Vector Error Correction Model (PSVECM) in capturing the dynamic structure of the possible relationships among agricultural productivity, fiscal and trade policies in 37 selected countries within SSA, using annual data from 1990 to 2016. In imposing short- and long-run identifying restrictions, the cointegration structure of the PSVECM reveals an instantaneous impact of government expenditure and terms of trade on crop production in the transitory period. Likewise, terms of trade has a permanent significant effect on crop production and government expenditure within the reviewed period in SSA. The impulse response and variance decomposition analysis trace out a mixed result of both short and long run significant and fluctuating relationships among government expenditure, terms of trade and crop production in SSA. This finding implies that fiscal and trade policies are crucial in influencing agricultural productivity; and recommends that policymakers should adopt expansionary fiscal (in line with the Keynesian theory) and trade policies which stimulate both short and long run agricultural productivity growth in countries within SSA |
| Keywords: | Crop Production, Government Expenditure, Terms of Trade, Panel Analysis |
| JEL: | E61 Q17 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:90202&r=agr |
| By: | Pierre, G.; Kaminsky, J. |
| Abstract: | In order to study short run price shock propagation, we model twenty seven sub-Saharan African domestic maize markets within a Global Vector AutorRegression framework. The main purpose is to fully embed multilateral trade flows as a way to better structure local price transmission dynamics and interdependencies and get a more comprehensive picture of food price shocks propagation. We found a generally weak integration of African domestic maize markets with regional and global markets. However, even in the absence of long run integration, between-country market contagion remains significant and short run price shocks propagate rapidly. Most local markets appear to be more responsive to local than to global shocks. We also identify price shock channels linking Western African countries to South Africa through maritime trade routes. Acknowledgement : This research was conducted in the context of Monitoring and Analyzing Food and Agricultural Policies (MAFAP) Program implemented by the Food and Agricultural Organization (FAO) in collaboration with the Organization for Economic Co-operation and Development (OECD) and financially supported by the Bill and Melinda Gates Foundation, USAID, the Netherlands and Germany. www.fao.org/in-action/mafap. |
| Keywords: | Demand and Price Analysis |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277126&r=agr |
| By: | Ryan, M.; O'Donoghue, C. |
| Abstract: | The question of what motivates decisions to change land use or farm management practices has recently received much attention in the context of designing policies to incentivise change. This paper critically analyses aspects of the prevailing incentive policies for a long-term land use change such as farm afforestation, with a view to identifying how financial and fiscal components of income influence the land use change desision. The analysis finds that from a household welfare perspective, the inclusion of benefits and taxation in calculating relative life-cycle incomes from forestry and agriculture, provides additional information relevant to the incentivisation of farm afforestation. From the policy makers perspective, this analysis illustrates how benefits can be very significant at the bottom of the income distribution whereas taxation narrows the gap at the top of the distribution. At the lower end of the distribution, the analysis shows that low-income farms could acually be worse-off as a result of planting. The importance of such fiscal instruments has long been recognised in labour market decisions, but may well have to be considered as part of future financial incentives if the conversion of land from agriculture to forestry remains a policy priority in the overall climate change context. Acknowledgement : |
| Keywords: | Land Economics/Use |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277408&r=agr |
| By: | Lim, S. |
| Abstract: | Does cultivating one crop secure more food than cultivating five crops for smallholder farmers in developing countries? How does farmers risk aversion affect crop diversification and food security choices at the household level? The effect of risk preference on crop diversification has been widely studied. It is unclear, however, how risk aversion, crop diversity, and food security are linked in a causal chain. This article investigates (i) the effect of crop diversification on food security and (ii) the direct effect of risk aversion on food security without a bias from crop diversification. Using the causal chain empirical strategy (Acharya et al., 2016), I estimate the direct effect of risk aversion. In using our unique experimental data collected in rural Ethiopia, our result shows the new evidence: (i) a negative effect of crop diversification on household food security and (ii) a positive direct effect of household head risk aversion on household food security. The contribution of this article consists of two parts. First, it develops the first theoretical framework to show the causal chains of risk aversion, crop diversity, and food security by adapting Sandmo s (1971) model. Second, this article provides the original evidence that crop diversity decreases food security. Acknowledgement : I am very grateful to Marc Bellemare and Terry Hurley for their comments and suggestions on earlier versions of the manuscript. |
| Keywords: | Crop Production/Industries |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277336&r=agr |
| By: | Maina, Florence Wanjiru; Mburu, John; Gitau, George Karuoya; Van Leeuwen, John |
| Abstract: | Kenya boasts of having the best dairy sector in the region. The sector is the best performing in the agricultural sector, contributing 17% to the agricultural gross domestic product (GDP) annually. It is dominated by small-scale farmers who account for the highest amounts of milk produced in the country especially in the Central and Rift Valley regions. These areas are most vigilant in dairy farming in Kenya and share ecological conditions and the same breed of animals, however, some areas produce the expected 20 litres per cow per day while others produce below that at about 5 litres per cow per day. Mukurweini sub-county in Nyeri County of Central region of Kenya is an area with intensive dairy farming but producing low amounts of milk, thus, the reason for selecting it for this study. Cross-sectional data on socio-economic factors and milk production in the past one month were collected from the 91 small-scale dairy farmers sampled in 2017, using semi-structured questionnaires. The study used the Stochastic Frontier model to analyze the technical, allocative and economic efficiency of milk production, while Tobit model was used to assess the factors associated with economic efficiency. The results indicated that the farmers had a mean of 68.7% in technical efficiency, 91.3% in allocative efficiency and 62.6% in economic efficiency. The results showed that the economic inefficiency among the farmers is mostly caused by low technical efficiency since the farmers indicated high levels of allocative efficiency. From the findings, there were considerable production inefficiencies and thus there was room for increasing productivity through the use of available inputs and reducing costs. Farmers having increasing returns to scale (IRS) showed that enhanced utilization of the available resources would yield a proportionate increase in the milk output. Increasing herd sizes, feeding animals with enough concentrates and ensuring the animals’ health care costs are met were found to be some of the solutions to the low milk v productivity among the small-scale farmers. At the same time, older farmers were found to be responsible for technical inefficiencies in milk production. The cost of concentrates and other feeds was found to be the major component of the total cost of dairy production. However, the allocative efficiency level among the farmers was quite high, an indication that the farmers in the study area, though resource-poor, were efficient at minimizing costs. The study indicated that age, household size, having dairy farming as the main source of income, hired labour and monthly cost of concentrates were the significant factors associated with economic efficiency among small-scale dairy farmers in Mukurweini. Price subsidies on dairy inputs, especially concentrates, as well as better milk prices, are some of the interventions that will see an increase in efficiency resulting in an increase in milk productivity. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2018–10–31 |
| URL: | http://d.repec.org/n?u=RePEc:ags:unaaed:280032&r=agr |
| By: | Bairagi, S.; Mohanty, S. |
| Abstract: | A threshold specification of the asymmetric error correction model is applied to estimate and test the threshold cointegrating relationship between the wholesale paddy price (farm price) and wholesale rice price, and the wholesale and retail price of rice in Cambodia. Based on our analysis, the threshold cointegration test suggests in favor of asymmetric cointegration. Further, the test of the symmetric adjustment process advocates the presence of asymmetric price transmission in both the short run and long run. The Granger causality test revealed a unidirectional causality from wholesale price to farm price, and a bidirectional causality between wholesale and retail price. Finally, we found that decreases in wholesale price are more quickly transmitted to farmers than price increases. Conversely, increases in wholesale price are more quickly transmitted to consumers than price decreases. For faster price transmission, improved market infrastructure, better market integration, and dispersion of marketing information are suggested. Acknowledgement : We thank the Global Rice Science Partnership (GRiSP) project of the CGIAR for supporting this study. The contents and opinions expressed herein are those of the authors and do not necessarily reflect the views of the authors institution, and shall not be used for advertising or product endorsement purposes. The usual disclaimer applies. |
| Keywords: | Demand and Price Analysis |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277022&r=agr |
| By: | Hassan, F. |
| Abstract: | Concepts regarding wage-price nexus in Bangladesh are diverse and conflicting. A proper understanding of the relationship between food prices and rural wages is essential for policy planning relating to the rural poor. In exploring the link between food prices and rising rural wages, this study critically examines previous studies and updates the dynamic relations by using the monthly data from 1994 to 2106. Vector error correction mechanism (VECM) is implemented to determine the long and short run relationships between wages and food prices. Findings from this study show that in the long run food prices are not a single major factor to explain the variation of rural wages in the national level, and the influence of urban wages become stronger in some places. Additionally, this study discloses the major drivers such as foreign remittances, rainfalls that have a significant impact on farm wages. However, divisions, where changes in wages are not related to food prices, may require different policies regarding poverty and price stability contrast to the divisions where both wages and prices are well cointegrated. Acknowledgement : This research acknowledges the efforts and supports provided by Prof. von Braun from University of Bonn, Naser Ahmed the director general of Food Planning and Monitoring Unit (FPMU) of Bangladesh and Dr. Sajjad Zohir from Economic Research Group (ERG) of Bangladesh. |
| Keywords: | Demand and Price Analysis |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277415&r=agr |
| By: | Zanetti De Lima, C.; Gurgel, A.; Teixeira, E.C. |
| Abstract: | The Low-carbon Agriculture Plan in Brazil (ABC Plan) tries to conciliate sustainable growth of agricultural production and minimize the environmental impacts promoted by land-use changes. The agriculture, florest and other land uses (AFOLU) sector is the main source of GHG emissions reaching in 2015 67% (1,310 Mt CO2eq) of total emissions. The implementation of pasture recovery and integrated systems technologies are therefore seen as a promising strategy for sustainable agricultural intensification, since they can increase the organic matter in the soil, sequester carbon, as well as increase the production per hectare. This article analysis the relationship between these technologies and the land-sparing concept. Under ABC Plan's economic concepts the outcomes suggest the interaction of both technologies promotes land-sparing effect in the country as a whole. There is an increase of natural and forest areas, specially those inside the private rural establishments. However, the regional results show a different dynamic in the agricultural frontier. These regions intensify the pasture use to the detriment of native vegetation and forest areas. Acknowledgement : |
| Keywords: | Land Economics/Use |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277091&r=agr |
| By: | Yao, B.; Shanoyan, A. |
| Abstract: | With the growing food security concerns market participation of smallholder farmers has regained the attention of policy makers and agricultural development community. The widespread adoption of information and communication technologies in Sub-Saharan Africa over the last decade have paved the way for the introduction of digital solutions such as mobile money that have a potential to enhance access to input and output markets. Using a conceptual framework based on the Transaction Cost Economics theory, we propose a hypothesis that the ability to make quick and low-cost money transfers through mobile money application can lower the transaction costs associated with hold-up risks of participating in distant markets. This hypothesis is tested using the data from the CGAP survey in Cote d Ivoire and Tanzania. The methods include Heckman Probit model to account for sample selection bias. The findings indicate that the stallholder farmers who use the mobile money for receiving payments from buyers are more likely to sell their product in city and regional markets versus farm gate options such as middleman and village markets. Key words: market participation, mobile money, transaction costs, Sub-Saharan Africa Acknowledgement : |
| Keywords: | Food Security and Poverty |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277259&r=agr |
| By: | Njuki, E.; Bravo-Ureta, B. |
| Abstract: | The objective of this study is to investigate how changing configurations in temperature and precipitation are transmitted to productivity growth in the U.S. agricultural sector. In doing so, we account for farm heterogeneity in production possibilities and the considerable variations in weather and other physical characteristics of the environment. In contrast, the received literature on productivity growth assumes that firms share the same production possibilities and only differ with respect to their level of inefficiency. We do this by implementing a Random Parameters approach in a Stochastic Production Frontier framework. The resulting parameter estimates are used to decompose a multiplicative TFP index that yields measures of technological progress, technical efficiency change, environmental, and scale-mix efficiency. Our results indicate that even after accounting for knowledge stocks generated from investments in research and development there are significant reductions in productivity growth, primarily driven by weather anomalies. Acknowledgement : This study was partially funded by U.S. Department of Agriculture, National Institute of Food and Agriculture grant number 2016-67012-24678 and 2016-67024-24760. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277140&r=agr |
| By: | Claudio Vitari (IAE Paris - Institut d'Administration des Entreprises - Paris - UP1 - Université Panthéon-Sorbonne); Erin Whittingham |
| Abstract: | The conventional agriculture system can cause ecological, social, and economic challenges. Community Supported Agriculture (CSA) is an alternative food system that embodies principles like community building, risk sharing, and ecological sustainability. These principles help to address many social, economic, and ecological inequalities and challenges. In reality however these principles are not always practiced. This article explores the institutionalization of the CSA principles within the field through a literature review and the application of Lawrence and Suddaby's taxonomy of institutional work. It investigates the actions that create, maintain, and disrupt the principles as institutions. Findings show apprenticeship programs as an effective means to spread the CSA philosophy. They also highlight a reluctance by CSA organizers to ensure adherence to rules, while showing that CSA organizers are the most important actor when considering institutionalization. As well, the results reveal some actions that are influenced by conventional thinking or that are aimed at making the CSA experience more convenient led to the disruption of the principles. This reveals the need for research into the intent of actor's when disrupting the principles given the principles importance in addressing problems created by industrial agricultural. |
| Keywords: | Community Supported Agriculture,CSA,Institutionalization,Institutional Work,Community Building,Risk Sharing,Ecological Sustainability |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-01923789&r=agr |
| By: | Lankoski, J.; Britz, W.; Lotjonen, S.; Ollikainen, M. |
| Abstract: | We develop a theoretical framework to analyse economically optimal GHG abatement strategies for a mixed farming system with crop and dairy production. Subsequently, it is implemented as a detailed bio-economic optimization model for mixed arable-dairy farms with non-linear crop and milk yield functions and a detailed accounting of Green House Gas emissions, and parameterized to Finnish agricultural and environmental conditions. Focusing on the role of sunk costs of investments and opportunity costs of labour, we analyse optimal farm management decisions under different CO2 tax levels, considering adjustments at the extensive and intensive margin, including changes in manure storage systems and application methods. We find that the amount of GHG abatement responds more strongly to the level of sunk and opportunity costs than the CO2 tax level which underlines the relevance of the planning horizon for that type of analysis. Our findings reveal that low cost abatement options in dairy production are limited. Our model can be easily adjusted to other locations, market and policy conditions and thus provides an interesting starting point for international comparisons. Acknowledgement : |
| Keywords: | Agricultural and Food Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277382&r=agr |
| By: | Sharma, S.K.; Das, A. |
| Abstract: | Developing countries are demanding substantial reduction in trade distorting domestic support to agriculture sector by developed countries. Under the existing rules of the AoA, many developing countries are facing lack of policy space to implement measures like price support to increase the income of farmers. Some members of WTO circulated a proposal (EU-Brazil proposal) on OTDS, which seeks a cap on trade distorting spending. This study critically examines the implications of EU-Brazil proposal regarding OTDS on the flexibility for developing and developed countries member to provide domestic support to agriculture. The results of this study show that EU-Brazil proposal is likely to result in steep reduction in policy space for the developing countries. It will further curtail the limited and already insufficient policy space for implementing agricultural policies which are compatible with the socio-economic situation prevailing in the developing country members. On the other hand, USA and EU will undertake negligible or no reduction in trade distorting support to agriculture sector and these countries will preserve their existing flexibilities in future as well. Contrary to Doha Declaration, this proposal would provide special and differential treatment to EU and USA. Acknowledgement : |
| Keywords: | Agricultural and Food Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277493&r=agr |
| By: | Duangbootsee, U. |
| Abstract: | This study uses panel data from 384 Thai rural farm households collected annually from 2000-2013 to examine the determinants of household s land rental market participation, and the impacts of renting land on household incomes. A preliminary finding indicates that households with relatively poor land endowment cultivate more land than do other households to the extent that more than half of the land is rented in. Consistent with previous literature, the study find evidence that land rental markets in Thailand promote farm productivity and reduce landholdings inequality by transferring land from less-efficient to more-efficient households and from land-abundant to labor-constrained households, respectively. More importantly, the rental markets significantly raise the net farm incomes of tenants, most of whom are land-constrained households. Mechanisms to reduce land conflicts and remove local restrictions on land rental are needed in order to improve the functioning of land rental markets, and thereby enhancing farm income. Key Words: Land rental market, household income, Thai agriculture, Townsend Thai data Acknowledgement : This study is fully supported by Thailand Research Fund (TRF); project reference code RDG5920034. The author would like to thank Charapon Chantorn and Piyayut Chitchumnong as well as two anonymous reviewers assigned by TRF for their valuable comments and suggestions. |
| Keywords: | Land Economics/Use |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277349&r=agr |
| By: | Pena-Levano, L.; Taheripour, F.; Tyner, W. |
| Abstract: | The global community has reaffirmed its commitment to reduce greenhouse emissions to control the expected increase in the global average temperature. Thus, many governments and private sectors are interested in the cost-efficiency of frequently discussed mitigation methods forest and pasture carbon sequestration (FPCS) subsidy, carbon tax, and biofuels and their impacts on the global economy. We modified our new developed computable general equilibrium for the analysis. We simulate different rates to observe their mitigation potentials. Our results suggest that there is a trade-off between cost-efficiency and emission reduction between policies, where tax can achieve larger emission reductions under the same rate of FPCS but with higher economic costs. Likewise, combining tax and an equivalent subsidy has a larger reduction potential due to the synergistic effects, but food prices increase dramatically. Biofuels proved to be costlier than FPCS or tax. Acknowledgement : We would like to acknowledge and thanks the following institutions: Purdue Research Climate Research Center Ludwig Kruhe Doctoral Fellowship Bilsland Dissertation Doctoral Fellowship For their funding contribution in this research. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277417&r=agr |
| By: | Marek Zieli?ski (Institute of Agriculture and Food Economics-NRI) |
| Abstract: | According to the existing findings of the European Commission (EC), one of the priorities of the Common Agricultural Policy (CAP) after 2020 will be to further strengthen the role of the agricultural sector in providing public goods and ecosystem services by preserving and creating in rural areas of landscape features conducive to the conservation of biodiversity. In terms of the environmental concern, such approach by the EC should therefore be considered particularly necessary. However, the challenge of the CAP after 2020 will be to manage the process of promoting the natural value of rural areas in a way to minimise the potential negative effects for the competitiveness of farms. Poland has a strong potential of areas conducive to the conservation biodiversity conservation. This is indicated by the index of natural and tourist value (INTV) defined by the Institute of Soil Science and Plant Cultivation National Research Institute (ISSPC-NRI) for municipalities in Poland. This index is an average share of the total area of permanent grassland, forests, waters, as well as wetlands in the total area surrounded by all arable land of a given municipality with a radius of 2 km. The average INTV for municipalities in Poland is 35.6% out of 100% which can be achieved. It should be added that the area of municipalities with the INTV ?35.6% accounts for 57.7% of the Polish area and in these municipalities there are 67.5% of permanent grassland, 75.9% of forests and 70.1% of waters in Poland.Taking into account the EC?s findings on a need to strengthen, in the EU financial perspective after 2020, the role of the agricultural sector in the conservation of biodiversity and the significant share of areas conducive to the conservation of biodiversity in Poland, it is therefore reasonable to determine, inter alia, the impact of these areas on the efficiency of farms functioning therein and then to compare them with the efficiency of farms in other areas. Analysis covered 8,494 farms keeping accounting for the Polish FADN in 2015. Those farms have been then divided into two groups. The first one was made of 3,937 (46.4%) farms that conducted the agricultural production in municipalities with the INTV of ? 35.6%, referred to in the paper as farms from municipalities with the high natural value. In turn, the second group is composed of 4,557 (53.6%) of other farms. |
| Keywords: | biodiversity, CAP after 2020, Farm Accourancy Data Network in Poland |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:7310318&r=agr |
| By: | Rahbauer, S.; Staudigel, M.; Roosen, J. |
| Abstract: | This paper investigates fresh meat consumption in Germany during 2012-2014 through the specification of four-equation almost ideal demand systems (AIDS). On the basis of panel data from the GfK consumer research association, price and expenditure elasticities for the meat types (1) poultry, (2) pork, (3) beef and veal and (4) meat mixtures are quantified. Estimated parameters and elasticity coefficients are plausible and consistent with demand theory. The results show that beef and veal is the meat type most sensitive to expenditure. Compensated own-price elasticities indicate elastic demand relationships for beef and veal and meat mixtures with the latter being the most price sensitive meat type. Cross-price elasticities suggest substitutive relationships between the investigated meat types. A comparison of elasticities differentiated according to household groups indicates that households preferring high-quality or organic food are less price-sensitive than the average household across all investigated meat types. Low-income and younger households are further found to react comparatively elastic to price changes. The article closes by emphasizing the limited adequacy of the utilization of average elasticity coefficients for fresh meat. Acknowledgement : |
| Keywords: | Consumer/Household Economics |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277058&r=agr |
| By: | Michler, J.; Baylis, K.; Arends-Kuenning, M.; Mazvimavi, K. |
| Abstract: | Climate change is predicted to increase the number and severity of extreme rainfall events, especially in Sub-Saharan Africa. In response, development agencies are encouraging the adoption of `climate-smart' agricultural techniques, such as conservation agriculture (CA). However, little rigorous evidence exists to demonstrates the effect of CA on production or climate resilience, and what evidence there is, is hampered by selection bias. Using panel data from Zimbabwe, we test how CA performs during extreme rainfall events - both shortfalls and surpluses. We control for the endogenous adoption decision and find that while CA has little, or if anything, a negative effect on yields during periods of average rainfall, it is effective in mitigating the negative impacts of rainfall shocks. Households that practice CA tend to receive higher yields compared to households using conventional methods in years of both low and high rainfall. We conclude that the lower yields during normal rainfall seasons may be a proximate factor in low uptake of CA. Policy should focus promotion of CA on these climate resiliency benefits. Acknowledgement : |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277458&r=agr |
| By: | K.S. , A.; Khan, T.; Kishore, A. |
| Abstract: | Crop insurance is one of the important risk management strategies adopted by farmers. However, one of the biggest challenge Government faces while promoting insurance is in setting optimum premium for crop insurance which can achieve higher participation of farmers in Insurance programme. With premium rate set at 1.5% of sum insured for wheat crop, are the farmers are willing to pay the premium at this rate to insure their wheat crop? It would be interesting to investigate this question in state like Punjab which has not implemented crop insurance. We conducted a Contingent Valuation Study to elicit Willingness to Pay (WTP) for crop insurance of wheat farmers in Punjab state. The sample consisted of 617 wheat farmers spread across 60 villages of 12 districts in Punjab. We found that it is farmers who has suffered crop loss in the past found to have higher WTP. Asset worthy farmers, banking literacy, extension contact was also found to have positive impact on WTP. The study indicated that WTP for crop insurance is around Rs 297 / acre, which is less than the existing rate of premium which is approximately Rs. 400 /acre (premium rate of 1.5%). Acknowledgement : |
| Keywords: | Risk and Uncertainty |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277516&r=agr |
| By: | Hernandez, M.; Britos, B.; Robles, M.; Trupkin, D. |
| Abstract: | Farm size and land allocation are important factors in explaining lagging agricultural productivity in developing countries. This paper formally examines the effect of land market distortions on the allocation of land across farmers and overall agricultural productivity. We first develop a theoretical framework to model the optimal size distribution of farms and assess to what extent market distortions can explain non-optimal land allocation and output inefficiency. We then calibrate the model to the case of Guatemala and evaluate potential drivers of the distortions across locations. We find that aggregate agricultural productivity across regions is over the range of 54-95% of the efficient output for different major crops considered. We evaluate alternative factors correlated with these distortions and provide some policy recommendations to improve efficiency. Acknowledgement : We thank the Instituto Nacional de Estadistica (INE) and the Secretaria de Seguridad Alimentaria y Nutricional (SESAN) of Guatemala for their help in accessing and collecting part of the data used in the analysis. Francisco Ceballos provided excellent research assistance. All errors are our own. |
| Keywords: | Land Economics/Use |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277031&r=agr |
| By: | Amuakwa-Mensah, F.; Chube, B.; Surry, Y.; Bahta, S. |
| Abstract: | This article investigates production (in)efficiency and production risk among smallholder livestock farmers in Botswana. Using cross-sectional data for beef production households, we estimate stochastic production frontier model that accommodates both technical inefficiency and production risk simultaneously. Heteroscedasticity is assumed for both inefficiency and production risk functions. Potential endogeneity of off-farm income is investigated using the control function approach. The empirical results indicate that the deterministic beef production function exhibits decreasing returns to scale and it is mainly explained by herd size and capital equipment. Non-linear relationship between inefficiency and herd size is established with an inverted U shape. Whereas, off-farm income reduces inefficiency, an increase rainfall and household size were found to increase inefficiency. In addition, production risk increases with an increase in maximum temperature and off-farm income but reduces with an increase in rainfall. The average inefficiency and risk scores for beef production are 9.4% and 3.2% respectively. Acknowledgement : |
| Keywords: | Livestock Production/Industries |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277276&r=agr |
| By: | Adekunle, A. |
| Abstract: | The problems of agriculture affect mostly the smallholder farmers who have small fields in different places. Group-farming cooperatives serves as good alternative to boost food production as well as lifting people out of poverty. In this study we used a recent survey data in Nigeria to examine the effect of membership of group-farming cooperatives on food production and poverty status. Probit regression model estimate is used to analyse the decision to join group-farming cooperatives and the effect of membership of group-farming cooperatives on poverty status and ordinary least square is employed to examine the effect of membership of group-farming cooperatives on food production and productivity of farmers. We find that, group-farming cooperatives have positive and statistically significant effect on food proction at 5% level of significance; prevalence of poverty is higher among non-members of group-farming cooperatives. Being a member of other forms of cooperative also helps to reduce poverty among the farming households. Therefore, we recommend that both the government and non-governmental organization should develop strategies that will encourage participation in group-farming cooperatives and also create more awareness among farming households, which can motivate more farmers to partake in this form of farmers organizations. Acknowledgement : I acknowledge the effort of Dr R.O. Babatunde in this project. |
| Keywords: | Food Security and Poverty |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277420&r=agr |
| By: | Peth, Denise; Mußhoff, Oliver |
| Abstract: | Increasing popularity of economic experiments for policy impact analysis has led to an ongoing debate about the suitability of students to substitute professionals as experimental subjects. To date, subject pool effects in agricultural and resource economics experiments have not been sufficiently studied. In order to identify differences and similarities between students and non-students, we carry out an experiment in the form of a multi-period business management game that is adapted to an agri-environmental context. We compare the compliance behaviour of German agricultural students and German farmers with regard to water protection rules and analyse their responses to two different green nudge interventions. The experimental results reveal that the direction of the response to the policy treatments is similar. Even unexpected behaviour could be reproduced by the student sample. Nevertheless, the magnitude of the treatment effects differed between the two samples. This implies that experimenters in the field of agricultural and resource economics could use the subject pool of students to analyse the direction of nudge policies. If predictions should be made about the magnitude effects, we suggest using a professional subject pool. |
| Keywords: | subject pool effect,green nudges,policy impact analysis,compliance behaviour |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:daredp:1809&r=agr |
| By: | Turland, M.; Slade, P. |
| Abstract: | Modern farm machinery captures geocoded data on all aspects of a farming operation. These detailed datasets are called big data. Although some of this data is useful to individual farmers, much of it has little value to the farmer that collects it. Capturing the true value of big data comes when it is aggregated over many farms, allowing researchers to find underlying trends. To analyze farmers willingness to share data we conduct a hypothetical choice experiment that asked farmers in Saskatchewan whether they would join a big data program. The choice tasks varied the type of organization that operated the big data program, and included financial and non-financial incentives. Heteroscedastic and random effects probit models are presented using data from a survey constructed for this study. The results are consistent across models and find that farmers are most willing to share their data with university researchers, followed by crop input suppliers or grower associations, and financial institutions or equipment manufacturers. Farmers are least willing to share their data with government. Farmers are more willing to share data in the presence of a financial incentive or non-financial incentive such as comparative benchmark statistics or prescription maps generated from the data submitted. Acknowledgement : |
| Keywords: | Research and Development/ Tech Change/Emerging Technologies |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277275&r=agr |
| By: | Akin-Olagunju, O.; Yusuf, S.; Okoruwa, V. |
| Abstract: | The importance of Sanitary and Phytosanitary (SPS) standard stems from its usefulness in ensuring plant, animal and human safety. However, stringency and multiplicity of the export standards stand in the way of achieving gains of trade globalization and true competitiveness by developing countries that are mostly exporters of primary agricultural produce. To this end, this study analyzed the effect of stringency of SPS standards on the competitiveness of cocoa exporters from the perspectives of individual importing countries and harmonized standards. The study found out that the increasingly stringent global standards improved trade rather than hampering it, exporting countries lost huge revenue in the absence of harmonization and exporters competitiveness was dependent on market type and scale of trade. The study recommended that cocoa exporting countries should take care of hindrances to supply-side factors, engage in country and market-specific negotiations on standards harmonization at the WTO and get involved in inter-governmental engagements. Keywords: SPS measures, harmonization, competitiveness, cocoa, international trade JEL: C23, F14, F18, Q17, Q18 Acknowledgement : |
| Keywords: | International Relations/Trade |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277463&r=agr |
| By: | Ek, Claes (Department of Economics, School of Business, Economics and Law, Göteborg University); Elofsson, Katarina; Lagerkvist, Carl-Johan |
| Abstract: | In the choice between alternative environmental policy instruments, economists tend to favor policies capable of attaining cost-efficiency, but other considerations may be important to stakeholders. We perform a choice experiment modeled on Swedish water and marine policy to estimate preferences for different types of environmental policy instruments among citizens and municipal experts. To approximate preferences for each instrument per se, choice sets include several attributes that respondents may otherwise view as correlated with instrument type, such as how costs are shared between taxpayers and farmers. In our mixed-logit regressions, both the modal citizen and the modal expert prefer direct regulation and subsidies to nutrient trading. Experts weight taxpayer costs less heavily, implying larger WTP estimates; in particular, nutrient trading is unlikely to deliver sufficiently large cost savings for experts to prefer it to other instrument types. This potentially explains the low takeup of water quality trading outside the US. |
| Keywords: | choice experiments; instrument choice; nutrient trading; water policy |
| JEL: | H23 Q53 Q58 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0746&r=agr |
| By: | Lambarraa, F.; Elyoubi, H. |
| Abstract: | Origin labelling is one of the most important strategy in the Green Morocco Policy with which the Moroccan government aims to support the marketing of domestically produced food and then improves the income of smallholder farmers. This study analyses this strategy using a market comparison between two products, a PGI labelled product Clementine of Berkane and a non-labelled product Cherries of Sefrou-Ifrane. A survey with 500 consumers was conducted in 2016. Using the Analytical Hierarchy Process methodology, we study the Moroccan consumer preferences and compare the hierarchy of different attributes and sub-attributes of both products. We evaluate the importance of the origin and the visibility of the new established quality sign of origin in the Moroccan market. Results show the importance of origin and the intrinsic characteristics of the product when Moroccan consumers purchase both products. The hierarchy obtained by the AHP for the Clementine of Berkane shows that the high juicy content , Origin and the PGI are the most important attributes for Moroccan consumers. While for Cherries of Sefrou-Ifrane, Origin and the attribute Juicy-soft fruit are the most important attributes. The visibility of the quality sign of origin still limited in the Moroccan market comparing to other product attributes. Acknowledgement : |
| Keywords: | Marketing |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277175&r=agr |
| By: | Majiwa, E.; Mugodo, C. |
| Abstract: | Rice farming remains an important undertaking in Asia and Africa due to its important role in maintaining essential food supply. Rice ranks second to maize in providing more than one-fifth of the calories consumed worldwide. In Kenya, rice is an important food crop and cash crop. A survey of 773 farmers was undertaken in Mwea, West Kano, Ahero and Bunyala rice growing regions to investigate the technical efficiency and technology gap ratios. The meta-frontier estimates indicate that the technical efficiency of Mwea, West Kano, Ahero and Bunyala was 0.556, 0.475, 0.402 and 0.45 respectively. The regional efficiencies indicate that the technical efficiency of Mwea, WestKano, Ahero and Bunyala was 0.557, 0.784, 0.833 and 0.937 respectively. Thus, the technology gap ratio was 0.998, 0.605, 0.482 and 0.48 for Mwea, West Kano, Ahero and Bunyala respectively. The results thus suggest that a narrow gap existed between the region and the meta-frontier results for Mwea, while a wider gap existed for West Kano, Ahero and Bunyala implying that Mwea farmers were more technically efficient than farmers in the other schemes. Using the fractional regression models the determinants of efficiency were found to be age, farmer s gender, humidity, rainfall, temperature and adopting technologies. Acknowledgement : |
| Keywords: | Crop Production/Industries |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277209&r=agr |
| By: | Conefrey, Thomas (Central Bank of Ireland) |
| Abstract: | Following a remarkably long period of stagnation from 1990 up to 2010, during which the value of agricultural output barely increased, Irish agriculture has experienced something of a resurgence over recent years. The sector has been boosted, in particular, by the abolition of milk quotas in 2015 which has led to an expansion in dairy output. Although primary agriculture accounts for a small share of overall national output, the broader agri-food sector (including food processing) makes a sizeable output and employment contribution, particularly when assessed on a regional basis. In the Border, Midland and West areas, around one-in-eight jobs is in the agri-food sector compared to around one-in-twelve nationally. As it aims to expand output in the years ahead, the agriculture sector faces a number of challenges. Low profitability of some farming activities leaves the sector exposed to potential negative shocks such as Brexit or possible future reductions in the CAP budget. |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:cbi:ecolet:8/el/18&r=agr |
| By: | Heinrich, F.; Appel, F. |
| Abstract: | This paper deals with the activity of non-agricultural investors in the German agricultural biogas production with an agent based approach. A literature review and two expert interviews are carried out for their characterization. An investor is hypothetically implemented in an east German case study region. The goal of the simulations with the agricultural structural model AgriPoliS is to determine its effects on other farms in the region and the region itself. The results show that the non-agricultural investor can run its business economically viable. The presence of this investor increases the rental prices in the region. This applies to both arable land and grassland. The results, however, suggest that an investor does not accelerate the structural change, because in this scenario more farms persist until the end of the simulation and especially smaller ones are economically better off. The investor has changed the cultivation patterns of the whole region: In general, an intensification of land use is observed as more energy crops are produced for the production of biogas substrates. On the other hand, the production of less intensive crops and cereals decreases. Regarding the use of grassland, the production of grass silage is increased at the expense of grazing. Acknowledgement : |
| Keywords: | Agribusiness |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277171&r=agr |
| By: | Asche, Frank (Institute for Sustainable Food Systems and School of Forestry Resources and Conservation, University of Florida and Department of Industrial Economics, University of Stavanger); Straume, Hans-Martin (Department of Economics, BI Norwegian Business School); Vårdal, Erling (University of Bergen, Department of Economics) |
| Abstract: | In recent years trade with highly perishable agricultural products like fresh fish, berries and cut flowers has increased substantially. The perishability of these products appears to challenge conventional wisdom when it comes to food trade, which emphasizes the importance of large shipments to reduce transportation costs. In this paper, gravity models and several margins of trade are estimated for the trade with fresh salmon, a highly perishable product. The results indicate that increased geographical distance have a larger negative effect than what is generally reported in the literature. Most interestingly, the number of exporters and the shipment frequency increase while there is little impact on shipment size when trade increase. Hence, freshness and possibly avoidance of losses by not selling products by the expiration date seem to be emphasized rather than economies of scale in transportation. |
| Keywords: | gravity model; transaction level data; margins of trade; perishable products |
| JEL: | F14 Q22 |
| Date: | 2018–04–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bergec:2018_004&r=agr |
| By: | Kotchikpa Gabriel Lawin; Lota Dabio Tamini; Ibrahima Bocoum |
| Abstract: | In this article,we review the literature on the best ways to identify the causal effects of microcredit, present, and discuss some empirical results of the impact of microcredit on the adoption of innovations, investments, farm incomes, and profits. The results of empirical studies converge toward a positive impact of access to microcredit on the adoption of agricultural technology and investment. In terms of the effect on the technical efficiency of farms, agricultural income and profit, and consumption, the results do not all point in the same direction.The effects of microcredit are likely to vary depending on the context of the study. |
| Keywords: | microcredit; experimental studies; causal effects; farms; rural households. |
| JEL: | D14 D13 G21 O13 Q14 Q16 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:creacr:2017-05&r=agr |
| By: | Suharno, S. |
| Abstract: | Food balance in the country tend to be deficit for main food staples as well luxurious foods like red meat. Food deficit has been prevailing until currently. Being the net importer of meat products, Indonesia is challenged to meet two pressing goals, first to protect farmers and secondly to secure meat availability. Trade flows between regions and access to information are challenging becuase Indonesia is an archipelagic country with high economic dispersion and inequality. This study aims to analyze spatial integration and price transmission of meat market in Indonesia. The data is a monthly prise series of meat from 7 provinces containing 50 observations. The data was analyzed using Vector Error Correction Model (VECM). This study reveals that there is a long run relationship among market price in seven provinces and the high long run relationship was found among provinces in Java island. The short run was also found among provinces. This findings represents that meat market in Indonesia was spatially integrated. This study recommends the goverment to formulate policies which providing infrastructure to avoid market exploitation and spread price information along provinces in Indonesia. This will help in enhancing efficiency of the marketing system in agricultural commodities and reduce market distortions. Acknowledgement : I would thank to my younger colleg Ahmad Syariful Jamil for co-authoring this paper. |
| Keywords: | Demand and Price Analysis |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277371&r=agr |
| By: | Louw, M.; Meyer, F.; Kirsten, J. |
| Abstract: | Food inflation and its associated drivers is an important issue to consider in a food security and macroeconomic context. Despite this, scientific research on this is sparse. This study gauges the impact of key fundamental variables on food inflation in terms of magnitude and duration. It employs time series econometric techniques and finds that the exchange rate, world food/commodity prices and local agricultural prices are the main drivers of food inflation in South Africa. In terms of the short-run dynamics, the results suggest that agricultural prices and the exchange rate take up to two months to manifest in food inflation, whereas world commodity prices only affect local food inflation after eight months. The effect of a recent drought and exchange rate depreciation on food inflation is also explored, in terms of scale and persistence. Simulations suggest that the length and effect of the recent drought, as manifested in agricultural prices, will result in double-digit food inflation lasting in excess of 12 months after the commencement of the shock. Simulation results also show that perseverance in exchange rate shocks seems to affect the scale of the final effect on food inflation more than the perseverance. Acknowledgement : |
| Keywords: | Food Security and Poverty |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277190&r=agr |
| By: | Babatunde, R.O. |
| Abstract: | Migration cum remittances has become an important livelihood strategy among households in most developing countries. This is because it provides migrant households with remittances that are uncorrelated with agricultural income. It is estimated that there are about 232 million migrants worldwide today. Remittances sent back home by these migrants is believed to have a huge impact on the socioeconomic conditions of families left behind in the country of origin. In Sub-Saharan Africa, Nigeria is the highest receiver of remittances. However, despite the huge remittances flow into the country, malnutrition, poverty and food insecurity are still widespread in Nigeria. This paper examined the impact of remittances on food security and nutrition of farming households in Kwara State of Nigeria. Descriptive analysis indicates that, compared to non-receiving households, remittances receiving households are better off in terms of total income, assets, calorie supply, micronutrients supply, as well as, child nutritional status. Econometric analyses show that remittance income contributes to improved calorie supply at the household level, an aspect which has not been analyzed previously. Likewise, household income net of remittances increase calorie supply in a significant way, but the effect is twice larger than the effect of remittance income. Acknowledgement : |
| Keywords: | Food Consumption/Nutrition/Food Safety |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:276986&r=agr |
| By: | Gonzalez, J.; Lacaze, V. |
| Abstract: | This paper evaluates the effect on market shares and consumer surplus of the introduction of a Good Agricultural Practices (GAP)-labeled product in the frozen fried potatoes (FFP) industry. We first estimate a model of household demand in Mar del Plata, Argentina, using scanner data and demographic information. We find that higher income individuals are more concerned about health and nutrition, and that younger and lower-income consumers are more price-sensitive. Then we postulate that a properly GAP-labeled FFP is available in the market, and we assess its effect by using the estimated utility function and prior information about consumers declared willingness to pay (WTP) for sustainably produced potatoes. We find that the older the individual, the greater the influence of the hypothetical introduction of the GAP-labeled product; the relationship is less conclusive in the case of income. Finally, we predict the results of a greater consumer surplus extraction by fixing a higher price for the new product, and we calculate the maximum increase in the marginal cost that the firm would be able to afford if farmers charge higher prices for GAP fresh potatoes Acknowledgement : |
| Keywords: | Agribusiness |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277559&r=agr |
| By: | Carolina Perpina Castillo (European Commission – JRC); Boyan Kavalov (European Commission – JRC); Vasco Diogo (Wageningen Economic Research); Chris Jacobs-Crisioni (European Commission – JRC); Filipe Batista e Silva (European Commission – JRC); Carlo Lavalle (European Commission – JRC) |
| Abstract: | In the period 2015-2030 about 11% (more than 20 million ha) of agricultural land in the EU are under high potential risk of abandonment due to factors, related to biophysical land suitability, farm structure and agricultural viability, population and regional specifics. The risk for around 800 thousand ha (0.4%), located in Southern and Eastern Romania, Southwestern France, Southern and central Spain, Portugal, Cyprus, Poland, Latvia and Estonia, is particularly severe. Economic factor and market instruments (including the EU Common Agricultural Policy) could largely mitigate those potential risks in a number, mostly Eastern countries and regions – Estonia, Latvia, Romania, Cyprus. The incremental abandonment within 2015-2030 is nevertheless projected to reach 4.2 million ha net (about 280 thousand ha per year on average) of agricultural land, bringing the total abandoned land to 5.6 million ha by 2030, the equivalent of 3% of total agricultural land. |
| Keywords: | Agricultural land, LUISA territorial modelling platform, Knowledge Centre for Territorial Policies |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc113718&r=agr |
| By: | Joshi, E.; Veettil, P. Chellattan |
| Abstract: | This paper examines the degree of mechanization in farm operations using household level data from four Indian states. It further explores the differential returns to farming and assesses the direct and indirect welfare distributional outcomes produced by mechanization. Findings suggest that the marginalized groups as defined in the study (those with limited factor endowments; those belonging to disadvantaged social groups and those who are subsistence oriented) exhibit lower levels of agricultural mechanization and earn substantially lower farm and off-farm incomes compared to others. The objective of the paper is to investigate how a technological change can generate major economic benefits but at the same time provoke adverse effects on the marginalized section of society. Decomposition of displaced labor as a result of mechanization shows that the displaced hired labor mainly belongs to the most vulnerable social groups of STs and SCs which forms the bulk of the rural labor force. The results demand undertaking development approaches that have the potential of bridging the productivity gaps promoting inclusive growth in the agriculture sector and to formulate strategies that can overcome the constraints faced by the marginalized farmers, thereby making farming more resilient and equitable. Acknowledgement : |
| Keywords: | Research and Development/ Tech Change/Emerging Technologies |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277395&r=agr |
| By: | Speelman, S.; Hai, A. Ton Nu |
| Abstract: | Marine cage lobster in Vietnam has been known as a high return industry. But in recent years, it has also been facing with negative feedback on productivity due to overuse of nutrient content inputs. Local lobster farmers seemed to internalize this negative feedback by paying more efforts on cleaning cage and more cost on antibiotics and chemical without knowing if it is a positive or negative economic-environmental trade-off. In order to identify the relationship between the cost and environmental efficiency, this paper used Data Envelopment Analysis and Material Balance Principle with a dataset of 353 marine cage lobster farms in Vietnam. The findings show that improvements in efficiency of current input used would result in both lower production costs and better environmental performance. There is a positive trade-off in most lobster farms for being environmentally efficient and cost efficient from the current production. If lobster farms used appropriate input mix given input price information to be more cost efficient, it would benefit to environment. Moreover, producing friendlier with the marine environment also reduce production cost. However, there is a negative trade-off for the movement from being cost efficient to environmentally efficient position for all three groups. Acknowledgement : |
| Keywords: | Resource/Energy Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277460&r=agr |
| By: | Mankan M. Koné; Carl Gaigné; Lota D. Tamini |
| Abstract: | We investigate whether and to what extent agricultural uncertainty drives the location of capital in the food processing industry. We show that when a risk-neutral food company has the possibility of exercising market power as both seller and buyer, the impact of agricultural uncertainty on the decision of producing abroad depends on whether the multinational makes the pricing/production decision before or after uncertainty is revealed. An econometric study is then needed to identify the mechanisms at work. The theoretical implications are tested by using a gravity model on European countriesÕ and the United StatesÕ outward FDI stock, detailed by destination country in the agri-food industry. Overall, our results suggest that a higher agricultural volatility in the home country triggers investments abroad and that a host country exhibiting low agricultural uncertainty attracts relatively more foreign capital. Moreover, international differences in agricultural uncertainty generate incentives for Vertical disintegration by food companies, especially when trade costs are sufficiently low. |
| Keywords: | Multinational firm; Uncertain input supply; Vertical fragmentation; Trade costs |
| JEL: | F23 Q13 L23 L66 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:creacr:2017-04&r=agr |
| By: | Trilnick, I.; Gordon, B.; Zilberman, D. |
| Abstract: | Can farmers adapt to climate change by altering weather conditions on their fields? We define the concept of "Micro-Climate Engineering" (MCE), where farmers change the effective temperatures on their crops by means of shading or heating, and document such implementation by California pistachio growers. With rising winter temperatures and declining winter chill portions, pistachio growers in California could face adverse climatic conditions within 20 years. Treating dormant trees with a chemical mix, acting as a shading technology, has shown to increase winter chill count to acceptable levels. Modeling a market with heterogeneous sub-climates, we run simulations to estimate potential gains from MCE in the year 2030 for California pistachio. Our results show an expected yearly welfare gain ranging between $1-4 billion. However, heterogeneous baseline climate creates clear winners and losers from this technology. Applying the concept of MCE more broadly, we point to its potential benefits in general as an adaptation technique, while also noting its potential for widening the global gap in climate change damage incidence, depending on heterogeneity in baseline climates, economic conditions, and market power. Acknowledgement : |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277069&r=agr |
| By: | Finger, R.; Bocker, T.; Britz, W.; Mohring, N. |
| Abstract: | The effects of a glyphosate ban on cultivation of silage maize are simulated using a spatially explicit bio-economic model that accounts for different pre- and post-sowing weed control strategies and production risks. We analyse the effects of a glyphosate ban on farmers choices of field-level weed control strategies. These strategies are evaluated in two environmental dimensions. More specifically, we consider a pesticide load indicator to assess environmental toxicity, fate and human health effects as well as the energy demand of the agricultural system. We find that a glyphosate ban leads to a significant reduction of the pesticide load of silage maize production. However, a glyphosate ban also leads to somewhat higher energy consumption. Acknowledgement : We thank Ganga Ram Maharjan and Thomas Gaiser from the Crop Science Group of University of Bonn for providing yield data for this research. Furthermore, we thank the plant protection consultants of the Chamber of Agriculture of NRW and of the Chamber of Agriculture of Lower Saxony for providing valuable information supporting this research. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277005&r=agr |
| By: | Wegmann, J. |
| Abstract: | Rapid urbanization in semi-arid and arid areas challenges the provision of water for the urban population. Moreover, the rise in population does not only increase directly but also indirectly the water stress through a higher demand of water-intense agricultural products. This demand is often met by exploiting groundwater stocks. The consequences are overdrafted or exhausted aquifers. In order to prolong the life of the resource and to increase the long-term benefits for the users, management institutions are needed. However, these management institutions might not be stable as background conditions change during the process of urbanization. In this paper, we compare cooperative, non-cooperative and exogenous management institutions at different stages of urbanization. To do so, we have conducted a framed field experiment along the rural-urban gradient of the fast growing city of Bengaluru, India. Results indicate that both enabling and restrictive exogenous institutions are the most efficient in prolonging the life of the resource independent of the stage of urbanization. Nevertheless, the results also show that participants of more urbanized areas are more myopic than in rural sites stressing the importance of governance in these areas. Acknowledgement : |
| Keywords: | Community/Rural/Urban Development |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277268&r=agr |
| By: | Ferreira, M.; Feres, J.G. |
| Abstract: | This paper assessed the relationship between farm size and productivity performance in Brazilian Amazon. We built two productivity indicators: technical efficiency and land use efficiency. We used Stochastic Frontier Analysis and 2006 agricultural census data to derive the efficiency measures and to assess their relationship with farm size. Results pointed out that the average Amazonian farm is productivity inefficient. The average farm could increase its agricultural production in 35.3% using the current amount of inputs. For land use efficiency, results indicate that farmers could reduce agricultural land in 90% and produce the same output using the current amount of labor and capital. Our measures of productivity presented a nonlinear relationship with farm size. However, both relations possess a similar turning point around 16,500 hectares. For policy analyses purposes, the actual relationship between farm size and productive efficiency is negative, as the turning points are far above the average farm-size in the region. Acknowledgement : This study is a part of first author's dissertation which was funded by a Capes/Embrapa doctoral scholarship. This research is supported by a CNPq research grant. |
| Keywords: | Productivity Analysis |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277289&r=agr |
| By: | Zounemat-Kermani, M.; Asadi, R. |
| Abstract: | A field experiment was carried out over two years to investigate the effects of deficit irrigation applied with surface and subsurface drip irrigation systems on water use efficiency and yield of cotton. The experiments were carried out during 2014-2015 in Kerman Province (Iran) in a split plot based on a randomized complete block design with three replications. Treatments considered three levels of irrigation, based on 100 (L1, full irrigation), 80 (L2) and 60 (L3) percent of crop water demand at each irrigation event, as main plots, as well as two drip irrigation methods, including surface (S1) and subsurface (S2), as subplots. All treatments were assessed in terms of yield, water use efficiency, as well as of economic aspects, including investment preference determination. Two-year comparison showed that yield, water use efficiency, boll weight, number of boll and plant height in subsurface drip irrigation system (S2) were increased 10.8, 11, 7.45, 12.8 and 11.2 percent compared to surface drip irrigation system (S1), respectively. Economic analysis showed that applying 100 percent of crop water requirement in subsurface drip irrigation (L1S2) was superior to the other treatments. Acknowledgement : |
| Keywords: | Research Methods/ Statistical Methods |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277067&r=agr |
| By: | Salau, S.; Omotesho, O.; Muhammad-Lawal, A. |
| Abstract: | Abstract Agricultural commercialization is necessary for increased agricultural intensification and productivity in Nigeria. However, there is paucity of empirical information on the effects of agricultural commercialization on input use, labor demand and engagement in non-farm employment across the country. This study examined the effects of agricultural commercialization at the household level on fertilizer use, demand for hired labor and participation in non-farm employment in Northern Nigeria. Household Commercialization Index (HCI), Two-stage Least Squares (2SLS) and Instrumental Variable (IV) estimations were used to analyze the primary data collected from 270 maize farming households in Kaduna and Kano States. The study revealed that commercialization had the potentials for increasing the demand for fertilizer usage and hired labor among maize farming households. However, it reduced the tendency for households to participate in non-farm employment. Smallholder commercialization of maize should therefore be promoted through adoption of complementary technologies that free labor from on-farm activities. Keywords: agricultural commercialization, input market, staple, Instrumental variable, Nigeria JEL: C26, D13, Q12 Acknowledgement : |
| Keywords: | Research Methods/ Statistical Methods |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277180&r=agr |
| By: | Osanya, Jessica Apondi; Otieno,David Jakinda; Nyikal, Rose Adhiambo; Adam, Rahma |
| Abstract: | The need to effectively integrate gender in agriculture is a topical issue in research and policy debates. Previous studies have shown that women in Sub-Saharan Africa (SSA) face challenges in accessing productive resources such as land, and this reduces their productivity compared to men. Most of these studies, however, have analyzed male-headed versus female-headed households, and this approach fails to take into account the women who are in male-headed households, for example. Moreover, the combined effect of gendered decision-making and access to institutional support services on agricultural productivity and efficiency has not received adequate focus in empirical work. The main objective of this study was to assess the effect of intra-household decision-making and access to institutional support services (group membership, credit, extension, agricultural training forums) on maize production efficiency in Kenya. Using primary data collected from Bungoma and Meru counties, a multivariate probit model was applied to analyze factors affecting men’s and women’s participation in decision-making, while stochastic frontier production functions were used to estimate technical efficiency. Findings indicate that men and women do not have equal roles in household decision-making and access to institutional support services. Women had higher group membership while men had higher education levels, access to agricultural training forums and were found to be more likely to contribute to decisions on input and labour use. Extension, mobile phone use and credit had a positive effect on efficiency. Based on these results, the study recommends implementation of gender-based interventions such as agricultural training forums for women, as well as providing incentives that encourage men to join and contribute productively to agricultural development groups. This will ensure fairness in access to resources and improved efficiency. |
| Keywords: | Community/Rural/Urban Development |
| Date: | 2018–10–31 |
| URL: | http://d.repec.org/n?u=RePEc:ags:unaaed:280034&r=agr |
| By: | Cavazza, F.; Galioto, F.; Raggi, M.; Viaggi, D. |
| Abstract: | Numerous Information and Communication Technologies (ICT) have been developed in irrigated agriculture. While there are studies focusing on ICT impacts at the farm level, no research deal with this issue at the level of Water Authority (WA). With the present study, the authors developed a theoretical framework based on Bayesian decision theory to assess the economic benefits brought by the introduction of ICT. An empirical example is provided with the aim of showing any potentialities and limitation of ICT for the management of water supply networks in agriculture. The adoption of ICT by WA have the capacity to achieve water savings and favor climate change adaptation. Site specific constraints as decisional power, water availability and technical issues do not allow the full exploitation of information services. A sensitivity analysis showed that by improving the quality of information, such constraints can be overcame. Policy remark is to favor ICT development jointly with end users, answering decision maker s information requirements. Acknowledgement : |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277247&r=agr |
| By: | Sabine Duvaleix-Treguer (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST); Charlotte Emlinger (Centre d'Etudes Prospectives et d'Informations Internationales); Carl Gaigné (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST, CREATE - CREATE); Karine Latouche (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST) |
| Abstract: | The paper questions the impact of geographical indication labels on firm export competitiveness in the French cheese and cream industry. We use firm level data from the French custom and an original dataset of firms and products concerned by Protected Designations of Origin (PDO). Our estimations show that PDO labeling allows firms to increase their price by 11.5% on average. Moreover these products are perceived by consumers as products of better quality than non-PDO products. Regarding trade margins, while the effect on trade volume (the intensive margin of trade) is not significant, PDO labeling increases the probability of serving a foreign country (the extensive margin of trade). Our estimations show that exports of PDO products would increase by 11.4% if non-EU consumers value PDO label as much as EU consumers. |
| Keywords: | product quality,trade margins,geographical indication,PDO,price |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01925630&r=agr |
| By: | Jaramillo-Villanueva, J.L.; Sarker, R.; Cabas-Monje, J.; Portilla-Duran, L. |
| Abstract: | During the last two decades, the Mexican dairy sector experienced important structural changes, especially after the implementation of the NAFTA agreement. In 2016, the Bank of Mexico observed that in milk market, the final prices tend to rise when input prices increase, however, they do not decrease when imput prices decrease. In this context, this study examines the degree of spatial and vertical price transmission between farm milk prices and international milk prices as well as between farm milk prices and retail milk prices, in order to assess the ef?ciency level of the Mexican and International dairy market. The ?ndings of this research provide contributions to decision makers and industry stake-holders: a unidirectional transmission of international milk prices to domestic milk prices and from farm price to retail price along with the existence of asymmetric price transmission which depends on whether milk prices are increasing or decreasing. Acknowledgement : Colegio de Posgraduados-Campus Puebla and LGAC in Economics of Rural Development |
| Keywords: | Demand and Price Analysis |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277283&r=agr |
| By: | Sariyev, O. |
| Abstract: | Despite the broad range of studies measuring women s intra-household decision-making power, the possibility of all family members actively participating in family decisions is widely ignored or undervalued. Therefore, this article first develops a decision-making index that accounts for different decisions potentially being made solitarily or jointly by any number of individuals reported to participate in decision-making. Second, determinants of decision-making power are identified. Finally, the effect of higher women participation in decision-making on food security is assessed. Based on a random sample of 378 households living in a 200 km radius around the city of Hawassa in Southwestern Ethiopia, principal component analysis is applied to generate an index of empowerment proxy, i.e. participation in decision-making. Linear regression models revealed that livestock income, asset ownership, land endowment, and adultness of sons are significant determinants of women s participation in decision-making. In addition, women s bargaining power, education, access to credit and extension, and off-farm income significantly increased the food variety score as an indicator of food and nutrition security. Acknowledgement : Acknowledgment: The financial support of the Deutsche Forschungsgemeinschaft (DFG) is kindly acknowledged. |
| Keywords: | Food Security and Poverty |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277479&r=agr |
| By: | Rakotoarisoa, M.A.; Randriamamonjy, J. |
| Abstract: | Assessing how the policy of taxing agricultural export to boost government revenues while subsidizing food production to improve food security has affected the African agriculture is a requisite for investment and fiscal policy reforms. I estimate the substitution and endowment effects of the mix of government taxes and subsidies on the mix of agricultural commodities in selected Sub-Saharan African countries. The commodities are divided into cash commodity, importable food, and non-tradable food categories. Result show that changes in the ratio of taxes on any two commodity categories lead to commodity substitution but the cross-effects are asymmetric and counterintuitive. A higher tax on cash commodity relative to tax on importable food causes relatively more harms to the production of importable food than to the production of the cash commodity. More important, the endowment effects are found to be greater than these substitution effects, representing 60-to 70% of the policy effects on output levels. Sub-Saharan Africa s quest to reform its agriculture sector must thus consider that the relative level of assistance matters most. The priority before assisting any targeted subsector would be to increase the amount of investment resources for the whole sector; reshuffling resources without increasing them provokes unintended consequences. Acknowledgement : |
| Keywords: | Agricultural and Food Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277309&r=agr |
| By: | Nin-Pratt, A. |
| Abstract: | This article proposes a measure of multi-factor water efficiency as an alternative to partial water productivity indicators that are easy to calculate but give an incomplete picture of productivity and efficiency. Technical water efficiency is determined in the production process of desired outputs using a nonparametric, directional distance function that evaluates water efficiency given levels of all other inputs and outputs. Environmental efficiency is evaluated separately using a distance function that finds the minimum level of pollutants for different combinations of polluting inputs. Efficiency of these two production processes are then combined in an overall measure of water efficiency that can be decomposed into a technical efficiency component and an environmental efficiency component. Results of an application to global agriculture show that differences in overall efficiency across countries are mostly explained by differences in environmental efficiency, that improved water efficiency could reduce the total amount of water used for irrigation by 11 percent, while improved environmental efficiency could reduce pollution by 30 percent globally. Even if countries achieve full water efficiency, significant differences in water use and pollution will remain as the result of differences in production technology between countries. Acknowledgement : |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277486&r=agr |
| By: | Maria Nygård Thomsen (Department of Food and Resource Economics, University of Copenhagen); Tseganesh Wubale Tamirat (Department of Food and Resource Economics, University of Copenhagen); Søren Marcus Pedersen (Department of Food and Resource Economics, University of Copenhagen); Kim Martin Lind (Department of Food and Resource Economics, University of Copenhagen); Hans Henrik Pedersen (Aarhus University); Sytze de Bruin (Wageningen University); David Nuyttens (Research Institute for Agriculture, Fisheries and Food, ILVO, Belgium); Jurgen Vangeyte (Research Institute for Agriculture, Fisheries and Food, ILVO, Belgium); Patrick Dermot Forristal (Teagasc, Crop Science, Ireland); Claus Grøn Sørensen (Aarhus University) |
| Abstract: | This report presents descriptive results from a recent survey conducted with the objective of assessing the use of Controlled Traffic Farming (CTF) practices and associated precision farming technologies among farmers in eight European countries. About 26 % of the surveyed farmers use some CTF systems of which 45 % apply CTF on their entire farm. For the CTF users, the major motives to use CTF are to reduce soil structure damage and to improve efficiency (reduce cost) followed by a desire to make more profit. Concern about heavy machinery – induced soil compaction and perceptions about the potentials of CTF are considerably high. However, adoption appears to be constrained mainly by: high cost of machinery modification and RTK purchase, lack of compatibility of equipment and also GPS systems from different manufacturers, and lack of decision support systems. Issues about evidence on demonstrated benefits under local conditions and availability of contractors are also mentioned as limiting factors. |
| Keywords: | Controlled Traffic Farming, adoption, survey, precision agriculture |
| JEL: | O31 O33 Q10 Q16 Q30 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:foi:wpaper:2018_12&r=agr |
| By: | Chapoto, A.; Houssou, N.; Asante-Addo, C.; Mabiso, A. |
| Abstract: | This paper examines the process of growth and the drivers of transition using a quantitative survey of Ghanaian medium- and large-scale farmers. The paper departs from the competing visions on whether to promote small-scale or large-scale farms in Sub-Saharan Africa (SSA) primarily by arguing that an important transition of onetime small-scale farmers is taking place in Ghanaian agriculture and potentially in other SSA countries. This transition is largely unresearched, although it is a critical feature of agricultural transformation with implications for agricultural development strategies in the SSA sub-region. Acknowledgement : We would like to thank the United States Agency for International Development for providing financial support for this study through the IFPRI s Ghana Strategy Support Program. We thank Shashidhara Kolavalli and Xinshen Diao for their insightful comments on this research. This research also benefited from comments by Xiaobo Zhang, Guush Berhane Tesfay and numerous other IFPRI staff during the IFPRI s Retreat for IFPRI Staff Everywhere (RISE). We are solely responsible for any errors and omissions. |
| Keywords: | Farm Management |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277225&r=agr |
| By: | Phanthipa Srinammuang (Accounting department, Kasetsart Business Shool); Neungruthai Petcharat (Gulf College) |
| Abstract: | This study evaluates the communicative value of environmental sustainability reports produced of Thai construction companies under the mandatory reporting regime and concerns about environmental impacts of the construction industry in Thailand, as it was necessitated emphasis on business practices and eco-efficiency. Data was collected through a review of annual reports of sixty-five construction companies listed on the Thailand Stock Exchange. Environmental improvement activities identified in the reports are analysed and the quality of the disclosures were evaluated against the Global Reporting Initiative (GRI) framework and qualitative characteristics used as a benchmark to assess traditional financial reports. The results indicate that while the mandatory reporting regime on the Thai construction sector has fostered the quantity of disclosures in annual reports, wide variations still exist in the information disclosed in the reports owing to management?s considerable reporting discretion. The reporting practices show room for improvement with respect to enhancing informativeness of environmental disclosures to users. |
| Keywords: | Environmental information, Environmental measure, Environmental sustainability reporting, GRI |
| JEL: | M41 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:7309922&r=agr |
| By: | Asfaw, S. |
| Abstract: | This paper explores the interaction between climate shocks, market regimes choices and welfare outcomes using Malawi's panel household data combined with long-term historical climate records. The study first examines how climate variability affects household market participation regime and then estimates the impact of market participation on several measure of household welfare. This study also provide a comprehensive picture of how market participation impacts household welfare in the wake of climate variability. The possibility for households to self-selection in a specific market regime is addressed through a multinomial endogenous treatment model. We find that rainfall variability is a push factor for Malawian household farmers who are more prone to participate in the market in order to guarantee their assets against the adverse effects of rainfall uncertainty. Furthermore, being a net seller is, on average, empirically associated with an increase in total and food consumption. The heterogeneity checks support the average results, in particular for female-headed households and large landowners. However, they also highlight that being net-sellers is associated with greater welfare only in Malawi s central region while in the northern and the southern regions, being net-buyer accrues a greater consumption. Furthermore, the net-sellers welfare superiority disappears in the wake of anomalous low rainfall events. Acknowledgement : |
| Keywords: | Marketing |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277029&r=agr |
| By: | Wille, Stefan Clemens; Barklage, Britta; Spiller, Achim; von Meyer-Höfer, Marie |
| Abstract: | Farmer-to-consumer direct marketing provides an alternative marketing strategy for farmers, ensuring their income while also meeting consumers' increasing demand for local food. This study evaluates the challenging factors of this marketing channel from the farmers' viewpoint. A CAPI survey was carried out among 121 German livestock owners. The results of a cluster analysis demonstrate that the location of the farm represents the most challenging requirement for the interviewed farmers. The cluster analysis additionally reveals that most of the livestock owners see problems with the implementation of requirements concerning the personal challenges of direct farm marketing (especially hygiene regulations, self-motivation and customer contact). |
| Keywords: | farmer-to-consumer direct marketing,local farm products,German livestock owners |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:daredp:1807&r=agr |
| By: | Dogbe, W.; Gil, J.M. |
| Abstract: | Our current dietary habits are the major cause of obesity and related diseases change. Denmark introduced fat tax in 2011 that was abolished in 2012 because of detrimental economic impacts. However, post-tax studies show that the tax was beneficial in reducing saturated fat consumption from the targeted foods. Demand- side measures have been proven to be efficient at reducing unhealthy foods. This study aims to assess the distributional effects impact of introducing a Danish-type fat tax (DFT) equivalent on food demand in Spain. Alternative tax policy scenarios have been considered taking into account policy that compensate consumers with subsidies form the taxes and otherwise. In the case where the taxed food categories only represent a subset of total food categories, a revenue-neutral approach has been designed. Expenditure as well as own- and cross-price and nutrient elasticities were calculated from an EASI food demand system. The tax reduced the consumption of the food products with saturated fat or lipid higher than 2.3%. Total lipid declined while carbohydrate intake increased. The effect is significantly reduced when revenue-neutral scenarios are considered. Distributional effect of the tax is more evident on household s heads who are obese, overweight, and younger. Acknowledgement : |
| Keywords: | Agricultural and Food Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277237&r=agr |
| By: | Yu, X.; Zhang, X.; You, L. |
| Abstract: | Manipulation of food production data could lead to catastrophic social and economic consequences. The accuracy of official agricultural statistics has long been questioned in China. As a natural experiment, this paper studies the linkage between agricultural production data manipulation and the Granary Country Subsidy Policy (GCSP). Chinese government gave subsidies to the counties with annual grain production more than 200 thousand tons to encourage these local governments to give priority on grain production from 2005. In order to obtain the subsidies, the prospective counties with food production slightly below the threshold may have incentives to over-report their grain production. Based on the McCrary (2008) s density test, our empirical results confirm that the GCSP results in over-reporting of grain production in those countries. Furthermore, data manipulations are more likely to happen in major-grain-production, low-income and mid-western counties. The policy implication would be that the fiscal distribution rules of a central government should avoid data manipulation incentives in local governments, particularly should cut the linkage to the data which are self-reported by the local governments. Acknowledgement : Thanks |
| Keywords: | Agricultural and Food Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277298&r=agr |
| By: | Neves, M.C.R.; Silva, F.D.F.; Freitas, C.O.D.; Braga, M.J. |
| Abstract: | Brazilian South and Southeast regions produced more than 50% of the Brazilian agricultural production in 2006. The Brazilian government has implemented several policies to enhance farm income on these regions such as policies towards enhancement of cooperatives production management. This directly affects farmers in these regions given that around 24% of them were members of cooperatives. In this paper, we estimate the effect of this membership on farms profitability, output supplies and input demands. To calculate these effects, we estimate a quadratic normalized restricted profit function using the Brazilian Agricultural Census of 2006 for the South and Southeast regions of Brazil. Preliminary results suggest a positive effect of cooperative membership on profit of about US$ 4.1 million per year. A positive effect of membership on output supplies and on input demand was found. Acknowledgement : The authors acknowledge the suggestions of the reviewers. Some of them will still be implemented. Foundation for the Coordination and Improvement of Higher Level or Education Personnel (Capes - Brazil) Applied Economics Program, Dept. of Agricultural Economics Federal University of Vi osa-MG. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:276983&r=agr |
| By: | Hertel, T.; Baldos, U.; Moore, F. |
| Abstract: | This paper explores the interplay between the biophysical and economic geographies of climate change impacts on agriculture. Towards this end, we employ a statistical meta-analysis which encompasses all studies available to the IPCC-AR5 report. This permits us to isolate specific elements of the biophysical geography of climate impacts, such as the role of initial temperature, and differential patterns of warming across the globe. We combine these climate impact estimates with the GTAP model of global trade in order to estimate the national welfare changes which are decomposed into three components: the direct (biophysical impact) contribution to welfare, the terms of trade effect, and the allocative efficiency effect. We find that the terms of trade interact in a significant way with the biophysical geography of climate impacts. Specifically, when we remove the biophysical geography, the terms of trade impacts are greatly diminished. And when we allow the biophysical impacts to vary across the empirically-estimated uncertainty range, taken from the meta-analysis, we find that the welfare consequences are highly asymmetric, with much larger losses at the low end of the yield distribution than gains at the high end. Acknowledgement : |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277066&r=agr |
| By: | Sharma, S.; Walters, C. |
| Abstract: | At the beginning of each agricultural cycle producers face risks from uncertain harvest yields and prices. To assist in managing these risks the federal government offers subsidized crop insurance. Since the 1996 Farm Act, crop insurance has been the cornerstone of risk management. In 2015, federal crop insurance represented over $9.5 billion in premiums and $102 billion in liabilities, compared to only $1.8 billion dollars in premiums and $26 billion in liabilities in 1996 (Risk Management Agency (RMA)). While the premium rate tailoring by the RMA is aimed at improving actuarial performance, it may not be sufficient. That is, are there other farm characteristics that the insurer observes, which deserve consideration? For the producer, this could mean the opportunity for excess returns and for the insurance provider and the government, excess returns imply an inefficient program resulting in misallocation of scarce resources and increase in taxpayer cost. In this article, we empirically examine the impact of two specific farm characteristics, farm size and insured share on returns from crop insurance. Our results suggest that large producers are attaining higher crop insurance returns across regions and crops. Acknowledgement : |
| Keywords: | Risk and Uncertainty |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277399&r=agr |
| By: | Oda, M.; Umetsu, C.; Shen, J. |
| Abstract: | This paper conducted cross-sectional and panel census data analysis from year 2005 and 2010 in addition to factor share analysis to consider the regional differences that impact farmland consolidation in three areas of Japan, namely Tohoku, Hokuriku, and Kinki. First, the characteristics of each area indicated differential influences on the performance of the land consolidation policy. Second, organized farm management bodies such as village-based farming organization approved by the government also had positive impacts on farmland consolidation. The results of factor share analysis indicated three points. First, the effect of the number of Non-farmer with farmland ownerships had highest share in all areas. Second, the impacts of regionally differential characteristics on farmland consolidation had individual characteristic effects of municipality and time effect such as Kinki has high contribution rate of farm-work contract farming management body in panel data than cross-sectional data. Third, the factors that characterized the problem of each area showed higher effect on farmland consolidation. The government needs to consider regional differences when making decisions on farmland consolidation policies. . Acknowledgement : |
| Keywords: | Land Economics/Use |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277389&r=agr |
| By: | Schreiner, J.A. |
| Abstract: | This study assesses pig farmers willingness-to-accept (WTA) higher farm animal welfare (FAW) standards and consumers willingness-to-pay (WTP) for thus enhanced standards. The analysis is based on Discrete Choice Experiments with nearly identical choice sets for both farmers (N=140) and consumers (N=775). Based on preference estimates from a random parameter logit (RPL) model, supply and demand curves for high-welfare pork in Germany are estimated and market equilibria are derived for alternative levels of FAW. We find that estimates of WTP are significantly positive for all FAW attributes. By contrast, our model revealed significant WTA estimates only for surface area per pig and the amount of bedding material on offer, but not for the other FAW attributes. Market simulations for high-welfare pork indicate increasing divergence between demand and supply with rising FAW standards. We estimate a market share of 49% for pork produced in compliance with an entry-level FAW programme with standards only slightly above the legal minimum. Programmes with more demanding standards are estimated to gain much smaller market shares. Keywords Farm animal welfare, Discrete Choice Experiment, Random Parameter Logit, market simulation, common elicitation format. Acknowledgement : |
| Keywords: | Livestock Production/Industries |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277467&r=agr |
| By: | Sakamma, S.; Umesh, K.B.; Rangegowda, R. |
| Abstract: | The study was conducted in Hilly Zones of Karnataka to assess the resource use efficiency and externalities in banana and its competing crop. Cobb-Douglas type of production function (per hectare), was used to assess the resource use efficiency in banana and its competing crops production. Resource use efficiency in banana production was high in case of chemical fertilizer (4.32) followed by sucker (3.25), FYM (2.47) and irrigation (1.93), indicating considerable scope to increase banana production by increasing the level of these inputs. The resources were over utilized in case of competing crops (paddy and ginger). Thus, farmers can reduce the wastage of resources by cultivating banana crop. The externality for resource use in banana and its competing crops was quantified. The results revealed that the cost incurred on fertilizers was more in case of ginger (Rs. 43,200/ha) followed by banana (Rs. 25,450/ha) and paddy (Rs. 9,644/ ha). With respect to PPC also the cost was more in ginger (Rs. 69,519/ha) compared to paddy (Rs.5,630/ ha) and banana (Rs. 3,893/ ha). This clearly indicated that ecologically banana has very less negative impact due to less usage of PPC. Acknowledgement : |
| Keywords: | Crop Production/Industries |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277222&r=agr |
| By: | Wainaina, P.; Njagi, T.; Onyango, K. |
| Abstract: | Credit constraints among smallholder farmers remain one of the impediments to the much-needed increase in agricultural productivity in sub-Saharan Africa. Applying the direct elicitation approach and using representative data from rural Kenya, we identify credit constrained farmers and assess the effect of being constrained on maize yields. Access to credit affects various variables that affect maize yields, although we do not find significant yield differences. Participation in group activities, access to financial and extension services, more education increases the likelihood of being credit unconstrained. Similarly, participating in off-farm activities reduces the likelihood of being credit constrained. Hence, policies that facilitate human capital development, such as households education, access to information, or engagement in off-farm activities- either self-employment or salaried employment, are relevant. Acknowledgement : The authors gratefully acknowledge funding from the United States Agency for International Development (USAID) and wish to thank internal reviewers at Tegemeo Institute for their valuable time and comments that greatly helped improve this work. We are also grateful to other staff at Tegemeo Institute for their comments, suggestions, and support. |
| Keywords: | Agricultural Finance |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277050&r=agr |
| By: | Channa, H.; Ricker-Gilbert, J.; De Groote, H.; Marenya, P.; Bauchet, J. |
| Abstract: | This paper describes an experimental auction conducted among maize traders and farmers in Western Kenya to measure adoption for two low-cost technologies that can measure grain moisture content. Willingness-to-pay auctions (WTP) were combined with a risk preference lottery, allowing an opportunity to study the impact of risk preferences on technology adoption. The specifics of this technology also allows us to identify the impact of risk aversion on willingness to pay for a technology when production uncertainty is not part of the equation. We also randomized two variations of the BDM method for collecting WTP data allowing for a mechanism by which to study the impact of the method on valuation data. We find some evidence that risk aversion increased willingness to pay. Another result with implications in implementation of field experiments in the developing world is that farmers were sensitive to the method in which the auction was presented but traders were not. Acknowledgement : |
| Keywords: | Risk and Uncertainty |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277406&r=agr |
| By: | - |
| Abstract: | Flood risk in coastal areas has increased significantly in recent years. Historically, the response to this risk has been based on conventional solutions, such as building artificial dykes or enlarging or raising the elevation of infrastructure. These are all rigid and environmentally unsustainable solutions that are not readily adapted to changing climatic conditions. However, it has been shown repeatedly that certain ecosystems, such as mangrove forests and coral reefs, help to protect coastal areas from flooding and erosion. Recovering mangroves and coral reefs therefore offers a flexible response that is easily adapted to long-term changes, such as sea-level rise, at a much lower conservation cost than artificial solutions. This study assesses and values the economic and social benefits provided by Cuba’s mangroves and coral reefs, and concludes that both play a fundamental role in mitigating coastal flood risk. |
| Keywords: | CAMBIO CLIMATICO, COSTAS, PROTECCION DE LAS COSTAS, ARRECIFES DE CORAL, MANGLARES, CLIMATE CHANGE, COASTS, SHORE PROTECTION, CORAL REEFS, MANGROVE SWAMPS |
| Date: | 2018–11–21 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:44265&r=agr |
| By: | Bekchanov, Maksud; Evia, Pablo; Hasan, Mohammad Monirul; Adhikari, Narayan; Godhalekar, Daphne |
| Abstract: | Open dumping of waste and discharging untreated wastewater into environment are key causes of environmental pollution in the developing world, including South Asian countries. Waste and wastewater however can be a source for recovering energy, nutrients and water if properly treated or recycled rather than a cause of pollution and diseases spread. The importance of adopting Resources Recovery and Reuse (RRR) technologies increases under growing demand for food and energy in contrast to depleting fossil fuel mines and groundwater reservoirs. However, institutional framework including the organizations and various stakeholders involved in the waste and wastewater management sectors, government policies and legislation, as well as financial arrangements and incentives to technological change play a pivotal role in adopting and scaling up RRR options. This study therefore focuses on institutional and financial aspects of challenges and opportunities for implementing RRR options in South Asia. It is argued that improving financial capacities, easing to obtain land use permits to expand RRR facilities, maintaining quality of RRR products (compost, biogas), and raising environmental awareness are imperative for the successful performance of the RRR projects in South Asia. |
| Keywords: | Environmental Economics and Policy, Institutional and Behavioral Economics, Resource /Energy Economics and Policy |
| Date: | 2018–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubonwp:280621&r=agr |
| By: | Appel, F.; Balmann, A. |
| Abstract: | This paper aims to examine how path-breaking farms which dramatically increase their farm-size influence other farms in an agricultural region by using agent-based participatory experiments. Our experiments are based on the FarmAgriPoliS business management game, in which a human participant manages a farm in AgriPoliS, an agent-based model of structural change in agriculture. With these experiments we can show that the impact on other farms in the model region differs depending on the performance of the human participant. In general, economically successful fast-growing participants (path-breakers) increase regional added value. Although path-breakers have a negative effect on the average income of other farms in the region some other farms may even benefit. Whether a single farm in the region can benefit from a path-breaker depends on the distance. Moreover, even more smaller farms may survive. Although the influence decreases overall with growing distance, the functional correlation is neither linear nor exponential, but wave-like. Acknowledgement : This work was supported by the German Research Foundation (DFG): The research was conducted within the Subproject 5 of the research unit Structural change in Agriculture (SiAg) . |
| Keywords: | Farm Management |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277358&r=agr |
| By: | Patil, V.; Veettil, P.C. |
| Abstract: | Covariate production risks are some of the central features of the agriculture sector especially in developing countries that merit further economic research. Risk attitudes of the farmers play a crucial role in designing and targeting mechanisms to mitigate risks. As a part of our larger research project towards developing a comprehensive crop insurance product, we conduct risk preferences elicitation experiment with rice-growing farmers in eastern India. The experiment is relatively unique in that it introduces a minimum entry fee which help in eliciting risk preferences that are close to their behaviour in real decision makings. Using zero-inflated ordered probit mode, we analysed the experimental data. The results show that small and marginal farmers tend to opt for options associated with high risk aversion. As majority of the farmers in the sampled states have small and marginal landholdings, in general farmers tend to be risk averse. In addition, compared to young farmers, elder farmers are found to be more risk averse. Education and household size of respondents have also positive effect on riskier options and negative effect on risk averse options. Farmers who belong to minority caste/social class (SC and ST) are more likely to opt the risk aversion strategy. Acknowledgement : |
| Keywords: | Risk and Uncertainty |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277331&r=agr |
| By: | Tanaka, K. |
| Abstract: | Agri-environmental payments (AEP) have been implemented for more than ten years and considered as a primary agri-enviromental policy in Japan. However, program enrollment is close to its peak due partly to budget limitation and rigid payment scheme. It might be possible to increase program participation by introducing some flexible payment schemes. This study investigates the effects of different bonus (extra payment) payments on farmers acceptance decisions of the AEP in Japan. To achieve this objective, we conducted a survey for 576 rice farmers in four prefectures (Akita, Fukui, Shiga, and Shimane). We introduced three hypothetical bonus payments (scale, acquisition, and adjacency) and asked farmers about their possible acceptance. Farmers responses were then used to derive their minimum acceptable bonus levels. Our results show that farmers are quite responsive to scale and adjacency bonus payments, but not to acquisition bonus. Our results also show that there is significant variation in minimum acceptable bonus, reflecting considerable heterogeneity among farmers in the study region. Using these estimated results, Japan s AEP would attract more farmers and achieve significant efficiency gain without substantial budget increase. Acknowledgement : |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277343&r=agr |
| By: | Otieno, D. |
| Abstract: | Fair trade is an important ethical concern in food value chains. However, there is a dearth of empirical insights on consumer preferences for this critical aspect especially in the domestic markets of developing countries. The current study analyzed consumer willingness to pay (WTP) for fair trade attributes in goat meat value chain in the capital city of Kenya, Nairobi. Choice experiment data from 270 consumers was analyzed using the random parameter logit (RPL) model. The results showed that 56% of the consumers were aware of the fair trade concept and 64% of them were willing to pay for fair trade compliant practices in goat meat value chains. Specifically, consumers were willing to pay a premium of 62% to prevent child labour, 45% to support provision of medical insurance for workers in the meat value chain, 40% for direct purchase from producers, 39% for fair trade labelling and 30% to support the disabled people as part of corporate social responsibility. These findings should be integrated in the goat meat value chain in order to make the enterprises more responsive to the ethical concerns of various stakeholders. Key words: fair trade, consumer willingness-to-pay, goat meat, Kenya. Acknowledgement : The author appreciates useful insights from colleagues at the University of Nairobi. |
| Keywords: | Consumer/Household Economics |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277156&r=agr |
| By: | Beber, C.L.; Ruales Carpio, A.F.; Almadani, M.I. |
| Abstract: | Different from other sectors in the Brazilian agriculture, the dairy is still immature, especially regarding external markets competition, and therefore is facing difficult challenges. This study identifies the main factors affecting the competitiveness in one of the most promising and dynamic dairy production areas in the world, the mesoregion Grande Fronteira do Mercosul in Southern Brazil. It is based on the perceptions of supply chain leaders about the challenges to improve the competitiveness. Missing professionalism, formal agreements, investments in marketing and research, technology, development and innovation, technical assistance, high transport and transaction costs, idle capacities and frauds are among the main factors retarding the modernization of this supply chain. It also present different strategies already implemented by some actors to overcome such competitiveness barriers. Therefore these problems and strategies must be the target of managers and authorities in a sustainable common project of development for the benefit of the whole chain. Acknowledgement : We would like to acknowledge the CAPES from the Brazilian Ministry of Education for the financing as well as the interviewees participants of this study for their time and dedication. |
| Keywords: | Livestock Production/Industries |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277243&r=agr |
| By: | Jiri Rotschedl (University of Economics, Prague) |
| Abstract: | The paper deals with the economics of obesity and consumer decision-making. This paper aims to suggest measures to reduce obesity. The author links economics and some other scientific disciplines, for example, physiology, endocrinology, genetics, etc. Three economic case studies show how all these disciplines play a crucial role in the causes of obesity. Based on the economic case studies, the author suggests the "treatment" of obesity. It includes 1) the tax on unhealthy food (artificial sugar or fructose syrup); 2) sports subsidies or support of sport by public health insurance; and 3) restriction on the use of antibiotics. A secondary result of the paper is that individual preferences are not stable due to the changeable set of body and processes inside. |
| Keywords: | Economic theory, obesity, fructose syrup, Ghrelin, Leptin, economic approach |
| JEL: | D11 I19 L66 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iefpro:7109891&r=agr |
| By: | Grumiller, Jan; Grohs, Hannes; Raza, Werner; Staritz, Cornelia; Tröster, Bernhard |
| Abstract: | This policy note presents policy recommendations for a sustainable development strategy targeting the Ivorian and Ghanaian cocoa processing sectors. Against the backdrop of a comparatively small share of processed cocoa exports and limited opportunities in the cocoa global value chain, industrial policies should primarily seek to leverage the increasing opportunities in the local and regional as well as in niche global export markets to further promote local value added and linkages through the processing of cocoa beans. This is particularly important in the context of the Economic Partnership Agreements (EPAs) that both countries have negotiated with the EU. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:oefsep:242018&r=agr |
| By: | Arkadiusz Zalewski (Institute of Agriculture and Food Economics-NRI) |
| Abstract: | The use of mechanization services makes it possible to reduce investment expenditures on the purchase of agricultural machinery, more efficient implementation of field works and enables the use of the most modern technical solutions. The research was aimed at identifying trends on the market of mechanization services for agriculture in Poland in 2005-2017. The dynamics of the value of purchased mechanization services and the share of services in total expenditures incurred on agricultural production were analyzed. It was found that in 2005-2017 there was a slight decrease in demand for mechanization services in Polish agriculture. In the discussed period, the value of mechanization services in current prices increased by 36.9% to EUR 505 million. However, the increase in the value of services was primarily related to higher prices. For comparison, the value of services expressed in constant prices (from 2010) decreased by 7.0% to 453 million euros in the analyzed period. The decrease in demand for mechanization services is also confirmed by data on the share of the value of services in total outlays on agricultural production. The share of mechanization services in intermediate consumption decreased by 0.5 percentage point to 3.6%. The declining demand for mechanization services, especially in recent years, is probably a consequence of earlier investments related to the modernization of agricultural equipment supported by financial resources of the European Union and the related certain saturation of farms with modern and more efficient agricultural equipment.The ratio determining the share of mechanization services in intermediate consumption in Poland was among the lowest in comparison with the majority of European Union countries. For comparison, on average in EU countries in 2017 it amounted to 7.4%, for example in the Netherlands it was 13.6%, in Italy 12.0%, in France 9.9%, in Hungary 9.1%, in Denmark 7.6%, and in Germany 6.4%. Lower than in Poland share of agricultural services in intermediate consumption was recorded, among others, in Romania, Slovenia and Lithuania (below 3%). A small share of agricultural services in intermediate consumption in Poland can be associated with the fact that Polish farmers are usually difficult to persuade to alternative forms of agricultural machinery use, such as neighborly assistance services, specialized services or team-operated machinery, which may partly result from the past history. |
| Keywords: | agricultural services, mechanization services, services market |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:7310319&r=agr |
| By: | Neuenfeldt, S.; Rieger, J.; Heckelei, T.; Gocht, A.; Ciaian, P.; Tetteh, G. |
| Abstract: | In this paper we analyse the drivers of farm structural change with respect to farm specialisation, size and exit in Norway using an adapted Multiplicative Competitive Interaction (MCI) model recently presented in the field of agriculture. We use Norwegian single farm full census data for the period 1996-2015. Four production specialisations and seven size classes represent farm groups, as well as a residual and an exit farm group at regional level. The estimates indicate that initial state (path dependency) explains about 87% of Norwegian farm structural change followed by natural conditions (6.4%) and subsidies (4.9%). The results suggest a more rigid farm structure in Norway which is also apparent in the old EU Member States. Further it can be seen that the exit farm group shows a different explanatory pattern of the determinants than the other active farm groups. Acknowledgement : |
| Keywords: | Research Methods/ Statistical Methods |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277090&r=agr |
| By: | Tadesse, G.; Badiane, O. |
| Abstract: | Informed by the boundary of the firm, this paper explains the concepts, determinants and importance of boundary in cooperative organizations. In a marketing cooperative context, we define boundary as the type and number of marketing activities or services that a cooperative organization provides to its members. Using a mix of theory from transaction cost economics, industrial organization and collective actions, the conceptual analysis predicts the importance of the type of goods (being a club good or not) the cooperatives generate to their members, as opposed to market imperfection per se, to define a competitive boundary. We then empirically tested if the observed weak performance of marketing cooperatives in Africa is explained by the strategic failure of engaging in markets where they do not have the competitive and comparative advantages using a unique data set from Ethiopia. The empirical tests proofed that the competitiveness of a cooperative in attracting and committing its members is positively and significantly related to the likelihood of a cooperative providing a club good. However, significant number of cooperatives in Ethiopia engaged in services for which the markets are not convincingly imperfect. Furthermore, they participate in markets that generate public goods rather than club goods. Acknowledgement : |
| Keywords: | Marketing |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:276964&r=agr |
| By: | Ali, A.; Rahut, D.B. |
| Abstract: | The price of the maize hybrids in Pakistan is one of the highest in the world. The current study is based on comprehensive data set collected through field survey from 822 maize growers across Pakistan. The data was collected all the four major provinces of Pakistan i.e. Punjab, Sindh, Khyber Pakhtunkhwa (KPK) and Balochistan including Azad Jammu and Kashmir (AJK) and Gilgit Baltistan (GB). The propensity score matching analysis was employed for empirical analysis and four different matching algorithms i.e. Nearest Neighbour Matching (NNM), Kernel Based Matching (KBM), Radius Matching (RM) and Mahalanobis Metric Matching (MMM) to check the robustness of results. The empirical results indicated that maize hybrid adopters have higher yields in the range of 2.35-3.11 maunds per hectares as compared to non adopters. Similarly household income levels are higher in the range of 2176-3518 Pakistani rupees. The poverty levels are less in the range of 2-3 percent. The reduction in the maize hybrid seed price will leads to increase in adoption of hybrid seed, hence will help to increase the wellbeing of the farmers as currently, only 30 percent of maize area is under hybrids mainly due to lack of affordability. Acknowledgement : The current study was made possible through USAID funded Agricultural Innovation Program (AIP) program for Pakistan. |
| Keywords: | Crop Production/Industries |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277514&r=agr |
| By: | Jin, S.; Waibel, H.; Min, S.; Huang, J. |
| Abstract: | This paper explores diversification for land and labor by smallholder farmers in Southwest China in response to the rubber price declines. Panel data of some 600 smallholder rubber farmers in Xishuangbanna, Southwest China in 2012 and 2014 is employed. Livelihood diversification is expressed by calculating Shannon for land and labor. We developed Tobit panel models to identify the determinants of diversification, and OLS and Quantile regression models to analyze the correlation between diversification and income. We find that (i) household incomes are more diverse after the decline of rubber prices; (ii) diversification contributes to smoothing household income; (iii) households with higher incomes are more likely to diversify their portfolios of crop and employment; (iv) diversification contributes to decrease of income inequality. We conclude that a more diversification in labor is more effective in mitigating negative effects of shocks from rubber price decline. Land diversification is likely to be a more effective ex-ante shock alleviation strategy. Acknowledgement : |
| Keywords: | Consumer/Household Economics |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277431&r=agr |
| By: | Singerman, A.; Useche, P. |
| Abstract: | We conducted a choice experiment based on the theory of global games to analyze the impact of strategic uncertainty on participation decisions of Florida citrus growers in area-wide pest management programs to control the vector of citrus greening. We found that the farmers average certainty equivalent in a strategically uncertain setting under a high coordination requirement for obtaining a Pareto superior payoff, was lower compared to that of a lottery. Moreover, we found some evidence that the perceived risk of farmers in the strategically uncertain alternative increased as the size of the group increased. Thus, our results help explain why, despite the efficiency of area-wide pest management to control the vector of citrus greening across Florida, farmers participation is not as widespread as one would expect. To avoid the strategic uncertainty involved in relying on neighbors, many farmers choose self-reliance in spraying despite the lower payoff. As a recommendation for policy makers, we propose a top-down regulation so as to generate a bottom-up collective action to deal with the issue of strategic uncertainty in area-wide pest management to avoid the sub-optimal outcome. Acknowledgement : |
| Keywords: | Risk and Uncertainty |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277045&r=agr |
| By: | Zhang, Y.; Liu, W.; Cai, J. |
| Abstract: | There is a paradox in rural land transfer in China: it is taken for granted that the preference is for long-term tenancy, which may result in long-term investment and more thorough conservation practices; but in reality, short-term tenancy that is, usually one year or less dominates. By building a theory model and undertaking binary logistic analysis of survey data, we discover two fundamental reasons for the dominance of short-term tenancies that help explain this paradox: (1) owing to unstable land ownership, the high relative income per capita between non-agricultural and agricultural sectors and the close relationship between lessors and lessees, the transaction costs of leasing land are rather high, meaning that long-term leases are a better choice for lessors while short-term leases favor lessees; (2) these same three factors mean that the Chinese land lease market is a buyer's market that is, one in which the lessee has the upper hand so it is the preference of the lessee that determines the nature of the market as a whole. Acknowledgement : This research is supported by Institue of Agricultural Economy and Development, Chiese Academy of Agricultural Sciences through Innovation project. We also thank Professor Zhong Tang for his valueble comments for this paper. |
| Keywords: | Land Economics/Use |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277173&r=agr |
| By: | Alam, M.J.; Gomez, M.I.; Patino, M. |
| Abstract: | The orange juice chain is still a representative sector of the Brazilian agribusiness and its performance needs to be analyzed, allowing the definition of strategies to enhance competitiveness. We investigated the threshold, short and long-run asymmetries of price transmission from international-to-domestic prices of oranges in Brazil, using the threshold asymmetry error correction model. Monthly data on international Frozen Concentrated Orange Juice (FCOJ) prices and domestic prices of oranges in Brazil for the period from January 1996 to February 2014 were used as well as producers price of oranges converted to US dollars per pound equivalent to one pound of FCOJ received by the producers in Brazil and international prices from the New York Board of Trade for FCOJ. We found evidence of threshold and asymmetries in short- and long-run price transmission and asymmetric adjustment towards a long-run equilibrium relationship between international-to-domestic prices in Brazil. We also find evidence of asymmetries in short-run price transmission. The decreases in international prices that lead to shrinkage in marketing margins are passed on more quickly to domestic prices than increases are that lead to expanding marketing margins. Acknowledgement : |
| Keywords: | Agribusiness |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:276976&r=agr |
| By: | Lu, L.; Elbakidze, L. |
| Abstract: | One of the consequences of projected climatic changes is potentially increase in frequency and intensity of regional agricultural pest outbreaks. This requires new way of analytical thinking, pest management practice, and up-to-date regulation, which we call climate smart pest management. This paper provides an integrated stochastic dynamic framework to examines the use of weather and pest infestation forecasts in agricultural pest management. First, we analytically demonstrate the role of the correlation between weather and pest infestation forecast in pest management using a stochastic optimal control framework. Next, using stochastic dynamic programming we empirically simulate optimal pest management trajectory taking into account correlation between weather and pest population predictions. The empirical case study results illustrate our theoretical inferences and show that 1. Due to faster pest infestation under climate change, farmers are forced to spray earlier in the growing season so that severe cumulative future damage on the biomass is prevented. 2. Pea production profit in the Palouse area of northern Idaho and eastern Washington can be increased by 8.5% if pea aphid management accounts for potential correlation between weather and aphid forecast errors. Acknowledgement : |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277402&r=agr |
| By: | Fleming, E.; Griffith, G.; Mounter, S.; Villano, R. |
| Abstract: | There is an increasing emphasis in Australia on finding ways to improve retail beef yield, but no current way to commercially measure retail yield. However there is a strong link between muscle score of the live animal as assessed in live cattle markets and subsequent meat yield measurements. Is there a credible value for muscle score in live cattle markets, and does it reflect the implied value of increased retail yield? In this paper these questions are investigated using price data from some 550 lots of male cattle sold at Wagga Wagga saleyard during the period July 2010 to June 2011. Two different types of hedonic models are applied and tested against each other. The premium for muscle score seems to have stayed at around 12-14 per cent of the base price after the initial jump from 7.5 per cent in 1990, although for particular categories of animals, interactions between muscle score, fat score and age are important, and premiums and discounts are more like 5-6 per cent of the base price.Premiums and discounts for muscle score evident in cattle saleyard prices are over-estimates of the eventual increase in retail value, according to the assumptions made in this paper. Acknowledgement : |
| Keywords: | Demand and Price Analysis |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277334&r=agr |