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Article
Publication date: 4 June 2024

Ayodeji Ogunleye, Mercy Olajumoke Akinloye, Ayodeji Kehinde, Oluseyi Moses Ajayi and Camillus Abawiera Wongnaa

A correlation has been shown in the literature between credit constraints and the adoption of agricultural technologies, technical efficiencies and measures for adapting to…

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Abstract

Purpose

A correlation has been shown in the literature between credit constraints and the adoption of agricultural technologies, technical efficiencies and measures for adapting to climate change. The relationship between credit constraints, risk management strategy adoption and income, however, is not well understood. Consequently, the purpose of this study was to investigate how credit constraints affect the income and risk management practices adopted by Northern Nigerian maize farmers.

Design/methodology/approach

Cross-sectional data were collected from 300 maize farmers in Northern Nigeria using a multi-stage sampling technique. Descriptive statistics, seemingly unrelated regression and double hurdle regression models were the analysis methods.

Findings

The results showed that friends and relatives, banks, “Adashe”, cooperatives and farmer groups were the main sources of credit in the study area. The findings also revealed that the sources of risk in the study area included production risk, economic risk, financial risk, institutional risk, technological risk and human risk. In addition, the risk management strategies used to mitigate observed risks were fertilizer application, insecticides, planting of disease-resistant varieties, use of herbicides, practising mixed cropping, modern planning, use of management tools as well as making bunds and channels. Furthermore, we found that interest rate, farm size, level of education, gender and marital status were significant determinants of statuses of credit constraints while the age of the farmer, gender, household size, primary occupation, access to extension services and income from maize production affected the choice and intensity of adoption of risk management strategies among the farmers.

Research limitations/implications

The study concluded that credit constrained status condition of farmers negatively affected the adoption of some risk management strategies and maize farmers’ income.

Practical implications

The study concluded that credit constrained status condition of farmers negatively affected the adoption of some risk management strategies and maize farmers’ income. It therefore recommends that financial service providers should be engaged to design financial products that are tailored to the needs of smallholder farmers in the study area.

Originality/value

This paper incorporates the role of constraints in influencing farmers’ decisions to uptake credits and subsequently their adoption behaviours on risk management strategies. The researcher approached the topic with a state-of-the-art method which allows for obtaining more reliable results and hence more specific contributions to research and practice.

Details

Agricultural Finance Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 11 June 2024

Tajana Čop and Mario Njavro

Understanding farmer and consumer behavior is essential to the successful implementation of behavior change interventions. The purpose of this study is to summarize existing…

Abstract

Purpose

Understanding farmer and consumer behavior is essential to the successful implementation of behavior change interventions. The purpose of this study is to summarize existing research, provide a comprehensive overview of nudge interventions, and identify important trends in behavioral agricultural economics. Research on nudge interventions can help policymakers encourage farmers and consumers to change their behavior in desired direction like switching to organic agriculture or eco-labeled products and promote innovation in sustainable agriculture.

Design/methodology/approach

The paper contains a bibliometric analysis of nudge research in general and agricultural economics as well as a literature review of the 53 empirical studies on nudge interventions between 2003 and 2023.

Findings

The frequency of nudge research in all research fields and in agricultural economics has increased over the years. This study summarizes nudge interventions that can be used by farmers and consumers on a variety of agricultural economic issues. Information, social norms, and social comparison as nudge interventions are most prominent in the publications, while green nudges have not been researched to a greater extent.

Originality/value

This study provides a comprehensive overview of nudge research in agricultural economics with potential for theoretical and policy implications. It highlights potential nudge interventions among farmers and consumers that can be applied in practices.

Details

China Agricultural Economic Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 5 June 2024

Jeffery Kofi Asare, Nicholas Oppong Mensah, Priscilla Agyemang, Anderson Matthew and Surjeet Singh Dhaka

The warehouse receipt system (WRS) is critical for farmers because it addresses agricultural market inefficiencies, provides credit access, reduces postharvest losses and…

Abstract

Purpose

The warehouse receipt system (WRS) is critical for farmers because it addresses agricultural market inefficiencies, provides credit access, reduces postharvest losses and increases access to profitable markets. However, its use and implementation across the commodity value chain remain relatively limited in Sub-Saharan Africa, particularly among cash crop producers. This study examines cashew farmers' perceptions of WRS implementation and determinants of farmer participation.

Design/methodology/approach

A total of 153 cashew farmers from the Bono region of Ghana were sampled using a multistage sampling approach. Perception index analysis and Cragg's double hurdle model were used for the analysis.

Findings

The results revealed that farmers strongly perceived that WRS augmented credit and market access. In addition, farm size, household size, annual income, perception of collateral and higher selling price determined farmers' willingness to participate in WRS.

Research limitations/implications

Despite the existence of other cashew farmers in Ghana, the study was limited to cashew farmers in Bono Region.

Originality/value

Despite the plethora of benefits of WRS, it is surprising that its implementation in the cashew subsector is geographically limited to East Africa. Thus, this study is the first to provide empirical evidence on the perception of WRS implementation and further examine farmers' willingness to participate in WRS in Ghana.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-12-2023-0946.

Details

International Journal of Social Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 24 May 2024

Puneet Vasta, Hongyun Zheng and Wanglin Ma

We analyzed the effects of different combinations of organic soil amendments (OSAs) and chemical fertilizers on agrifood production, focusing on banana yields in China, the…

Abstract

Purpose

We analyzed the effects of different combinations of organic soil amendments (OSAs) and chemical fertilizers on agrifood production, focusing on banana yields in China, the second-largest producer of bananas globally.

Design/methodology/approach

We computed these combinations by dividing the expenditures on OSAs by those on chemical fertilizers and called them OSA-CF ratios. First, we classified farmers based on quintiles of expenditures on chemical fertilizers. Then, we studied the association between OSA-CF ratios and banana yields for each quintile. We also considered an alternate specification in which farmers were grouped along the OSA-CF ratio continuum. The first group comprised farmers not using OSAs. Their OSA-CF ratio was zero. Farmers applying low, medium, and high OSA-CF ratios constituted groups two, three, and four; the groups were delineated based on the OSA-CF ratio tertiles, and the associations between tertiles of OSA-CF ratios and banana yields for each quintile were analyzed. The data used in this study were collected by surveying 616 households in three major banana-producing provinces (Guangdong, Hainan, and Yunnan) of China. Standard linear regressions and the two-stage predictor substitution method were employed to complete the analysis.

Findings

There were variations in the effects of OSA-CF ratios on banana yields obtained by farmers iifferent quintiles. For the first and second quintiles, low, medium, and high OSA-CF ratios improved banana yields relative to not using OSAs. For farmers in the first quintile using only chemical fertilizers, applying a low OSA-CF ratio was associated with an improvement of 792 kg/mu in banana yields. For their counterparts in the second quintile, the same transition was associated with a gain of 534 kg/mu. For the fifth quintile, comprising farmers spending 320 yuan/mu or more on chemical fertilizers, applying a high OSA-CF ratio instead of using only chemical fertilizers was associated with a 401 kg/mu decline in banana yields. Even so, for this group, no differences were observed between the yields of farmers not applying OSAs and those using low and medium OSA-CF ratios.

Practical implications

Banana farmers in southern China, using only chemical fertilizers, can improve yields by combining them with OSAs if their chemical fertilizer expenditures are less than 66.67 yuan/mu. Those using only chemical fertilizers and spending between 68 yuan/mu and 300 yuan/mu on them can maintain yields by applying OSAs in conjunction with chemical fertilizers. However, yields may decline for farmers using only chemical fertilizers and spending 320 yuan/mu or more on them if they incorporate OSAs such that the OSA-CF ratio reaches 0.78 or higher. Overall, combining OSAs with chemical fertilizers can improve yields while attenuating the adverse effects of chemical fertilizers on the environment. Policymakers should inform farmers of these benefits and accelerate the transition to sustainable agriculture through educational and awareness programs.

Originality/value

Farmers apply OSAs such as organic fertilizers and farmyard manure to adjust and remedy soil nutrition to improve farm productivity. However, little is known about how combining OSAs with chemical fertilizers affects banana yields. This study provided the first attempt to explore the associations between OSA-CF ratios and banana yields using cross-sectional data on farming households.

Details

China Agricultural Economic Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 31 May 2024

Muhammad Waqar Arshad, Muhammad Moazzam, Muhammad Mustafa Raziq and Waqas Ahmed

This study explores value-added food products in smallholder dairy farming in developing countries by analyzing external pressures, supply chain learning, farmer innovation…

Abstract

Purpose

This study explores value-added food products in smallholder dairy farming in developing countries by analyzing external pressures, supply chain learning, farmer innovation, education level, and food safety compliance.

Design/methodology/approach

We employed a quantitative approach by surveying 418 smallholder dairy farmers in three districts of Pakistan using interviewer-administered questionnaires. Data analysis involved confirmatory factor analysis and structural equation modeling.

Findings

The results indicate that external pressure significantly affects value-added smallholder dairy farms. This relationship is mediated by supply chain learning and farmers' innovative behavior, and moderated by farmers' education level and compliance with food safety standards.

Research limitations/implications

Further research is required to explore the drivers of value addition at the supply chain level.

Originality/value

This study contributes to the understanding of smallholder dairy farming dynamics and provides practical implications for improving value addition by managing the interplay between antecedents and promoting best practices in the industry.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 21 May 2024

Zhe Dai, Yazhen Gong, Shashi Kant and Guodong Ma

This article aims to explore the impact of climate disasters on small-scale farmers’ willingness to cooperate and explore the mediating effect of social capital.

Abstract

Purpose

This article aims to explore the impact of climate disasters on small-scale farmers’ willingness to cooperate and explore the mediating effect of social capital.

Design/methodology/approach

The study investigates farmers’ willingness to cooperate through a framed field approach and surveys the information of individuals and villages, including climate disasters and social capital, using a structured questionnaire from rural communities in Jiangxi and Sichuan, China.

Findings

The results show that climate disasters and social capital are significant and positive determinants of farmers’ willingness to cooperate. In specific types of climate disasters, drought is positively associated with farmers’ cooperation willingness. Moreover, the mediation effect of drought on farmers’ willingness to cooperate through social capital has been demonstrated to be significant although negative, whereas the mediation effect of flood on farmers’ willingness to cooperate through social capital is significant and positive.

Originality/value

First, given the limited studies focusing on the impact of climate disasters on small-scale farmers’ willingness to cooperate, the authors complement the existing literature through a framed field experiment approach by designing a scenario that every farmer may encounter in their production activities. Second, the study figures out the roles of drought and flood as different kinds of climate disasters in farmers’ decision-making of cooperation and sheds light on the positive impact of climate disasters on small-scale farmers. Finally, this paper provides empirical evidence of social capital as a potential channel through which climate disasters could possibly affect farmers’ willingness to cooperate.

Details

China Agricultural Economic Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 29 May 2024

Eka Rastiyanto Amrullah, Hironobu Takeshita and Hiromi Tokuda

This study identified the determinants of improved rice variety adoption and measured their impact on farm productivity and the income of smallholder farmers in Indonesia.

Abstract

Purpose

This study identified the determinants of improved rice variety adoption and measured their impact on farm productivity and the income of smallholder farmers in Indonesia.

Design/methodology/approach

We used a multistage sampling procedure and data from household surveys in four districts in the Banten region of Indonesia. An endogenous switching regression (ESR) model was used to estimate the impact of adoption, and the propensity score matching (PSM) non-parametric method tested the strength of the ESR findings.

Findings

The farm productivity of adoption increased by 11.45% and the income of smallholder farmers increased by 12.10% when compared to that of traditional methods.

Research limitations/implications

The positive and significant effects of improved rice variety adoption indicated that research programs that develop improved rice varieties can optimize the productivity and income of smallholder farmers.

Originality/value

Adopting improved rice varieties increases the productivity and income of smallholder farmers, and the level of education, rice farming experience, access to extension workers, off-farm work, and mobile phone ownership have positive and significant effects on the adoption of improved rice varieties.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 15 May 2024

Chad M. Fiechter, Megan N. Hughes, Sarah A. Atkinson, James Mintert and Michael R. Langemeier

Farmer sentiment may be an important indicator for the agricultural sector, similar to the way that consumer sentiment is linked to the general economy. This study uses the Purdue…

Abstract

Purpose

Farmer sentiment may be an important indicator for the agricultural sector, similar to the way that consumer sentiment is linked to the general economy. This study uses the Purdue University–CME Group Ag Economy Barometer to test the degree to which farmer sentiment is correlated with demand for United States Department of Agriculture Farm Service Agency (FSA) direct loan applications.

Design/methodology/approach

We estimate the dynamics between farmer sentiment and applications to FSA direct operating or farm ownership loans using monthly measures of farmer sentiment and loan applications from October 2015 to April 2023 and pairwise vector autoregression.

Findings

A negative relationship exists between farmer sentiment and FSA direct operating loan applications. In contrast, a positive relationship exists between farmer sentiment and FSA direct farm ownership loan applications. Together, the estimated nonzero relationships suggests that the Ag Economy Barometer may be a leading indicator for the Agricultural Economy and that FSA loan programs play a nuanced role in the agricultural credit market.

Originality/value

This study uses unique data sources to further the discussion on the link between farmer sentiment and real economic outcomes and the role of an important US Federal Government farmer lending program: FSA direct loans.

Details

Agricultural Finance Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 14 May 2024

Guanqiu Yin, Xia Xu, Huilan Piao and Jie Lyu

This study aims to estimate the synergy effect of agricultural dual-scale management (ADM) on farmers' total household income, its heterogeneous effects and its mechanisms.

Abstract

Purpose

This study aims to estimate the synergy effect of agricultural dual-scale management (ADM) on farmers' total household income, its heterogeneous effects and its mechanisms.

Design/methodology/approach

This study constructs a theoretical analysis framework based on the division of labor and synergy theory, empirically assesses the impact of ADM on farmers' income, and further discusses the heterogeneity and mechanisms using the propensity score matching (PSM) and quantile treatment effect (QTE) models. Data is collected from 1,076 households across 4 cities in Liaoning Province of China in 2021.

Findings

ADM can improve the total household income of farmers, and the impact force is greater than that of the single-scale management mode. ADM is more conducive to improving the income of farmers with low income and low labor endowment. Moreover, ADM can improve agriculture production efficiency, increase net grain production income. Nevertheless, it has no significant effect on farmers' off-farm employment income.

Originality/value

Previous studies have mainly focused on the income effect of land scale management or service scale management. To the best of our knowledge, this study is the first to identify the synergy effect of ADM on farmers' income in China. It provides new insights into the process of agricultural production and management mode transitions in rural China.

Details

China Agricultural Economic Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 11 April 2024

Madhuri Saripalle and Vijaya Chebolu-Subramanian

This study analyzes the impact of COVID-19 on agricultural production in South India by evaluating the influence of market channels and socioeconomic conditions on the production…

Abstract

Purpose

This study analyzes the impact of COVID-19 on agricultural production in South India by evaluating the influence of market channels and socioeconomic conditions on the production decisions of farmers during two key cropping seasons. We base our analysis on primary data from 200 marginal, small and medium farmers, primarily focusing on the key seasonal crops, namely paddy and black gram.

Design/methodology/approach

We studied the downstream supply chains of paddy and black gram crops in the district of Villupuram, situated in the South Indian state of Tamil Nadu. Using a Bi-Probit model, we analyzed the production decisions of marginal, small and medium farmers engaged in paddy and black gram cultivation. Various factors are considered, including farmers’ socioeconomic characteristics, gender, market channels accessed and the coping strategies employed.

Findings

After the easing of lockdown measures in June 2020, our research revealed substantial disruptions in agricultural production during the critical Kharif and Rabi seasons. Most farmers refrained from returning to their fields during the Kharif season; those who did produced millet as the main crop. Factors such as choice of market channels in previous seasons, economic status, access to all-weather roads, labor availability, gender and coping strategies played an important role in the return to production in the subsequent Kharif and Rabi seasons.

Research limitations/implications

Our data revealed several interesting threads related to price volatility, irrigation and access to markets and their impact on food security. The role of intermediaries and market channels in providing liquidity emerges as an important aspect of farmers' choice of markets. The pandemic impacted all these factors, but a detailed analysis was beyond the scope of this study.

Social implications

We also find that resilience to economic shocks varies not only by economic status but also by gender and social groups. Farmers with female members are more likely to be resilient, and marginal and small farmers primarily belong to social groups that are economically less developed.

Originality/value

This study contributes to the literature on factors influencing farmer choice and decision-making and provides nuances to discussions by analyzing crop-specific supply chains, highlighting the critical role of socioeconomic factors. It also highlights the role of demographics and infrastructural factors like access to all-weather roads and access to markets that influence farmers’ production decisions.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2044-0839

Keywords

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