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Article
Publication date: 1 October 2020

Xiaohui Huang, Qian Lu and Fei Yang

This paper aims to build a theoretical model of the impact of farmers’ adoption behavior of soil and water conservation measures on the agricultural output to analyze the…

Abstract

Purpose

This paper aims to build a theoretical model of the impact of farmers’ adoption behavior of soil and water conservation measures on the agricultural output to analyze the impact of farmers’ adoption behavior of soil and water conservation measures on agricultural output.

Design/methodology/approach

Based on the field survey data of 808 farmers households in three provinces (regions) of the Loess Plateau, this paper using the endogenous switching regression model to analyze the effect of farmers’ adoption behavior of soil and water conservation measures on agricultural output.

Findings

Soil erosion has a significant negative impact on agricultural output, and soil erosion has a significant positive impact on farmers’ adoption of soil and water conservation measures. Farmers adopt soil and water conservation measures such as engineering measures, biological measures and tillage measures to cope with soil erosion, which can increase agricultural output. Based on the counterfactual hypothesis, if farmers who adopt soil and water conservation measures do not adopt the corresponding soil and water conservation measures, their average output per ha output will decrease by 2.01%. Then, if farmers who do not adopt soil and water conservation measures adopt the corresponding soil and water conservation measures, their average output per ha output will increase by 12.12%. Government support and cultivated land area have a significant positive impact on farmers’ adoption behavior of soil and water conservation measures.

Research limitations/implications

The research limitation is the lack of panel data.

Practical implications

Soil erosion has a significant negative impact on agricultural output, and soil erosion has a significant positive impact on farmers’ adoption of soil and water conservation measures. Farmers adopt soil and water conservation measures such as engineering measures, biological measures and tillage measures to cope with soil erosion, which can increase agricultural output.

Social implications

The conclusion provides a reliable empirical basis for the government to formulate and implement relevant policies.

Originality/value

The contributions of this paper are as follows: the adoption behavior of soil and water conservation measures and agricultural output are included into the same analytical framework for empirical analysis, revealing the influencing factors of farmers’ adoption behavior of soil and water conservation measures and their output effects, enriching existing research. Using endogenous switching regression model and introducing instrumental variables to overcome the endogenous problem between the adoption behavior of soil and water conservation measures and agricultural output, and to analyze the influencing factors of farmers’ adoption behavior of soil and water conservation measures and its impact on agricultural output. Using the counter-factual idea to ensure that the two matched individuals have the same or similar attributes, to evaluate the average treatment effect of the behavior of soil and water conservation measures, to estimate the real impact of adaptation measures on agricultural output as accurately as possible and to avoid misleading policy recommendations.

Details

International Journal of Climate Change Strategies and Management, vol. 12 no. 5
Type: Research Article
ISSN: 1756-8692

Keywords

Article
Publication date: 4 September 2018

Jiao Yan, Chunlai Chen and Biliang Hu

The purpose of this paper is to analyze the relationship between farm size and agricultural production efficiency from the aspects of output and profit in order to find an…

1064

Abstract

Purpose

The purpose of this paper is to analyze the relationship between farm size and agricultural production efficiency from the aspects of output and profit in order to find an optimal farm size that achieves both output and profit efficiency in agricultural production in China.

Design/methodology/approach

This study uses the 2012 China Family Panel Studies survey data and employs the stochastic frontier analysis (SFA) models to investigate empirically the relationship between farm size and agricultural production efficiency.

Findings

The study finds that there is an inverted-U curve relationship between farm size and output efficiency and a U-shaped curve relationship between farm size and profit efficiency in agricultural production in China. Based on the empirical results, the study estimates that the appropriate farm size is around 10–40 mu and the optimal farm size is around 20–40 mu both in terms of output efficiency and profit efficiency in Chinese agricultural production under the current agricultural technology and land management system.

Practical implications

The findings of this study suggest that appropriate land consolidation will bring more benefits to farmer households and agricultural production efficiency. There are some policy implications. First, governments should give long term and more stable land using rights to farmers through extending the period of land contract and verifying land using rights. Second, governments should encourage transfers of land using rights and promote land consolidation. But the implementation of this policy should consider regional differences and not be used for blindly pursuing increasing land size. Third, land consolidation should be accompanied with the development of specialized agricultural services.

Originality/value

The paper makes two major contributions to the literature. First, the authors use the SFA model to investigate the relationship between land size and agricultural production efficiency. Second, the authors establish two SFA models – the stochastic frontier output analysis model and the stochastic frontier profit analysis model – to estimate the optimal land size to achieve both output and profit efficiency of agricultural production in China.

Details

China Agricultural Economic Review, vol. 11 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

Abstract

Details

International Comparisons of Prices, Output and Productivity
Type: Book
ISBN: 978-1-84950-865-0

Article
Publication date: 12 July 2021

Oluyemi Theophilus Adeosun, Peter Asare-Nuamah and Franklin Nantui Mabe

Aside from oil, the Nigerian economy is largely agrarian, which is rain-fed. Hence the criticality of understanding climate change and its impact on agricultural output is…

Abstract

Purpose

Aside from oil, the Nigerian economy is largely agrarian, which is rain-fed. Hence the criticality of understanding climate change and its impact on agricultural output is more pressing than ever. This is in line with Sustainable Development Goal 13 which is to take urgent action to combat climate change and its impacts. Regardless, Nigeria has in the past five decades experienced a significant increase in temperature, in the range of 10 to over 30 degree Celsius. Therefore, managing the effect of climate change on agricultural output now has the colouration of a developmental challenge.

Design/methodology/approach

In light of this, this study gives due consideration to the impact of climate change on agricultural output between the years 1986 and 2015. For the purpose of analysis, descriptive statistics, unit root test and the ordinary least square (OLS) estimation technique were employed.

Findings

Findings from the study reveal that the average annual rainfall, temperature and forest area positively influence agricultural output, whereas drought, floods and agricultural nitrous oxide (N2O) emissions have negative impact on agricultural output. The study suggests the need for a regulatory framework and also an explicit national agricultural policy essential to offset the negative effects of climate change especially on agricultural output.

Originality/value

As Nigeria look to diversify her economy which relied on oil, agriculture is among the alternative sector hoping to drive her economic growth, therefore, it is pertinent to examine the current output in the sector given the effects of climate change.

Details

Management of Environmental Quality: An International Journal, vol. 32 no. 6
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 25 April 2022

Shouying Liu and Baojin Wang

The decline in the share of agriculture in both output and employment is a central feature of structural transformation. The authors present the distinct features between…

Abstract

Purpose

The decline in the share of agriculture in both output and employment is a central feature of structural transformation. The authors present the distinct features between developed and developing countries in the process of agricultural share decline and dig into the real changes that occurred in the agricultural sector during the rapid decline in the agricultural share.

Design/methodology/approach

Taking the declining share of agriculture as a clue, the authors depict heterogeneous characteristics in the declining share of agriculture in developed and developing countries. Secondly, by criticizing the factor substitution hypothesis, the authors argue that the essence of agricultural transformation is the process of agricultural industrialization characterized by the combination, reconstruction, and continual changes of agricultural production factors. Finally, based on the theory of agricultural industrialization, this paper analyzes the combination of factors in different stages of declining agricultural share in typical economies.

Findings

In this paper, the authors find that the rapid decline in agricultural employment share is accompanied by an increase in the returns to agricultural production in developed economies. In contrast, the decline in agricultural employment share in developing economies lags, and agricultural production efficiency is way much poorer than that of developed economies. Taking the United States and Japan as examples, the authors find that the agricultural sector underwent agricultural industrialization, featured by reconstruction and upgrades of production factors combination.

Originality/value

The authors systematically reveal why huge changes occurred in the agricultural sector in developed economies during structural transformation, and also provide further thoughts and lessons for developing countries to accomplish agricultural modernization.

Details

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

Keywords

Article
Publication date: 24 April 2020

Ngozi Adeleye, Evans Osabuohien and Simplice Asongu

The study aims to analyse the role of finance in the agro-industrialisation nexus in Nigeria using annual data on manufacturing value added, agricultural value added and…

Abstract

Purpose

The study aims to analyse the role of finance in the agro-industrialisation nexus in Nigeria using annual data on manufacturing value added, agricultural value added and volume of finance availed to the agricultural sector from 1981 to 2015.

Design/methodology/approach

To establish the presence of a long-run relationship, the error correction model and bounds cointegration techniques are employed. Likewise, the model is augmented to test whether the associated relationship between industrial output and agricultural output depends on access to finance by farmers with the inclusion of an interaction term.

Findings

Some salient contributions to the literature are as follows: agriculture and finance are strong and positive predictors of industrialisation in the long run; in the short run, past realisations of industrial output and finance have significant asymmetric effects on industrial output; the explanatory power of agriculture decreases with the growth of the financial system; and the long-run results validate the role of finance in the agro-industrialisation nexus.

Originality/value

Given these findings, achieving growth in the agricultural sector that will induce desired industrialisation should be prioritised by the government through agencies such as the central bank, financial intermediaries and other stakeholders with a view to making agricultural financing a major concern for sustainable domestic consumption and industrial growth.

Details

African Journal of Economic and Management Studies, vol. 11 no. 3
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 27 July 2018

Xianrong Wu, Junbiao Zhang and Liangzhi You

The purpose of this paper is to estimate shadow prices of agricultural carbon emissions produced by agricultural inputs, rice paddy and burning crop residue, and to…

Abstract

Purpose

The purpose of this paper is to estimate shadow prices of agricultural carbon emissions produced by agricultural inputs, rice paddy and burning crop residue, and to explore the impact of cropping pattern on marginal abatement cost (MAC).

Design/methodology/approach

The shadow price of agricultural carbon emissions is estimated by applying directional distance function and non-parametric methods.

Findings

The estimated shadow price of agricultural carbon emissions ranges from 6.78 to 557.83 yuan/ton, and the average value is 62.50 yuan/ton (or $10.18/ton). The MAC value varies in different provinces and years. The regional difference of MAC shows a decreasing trend during the investigation period. Cropping pattern shows a significant negative impact on agricultural MAC. A 1 percent decrease of rice proportion leads to a 0.31 percent increase in MAC value. This implies that the higher the proportion of rice is, the lower the economic cost to reduce agricultural carbon emissions would be.

Practical implications

It is feasible to draw up appropriate mechanisms for the allocation of emission reduction responsibilities according to conditions in various regions, with emphasis on the local cropping patterns. There is a trade-off between reducing carbon emission and increasing crop yields.

Originality/value

This study calculates agricultural MAC by using the shadow price approach, taking agricultural carbon emissions as undesired environmental output. The study also provides a reference emission right price and provides guidance to make use of cropping structure adjustment and optimization for exploring the emission reduction strategy.

Details

China Agricultural Economic Review, vol. 10 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 28 June 2022

Kai Tang and Chunbo Ma

Mitigating agricultural greenhouse gas (GHG) emissions is an essential part of China's effort to achieve net-zero emissions. This study assesses the cost-effectiveness of…

Abstract

Purpose

Mitigating agricultural greenhouse gas (GHG) emissions is an essential part of China's effort to achieve net-zero emissions. This study assesses the cost-effectiveness of China's agricultural GHG reduction under diverse carbon policies.

Design/methodology/approach

The study employs a parametric non-radial distance function approach and estimates the technical abatement potential and marginal abatement cost (MAC) of GHG in China's agricultural sector for the 2008–2017 period.

Findings

Agriculture is expected to make a great contribution to China's net-zero emissions progress. This study empirically analyses the cost-effectiveness of China's agricultural GHG reduction under diverse carbon policies. A parametric non-radial distance function approach is used to derive technical abatement potential and MAC of GHG for the 2008–2017 period. The results indicate that no significant improvement had been achieved in terms of agricultural GHG reduction in China during 2008–2017. The country's agricultural sector could reduce 20–40% GHG emissions with a mean value of 31%. In general, western provinces have larger reduction potential than eastern ones. The average MAC for the whole country is 4,656 yuan/ton CO2e during 2008–2017. For most western provinces, their MAC values are considerably higher than those for most eastern provinces. Compared with previous sectoral estimates of GHG mitigation cost, this study’s estimates indicate that reducing agricultural GHG emissions in some provinces is likely to be cost-effective. The Chinese government should consider expanding its national carbon market to cover agricultural sector.

Practical implications

The Chinese government should consider expanding its national carbon market to cover agricultural sector.

Originality/value

Existing studies in the field mostly ignore input constraints, which is inconsistent with carbon mitigation policy practice, especially in the agricultural sector. This study’s approach integrates both input and output constraints reflecting differing policy practice.

Details

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

Keywords

Article
Publication date: 13 May 2020

Abiola John Asaleye, Philip O. Alege, Adedoyin Isola Lawal, Olabisi Popoola and Adeyemi A. Ogundipe

One of the challenging factors in achieving sustainable growth is the inability of the Nigerian government to diversify the country's revenue base. This study aims to…

Abstract

Purpose

One of the challenging factors in achieving sustainable growth is the inability of the Nigerian government to diversify the country's revenue base. This study aims to investigate the relationship between cash crop financing and agricultural performance in Nigeria.

Design/methodology

Four crops were considered, namely, cotton, cocoa, groundnut and palm oil. The impact of cash crop finance shock on agricultural performance was investigated using the vector error correction model (VECM), while the long-run relationship was examined through the identification of long-run restrictions on the VECM.

Findings

The variance decomposition showed that financing shock is more sensitive to cause variation in aggregate employment than aggregate agricultural output in palm oil, while for cocoa, cotton and groundnut showed otherwise. The long-run structural equations exert a positive relationship between cash crop financing and agricultural performance, except for oil palm and cocoa financing that has a negative connection with agrarian employment.

Research limitations/implications

The study is limited to the unavailability of data for agriculture sector capital utilisation, which was not used.

Practical implications

These results show that long-run benefit can be maximised by appropriate funding in cotton and groundnut production to promote sustainable growth.

Originality/value

The study examines the impact of cash crop financing on agricultural performance with the aim to promote sustainable growth in Nigeria using identified VECM.

Details

African Journal of Economic and Management Studies, vol. 11 no. 3
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 19 January 2021

Peter Dawuni, Franklin Nantui Mabe and Osman Damba Tahidu

Agriculture in Ghana is dominated by smallholder farmers in rural areas. Majority of these farmers are resource-poor and faced with serious challenges in accessing formal…

Abstract

Purpose

Agriculture in Ghana is dominated by smallholder farmers in rural areas. Majority of these farmers are resource-poor and faced with serious challenges in accessing formal financial services towards farming needs attributed to the stringent requirements. To bridge this gap, village savings and loan associations (VSLA) have been promoted in rural areas as an alternative to meeting the credit needs of smallholder farmers. Credit plays a vital role in input acquisition among farmers for improved agricultural value productivity. This study assesses the contribution of VSLA to agricultural value productivity in the Northern Region of Ghana.

Design/methodology/approach

The methodology is a primary cross-sectional data collected with the help of a semi-structured questionnaire. This study, therefore, applied a propensity score matching (PSM) to assess the effects of VSLA on agricultural value productivity.

Findings

Results from the PSM revealed that extension contact, contract farming, television set ownership, participating in “Planting for Food and Jobs” and nature of roads, including receiving VSLA information from members' increases participation decision of farmers in VSLA. Conversely, age of a farmer, household size, distance to output market and farmers in the Sagnarigu Municipality have negatively influenced VSLA participation. The propensity score matching estimates showed that members of VSLA obtained 38.2% higher agricultural value productivity than non-members.

Originality/value

Village savings and loans associations can be promoted among smallholder farmers as an effective alternative to formal financial service for inclusive development.

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