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1 – 10 of 15Rebecca Weir, Joleen Hadrich, Alessandro Bonanno and Becca B.R. Jablonski
Beginning Farmer and Rancher programs are available for operators with ten years of experience or less on any farm. These programs support farmers who are starting operations…
Abstract
Purpose
Beginning Farmer and Rancher programs are available for operators with ten years of experience or less on any farm. These programs support farmers who are starting operations, often without an initial asset allocation. However, some beginning farmers acquire operations that are already established, with substantial assets in place. The authors investigate whether a profitability gap exists between beginning farmers entering the industry ex novo and those operating a preexisting operation and if so, what factors contribute to the gap.
Design/methodology/approach
The authors utilize the Blinder-Oaxaca decomposition to determine what drives financial differences between first-generation beginning farmers, second-generation beginning farmers and established farmers using a unique farm-level panel dataset from 1997 to 2021.
Findings
Results indicate that first- and second-generation beginning farmers have similar operating profit margins, but first-generation beginning farmers have a statistically higher rate of return on assets than second-generation beginning farmers. Established farmers outperform second-generation beginning farmers on both the operating profit margin and rate of return on assets. These results suggest that economic viability for beginning farmers differs depending upon the initial status of their operation, suggesting that heterogenous policies may be more impactful in supporting various pathways to enter agriculture.
Originality/value
This analysis is the first to identify beginning farmers that enter the industry without an asset base and those that take over a principal operator role on an established farm through an assumed farm transition. The authors quantify differences in financial performance using detailed accrual-based financial data that tracks farms over time in one dataset.
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Numerical literature shows that agricultural insurance can affect pesticide investments, but few of them are devoted to explain how agricultural insurance affects farmers’…
Abstract
Purpose
Numerical literature shows that agricultural insurance can affect pesticide investments, but few of them are devoted to explain how agricultural insurance affects farmers’ selection on green or traditional pesticides. This paper aims to develop a theoretical model about how agricultural insurance influences on green pesticides selections and tests our conclusions by using the data from China land economic survey (CLES) from 2020 to 2021.
Design/methodology/approach
We employ probit model to capture the effects of agricultural insurance on green pesticides adoption.
Findings
We indicate that green pesticides have a stronger effect on stabilizing yield and increasing income than traditional pesticides, but there are still risks disturbing farmers’ decisions on green pesticides usage. By providing premium subsidies after the farmers are affected by natural risk, agricultural insurance improves the farmers’ expected income and encourages farmers to use green pesticides. Further, we further confirm these conclusions by considering different scenarios such as climate risks, farmers’ entrepreneurship and credit constraints. We find that the effects are more salient if croplands are under higher natural risks and, farmers are equipped with entrepreneurship and formal credit. This paper implies that the agricultural insurance decoupled with green technologies also have salient positive effects on agricultural pollution control.
Originality/value
The potential contributions of this paper can be outlined in three aspects in detail. Firstly, this paper aims to revel the effects of agricultural insurance on pesticide selection by structuring a general theoretical model. By using the CLES data from 2020 to 2021, we confirm that agricultural insurance increases the probability for adopting green pesticides. Secondly, this paper discusses the effects of farmers’ characteristics on the results and finds that if farmers have entrepreneurship, the effects of agricultural insurance on green pesticide usage will be more salient. Thirdly, it uncovers some practices in China, which will supply experiences for other developing countries. For example, this paper further demonstrates that “insurance + credit” plan the present Chinese government carried out will be an important measure for strengthening effects of agricultural insurance on green pesticides usage. Moreover, it shows that decouple agricultural policies will also guide farmers to use green technologies eventually if the technologies are reliable and farmers can afford.
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This study analyzes the long-term effect of merger and acquisition (M&A) activity on the profitability, efficiency and liquidity of the largest 500 farmer cooperatives in the…
Abstract
Purpose
This study analyzes the long-term effect of merger and acquisition (M&A) activity on the profitability, efficiency and liquidity of the largest 500 farmer cooperatives in the United States.
Design/methodology/approach
Secondary data from the U.S. Department of Agriculture are complemented with primary data collected from print media publications about M&A activity by US farmer cooperatives. The analysis is based on group comparisons of means and distributions to study the effect of M&A activity on financial performance.
Findings
Farmer cooperatives with M&A activity generally have lower profitability, efficiency and liquidity than farmer cooperatives without M&A activity, both at the time of the merger or acquisition as well as afterward. Marketing cooperatives in particular perform worse following M&As. Also, the post-merger performance of farmer cooperatives with M&A activity is not affected by the profitability, efficiency or liquidity of the target.
Originality/value
Research on the post-merger performance of farmer cooperatives is both scarce and dated. This study analyzes the effect of M&A activity for a relatively large sample and a relatively long time period (2005–2020).
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Daniel Schiffman and Eli Goldstein
The American agricultural economist Marion Clawson advised the Israeli government during 1953–1955. Clawson, a protégé of John D. Black and Mordecai Ezekiel, criticized the…
Abstract
The American agricultural economist Marion Clawson advised the Israeli government during 1953–1955. Clawson, a protégé of John D. Black and Mordecai Ezekiel, criticized the government for ignoring economic considerations, and stated that Israel’s national goals – defense, Negev Desert irrigation, immigrant absorption via new agricultural settlements, and economic independence – were mutually contradictory. His major recommendations were to improve the realism of Israel’s agricultural plan; end expensive Negev irrigation; enlarge irrigated farms eightfold; freeze new settlements until the number of semi-developed settlements falls from 300 to 100; and limit new Negev settlements to 10 over 5–7 years. Thus, Clawson ignored political feasibility and made value judgments. Minister of Finance Levi Eshkol and Minister of Agriculture Peretz Naphtali rejected Clawson’s recommendations because they ignored Israel’s national goals. By September 1954, Clawson shifted towards greater pragmatism: He acknowledged that foreign advisors should not question the national goals or make value judgments, and sought common ground with the Ministry of Agriculture. At his initiative, he wrote Israel Agriculture 1953/54 in collaboration with the Ministry of Agriculture. Israel Agriculture was a consensus document: Clawson eschewed recommendations and accepted that the government might prioritize non-economic goals. In proposing Israel Agriculture, Clawson made a pragmatic decision to relinquish some independence for (potentially) greater influence. Ultimately, Clawson was largely unsuccessful as an advisor. Clawson’s failure was part of a general pattern: Over 1950–1985, the Israeli government always rejected foreign advisors’ recommendations unless it was facing a severe crisis.
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Zainal Abidin, Wiwiek Rabiatul Adawiyah, Intan Shaferi and Akhmad Sodiq
Despite extensive research on supply chain management (SCM), the literature lacks a perspective to empirically assess the importance of poverty alleviation in social business…
Abstract
Purpose
Despite extensive research on supply chain management (SCM), the literature lacks a perspective to empirically assess the importance of poverty alleviation in social business. Using resources dependence theory, the purpose of this study is to analyze to ascertain whether financial innovation has a powerful solution for business sustainability and, hence, poverty alleviation in developing countries. This study reviews the financial innovations offered by Dompet Dhuafa Republika in integrated supply chain management (ISCM) of smallholder livestock business through Tebar Hewan Kurban (Spreading Sacrificial Animals) program to overcome capital and marketing problems at the farmer level and distribute Qurban meat to the recipients.
Design/methodology/approach
This study was conducted using descriptive qualitative method. The data were obtained through a field survey, by interviewing two crowdfunding-based investment companies, 250 partner farmers, program managers and assistants, marketing partners, donors/consumers/person who sacrifice and Mustahik (recipients of Qurban meat) involved in program implementation, using purposive sampling method. Focus group discussion was conducted with selected panelists to validate the results of the field survey.
Findings
The results of this study showed that the Tebar Hewan Kurban program provides greater benefits to farmers, while increasing the distribution of Qurban meat to be more equitable. The role of moneylenders and middlemen can also be eliminated. Donors feel satisfied because their goals are fulfilled in the Qurban ritual. Program implementers and investors also got decent returns. ISCM is very feasible to be developed on a wider scale, to improve the welfare of farmers or fishermen.
Research limitations/implications
This study used a set of samples of the assisted areas from only one institution, which may lead to institution-specific results. Although the sample is small, the results of this study are expected to provide new insights into the implementation of the Qurban, which will provide more profits and benefits for partner farmers. In broader practice, the program flow is worth considering compared to similar programs in other institutions, in Indonesia or abroad. Because of the COVID-19 pandemic situation, the field survey and focus group discussion were carried out online.
Practical implications
The results show that ISCM is able to increase the income of farmers. Practically, this program can be duplicated in similar institutions, as well as in government or non-government organizations, in Indonesia and abroad, that have the same context and activity.
Social implications
This study offers several social contributions by exploring how and why ISCM can eliminate the role of moneylenders and middlemen, increasing the small farmers' income, providing reasonable profits to parties involved in marketing and satisfying donors and equitable distribution of Qurban meat.
Originality/value
This study contributes to the literature by confirming the higher impact of ISCM in social business on poverty alleviation. Therefore, this paper provides an alternative solution to increase the income of small farmers through the supply of animals for Qurban or other religious rituals through ISCM arrangements.
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Tita Flores, Verónica Greis Andía Flores, Efrain Chura Zea and Javier Mamani Paredes
This article examines the dairy value chain in Southern Peru and identifies four critical success factors that can enhance the local situation.
Abstract
Purpose
This article examines the dairy value chain in Southern Peru and identifies four critical success factors that can enhance the local situation.
Design/methodology/approach
The study employed descriptive research using semi-structured interviews with entrepreneurs from 17 cheese factories across eight districts, namely Azángaro, Ayaviri, Pucara, Lampa, Cabana, Acora, Pomata and Puno. Quantitative market data were also gathered and analyzed alongside qualitative views.
Findings
The study identified four critical issues: quality concerns in milk production, suboptimal managerial practices of cheese-processing plants, lack of compliance to regulations, particularly hygiene and environmental ones, and inadequate access to finance. The findings reveal a gap between the practices of the Puno region's dairy industry and world-class standards for cheese production. Urgent actions are required to improve product quality, increase access to finance, enhance managerial education and ensure compliance with regulations.
Research limitations/implications
Results suggest critical issues to be prioritized, but the article does not propose how to solve the problems identified. External factors, such as economic changes, were also not considered. Interviews were conducted exclusively with cheese processing entrepreneurs, not milk producers.
Originality/value
This case study provides an insight into the interior of Peru, an under-researched region facing several development challenges. The findings have significant implications for dairy value chain stakeholders in Peru and other similar contexts.
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Celia Sama-Berrocal and Beatriz Corchuelo Martínez-Azúa
The agribusiness in Extremadura (Spain) is one of the main economic activities in the region. Within this industry, cooperativism stands out as a strategic component that…
Abstract
Purpose
The agribusiness in Extremadura (Spain) is one of the main economic activities in the region. Within this industry, cooperativism stands out as a strategic component that influences the fixation of the rural population and the development of the territory. Likewise, innovation is fundamental for the competitiveness of companies. The aim of this study is to analyse the existence of a relationship between several business variables: strategy, culture, work climate, management, organisation and market orientation in the innovative performance of agri-food cooperative companies. Differences with other types of agri-food organisations are also analysed.
Design/methodology/approach
The authors proposed a conceptual research model, which aims to determine the influence of several business variables on innovative performance. A qualitative methodology was used through a multiple case study where five Extremaduran agri-food cooperatives were chosen to carry out the research.
Findings
The results show that the business variables are valued positively as factors that enhance innovative performance. Moreover, the peculiarities of cooperatives show several differences with respect to non-cooperative companies.
Originality/value
The results contribute to agri-food cooperatives' managers developing specific actions that improve the competitiveness and sustainability of agribusiness based on innovation.
Objetivo
La agroindustria en Extremadura (España) es una de las principales actividades económicas de la región. Dentro de esta industria, el cooperativismo destaca como un componente estratégico que influye en la fijación de la población rural y en el desarrollo del territorio. Asimismo, la innovación es fundamental para la competitividad de las empresas. El objetivo de este estudio es analizar la existencia de relación entre diversas variables empresariales: estrategia, cultura, clima laboral, gestión, organización y orientación al mercado en el desempeño innovador de las empresas cooperativas agroalimentarias. También se analizan las diferencias con otros tipos de organizaciones agroalimentarias.
Diseño/metodología/enfoque
Se propuso un modelo conceptual de investigación, cuyo objetivo es determinar la influencia de diversas variables empresariales en el rendimiento innovador. Se utilizó una metodología cualitativa a través de un estudio de caso múltiple en el que se eligieron cinco cooperativas agroalimentarias para llevar a cabo la investigación.
Resultados
Los resultados muestran que las variables empresariales se valoran positivamente como factores que potencian el rendimiento innovador. Además, las peculiaridades de las cooperativas muestran varias diferencias con respecto a las empresas no cooperativas.
Originalidad/valor
Los resultados contribuyen a que los gestores de las cooperativas agroalimentarias desarrollen acciones específicas que mejoren la competitividad y sostenibilidad de la agroindustria basada en la innovación.
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Rosario Huerta-Soto, Edwin Ramirez-Asis, John Tarazona-Jiménez, Laura Nivin-Vargas, Roger Norabuena-Figueroa, Magna Guzman-Avalos and Carla Reyes-Reyes
With the current wave of modernization in the dairy industry, the global dairy market has seen significant shifts. Making the most of inventory planning, machine learning (ML…
Abstract
Purpose
With the current wave of modernization in the dairy industry, the global dairy market has seen significant shifts. Making the most of inventory planning, machine learning (ML) maximizes the movement of commodities from one site to another. By facilitating waste reduction and quality improvement across numerous components, it reduces operational expenses. The focus of this study was to analyze existing dairy supply chain (DSC) optimization strategies and to look for ways in which DSC could be further improved. This study tends to enhance the operational excellence and continuous improvements of optimization strategies for DSC management
Design/methodology/approach
Preferred reporting items for systematic reviews and meta-analyses (PRISMA) standards for systematic reviews are served as inspiration for the study's methodology. The accepted protocol for reporting evidence in systematic reviews and meta-analyses is PRISMA. Health sciences associations and publications support the standards. For this study, the authors relied on descriptive statistics.
Findings
As a result of this modernization initiative, dairy sector has been able to boost operational efficiency by using cutting-edge optimization strategies. Historically, DSC researchers have relied on mathematical modeling tools, but recently authors have started using artificial intelligence (AI) and ML-based approaches. While mathematical modeling-based methods are still most often used, AI/ML-based methods are quickly becoming the preferred method. During the transit phase, cloud computing, shared databases and software actually transmit data to distributors, logistics companies and retailers. The company has developed comprehensive deployment, distribution and storage space selection methods as well as a supply chain road map.
Practical implications
Many sorts of environmental degradation, including large emissions of greenhouse gases that fuel climate change, are caused by the dairy industry. The industry not only harms the environment, but it also causes a great deal of animal suffering. Smaller farms struggle to make milk at the low prices that large farms, which are frequently supported by subsidies and other financial incentives, set.
Originality/value
This paper addresses a need in the dairy business by giving a primer on optimization methods and outlining how farmers and distributors may increase the efficiency of dairy processing facilities. The majority of the studies just briefly mentioned supply chain optimization.
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Robert Smith and Gerard McElwee
This study builds on the extant research of the authors on illegal rural enterprise (IRE). However, instead of taking a single or micro case approach within specific sections of…
Abstract
Purpose
This study builds on the extant research of the authors on illegal rural enterprise (IRE). However, instead of taking a single or micro case approach within specific sections of the farming and food industries we examine the concept holistically from a macro case perspective. Many IRE crimes simply could not be committed without insider knowledge and complicity, making it essential to appreciate this when researching or investigating such crimes.
Design/methodology/approach
Using data from published studies, we introduce the theoretical concept of “Shadow infrastructure” to analyse and explain the prevalence and endurance of such criminal enterprises. Using a multiple case approach, we examine data across the cases to provide an analysis of several industry wide crimes—the illicit halal meat trade; the theft of sheep; the theft of tractors and plant; and the supply of illicit veterinary medicines.
Findings
We examine IRE crimes across various sectors to identify commonalities in practice and in relation to business models drawing from a multidisciplinary literature spanning business and criminology. Such enterprises can be are inter-linked. We also provide suggestions on investigating such structures.
Practical implications
We identify academic and practical implications in relation to the investigation of IRE crime and from an academic perspective in relation to researching the phenomenon.
Originality/value
This study combines data from numerous individual studies from a macro perspective to provide practical solutions to a multifaceted problem.
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