Search results
1 – 10 of over 8000Thuyen Thi Pham, Hoa Le Dang, Ngoc Thi Anh Pham and Huy Duc Dang
Farmers' risk attitudes and risk perceptions play an essential role in shaping risk management strategies to address risks and uncertainties. Contract farming is considered as one…
Abstract
Purpose
Farmers' risk attitudes and risk perceptions play an essential role in shaping risk management strategies to address risks and uncertainties. Contract farming is considered as one of the feasible approaches to tackle farmers' concerns. However, risk perspectives under various categories have not been included in studies on farmers' preferences for contract farming in the literature, especially in Vietnam. This study aims to determine factors affecting farmers' choices of different contract farming practices.
Design/methodology/approach
The explanatory factor analysis (EFA) and multinomial logit model (MNL) were applied to explore the impacts of risk perspectives on farmers' preferences for contract farming. Data have been collected from 211 rice farmers in An Giang Province, “the rice bowl” of the Mekong Delta, Vietnam.
Findings
The study found that farm size, cooperatives, extension, market access and trust have significantly impacted on contract participation while a delay payment was a barrier for farmers' motivation to opt for the contract. Farmers' contract choices were also influenced by their risk attitudes and perceptions under different risk dimensions. The financial, policy and human risk-averse behavior predisposed farmers to single out the full contract while the policy and human risk-loving and production, market and finance risk-averse respondents were in favor of the marketing contract. Moreover, the findings indicated that the more farmers concerned about risk of weather and market, the more choices for the full contract, whereas the risk perceptions of weather and policy encouraged farmers to use the limited contract. By contrast, farmers who perceived the impacts of risk of diseases/pests and human were likely to adopt the marketing contract.
Research limitations/implications
This study just focuses on collecting data from farmers’ perspective. Future studies involving stakeholders such as enterprises and policy makers are strongly recommended so as to design suitable contracts and enforce contract schemes effectively in Vietnam.
Originality/value
The findings also contribute to the literature on different types of contracts and the multidimensional aspect of risk for rice production in Vietnam.
Details
Keywords
Reuben Jagri Binpori, Dadson Awunyo-Vitor and Camillus Abawiera Wongnaa
In order to improve access to resources for smallholder farmers, efforts are being made to promote contract farming in Ghana. This is seen as a strategy to increase agricultural…
Abstract
Purpose
In order to improve access to resources for smallholder farmers, efforts are being made to promote contract farming in Ghana. This is seen as a strategy to increase agricultural productivity of farmers, give better market access and guarantee adequate supply of raw materials to agro-based industries. However, the challenge is whether contract farming leads to improvement in food security status of farmers. The study therefore seeks to explore to what extent farmers' food security status is influenced by their participation in contract farming activities.
Design/methodology/approach
Using Cragg's double-hurdle model to analyse participation in contract farming, the authors control for selection bias using propensity score matching applied to a data set of 336 observations to examine the impact of contract farming on the food security levels of rice farmers in Ghana.
Findings
The results of this study show that yield of paddy and the wealth of the farmer are the main factors that influence the quantity of paddy rice to be contracted in contract farming arrangements. This study also finds that participation in contract farming will increase food security by 109%. In conclusion, contract farming has a significant positive impact on the farmers' food security status.
Originality/value
Agricultural policies and rural development initiatives supporting the promotion and expansion of contract farming should be pursued to persuade more farmers to produce under contract farming agreements.
Details
Keywords
The study sought to determine the possibility of supplier development in the form of contract farming as a determinant of supply chain resilience in fast-food outlets. This is…
Abstract
Purpose
The study sought to determine the possibility of supplier development in the form of contract farming as a determinant of supply chain resilience in fast-food outlets. This is against the background of the restaurant having been designated as one of the industries that remained operational when the other industries were affected by the two-decade-long economic meltdown and more recently COVID-19 pandemic.
Design/methodology/approach
Data were collected using questionnaires from the consenting restaurants with the most senior procurement personnel in target restaurants as the informants and analysed using analysis of moment structures (AMOS) software.
Findings
The results revealed that indeed supplier development in the form of contract farming leads to supply chain resilience as indicated by improved supply chain visibility, supply chain flexibility, and supply chain redundancy. Fast-food restaurant businesses that have not yet adopted supplier development in the form of contract farming are therefore encouraged to adopt it as a way of enhancing their resilience to traditional supply chain disruptions such as transport shortages, droughts, and more recently COVID-19 pandemic.
Originality/value
It is to the best knowledge of these researchers, that no studies have attempted to analyse the three drivers of supply chain resilience, namely supply chain redundancy, supply chain flexibility, and supply chain visibility in a single study and link them to a single antecedent.
Details
Keywords
H. Holly Wang, Yanping Zhang and Laping Wu
The purpose of this paper is to investigate contract farming in China, using vegetable production as a case. Specifically, the authors analyze farmers' contract decisions for…
Abstract
Purpose
The purpose of this paper is to investigate contract farming in China, using vegetable production as a case. Specifically, the authors analyze farmers' contract decisions for different types of contracts, their contract compliance behaviors, and their profitability affected by the contracts both analytically and empirically.
Design/methodology/approach
The authors assume growers with alternative risk preferences make the contract decisions to maximize their expected utilities, under exogenous market price risks and contract terms determined by the processor or wholesaler. Both fixed price and floating price contracts are analyzed. Two surveys of 185 and 85 farm households, respectively, are obtained in Shandong province in 2010, and econometric analyses with both Logit and least square regressions are conducted.
Findings
The results indicate that the determining factors for contract farming are related to farmers' risk attitude, gender, yield, farm size and labor availability. However, contrary to the common belief that contracts are a risk management tool for risk averse farmers, the risk lovers tend to use contract farming instead of risk averters. Female household heads and farms with more labors tend not to use contracts, but larger farms with more acreage are more likely to contract. These suggest Chinese farmers' primary motivation of contracting is not market price risk management, but rather seeking better offers and marketing transaction cost reduction.
Originality/value
The authors believe that this is the first econometric study to analyze contract farming allowing different types of contracts in China. The scenarios include cases without contracts, with fixed price contracts, and with floating price contracts, where the contract price changes to reflect the market price, a very unique yet popular situation in China. Each of the cases is also considered under the situation whether default is possible.
Details
Keywords
Qiao Liang, Lin Li and Rongrong Bai
The purpose of this paper is to estimate the effect of vegetable producers' inclusiveness in supply chain coordination on vegetable production performance and potential spillover…
Abstract
Purpose
The purpose of this paper is to estimate the effect of vegetable producers' inclusiveness in supply chain coordination on vegetable production performance and potential spillover effect on farm and non-farm income.
Design/methodology/approach
A comprehensive dataset comprised of 410 paired vegetable producers in China is applied. Propensity score matching (PSM) estimation method is used to control for the selection bias problem.
Findings
The empirical results indicate that contracting farming does not have significant effect on yield or profit of vegetable production, but promote producers to obtain quality certification. In comparison, cooperative membership has positive effects on the yield, profit and quality certification of producers. Additionally, cooperatives generate positive spillover effects on members' farm and non-farm income, though the results are sensitive to unobserved factors. The inclusion of spillover effects helps to find out the potential unobserved effects which are neglected by most studies and design better policies to promote the development of agricultural companies and farmer cooperatives.
Originality/value
First, empirical evidence is provided for theories regarding the roles of different supply chain coordination modes on producers. Second, the analysis on evaluating the effects of supply chain coordination also considers the spillover effect on the farming of other products and even non-farm work of involved producers. Third, a unique dataset comprised of 420 paired vegetable producers, based on an extensive survey is built.
Details
Keywords
Stefano Grando, Fabio Bartolini, Isabelle Bonjean, Gianluca Brunori, Erik Mathijs, Paolo Prosperi and Daniele Vergamini
This chapter opens the second part of the Volume, focusing on the small farms' role and dynamics within the evolving food system. Assessing small farmers' actual and potential…
Abstract
This chapter opens the second part of the Volume, focusing on the small farms' role and dynamics within the evolving food system. Assessing small farmers' actual and potential contribution to the change towards a sustainable food and nutrition security requires a deep understanding of their strategic decision-making processes. These processes take place in a context highly conditioned by internal and external conditions, including the complex relations between farm and household, which are mapped and described. Building on an adaptation of Porter's model (Porter, 1990), the chapter investigates how farmers, given those conditions, define their strategies (in particular their innovation strategies) aimed at economic and financial sustainability through a multidisciplinary analysis of scientific literature. Internal conditions are identified in the light of the Agricultural Household Model (Singh & Subramanian, 1986) which emphasizes how family farming strategies aim at combining business-related objectives, and family welfare. Then, a comprehensive set of external conditions is identified and then grouped within eight categories: ‘Factors’, ‘Demand’, ‘Finance and Risk’, ‘Regulation and Policy’, ‘Technological’, ‘Ecological’, ‘Socio-institutional’ and ‘Socio-demographic’. Similarly, six types of strategies are identified: ‘Agro-industrial competitiveness’, ‘Blurring farm borders’, ‘Rural development’, ‘Risk management’, ‘Political support’ and ‘Coping with farming decline’.
Details
Keywords
Based on the brief historical review, the purpose of this paper is to expound the target and bottom line for the farmland institutional reform of in China, analyze the “Chinese…
Abstract
Purpose
Based on the brief historical review, the purpose of this paper is to expound the target and bottom line for the farmland institutional reform of in China, analyze the “Chinese scenes” and historical heritage of farmland institutional arrangement, evaluate the policies and their effects over the last four decades and outline the keynotes and possible direction of the future reform.
Design/methodology/approach
The paper builds the analytical clue of “institutional target – institutional heritage – policy effort – realistic dilemma – future direction” and review and forecast the Chinese farmland institutional reform.
Findings
The farmland institution is an important issue with Chinese characteristics. Over the last four decades, the farmland institutional reform in China has focused on “stabilizing the land property rights” and “promote the farmland transfer.” As the study indicates, the promotion of farmland transfer has not effectively improved the scale economy of agriculture and stabilizing land property rights by titling may restrain the development of farmland transfer market because farmland transfer is of special market logic.
Originality/value
It depends on the revitalization of farmland management rights to resolve the transaction constraint of personal property and its endowment effect in farmland transfer. And, classifying the land management property to involve farmers into the economy of division can be reference for the reform of traditional agriculture worldwide.
Details
Keywords
Anjani Kumar, Devesh Roy, Gaurav Tripathi, P.K. Joshi and Rajendra P. Adhikari
The purpose of this paper is to quantify the benefits of contract farming (CF) on farmers’ income and adoption of food safety measures (FSMs) at the farm level. The paper also…
Abstract
Purpose
The purpose of this paper is to quantify the benefits of contract farming (CF) on farmers’ income and adoption of food safety measures (FSMs) at the farm level. The paper also investigates the determinants of participation in CF.
Design/methodology/approach
The study is based on a survey of 600 tomato farmers from Nepal. Descriptive statistics, regression analysis (using instrumental variable) and propensity score matching have been used to accomplish the objectives of the study.
Findings
The study found that the CF ensures higher returns to farmers as well as higher adoption of FSMs at the farm level. The contract farmers earned about 38 per cent higher net returns and had 38 per cent higher adoption of FSM as compared to independent farmers. Caste, occupation, farm size and cropping intensity significantly affected farmers’ participation in CF.
Research limitations/implications
The analysis based on cross-section data has limitations to consider unobserved farmer-level individual heterogeneity.
Originality/value
This study will provide an empirical base to promote CF in Nepal. The study will also contribute to bridge the gap in literature on the drivers of CF and its impact on smallholders’ income and compliance with FSM in Nepal.
Details
Keywords
The purpose of this paper is to identify, present and compare agricultural production financing alternatives available to grain producers in South Africa. From the South African…
Abstract
Purpose
The purpose of this paper is to identify, present and compare agricultural production financing alternatives available to grain producers in South Africa. From the South African perspective, agricultural land cannot always be utilised as collateral and therefore alternative financing has developed.
Design/methodology/approach
The study makes use of an exploratory study by applying qualitative techniques. The research population was agricultural finance providers in South Africa and semi‐structured interviews were conducted with representatives of the sample.
Findings
The production financing alternatives identified and presented include: grain contract financing; grain contract financing with additional collateral; and corporate farming. A comparison of these alternatives indicates that although the traditional balance sheet financing is a cheaper form of financing, using agricultural land as collateral has a number of limitations, especially within the South African context.
Practical implications
Using agricultural land as collateral to obtain production financing is not always viable considering the present South African agricultural environment. Commercial grain producers should therefore consider the identified alternative production financing.
Originality/value
Limited research on agricultural production finance from the South African perspective has been performed. Furthermore, no previous research on identifying production financing alternatives without utilising agricultural land as collateral has been performed. This paper therefore provides new knowledge by combining South African practice with theory.
Details
Keywords
Samuel Kwabena Chaa Kyire, Richard Kwasi Bannor, John K.M. Kuwornu and Helena Oppong-Kyeremeh
Credit is essential in the farm business because it facilitates the adoption of productive technologies such as irrigation. However, access to credit remains a significant hurdle…
Abstract
Purpose
Credit is essential in the farm business because it facilitates the adoption of productive technologies such as irrigation. However, access to credit remains a significant hurdle for sub-Saharan Africa, including Ghanaian farmers. Therefore, the authors assessed credit utilization and the intensity of borrowing by irrigated rice farmers in the Upper East region. In addition, how extension moderates the amount borrowed was analysed.
Design/methodology/approach
The multistage sampling approach was used in the study. The Tono and Vea irrigation schemes were purposively selected. Proportionally, 318 rice farmers were sampled from the Tono irrigation scheme and 159 from the Vea irrigation scheme. Cragg's double hurdle and moderation analysis were used.
Findings
It was uncovered that gender, age, years of farming, total farm size, rice farm size, contract farming and off-farm employment explain farmers' decision to borrow. On the other hand, the intensity of borrowing was influenced by gender, age, years of farming, rice farm size, contract farming and the number of extension contact. The moderation analysis revealed that extension contact improves the amount borrowed by farmers.
Research limitations/implications
While there are irrigated rice farmers in other regions of Ghana, this study was limited to rice farmers under the Tono and Vea Irrigation schemes in the Upper East region.
Originality/value
This study investigated the moderating role of extension contact on amount borrowed in Ghana. This makes a modest addition to the limited literature on the moderating role of extension and credit access.
Details