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Article
Publication date: 8 August 2016

Jan Velvin, Kristian Bjørnstad and Erling Krogh

This study aims to explore the shift in social and cultural values in the wake of ongoing change; specifically, the degree of embeddedness of these values among farm-based

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Abstract

Purpose

This study aims to explore the shift in social and cultural values in the wake of ongoing change; specifically, the degree of embeddedness of these values among farm-based entrepreneurs. The authors examine how this value-change-embeddedness continuum can further the development of theories in the field of social entrepreneurship.

Design/methodology/approach

The authors use an exploratory and a descriptive approach when interviewing eight farmers and members of their respective households. The sample encompasses almost all the providers of farm-based tourism in this particular area of rural Norway. The empirical materials form the basis for selecting our theoretical approach, one of which is a structural life-mode analysis.

Findings

The findings show that the social value of self-reliance, when taken to extremes, can hinder the growth of deeper commercial cooperation between farmers. This constitutes a challenge to efficiency and effectiveness on a larger scale, given a need for both independence and interdependence together with flexible entrepreneurial network cooperation in social entrepreneurship. The findings also indicate that social entrepreneurship does not necessarily have to include a cognitive shift in values and roles for the exclusion of a productive entrepreneurial identity.

Originality/value

By focusing on value changes in social entrepreneurship, this paper addresses a significant gap in the entrepreneurship literature relating to the process of value creation. By using the structural life-mode analysis, this study identifies the underlying value changes that are fundamental to entrepreneurial processes, allowing that process to unfold and take hold to the betterment of affected farm-based communities.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 10 no. 3
Type: Research Article
ISSN: 1750-6204

Keywords

Article
Publication date: 2 November 2012

Leif Erec Heimfarth, Robert Finger and Oliver Musshoff

Since the 1990s, there has been a discussion about the use of weather index‐based insurance, also called weather derivatives, as a new instrument to hedge against volumetric risks…

Abstract

Purpose

Since the 1990s, there has been a discussion about the use of weather index‐based insurance, also called weather derivatives, as a new instrument to hedge against volumetric risks in agriculture. It particularly differs from other insurance schemes by pay‐offs being related to objectively measurable weather variables. Due to the absence of individual farm yield time series, the hedging effectiveness of weather index‐based insurance is often estimated on the basis of aggregated farm data. The authors expect that there are differences in the hedging effectiveness of insurance on the aggregated level and on the individual farm‐level. The purpose of this paper is to estimate the magnitude of bias which occurs if the hedging effectiveness of weather index‐based insurance is estimated on aggregated yield data.

Design/methodology/approach

The study is based on yield time series from individual farms in central Germany and weather data provided by the German Meteorological Service. Insurance is structured as put‐option on a cumulated precipitation index. The analysis includes the estimation of the hedging effectiveness of insurance on aggregated level and on individual farm‐level. The hedging effectiveness is measured non‐parametrically regarding the relative reduction of the standard deviation and the value at risk of wheat revenues.

Findings

Findings indicate that the hedging effectiveness of a weather index‐based insurance estimated on aggregated level is considerably higher than the realizable hedging effectiveness on the individual farm‐level. This refers to: hedging effectiveness estimated on the aggregated level is higher than the mean of realized hedging effectiveness on the individual farm‐level and almost every evaluated individual farm in the analysis realizes a lower hedging effectiveness than estimated on the aggregated level of the study area. Nevertheless, weather index‐based insurance designed on the aggregated level can lead to a notable risk reduction for individual farms.

Originality/value

To the authors’ knowledge, this paper is the first that analyzes the influence of crop yield aggregation with regard to the hedging effectiveness of weather index‐based insurance.

Details

Agricultural Finance Review, vol. 72 no. 3
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 23 February 2018

Juliane Doms, Norbert Hirschauer, Michael Marz and Falk Boettcher

The purpose of this paper is to analyze the hedging efficiency (HE) of weather index insurances (WII) based on a whole-farm approach. The aim is to identify how different types of…

Abstract

Purpose

The purpose of this paper is to analyze the hedging efficiency (HE) of weather index insurances (WII) based on a whole-farm approach. The aim is to identify how different types of WII affect the economic performance risk of real farms in the light of the heterogeneity of farm operations and natural conditions.

Design/methodology/approach

Using historic simulation, the HE of various hedging strategies is computed for 20 farms in regions with moderate natural conditions. A priori defined “standardized” WII and hedge ratios as well as ex post “optimized” strategies are analyzed. The latter is identified through a risk programming approach that determines the strike level and hedge ratio that would have minimized the volatility of each farm’s historic total gross margins (TGMs) ex post.

Findings

(i) The correlations between the weather indexes and the yields of the farms’ main crop (wheat) do not provide useful insights regarding the whole-farm HE because farms’ performance risk is considerably affected by volatile factors other than wheat yield; (ii) Standardized WII are ill-suited to hedge performance risk for the majority of studied farms; (iii) A considerable positive whole-farm HE could have been obtained on average if farmers had been able to use the “optimized” risk management strategy. Using farm-specific information thus seems to be essential for identifying meaningful hedging strategies.

Originality/value

This study provides added value by analyzing the HE of WII for 20 German crop farms in “moderate” regions. The results show that exemplary tests of WII in extreme conditions provide no decision support for farmers in other regions.

Details

Agricultural Finance Review, vol. 78 no. 3
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 26 September 2009

Eline de Backer, Joris Aertsens, Sofie Vergucht and Walter Steurbaut

Sustainable agriculture implies the ability of agro‐ecosystems to remain productive in the long‐term. It is not easy to point out unambiguously whether or not current production…

3090

Abstract

Purpose

Sustainable agriculture implies the ability of agro‐ecosystems to remain productive in the long‐term. It is not easy to point out unambiguously whether or not current production systems meet this sustainability demand. A priori thinking would suggest that organic crops are environmentally favourable, but may ignore the effect of reduced productivity, which shifts the potential impact to other parts of the food provision system. The purpose of this paper is to assess the ecological sustainability of conventional and organic leek production by means of life cycle assessment (LCA).

Design/methodology/approach

A cradle‐to‐farm gate LCA is applied, based on real farm data from two research centres. For a consistent comparison, two functional units (FU) were defined: 1ha and 1 kg of leek production.

Findings

Assessed on an area basis, organic farming shows a more favourable environmental profile. These overall benefits are strongly reduced when the lower yields are taken into account. Related to organic farming it is therefore important that solutions are found to substantially increase the yields without increasing the environmental burden. Related to conventional farming, important potential for environmental improvements are in optimising the farm nutrient flows, reducing pesticide use and increasing its self‐supporting capacity.

Research limitations/implications

The research is a cradle‐to‐farm gate LCA, future research can be expanded to comprise all phases from cradle‐to‐grave to get an idea of the total sustainability of our present food consumption patterns. The research is also limited to the case of leek production. Future research can apply the methodology to other crops.

Originality/value

To date, there is still lack of clear evidence of the added value of organic farming compared to conventional farming on environmental basis. Few studies have compared organic and conventional food production by means of LCA. This paper addresses these issues.

Details

British Food Journal, vol. 111 no. 10
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 10 October 2016

Elias Andersson and Peter Lundqvist

The agricultural sector has undergone extensive changes in the 20-30 years since the peak academic debate on family farming. Still today, the understanding and concept of family…

Abstract

Purpose

The agricultural sector has undergone extensive changes in the 20-30 years since the peak academic debate on family farming. Still today, the understanding and concept of family farming has political implications in the processes of rural and agricultural policy. The purpose of this paper is to study the development of agrarian structure by analysing the gendered and family relations of family farming.

Design/methodology/approach

This paper examines the concept of the family farm and its utilisation and diversity in the current Swedish agricultural sector from a gender perspective, using empirical data from the Farm Accountancy Data Network. The paper operationalises a situated agrarian typology and examines the gendered position and temporalities of family farms in Sweden, based on patterns of labour use.

Findings

A workable, fruitful typology of the agrarian structure suitable for future comparative studies is revealed. It also demonstrates the gendered time in the farm labour process, the different temporalities involved and their interconnection between gender, family and various spheres. The spatial and geographical implications, as well as the increased dependence on family and hired labour in different farm types, are emphasised.

Originality/value

The focus of this study contributes to the understanding of spatial-temporal relations of family farm business and organisation in general and in Sweden particularly. It also provides empirical basis for developing and gender mainstreaming rural and agricultural policies.

Details

Journal of Family Business Management, vol. 6 no. 3
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 7 August 2017

Andrew Green, John Tzilivakis, Douglas J. Warner and Kathleen Anne Lewis

The purpose of this paper is to examine the suitability of free carbon calculators aimed at the agricultural industry, for use in greenhouse gas (GHG) emission benchmarking, using…

Abstract

Purpose

The purpose of this paper is to examine the suitability of free carbon calculators aimed at the agricultural industry, for use in greenhouse gas (GHG) emission benchmarking, using the European dairy industry as an example.

Design/methodology/approach

Carbon calculators which were claimed to be applicable to European dairy farms were identified and tested using six production scenarios based on data from real European farms supplemented using published literature. The resulting GHG emission estimates, together with estimates apportioned using three functional units, were then compared to determine the robustness of the benchmarking results.

Findings

It was found that although there was a degree of agreement between the seven identified carbon calculators in terms of benchmarking total farm emissions, once a suitable functional unit was applied little agreement remained. Tools often ranked farms in different orders, thereby calling into question the robustness of benchmarking in the studied sector.

Research limitations/implications

The scenario-based approach taken has identified issues liable to result in a lack of benchmarking robustness within this sector; however, there remains considerable scope to evaluate these findings in the field, both within this sector and others in the agricultural industry.

Practical implications

The results suggest that there are significant hurdles to overcome if GHG emission benchmarking is to aid in driving forward the environmental performance of the dairy industry. In addition, eco-labelling foods based on GHG benchmarking may be of questionable value.

Originality/value

At a time when environmental benchmarking is of increasing importance, this paper seeks to evaluate its applicability to sectors in which there is considerable scope for variation in the results obtained.

Details

Benchmarking: An International Journal, vol. 24 no. 6
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 27 July 2012

Allen M. Featherstone, Timothy A. Park and Jeremy G. Weber

The purpose of this paper is to discuss opportunities to obtain more information from the Agricultural Resource Management Survey (ARMS). Specifically, the paper will explore the…

Abstract

Purpose

The purpose of this paper is to discuss opportunities to obtain more information from the Agricultural Resource Management Survey (ARMS). Specifically, the paper will explore the issue of survey nonresponse, the development of pseudo panels, and more frequent updating of cost of production data on an enterprise basis.\

Design/methodology/approach

Researchers from the Land Grant University System and the Economic Research Service have relied on ARMS to evaluate the effect of agricultural, macroeconomic, and other factors on the US farm sector, farm businesses, and the households that manage them. This paper will identify gaps in understanding and proposes approaches to extract additional information from ARMS.

Findings

The relevance of ARMS in the future will depend on the ability to continue to understand potential pitfalls and areas of additional research that can develop new procedures to extract additional information. Three issues which are in need of further study include continuing to examine the issue of non‐response, refining methods to develop pseudo panel data, and examining methods to develop commodity specific financial information between the commodity specific surveys.

Originality/value

The National Research Council completed a review of ARMS to address challenges in keeping the survey relevant into the future. However, research that examines the construction of financial statements and other information had not been conducted since the early 1990s. This study fills part of that gap.

Details

Agricultural Finance Review, vol. 72 no. 2
Type: Research Article
ISSN: 0002-1466

Keywords

Book part
Publication date: 30 May 2013

Cristina Salvioni, Roberto Henke and Elisa Ascione

The persistence of different farm types in Italian agriculture shows that productivism is not the only possible development path that farms can follow, and that farms can…

Abstract

The persistence of different farm types in Italian agriculture shows that productivism is not the only possible development path that farms can follow, and that farms can successfully adopt strategies based on diversification rather than standardization of production.The aim of this work is to provide evidence about the diffusion of different diversification and differentiation strategies in Italian agriculture, and to compare the characteristics associated with the targeted groups of farms, as well as their structural and economic evolution over time.The analysis is performed on a panel of data built on the basis of information collected by the Italian FADN over the 2003–2009 period. For the purpose of the analysis we divided the population of Italian commercial farms into a fivefold innovative farm typology based on the extent of diversification and differentiation strategies adopted by farms.The findings show that conventional farms are still by far the largest category within the population of Italian commercial farms, while only 13% of total commercial farms is classified as differentiated and/or diversified. Conventional farms are also the best off in terms of economic results. As for the differentiated and/or diversified farms, their structures are still changing, their profitability is improving and they follow a more sustained income growth path than conventional ones.The analysis highlights that diversification and differentiation are not necessarily a viable solution to the low-income problem faced by many farms. Future research is needed to better understand the relationship between diversification strategies and policies.

Details

Agriculture in Mediterranean Europe: Between Old and New Paradigms
Type: Book
ISBN: 978-1-78190-597-5

Keywords

Article
Publication date: 15 October 2018

Vilani Sachitra and Siong-Choy Chong

The agribusiness sector has long been acknowledged as a major source of livelihood to many people in developing countries. Hence, determining the resources and capabilities…

Abstract

Purpose

The agribusiness sector has long been acknowledged as a major source of livelihood to many people in developing countries. Hence, determining the resources and capabilities influencing farm-level competitive advantage are vital to better understand and formulate appropriate strategies to increase the competitiveness ofminor export crops farms. This study aims to understand of the link between resources-capabilities-competitive advantage for appropriate measures to be recommended to enhance the competitive position of the smallholding farms.

Design/methodology/approach

This study adopts the resource-based view in combination with dynamic capabilities. The scope comprises owners of farms who possess experience in commercial cultivation of minor export crops in Sri Lanka. A self-administrated structured questionnaire was used to collect data.

Findings

Based on the responses from 456 farm owners, results of the multiple regression analysis indicate that variables representing resources such as human assets, physical assets, financial assets, institutional capital, collective action and entrepreneurial identity; and dynamic capabilities such as organisational learning, relationship building, quality management and marketing are significantly associated with competitive advantage of the minor export crops farms. Reputation and farm process management capability are the only two insignificant variables. Taken together, the resources and dynamic capabilities investigated explain 89.3 per cent of the variation in competitive advantage, in which 82 per cent is contributed by resources.

Originality/value

The findings provide useful insights not only in terms of understanding the link between resources, dynamic capabilities and competitive advantage but also how resources and capabilities can be channelled and leveraged to bring about competitive advantage to the minor export crops farms. Theoretical and practical implications as well as future research directions are provided.

Details

Competitiveness Review: An International Business Journal, vol. 28 no. 5
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 29 January 2021

Joanne Louise Tingey-Holyoak, John Dean Pisaniello and Peter Buss

Agriculture is under pressure to produce more food under increasingly variable climate conditions. Consequently, producers need management innovations that lead to improved…

Abstract

Purpose

Agriculture is under pressure to produce more food under increasingly variable climate conditions. Consequently, producers need management innovations that lead to improved physical and financial productivity. Currently, farm accounting technologies lack the sophistication to allow producers to analyse productivity of water. Furthermore water-related agricultural technology (“agtech”) systems do not readily link to accounting innovations. This study aims to establish a conceptual and practical framework for linking temporal, biophysical and management decision-making to accounting by develop a soil moisture and climate monitoring tool.

Design/methodology/approach

The paper adopts an exploratory mixed-methods approach to understand supply of and demand for water accounting and water-related agtech; and bundling these innovations with farm accounting to generate a stable tool with the ability to improve agricultural practices over time. Three phases of data collection are the focus here: first, a desk-based review of water accounting and water technology – including benchmarking of key design characteristics of these methods and key actor interviews to verify and identify trends, allowing for conceptual model development; second, a producer survey to test demand for the “bundled” conceptual model; third and finally, a participant-based case study in potato-farming that links the data from direct monitoring and remote sensing to farm accounts.

Findings

Design characteristics of water accounting and agtech innovations are bundled into an overall irrigation decision-making conceptual model based on in-depth review of available innovations and verification by key actors. Producer surveys suggest enough demand to pursue practical bundling of these innovations undertaken by developing an integrated accounting, soil moisture and climate monitoring tool on-farm. Productivity trends over two seasons of case study data demonstrate the pivotal role of accounting in leading to better technical irrigation decisions and improving water productivity.

Originality/value

The model can assist practitioners to gauge strengths and weaknesses of contemporary water accounting fads and fashions and potential for innovation bundling for improved water productivity. The practical tool demonstrates how on-farm irrigation decision-making can be supported by linking farm accounting systems and smart technology

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