Search results

Building on the risk balancing theory and on recent discussions the appropriateness of using farm income maximization as behavioural assumption, this paper extends the risk balancing framework by accounting for business-household interactions. The purpose of this paper is to theoretically introduce the concept of farm household risk balancing, a theoretical framework in which the farm household sets a constraint on the total household-level risk and balances farm-level and off-farm-level risk.

The paper argues that the risk behaviour of farmers is better understood by considering risk at the household level. Using an analytical framework, equations are derived linking the farm activities, off-farm activities, consumption and business and private liquidity.

The framework shows that a farm household that wants to minimize the risk that total household cash flow falls below consumption needs, may exhibit a wide variety of behavioural responses to changes in the policy and economic environment.

The framework suggests multiple ways for policy makers and individual farmers to support risk management.

Risk management is at the core of the agricultural policy and it is of paramount importance to be able to understand behavioural responses to market and policy instruments. This paper contributes to that by suggesting that the focus of current risk analysis and management studies may be too narrowly focused at the farm level.

Contemporary literature reveals that, to date, the poultry livestock sector has not received sufficient research attention. This particular industry suffers from unstructured supply chain practices, lack of awareness of the implications of the sustainability concept and failure to recycle poultry wastes. The current research thus attempts to develop an integrated supply chain model in the context of poultry industry in Bangladesh. The study considers both sustainability and supply chain issues in order to incorporate them in the poultry supply chain. By placing the forward and reverse supply chains in a single framework, existing problems can be resolved to gain economic, social and environmental benefits, which will be more sustainable than the present practices.

The theoretical underpinning of this research is ‘sustainability’ and the ‘supply chain processes’ in order to examine possible improvements in the poultry production process along with waste management. The research adopts the positivist paradigm and ‘design science’ methods with the support of system dynamics (SD) and the case study methods. Initially, a mental model is developed followed by the causal loop diagram based on in-depth interviews, focus group discussions and observation techniques. The causal model helps to understand the linkages between the associated variables for each issue. Finally, the causal loop diagram is transformed into a stock and flow (quantitative) model, which is a prerequisite for SD-based simulation modelling. A decision support system (DSS) is then developed to analyse the complex decision-making process along the supply chains.

The findings reveal that integration of the supply chain can bring economic, social and environmental sustainability along with a structured production process. It is also observed that the poultry industry can apply the model outcomes in the real-life practices with minor adjustments. This present research has both theoretical and practical implications. The proposed model’s unique characteristics in mitigating the existing problems are supported by the sustainability and supply chain theories. As for practical implications, the poultry industry in Bangladesh can follow the proposed supply chain structure (as par the research model) and test various policies via simulation prior to its application. Positive outcomes of the simulation study may provide enough confidence to implement the desired changes within the industry and their supply chain networks.

The purpose of this paper evaluates the effects of the Great Western Development (GWD) policy on agricultural intensification, land use, agricultural production and rural poverty in western China.

The authors collect county-level data on land use, input application, grain crop production, income, poverty and geophysical characteristics for 1996–2005 and use a quasi-natural experimental design of difference-in-differences (DD) in the empirical analysis.

Results suggest that the GWD policy significantly increased the grain crop production in western China. This increase resulted from higher yield, with increased fertilizer use and agricultural electricity consumption per hectare, and more land allocated to grow grain crops. The policy also increased land-use concentration, reduced crop diversity and alleviated rural poverty in western China.

This paper makes three contributions. First, the authors add to the growing literature on the GWD policy by evaluating its effects on farm household decisions and exploring the mechanisms and broad socioeconomic impacts in western China. Second, the authors take advantage of a quasi-natural experimental design to improve the identification strategy where input use, land allocation, production and off-farm labor participation are all endogenous in a farm household. Third, the authors explore a long list of variables within one integrated dataset to present a comprehensive picture of the impact of the GWD policy.

The purpose of the paper is to provide an analysis of the adoption of Rural Development Policies (Rdp) as the result of entrepreneurial behaviours carried out by family farms with a focus on the Lazio Region of Italy. Family farming is the backbone of the European model of agriculture. Rdp provide family farms with a set of opportunities which, if well exploited, could drum up farm’s development.

An empirical analysis of a data base provided by the Lazion region of Italy on the adoption of Rdp by family farms in the Lazio region for the period of 2007-2013. Cluster analysis is the main analytical tool used.

The results evidence significant differences in the adoption of rural policy on the basis of family life cycle and the composition of the family farm. The empirical analysis underlines the low degree of coherence by farms located in rural areas.

Farmers’ success in accessing funds requires them to be proactive and take a strategic perspective to convince funders that they have a coherent strategy which meets the requirements of the particular Rdp which they are trying to access.

In terms of policy, a more nuanced understanding of the entrepreneurial nature of some practices in a rural setting and how they require multi-agency investigation.

The paper is unique, in that it considers the consumption of policy by farmers who are entrepreneurial in their vision. By consumption of Rdp, we mean the farmer’s strategic capability to obtain funds from regional funding pots for rural development.

The Old Farmer Pension Program (OFPP) represents Taiwan’s long-standing efforts aiming at improving farm household income and well-being; however, how effective the pension program is in terms of achieving the policy agenda has remained unclear. The paper aims to discuss this issue.

Based on data drawn from the Survey of Family Income and Expenditure during 1999–2013, two identification strategies are used to examine the effect of OFPP. First the authors apply the Blinder-Oaxaca decomposition to address the concern if the program reaches the socially/economically disadvantaged farm households. The second identification strategy involves using the static and dynamic decomposition approaches to identify the major factors contributing to farm household income inequality and the redistribution role of the OFPP.

Results from the Blinder-Oaxaca decomposition indicate that about 60 percent of the income gap can be eliminated if the pension recipients’ socio-economic characteristics are the same as the non-recipient group, suggesting it is the disadvantaged group that receives the old farmer pension. Moreover, the results suggest the significant contributions of household investments in health and human capital as well as diversification toward nonfarm activities, to income inequality among Taiwan’s farm households. Results from the dynamic decomposition suggest that the first-wave adjustment of the OFPP enlarges farm household income inequality, the following two waves of adjustment, however, plays an equalizing role.

This study adds to the literature by providing a methodological refinement promoting the view that it calls for the use of the dynamic (change) decomposition framework to investigate the inequality-enlarging or inequality-equalizing role each income determinant plays.

For over 20 years, decoupled agricultural support programs have played a large role in farm policy. The purpose of this paper is to investigate the effects of decoupled agricultural support payments on farm-level debt.

A two-stage least squares model is used to estimate the impact of decoupled payments, farm production characteristics, demographics, regional risk factors, as well as cross-sectional and temporal fixed effects on farm debt, along with weather-related instrumental variables.

Results indicate that a negative and statistically significant relationship exists between decoupled payments and farm debt. This study also provides evidence that research results not accounting for the endogenous relationship between acres operated and farm-level debt should be interpreted with caution.

The constantly changing sets of policy options provide a challenge in identifying the impact of a single policy, ceteris paribus. Therefore, one notable limitation is in extrapolating the results in this study to make implications on the elimination of the direct payments program, as part of the 2014 Farm Bill.

This implies that farmers likely use annual decoupled payments to reduce their debt, potentially influencing their exposure to financial risks, capacity to withstand financial instability, and access to credit. The methodology used may establish a foundation for continued research that seeks to empirically identify and measure the complex interrelationships among agricultural public policies and farm-level financial measures.

Decoupled payment programs may indirectly influence debt decisions, which can influence production decisions in the long run.

In order to accurately identify the impact of direct payment programs on farm debt levels, this study is the first of its kind to account for the endogenous relationship between production decisions and debt and use a large unbalanced panel of data available from the Agricultural Resource Management Survey.

The purposes of this paper are to examine the actual conditions of the problems of poverty in rural areas in Inner Mongolia, to clarify the problems involved in the measure to fight poverty through promotion of dairy farming and to propose policies for future measures to fight poverty.

Both quantitative and qualitative analyses are employed, such as the estimation of production functions of agriculture in Inner Mongolia over the period 1998‐2004, the interview analysis and questionnaire survey for case studies. The different roles that three models play in poverty reduction such as the government assistant dairy farming, the enterprise entry dairy farming, and the multiple management dairy farming are discussed.

The paper confirms the growth of the corporate‐participating dairy farming contributes significantly to the development of the regions. It also clarifies the problem of the government‐aided dairy farming with its low profitability caused by insufficient input of fodder and the necessity to select management policies according to the natural conditions and resources available in individual regions, such as a shift toward recycling‐oriented beef cattle management in multiple dairy farming.

The paper adds insight into the promotion of dairy farming and poverty reduction in Inner Mongolia.

This paper addresses the issue of farm programs and their impact on United States exports. It suggests an alternative policy to deal with the problems of low prices, surpluses, excessive supports and augmented competition abroad. The authors depict the current situation in the U.S. farm economy first by reviewing the farm programs from the inception to the present time, their impact on supply and demand for farm products at home and abroad, and the competitive reactions from other countries, especially the European Community. The authors then introduce a policy of international cooperation in farm trade that emphasizes a free market system and focuses on issues of contention among U.S. trade partners. Using U.S. farm policy in general, the paper advocates general cooperation with other countries on the international front and an integrated policy‐making process in the domestic economy that articulates the government trade policy with a single strong voice.