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Open Access
Article
Publication date: 25 March 2022

Becca B.R. Jablonski, Joleen Hadrich, Allison Bauman, Martha Sullins and Dawn Thilmany

The Agriculture Improvement Act of 2018 directed the US Secretary of Agriculture to report on the profitability and viability of beginning farmers and ranchers. Many beginning…

2054

Abstract

Purpose

The Agriculture Improvement Act of 2018 directed the US Secretary of Agriculture to report on the profitability and viability of beginning farmers and ranchers. Many beginning operations use local food markets as they provide more control, or a premium over commodity prices, and beginning operations cannot yet take advantage of economies of scale and subsequently have higher costs of production. Little research assesses the relationship between beginning farmer profitability and sales through local food markets. In this paper, the profitability implications of sales through local food markets for beginning farmers and ranchers are explored.

Design/methodology/approach

The authors utilize 2013–2016 USDA agricultural resource management survey data to assess the financial performance of US beginning farmers and ranchers who generate sales through local food markets.

Findings

The results point to four important takeaways to support beginning operations. (1) Local food channels can be viable marketing opportunities for beginning operations. (2) There are differences when using short- and long-term financial performance indicators, which may indicate that there is benefit to promoting lean management strategies to support beginning operations. (3) Beginning operations with intermediated local food sales, on average, perform better than those operations with direct-to-consumer sales. (4) Diversification across local food market channel types does not appear to be an indicator of improved financial performance.

Originality/value

This article is the first to focus on the relationship beginning local food sales and beginning farmer financial performance. It incorporates short-term and long-term measures of financial performance and differentiates sales by four local food market type classifications: direct-to-consumer sales at farmers markets, other direct-to-consumer sales, direct-to-retail sales and direct-to-regional distributor or institution sales.

Details

Agricultural Finance Review, vol. 82 no. 3
Type: Research Article
ISSN: 0002-1466

Keywords

Open Access
Article
Publication date: 24 October 2023

Ismail Juma Ismail, David Amani, Ismail Abdi Changalima and Isaac Kazungu

The approach to integrate concepts from different disciplines so as to solve the problems facing smallholder farmers has gained momentum in recent years. However, very little is…

Abstract

Purpose

The approach to integrate concepts from different disciplines so as to solve the problems facing smallholder farmers has gained momentum in recent years. However, very little is known about how word-of-mouth (WOM) dimensions can be used in agricultural marketing to explain market participation among smallholder farmers. Therefore, this study investigates the perceived usefulness of WOM in explaining smallholder farmers’ market participation.

Design/methodology/approach

The cross-sectional design was carried out to survey a sample of 467 smallholder farmers. This study used partial least squares structural equation modelling (PLS-SEM) in SmartPLS 4 to test hypotheses.

Findings

The results revealed that WOM dimensions such as expertise differential, strong tie and trustworthiness among smallholder farmers significantly influence the WOM message delivery. Likewise, the findings suggest that WOM message delivery significantly influences market participation among smallholder farmers. Finally, it was revealed that WOM message delivery significantly mediates the relationship between WOM dimensions and market participation.

Practical implications

This study provides useful insights to smallholder farmers on how to use WOM dimensions to enhance more market participation in formal markets, especially through proper WOM message delivery.

Originality/value

The current study solves the problem of information asymmetry among smallholder farmers through WOM. It is perhaps the first study to establish the link between WOM dimensions and market participation among smallholder farmers in the context of developing countries.

Details

IIM Ranchi Journal of Management Studies, vol. 3 no. 1
Type: Research Article
ISSN: 2754-0138

Keywords

Open Access
Article
Publication date: 30 June 2008

Mohammad Ismail Hossain and Wim Verbeke

Rice is staple food for Bangladeshi people. Although rice markets were liberalized in 1992, the government continued to intervene in this sector. This study examines the farmers’…

Abstract

Rice is staple food for Bangladeshi people. Although rice markets were liberalized in 1992, the government continued to intervene in this sector. This study examines the farmers’ and private traders’ response in liberalized rice marketing system in two regions. 40 farmers and 20 traders were interviewed by using a structural questionnaire for collecting the necessary information. The liberalization of the rice market, in particular, has been embraced more by the private traders then by the farmers. Although there has been a rapid emergence of private traders, the emergence of a vibrant trading sector that would fill the gap left by the state has been slow. The rice market is segmented with the private traders supplying different market circuits. Farmers on the other have not responded positively due to the lack of capital, lack of storage facilities, lack of market information, dominance of intermediaries and low price during the harvest period. Most of the farmers are unwilling to expand their acreage due to the family requirements of other crops. In rural remote areas where the road infrastructure is poor, private sector marketing activities have not yet emerged. Thus government can foster private participation and market integration by improving the road and storage infrastructure. Furthermore, government needs to take measures that strengthen the agricultural price and marketing information system targeted at both farmers and traders.

Details

Journal of International Logistics and Trade, vol. 6 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 7 June 2021

Gregory S. Cooper, Karl M. Rich, Bhavani Shankar and Vinay Rana

Agricultural aggregation schemes provide numerous farmer-facing benefits, including reduced transportation costs and improved access to higher-demand urban markets. However…

1871

Abstract

Purpose

Agricultural aggregation schemes provide numerous farmer-facing benefits, including reduced transportation costs and improved access to higher-demand urban markets. However, whether aggregation schemes also have positive food security dimensions for consumers dependent on peri-urban and local markets in developing country contexts is currently unknown. This paper aims to narrow this knowledge gap by exploring the actors, governance structures and physical infrastructures of the horticultural value chain of Bihar, India, to identify barriers to using aggregation to improve the distribution of fruits and vegetables to more local market environments.

Design/methodology/approach

This study uses mixed methods. Quantitative analysis of market transaction data explores the development of aggregation supply pathways over space and time. In turn, semi-structured interviews with value chain actors uncover the interactions and decision-making processes with implications for equitable fruit and vegetable delivery.

Findings

Whilst aggregation successfully generates multiple producer-facing benefits, the supply pathways tend to cluster around urban export-oriented hubs, owing to the presence of high-capacity traders, large consumer bases and traditional power dynamics. Various barriers across the wider enabling environment must be overcome to unlock the potential for aggregation to increase local fruit and vegetable delivery, including informal governance structures, cold storage gaps and underdeveloped transport infrastructures.

Originality/value

To the best of the authors’ knowledge, this study is the first critical analysis of horticultural aggregation through a consumer-sensitive lens. The policy-relevant lessons are pertinent to the equitable and sustainable development of horticultural systems both in Bihar and in similar low- and middle-income settings.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 12 no. 2
Type: Research Article
ISSN: 2044-0839

Keywords

Open Access
Article
Publication date: 27 July 2021

Prabal Barua, Syed Hafizur Rahman and Maitri Barua

The nature of farm animals in the marginalized group of people is varying hurriedly. Livestock is used to add to cash earnings and increase food security, hence helping as a vital…

5913

Abstract

Purpose

The nature of farm animals in the marginalized group of people is varying hurriedly. Livestock is used to add to cash earnings and increase food security, hence helping as a vital component in the household’s source of revenue strategies, particularly at marginal planter’s level. The present study was conducted to assess the numbers of livestock farmers in the study areas, their livelihood options, the value chain of the farmers in different marketing channels and recommendation for the sustainable value chain of the livestock production cycle.

Design/methodology/approach

The study precise the baseline condition of marginal livestock farmers for access to value chain activities in terms of inputs, outputs, support services, production, yield, income and enabling environment to enhance livestock farming in the study area. The study was conducted through stratified random sampling of the context using some research tools like in-depth interviews, household surveys, expert opinions and focus group discussions. Structured questionnaires were developed to address issues, such as current livestock farming practices, access to support services, capacity and income.

Findings

The study revealed that this particular context is lagging behind to establish goat value chain activities in the targeted areas. The farmers do not have basic knowledge of goat farming, and the value chain actors are not working properly. The support services are not appropriate to turn the goat farming production to a standard level. Value chain of livestock and livestock products and their goals are essential to develop an idea on learning, investment, market access, sales assurance and quality. Variation in institutional contexts of end markets is linked to different types of coordination and control of enabling environment throughout the chains.

Practical implications

Livestock is an integral component of the complex farming system in Bangladesh as it serves as not only a source of meat protein but also a major source of farm power services as well as employment. Strong private sector alliance along with public–private ventures can bring sustainable agriculture value chain development in these most vulnerable coastal communities in Bangladesh. Strengthening the weak financial structure, reducing power imbalances in the governance structures and low political intervention in community-level organizations, and resolving socio-cultural and environmental concerns are the major concerns on the development of value chains in Bangladesh.

Originality/value

Geographical position and climatic condition of Bangladesh have made her coastal areas one of the highly productive areas for livestock production in the world. The study was conducted through qualitative and quantitative analysis, and after finding the authors recommended for sustainable value chain approach for livestock production to a marketing channel for improving the financial condition and self-employment for the communities.

Details

Modern Supply Chain Research and Applications, vol. 3 no. 3
Type: Research Article
ISSN: 2631-3871

Keywords

Open Access
Article
Publication date: 13 November 2019

Le Khuong Ninh and Truong Diem Kieu

The purpose of this paper is to investigate the determinants of the amount of trade credit granted to shrimp farmers in Ca Mau.

1139

Abstract

Purpose

The purpose of this paper is to investigate the determinants of the amount of trade credit granted to shrimp farmers in Ca Mau.

Design/methodology/approach

Based on the literature review, the authors proposed six hypotheses on the determinants of the amount of trade credit granted to shrimp farmers. Data collected from 120 shrimp farmers in Ca Mau were used to test the proposed hypotheses.

Findings

Two out of six determinants, i.e. the size of input order (a pulling factor) and the competition among input suppliers (a pushing factor), are significantly positively associated with the amount of trade credit granted to shrimp farmers. No impact of the other determinants was found. The findings imply that shrimp farmers should join cooperatives to enhance access to trade credit and mitigate the risk for input suppliers.

Originality/value

This paper sheds light on the fact that trade credit is still granted to such risky buyers as shrimp farmers, which has not been explored by previous studies.

Details

Journal of Economics and Development, vol. 21 no. 2
Type: Research Article
ISSN: 2632-5330

Keywords

Open Access
Article
Publication date: 12 March 2021

Kafferine Yamagishi, Cecil Gantalao and Lanndon Ocampo

This study aims to draw observations on the current status and potentials of the Philippines as a farm tourism destination and identify the underlying factors that inhibit farm…

74410

Abstract

Purpose

This study aims to draw observations on the current status and potentials of the Philippines as a farm tourism destination and identify the underlying factors that inhibit farm tourism development. It intends to gauge the challenges that Filipino farmers face in diversifying farms and operating farm sites and uses these challenges in crafting strategies and policies for relevant stakeholders. It also provides Philippine farm tourism literature to address the limitations of references in the topic.

Design/methodology/approach

The study adopts an exploratory type of inquiry method and secondary data collection from various sources, such as published journal articles, news articles and reports, to gain insights and relevant information on farm tourism. The study also uses a threats, opportunities, weaknesses and strengths analysis approach to develop competitive farm tourism strategies.

Findings

The Philippines, with vast agricultural land, has the necessary base for farm tourism, and the enactment of the Farm Tourism Development Act of 2016 bridges this potential. With low agricultural outputs, the country draws relevance for farm tourism as a farm diversification strategy to supplement income in rural communities. While having these potentials, crucial initiatives in physical characteristics, product development, education and training, management and entrepreneurship, marketing and customer relations and government support must be implemented. Farmers' lack of skills, training and capital investment potential to convert their farms into farm tourism sites serves as the major drawback. Thus, developing entrepreneurial and hospitality skills is crucial.

Originality/value

This work presents a historical narrative of initiatives and measures of the Philippine farm tourism sector. It also provides a holistic discussion and in-depth analysis of the current state, potentials, strategies and forward insights for farm tourism development.

Details

Journal of Tourism Futures, vol. 10 no. 1
Type: Research Article
ISSN: 2055-5911

Keywords

Open Access
Article
Publication date: 25 July 2023

Aditya Korekallu Srinivasa, K.V. Praveen, Subash Surendran Padmaja, M.L. Nithyashree and Girish K. Jha

This paper examines whether farmers' knowledge of the minimum support prices (MSPs) affects farm-gate prices. MSP is the minimum guaranteed price for agricultural commodities…

4572

Abstract

Purpose

This paper examines whether farmers' knowledge of the minimum support prices (MSPs) affects farm-gate prices. MSP is the minimum guaranteed price for agricultural commodities announced by the Government of India for 24 commodities. Most farmers in India prefer to sell their produce at the farm-gate due to a small marketable surplus and hence do not directly benefit from MSP. The authors test the common argument in the political discourse that if farmers have knowledge of MSP, then they can bargain with traders during the farm-gate transaction and demand a better price close to MSP.

Design/methodology/approach

The authors use matching methods to examine the impact of knowledge of MSP on farm-gate prices.

Findings

Using nationally representative data, the authors show that there is no empirical evidence that the knowledge of MSP of the crops leads to higher bargaining power and better farm-gate prices.

Practical implications

Price information (MSP in this case) alone cannot improve the bargaining power of farmers and result in a better price realization. As a safety net, MSP fails in the absence of procurement of products by the government. This also raises the question of the equitability of the price support system in India and calls for a rethink of the MSP policy.

Originality/value

This study is the first of its kind to examine the anchoring effect of knowledge of MSP on farm-gate prices using a nationally representative dataset.

Details

Journal of Economics and Development, vol. 25 no. 4
Type: Research Article
ISSN: 1859-0020

Keywords

Open Access
Article
Publication date: 23 December 2020

Yevhen Kononets and Horst Treiblmaier

The purpose of the paper is to critically evaluate the applicability of bio certification in farmers' activity to reduce unfair trading practices in the food supply chain. The…

1393

Abstract

Purpose

The purpose of the paper is to critically evaluate the applicability of bio certification in farmers' activity to reduce unfair trading practices in the food supply chain. The secondary purposes are describing the economic reasons of using bio certification and perspectives of using web trading platforms among food producers.

Design/methodology/approach

Data collection included face-to-face interviews with 15 Austrian and German farmers who operate on bio food markets as well as a quantitative survey regarding their assessment of unfair trading practices. This study presents both quantitative and qualitative analyses.

Findings

Bio certification is more likely unable to eliminate or mitigate unfair trading practices in the food supply chain, however bio certification is able to increase efficiency of farmers together with other web tools.

Originality/value

The study is the first to empirically investigate the applicability of bio certifications, its advantages and impact on unfair trading practices in the food supply chain. It focuses on small and medium-sized food producers and farmers. The research also reveals the perspectives of using web trading platforms in farming activity.

Details

Modern Supply Chain Research and Applications, vol. 3 no. 1
Type: Research Article
ISSN: 2631-3871

Keywords

Open Access
Article
Publication date: 9 February 2021

Mathew Abraham and Prabhu Pingali

This paper aims to understand the significant farm and market-level factors that incentivize the adoption and marketing of pulses influencing its supply response to changing…

6216

Abstract

Purpose

This paper aims to understand the significant farm and market-level factors that incentivize the adoption and marketing of pulses influencing its supply response to changing demand.

Design/methodology/approach

The authors first use a modified Nerlovian supply response model using secondary data to identify the major price and non-price factors influencing the supply of pigeon pea, black and green gram in the major pulses growing states in India. Second, using primary qualitative data the authors map the pulses value chain from farm to retail to identify the how proportional and fixed transaction costs (FCTs) influence market participation of pulses growers and limit the transmission of price and quality information.

Findings

The supply response model shows some positive influence of price on area allocation for pigeon pea and black gram and some negative effects of yield and price increase of competing crops on pigeon pea acreage. However, for the most part, the area of Kharif pulses is inelastic to prices in the long run. Irrigation, rainfall and yields in the lag year are shown to have a significant influence on area allocation for pulses. The market study reveals that low yields, low landholding size and geographical disadvantages of high agro-climatic risk and poor connectivity hinder market access of pulses farmers relative to other crops. Market power in favor of buyers and poor price and quality information is a disadvantage to sellers, influencing their ability to participate in markets.

Research limitations/implications

A quantitative study would be required to identify the magnitude of farm and market-level transaction costs.

Originality/value

This study helps to understand the supply response of pulses and gives suggestions to direct policy to rectify this.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 11 no. 4
Type: Research Article
ISSN: 2044-0839

Keywords

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