Search results

Smallholder farmers in Tanzania were investigated in this paper to determine the dimensions and influence of psychological contracts on smallholder farmers' decisions to participate in the market.

Data were collected through structured questionnaires, of which a cross-sectional design was conducted in central Tanzania, the Dodoma region in which 467 smallholder farmers were surveyed. First, a preliminary Exploratory Factor Analysis (EFA) was conducted by involving psychological contracts and market participation items derived from previous studies. This was followed by the Confirmatory Factor Analysis (CFA) to verify the items obtained in the EFA. The regression analysis was then performed to test the causal effects of psychological contracts on market participation among smallholder farmers.

The path analysis revealed that transactional, relational, and ideological contracts have a positive and statistically significant impact on the participation of smallholder farmers in the market. Therefore, smallholder farmers have own set of expectations for participating in the marketplace. As a result, smallholder farmers' relationships with market participation decisions can be strengthened.

This study covered only smallholder farmers. However, future studies can include large-scale farmers, because psychological contracts and market participation difficulties also apply to them. This may increase the generalizability of the findings.

Past studies have not extensively covered the psychological contracts in smallholder farming, especially in market participation. Based on prior empirical and theoretical research from other disciplines, the findings of this study contribute to a better understanding of the psychological contract framework and the significance of multiple psychological obligations between smallholder farmers and market management.

This study analyzes the impact of COVID-19 on agricultural production in South India by evaluating the influence of market channels and socioeconomic conditions on the production decisions of farmers during two key cropping seasons. We base our analysis on primary data from 200 marginal, small and medium farmers, primarily focusing on the key seasonal crops, namely paddy and black gram.

We studied the downstream supply chains of paddy and black gram crops in the district of Villupuram, situated in the South Indian state of Tamil Nadu. Using a Bi-Probit model, we analyzed the production decisions of marginal, small and medium farmers engaged in paddy and black gram cultivation. Various factors are considered, including farmers’ socioeconomic characteristics, gender, market channels accessed and the coping strategies employed.

After the easing of lockdown measures in June 2020, our research revealed substantial disruptions in agricultural production during the critical Kharif and Rabi seasons. Most farmers refrained from returning to their fields during the Kharif season; those who did produced millet as the main crop. Factors such as choice of market channels in previous seasons, economic status, access to all-weather roads, labor availability, gender and coping strategies played an important role in the return to production in the subsequent Kharif and Rabi seasons.

Our data revealed several interesting threads related to price volatility, irrigation and access to markets and their impact on food security. The role of intermediaries and market channels in providing liquidity emerges as an important aspect of farmers' choice of markets. The pandemic impacted all these factors, but a detailed analysis was beyond the scope of this study.

We also find that resilience to economic shocks varies not only by economic status but also by gender and social groups. Farmers with female members are more likely to be resilient, and marginal and small farmers primarily belong to social groups that are economically less developed.

This study contributes to the literature on factors influencing farmer choice and decision-making and provides nuances to discussions by analyzing crop-specific supply chains, highlighting the critical role of socioeconomic factors. It also highlights the role of demographics and infrastructural factors like access to all-weather roads and access to markets that influence farmers’ production decisions.

Warehouse receipt-based financing (WRF), an innovative instrument with its structure embedded in the agricultural value chain can potentially address farmers' concerns about timely credit access and accessible remunerative markets. However, studies indicate farmers' exclusion from currently practiced WRF mechanisms across developing countries. Transaction cost and lack of assured remunerative markets post storage are the challenges thwarting farmers' participation. The study explores how these challenges can be addressed by analyzing a case study. The finding will help in coming up with a farmer-inclusive WRF mechanism.

The study uses a case study as an analysis tool. Primary data is gathered through farmers. Descriptive statistics and partial least squares (PLS) approach to structural equation modeling methodology has been adopted for empirical testing of the hypothesis of the study. The study uses SMART PLS 3.0 for analysis of data.

Single window offering of multiple value chain operations and technological intervention in physical handling substantially reduces transaction costs for farmers. Sustained farmers' participation in the case supports this finding. The presence of an assured market (PAM) is found to have a positive and significant relationship with WRF in the case of beneficiary farmers. The PAM is found to have a negative yet significant relationship with WRF in the case of nonbeneficiary farmers. Critical success factors of the entity KisanMitra stated in the case substantiates a farmer-inclusive WRF mechanism.

The study analyzes a case study of specific geography. However, similarities enlisted across developing countries in the introduction section provide a scope of generalization of findings across developing countries. The identified factors for a farmer-inclusive WRF mechanism will enable the governments, policymakers and development institutions to ascertain and align their WRF implementation measures to inculcate and upgrade these factors to the prospective WRF agents. Future studies can explore the replication of farmer-inclusive WRF mechanisms across other geographies. The studies also explores the role of technological interventions in further reducing the transaction cost and suitable policy modifications to encourage replication of the study in other geopgraphical context.

The study on WRF and the methodology adopted is first of its kind to identify factors for a farmer-inclusive WRF mechanism.

This paper aims to explore the relationship between prudence in risk attitudes and patience of time preference of Chinese apple growers regarding off-farm cold storage of production and marketing in non-harvest seasons. The authors also consider the effect of farmer participation in cooperative-like organizations known as Farm Bases (FBs).

The authors use multiple list methods and elicitation strategies to measure Chinese apple farmers' risk attitudes and time preferences. Because these farmers can either sell their apples immediately to supermarkets or intermediaries or place them in storage, the authors assess correlations between their storage decisions and their preferences regarding risk and time. The authors also differentiate risks involving gains and losses and empirically examine individual risk attitudes in different scenarios.

Marketing decisions are moderately associated with risk attitudes but not time preference. Farmers with memberships in local farmer cooperatives are likely to speculate more in cold storage. Thus, risk aversion behavioral and psychological motives affect farmers' decision-making of cold storage and intertemporal marketing activities. However, membership in cooperatives does not always result in improved income and welfare for farmers.

The research confirms that behavioral factors may strongly drive vulnerable smallholder farmers to speculate into storage even under seasonal and uncertain marketing volatility. There is the need to think deeper about the rationale of promoting cooperatives and other agricultural forms, because imposing these without careful consideration can have negative impacts.

Do risk and time preferences affect the decision of farmers to utilize storage facilities? This question is important because it is not clear if and how risk preferences affect the tradeoff between consuming today and saving for tomorrow, especially for farmers in developing countries.

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.

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.

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.

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.

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.

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.

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.

Large-scale farm management in China has developed rapidly in recent years. Large-scale farmers face substantial operating risks, requiring extensive price risk management. However, the agricultural insurance and futures markets in China are incomplete. This study aims to analyze the price-risk-management behaviors of large-scale farmers under incomplete market conditions, with a focus on the interconnections between large scale farmers' subjective preferences (risk preferences, time preferences), liquidity constraints and their price risk management.

The authors construct an analysis framework to reveal the impact of large-scale farmers' risk preferences, time preferences and liquidity conditions on their price-risk-management behaviors under incomplete market conditions. Using data from field surveys and subjective preference experiments involving 409 large-scale grain farmers in China, an empirical analysis was conducted using the bivariate probit model.

The results show that risk-averse farmers will use risk transfer (such as contract farming) and risk diversification (such as multi-period sales) to avoid price risk. However, farmers subject to liquidity constraints and strong time preferences will not choose risk diversification, and the interaction between time preferences and liquidity constraints will strengthen this decision. The larger the farm-management scale, the greater the impact.

The authors focus on rapidly developed large-scale farm management in China. Appropriate price risk management is required by large-scale farmers due to their substantial operating risks. Considering the incomplete conditions of agricultural insurance and futures markets, the results of this study will help identify behavioral characteristics of large-scale farmers and optimize their price-risk-management strategies, further stabilizing large-scale farm management.

Efforts to reduce farmers' market risks and improve buyers' access to farm commodities have encouraged contract farming (CF) in Ghana's cashew sector in recent years. Consequently, the existence of CF shows that farmers who use it may be benefiting from it, as it is their economic responsibility to decide how to sell agricultural products. However, the magnitudes of these benefits or otherwise have been inadequately explored. This paper aims to empirically estimate the impact of CF on farm performance and welfare of smallholder cashew farmers.

The study used probit-two-stage least square (probit-2sls) as a primary estimator to account for self-selection bias and endogeneity that could arise from both observed and unobserved heterogeneities among farming households to estimate the causal effects of CF on farm performance and household welfare.

The results indicated that participation in CF contribute significantly to the gains in farm performance (price margins, yields and net farm revenue) and welfare (consumption expenditure per capita), and that the non-participants of CF would have benefited substantially if they had participated. An analysis of the farm size disaggregated into small, medium and large with regards to the outcome variables produces mixed results.

It can be concluded that participating in CF enhances farm performance and household welfare.

While many other studies do not account for changes in farm performance and welfare due to differences in farm size or other observed factors, this study fills a crucial void.

Food systems research is typically focused on productivity and efficiency. But in the face of impending challenges of climate, investment, markets, and incomes small holders may do well to shift to diversity and sufficiency. The transition requires institutions such as Farmer Producer Organisations (FPOs) to play the role of intermediaries. This paper aims to understand this challenging phenomenon using a case from India.

In this article, drawing from the emerging literature of PO as a sustainability transition intermediary, this paper uses the case study of a women-owned FPO and explores its role in contributing to sustainable food systems through practices of non-pesticide management of agriculture. This paper explores, through non-participant observer methods, focus group discussions and interviews with multiple stakeholders how an FPO embeds sustainability in its purpose and the challenges faced in transforming producer and consumers towards sustainable food systems.

The study argues for early articulation of the “sustainability transition intermediary” role in the FPO’s vision and mission. Second, FPOs’ role of being a transition intermediary is impacted by the key stakeholders and the durability of relationship with them.

By studying FPOs in India, from the framework of sustainability transitions, this article adds to the limited literature that looks as POs as sustainability transition intermediaries.

Collaboration in agricultural value chains (AVCs) has the potential to increase smallholders’ participation in international value chains and increase their benefits from participation. This scoping review explores existing collaboration models among stakeholders of AVCs in developing countries, examines enablers and constraints of collaboration and identifies policy gaps.

We systematically searched three databases, CAB Abstracts, Econlit (EBSCO) and Agricola, for studies published between 2005 and 2023 and included 59 relevant studies on AVC collaboration.

The primary motivations for collaboration are to enhance market access and improve product quality. Key outcomes of collaboration include improvements in farmers’ welfare, market participation and increased production; only a few studies consider improved risk management as an important outcome. Robust support from government and non-governmental entities is a primary enabler of collaboration. Conversely, conflicts of interest among stakeholders and resource limitations constrain collaboration possibilities. Collaboration involving high-value crops prioritizes income increases, whereas collaboration involving staple crops focuses on improving household food security.

This study may have publication bias as unsuccessful instances of collaboration are less likely to be published.

This study is unique in highlighting collaboration models’ characteristics and identifying AVC policy and programmatic areas where private firms, farmers’ groups, local governments and donor agencies can contribute.

Buying directly from farmers online has become increasingly popular in recent years. This study aims to investigate the effect of the interaction between various consumption values that drive consumers to buy directly from farmers online. The proposed conceptual framework suggests that consumers who buy online directly from farmers are driven by an interaction of weighted individualistic consumption value (i.e. an integration of values such as saving money, getting quality and fresh produce) and collectivistic values (pro-environmental behaviour and ethnocentric perception).

Data were collected using a representative sample of 576 consumers via an online access panel and analysed using AMOS SEM.

A weighted individualistic consumption value affects consumer attitudes and, consequently, consumers' intention to buy agri-food products directly from farmers. Nonetheless, individualistic consumption value is more effective in enhancing attitudes among consumers with high pro-environmental behaviour. Moreover, ethnocentric perception lowers the effect of individualistic consumption value on attitudes and enhances the positive effect of attitudes on buying intention.

This study contributes to the literature on consumer online behaviour when buying food products directly from farmers. Its originality lies in the effect of interacting individualistic and collectivistic consumption values to explain consumer motivation for this behaviour.