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Article
Publication date: 11 April 2024

Madhuri Saripalle and Vijaya Chebolu-Subramanian

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…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Social implications

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.

Originality/value

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.

Details

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

Keywords

Article
Publication date: 13 December 2023

Rajiv Gurung, Manesh Choubey and Runa Rai

Farmer producer organisations (FPOs) are considered as a strategy to improve the livelihoods of small farmers through economies of scale by providing collective strength to…

Abstract

Purpose

Farmer producer organisations (FPOs) are considered as a strategy to improve the livelihoods of small farmers through economies of scale by providing collective strength to farmers for improved access to production technology, value-addition services, high-quality inputs and marketing services for improving their incomes. This study investigates the impact of FPO membership on organic farming household's income in Northeast India.

Design/methodology/approach

This study uses field survey data collected from all four districts of Sikkim. Primary data were obtained from a survey of 560 organic farming households, 280 of which are FPO members and the rest 280 are non-members. Propensity score matching (PSM) is used to estimate the impact of FPO membership on net returns, return on investment (ROI) and profit margin.

Findings

Results show that the FPO members had, on average, Rs. 7,254–8,133 higher annual net returns, 4.6–4.8% higher ROI and 8–8.4% higher profit margin than the non-members. The findings confirm that FPO membership has a positive and significant impact on net returns, return on investment and profit margin. Also, heterogeneity analysis indicates that FPO membership has larger positive impact on relatively bigger farmers and female-headed households.

Research limitations/implications

As the study was based on a cross-sectional survey, the findings may be subjected to some limitations.

Originality/value

This study is based on a novel data set, collected specifically to examine the economic impact of FPO membership on organic farming in India.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2023-0451

Details

International Journal of Social Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 29 June 2023

Annkathrin Wahbi, Yaw Sarfo and Oliver Musshoff

Digital credit is spreading rapidly across Sub-Saharan Africa and holds potential for financial inclusion and female financial autonomy. Women in developing economies have long…

Abstract

Purpose

Digital credit is spreading rapidly across Sub-Saharan Africa and holds potential for financial inclusion and female financial autonomy. Women in developing economies have long been targeted by microfinance institutions due to the women’s reliability and positive spillover effects. Yet, adoption rates for digital financial innovations remain moderate among rural women in Sub-Saharan Africa. The authors explore whether female preferences for digital and conventional credit differ from males.

Design/methodology/approach

The authors conduct a Discrete Choice Experiment with 420 smallholder farmers in central Madagascar, one of the region's poorest countries, to assess preferences for selected digital and conventional credit attributes.

Findings

Results of the mixed logit model and the comparison of the willingness-to-pay via Poe-test suggest high general demand for both credit forms. The demand of female respondents is higher than that of males, suggesting that they might be underserved. This holds for both credit forms. However, differences in willingness to pay for the credit attributes are mostly not statistically significant, indicating that designing gender-specific services may not be advisable.

Originality/value

This article is believed to be the first to assess and compare gendered willingness to pay for digital and conventional credit. The study’s findings give valuable insights to decision-makers in development politics as well as the fintech industry.

Details

Agricultural Finance Review, vol. 83 no. 4/5
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 5 February 2024

Navjot Sandhu, Javed Hussain and Jonathan M. Scott

The study evaluates small marginal farmers’ (SMFs) potential behavior, attitude and trust in the adoption of innovative emerging technologies.

Abstract

Purpose

The study evaluates small marginal farmers’ (SMFs) potential behavior, attitude and trust in the adoption of innovative emerging technologies.

Design/methodology/approach

The study employed an agile multi-factor approach to conceptualize a digital marketplace to connect a supply chain ecosystem for stakeholders.

Findings

The empirical findings suggest that most SMFs are willing to embrace innovative technologies. Nonetheless, they lack the necessary technological oriented education, training and funds to innovate. However, their reluctance to adapt changes is attributable to their fear of losing past customs and practices; they were threatened by the reaction of intermediaries (arthyias) to the adoption of technologies, which could result in them suffering huge losses.

Originality/value

This innovative disintermediation business model has a significant potential to reduce information asymmetry, cost and hoarding – and can thus increase the SMFs’ profit margins. Agricultural technological innovations have a profound potential to impact their supply chain logistics positively by reducing the wastage of perishable food and thus enhancing the consumer experience.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 30 no. 4
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 16 October 2023

Famin Yi, Lihao Yao, Yucheng Sun and Yi Cai

It is imperative to achieve sustainable growth in farmers' earnings to sustain poverty alleviation efforts and achieve rural revitalization goals. The authors investigated the…

Abstract

Purpose

It is imperative to achieve sustainable growth in farmers' earnings to sustain poverty alleviation efforts and achieve rural revitalization goals. The authors investigated the nature of the non-linear relationship between farmers' e-commerce participation and income growth, analyzed the rationale behind this correlation and examined the moderating effect of digital finance on this relationship.

Design/methodology/approach

The authors conducted an empirical investigation using rural household data from the China Household Finance Survey and the regional digital finance index compiled by Peking University. The authors employed a fixed-effect model and a moderating effect model to identify the non-linear influences of e-commerce participation on farmers' income and to analyze the positive synergies of digital finance. The authors used identification and estimation techniques to mitigate the endogeneity problem, specifically employing heteroscedasticity-based instruments.

Findings

There is an inverted U-shaped relationship between e-commerce participation and farmers' income. Digital finance reduces the declining trend in the marginal effects of e-commerce and increases marginal values. Furthermore, the synergistic effect can promote the quality and efficiency of business activities by easing credit constraints, reducing risk aversion and stimulating innovative activities, which in turn can lead to sustained revenue growth.

Originality/value

Few studies have focused on the non-linear relationship between e-commerce and farmers' income. This implies that achieving sustained income growth using e-commerce alone is difficult. The synergy between e-commerce and digital finance is a feasible path for achieving this goal.

Details

China Agricultural Economic Review, vol. 15 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 26 December 2023

Peng Peng and Zhigang Xu

Large-scale farm management in China has developed rapidly in recent years. Large-scale farmers face substantial operating risks, requiring extensive price risk management…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Originality/value

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.

Details

China Agricultural Economic Review, vol. 16 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

Open Access
Article
Publication date: 22 April 2024

Girma Asefa Bogale

This study aims to explore the smallholder farmers’ perceptions of climate change and its adaptation options (changing crop variety; improved crop and livestock; soil and water…

Abstract

Purpose

This study aims to explore the smallholder farmers’ perceptions of climate change and its adaptation options (changing crop variety; improved crop and livestock; soil and water conservation [SWC]; and irrigation practices) and drought indices in the Dire Dawa Administration Zone, Eastern Ethiopia.

Design/methodology/approach

A cross-sectional household survey was used. A structured interview schedule for respondent households for key informants and focus group discussions were used. This study used both descriptive statistics and an econometric model. The model was used to compute the determinants of climate adaptation options in the study area. Drought characterization was carried out by DrinC software.

Findings

The results revealed households adapted to selected adaptation options. The model results confirmed that education level, farm size, tropical livestock units (TLUs) and access to agricultural extension services have positive and significant impacts on changing crop variety by 0.0014%, 0.045%, 0.032% and 0.035%, respectively. The likelihood of farmers’ decisions to use adaptation strategies (family size, TLU, agricultural extension service and distance from the market) has positive and significant impacts on SWC. The reconnaissance drought index (RDI6) of ONDJFM and AMJJAS showed extreme and severe drought index values of −2.88 and −1.96, respectively.

Originality/value

This study used a locally adopted climate change adaptation intervention for smallholder farmers, revealing the importance of drought characterization indices both seasonally and annually.

Details

International Journal of Climate Change Strategies and Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1756-8692

Keywords

Article
Publication date: 22 April 2024

Qiqi Liu and Tingwu Yan

This paper investigates the ways digital media applications in rural areas have transformed the influence of social networks (SN) on farmers' adoption of various climate change…

Abstract

Purpose

This paper investigates the ways digital media applications in rural areas have transformed the influence of social networks (SN) on farmers' adoption of various climate change mitigation measures (CCMM), and explores the key mechanisms behind this transformation.

Design/methodology/approach

The study analyzes data from 1,002 farmers’ surveys. First, a logit model is used to measure the impact of SN on the adoption of different types of CCMM. Then, the interaction term between digital media usage (DMU) and SN is introduced to analyze the moderating effect of digital media on the impact of SN. Finally, a conditional process model is used to explore the mediating mechanism of agricultural socialization services (ASS) and the validity of information acquisition (VIA).

Findings

The results reveal that: (1) SN significantly promotes the adoption of CCMM and the marginal effect of this impact varies with different kinds of technologies. (2) DMU reinforces the effectiveness of SN in promoting farmers' adoption of CCMM. (3) The key mechanisms of the process in (2) are the ASS and the VIA.

Originality/value

This study shows that in the context of DMU, SN’s promotion effect on farmers' adoption of CCMM is strengthened.

Details

China Agricultural Economic Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 14 June 2022

Pandaraiah Gouraram, Phanindra Goyari and Kirtti Ranjan Paltasingh

This paper examines the determinants of concurrent adoption of farm risk management strategies by rice growers in two different ecosystems of Telangana agriculture-irrigated and…

Abstract

Purpose

This paper examines the determinants of concurrent adoption of farm risk management strategies by rice growers in two different ecosystems of Telangana agriculture-irrigated and rainfed ecosystems.

Design/methodology/approach

The primary data have been collected from the rice growers in two different ecosystems, and after checking the variance inflation factor (VIF) for controlling multicollinearity, a multinomial logit model has been used to examine the determinants of concurrent adoption of coping strategies by rice growers.

Findings

The study finds that adopting one risk management strategy persuades farmers to embrace other strategies, reducing the risk in agriculture between the two ecosystems. Among the determinants, farmers' age, education, contact with extension services, irrigation sources, livestock income, total farm income, crop loss reasons, and crop insurance awareness significantly influence the adoption of various risk management measures. However, considerable heterogeneity is found among the driving forces across the rice ecosystems.

Research limitations/implications

The major policy implications that can be drawn from the analysis are increased access to information through government-funded extension services and the provision of alternative risk management technologies, such as drought-resistant or flood-resistant seeds, farmers' field schools and increased provision of crop insurance, farmer-friendly agriculture extension services, and farm investment support, are critical for assisting farmers managing risks. In addition, however, there should be ecosystem-specific policies to tackle the ecosystem heterogeneity.

Originality/value

This paper is very timely and entails some relevant policy implications for the development of Indian agriculture.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 14 no. 2
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 14 November 2023

Mark Eghan and Charles Adjasi

This paper aims to test the impact of remittances receipt on agricultural productivity. The paper empirically assesses whether heterogeneity in economic activity of farming…

Abstract

Purpose

This paper aims to test the impact of remittances receipt on agricultural productivity. The paper empirically assesses whether heterogeneity in economic activity of farming households affects the effects of remittances on productivity of tradable and nontradable crop farming households in Ghana.

Design/methodology/approach

The authors employ propensity score matching (PSM) methods to address potential endogeneity issues that could arise from the estimation due to selection bias. This paper uses the seventh round of Ghana living standard survey dataset for Ghana.

Findings

The authors find that, the involvement of farming households in other economic activities alters the impact of remittances on crop yield. This differential impact also varies according whether the crop is tradeable or not.

Practical implications

Policy can reduce the cost of sending remittances and include financial literacy modules in the farmer training modules to increase farmers' knowledge on investment of remittance in agricultural production.

Originality/value

The authors distinguish the paper from others by controlling for crop types (particularly tradeable or otherwise and gestation period), farming of a second or more crops and engagement of smallholder farmers in nonfarm economic activities.

Details

Agricultural Finance Review, vol. 83 no. 4/5
Type: Research Article
ISSN: 0002-1466

Keywords

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