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We analyzed the effects of different combinations of organic soil amendments (OSAs) and chemical fertilizers on agrifood production, focusing on banana yields in China, the second-largest producer of bananas globally.

We computed these combinations by dividing the expenditures on OSAs by those on chemical fertilizers and called them OSA-CF ratios. First, we classified farmers based on quintiles of expenditures on chemical fertilizers. Then, we studied the association between OSA-CF ratios and banana yields for each quintile. We also considered an alternate specification in which farmers were grouped along the OSA-CF ratio continuum. The first group comprised farmers not using OSAs. Their OSA-CF ratio was zero. Farmers applying low, medium, and high OSA-CF ratios constituted groups two, three, and four; the groups were delineated based on the OSA-CF ratio tertiles, and the associations between tertiles of OSA-CF ratios and banana yields for each quintile were analyzed. The data used in this study were collected by surveying 616 households in three major banana-producing provinces (Guangdong, Hainan, and Yunnan) of China. Standard linear regressions and the two-stage predictor substitution method were employed to complete the analysis.

There were variations in the effects of OSA-CF ratios on banana yields obtained by farmers iifferent quintiles. For the first and second quintiles, low, medium, and high OSA-CF ratios improved banana yields relative to not using OSAs. For farmers in the first quintile using only chemical fertilizers, applying a low OSA-CF ratio was associated with an improvement of 792 kg/mu in banana yields. For their counterparts in the second quintile, the same transition was associated with a gain of 534 kg/mu. For the fifth quintile, comprising farmers spending 320 yuan/mu or more on chemical fertilizers, applying a high OSA-CF ratio instead of using only chemical fertilizers was associated with a 401 kg/mu decline in banana yields. Even so, for this group, no differences were observed between the yields of farmers not applying OSAs and those using low and medium OSA-CF ratios.

Banana farmers in southern China, using only chemical fertilizers, can improve yields by combining them with OSAs if their chemical fertilizer expenditures are less than 66.67 yuan/mu. Those using only chemical fertilizers and spending between 68 yuan/mu and 300 yuan/mu on them can maintain yields by applying OSAs in conjunction with chemical fertilizers. However, yields may decline for farmers using only chemical fertilizers and spending 320 yuan/mu or more on them if they incorporate OSAs such that the OSA-CF ratio reaches 0.78 or higher. Overall, combining OSAs with chemical fertilizers can improve yields while attenuating the adverse effects of chemical fertilizers on the environment. Policymakers should inform farmers of these benefits and accelerate the transition to sustainable agriculture through educational and awareness programs.

Farmers apply OSAs such as organic fertilizers and farmyard manure to adjust and remedy soil nutrition to improve farm productivity. However, little is known about how combining OSAs with chemical fertilizers affects banana yields. This study provided the first attempt to explore the associations between OSA-CF ratios and banana yields using cross-sectional data on farming households.

The purpose of the study is to estimate the willingness to pay (WTP) for major chemical fertilizers and revisit the fertilizer subsidy policy in Nepal.

We surveyed 619 households from six districts and assessed farmers’ WTP for urea, diammonium phosphate (DAP) and muriate of potash (MOP) during the fertilizer crisis. Our study elicited the WTP for fertilizers when fertilizers were not available on the market. A modified payment card approach was used to elicit farmers’ WTP.

The study found that farmers who buy fertilizer from agrodealers, buy from gray markets, have bank accounts, are willing to take a risk, have strong or medium economic conditions and incur higher travel costs have a higher WTP for fertilizers. Farmers in sampled areas, on average, are willing to pay 31 percent more for urea, 13 percent more for DAP and 19 percent more for MOP than the government recommended fertilizer price.

The design of the payment card and the estimation techniques used to fit the valuation function are likely to influence WTP.

Overall, literature on households’ WTP for fertilizers in developing countries is scarce. Our study contributes to the knowledge of WTP for fertilizers.

Upon completion of this case study, students are expected to be able to reflect on strategic industry sectors and the formulation of long-view public policies; understand some of the main biases that affect making decisions in environments of high uncertainty; and build and apply judgment models to support decision-making processes.

Motivated by recent international events responsible for causing supply shock and great volatility in the price of imported fertilizers, Brazil, which in 2022 was responsible for producing only 15% of all the fertilizer consumed by its agribusiness, ran against time by launching a new national fertilizer plan (PNF). The plan proposed to boost Brazil’s national fertilizer industry to fulfil a long-term vision of reducing the country’s external dependence by 2050. While awaiting the first results of the PNF, this case study casts the student participants in the role of Breno Castelães, chief advisor of the special secretariat for strategic affairs of the presidency of the republic, whose role is to recommend the country’s position in the face of external pressures to adopt international embargoes of Russian fertilizers because of its war with Ukraine.

This case study is suitable for undergraduate and graduate students of business administration and public management courses who want to deal with topics such as public policy, judgment and decision-making.

Teaching notes are available for educators only.

CSS 10: Public sector management.

The modernization of the agro-based industry has encouraged the application of inorganic fertilizers to increase productivity. However, such fertilizer emissions may pose harmful environmental effects in the long run. This study aims to empirically explore the matter by applying the environmental Kuznets curve (EKC) hypothesis in the Indian agro-based industry.

The study builds two models considering nitrous oxide emission levels from inorganic (synthetic) and organic (manure) fertilizers to evaluate the safer option for the environment. The validity of an industry-specific EKC (IEKC) is tested for the models considering time series data from 1975 to 2019. Here, the autoregressive distributed lag model is applied for the 45 years long time series analysis to test the hypothesis with respect to inorganic and organic fertilizers emissions.

The existence of the IEKC is rejected by the inorganic fertilizer emissions model. Its U-shaped curve implies that applying such fertilizers will gradually cause degrading environmental effects. On the other hand, the organic fertilizer emissions model supports the existence of an inverted U-shaped IEKC. It proves that organic fertilizers are a better choice for safeguarding the environment in the long run.

Applying the EKC hypothesis on an industrial level can signify whether an industry worsens the environment in the long run. However, very few studies have explored such an application of the hypothesis in the past. Moreover, the literature could not find any previous study exploring the environmental effects of inorganic and organic fertilizers by analyzing the EKC hypothesis. The hypothesis can offer such insights with simplified empirical assessment.

The authors investigated cocoa farmers' access to subsidized fertilizer in Ghana and implications on productivity.

Primary data were sourced from 435 cocoa farmers. Cragg hurdle and two-step Tobit model with continuous endogenous regressors/covariates were applied for the drivers of cocoa farmers' participation in fertilizer subsidy programme and productivity. Propensity score matching (PSM), inverse-probability weights (IPW) and augmented inverse-probability weights (AIPW) were applied for productivity impact assessment of fertilizer subsidy.

All the farmers were aware of fertilizer subsidy for cocoa production in Ghana. Farmers became aware of fertilizer subsidy through extension officers, media and other farmers. Half of cocoa farmers benefitted from fertilizer subsidy. Averagely, cocoa farmers purchased 292 kg of subsidized fertilizer. Many socio-economic, farm-level characteristics and institutional factors determine cocoa farmers' participation in fertilizer subsidy programme, quantity of subsidized fertilizer obtained and productivity. Beneficiaries of fertilizer subsidy recorded higher cocoa productivity than non-beneficiaries. Hence, fertilizer subsidy for cocoa production in Ghana leads to a gain in productivity.

There should be more investments in fertilizer subsidy so that all cocoa farmers benefit and obtain the required quantities.

The authors provide new evidence on cocoa productivity gain or loss emanating from fertilizer subsidy by combining different impact assessment techniques for deeper analysis: PSM, IPW and AIPW.

There is an urgent need to develop climate-smart agrosystems capable of mitigating climate change and adapting to its effects. Conventional agricultural practices prevail in Mauritius, whereby synthetic chemical fertilizers, pesticides and insecticides are used. It should be noted that Mauritius remains a net-food importing developing country of staple food such as cereals and products, roots and tubers, pulses, oil crops, vegetables, fruits and meat (FAO, 2011). In Mauritius, the agricultural sector faces extreme weather conditions like drought or heavy rainfall. Moreover, to increase the crop yields, farmers tend to use 2.5 times the prescribed amount of fertilizers in their fields. These excess fertilizers are washed away during heavy rainfall and contaminate lakes and river waters. By using smart irrigation and fertilization system, a better management of soil water reserves for improved agricultural production can be implemented. Soil Nitrogen, Phosphorus and Potassium (NPK) content, humidity, pH, conductivity and moisture data can be monitored through the cloud platform. The data will be processed at the level of the cloud and an appropriate mix of NPK and irrigation will be used to optimise the growth of the crops. Machine learning algorithms will be used for the control of the land drainage, fertilization and irrigation systems and real time data will be available through a mobile application for the whole system. This will contribute towards the Sustainable Development Goals (SDGs): 2 (Zero Hunger), 11 (Sustainable cities and communities), 12 (Responsible consumption and production) and 15 (Life on Land). With this project, the yield of crops will be boosted, thus reducing the hunger rate (SDG 2). On top of that, this will encourage farmers to collect the waters and reduce fertilizer consumption thereafter sustaining the quality of the soil on which they are cultivating the crops, thereby increasing their yields (SDG 15).

The fertilizer industry (FI) is well known for its high energy needs, reliance on limited natural resources, and negative environmental impacts (EIs). The consumption of 14.2 billion tons (BT) of materials and the extraction of 1,580 tons of resources per acre are solely attributed to the FI. Because of FI's resource and energy-intensive nature, it becomes crucial for FI to adopt a Circular Economy (CE) to improve efficiency, energy, and resource reuse. However, FI needs to strengthen its progress toward CE adoption. The proposed study comprehends and examines the barriers that inhibit the adoption of CE in FI.

A total of 15 barriers obstructing the CE in FI are identified and categorized into seven different categories. The barriers were identified by performing a comprehensive literature review and expert input. The study employs the DEMATEL approach to analyze the barriers and establish a causal relationship between them.

The study reveals that the most significant challenge to implementing CE in FI is governmental restrictions, which are followed by a lack of awareness and understanding and a need for a steady supply of bulk materials. The results comprehensively comprehend the pivotal factors that jeopardize the CE in FI and furnish a robust foundation for the methodology and tactics to surmount the barriers to CE adoption.

The literature review encompasses the barriers to the transition to CE and offers management and policy perspectives that help the FI's policy and decision-makers surmount these barriers with future research endeavors.

This study aims to examine the effects of climate change and agricultural technologies on crop production in Vietnam for the period 1990–2018.

Several econometric techniques – such as the augmented Dickey–Fuller, Phillips–Perron, the autoregressive distributed lag (ARDL) bounds test, variance decomposition method (VDM) and impulse response function (IRF) are used for the empirical analysis.

The results of the ARDL bounds test confirm the significant dynamic relationship among the variables under consideration, with a significance level of 1%. The primary findings indicate that the average annual temperature exerts a negative influence on crop yield, both in the short term and in the long term. The utilization of fertilizer has been found to augment crop productivity, whereas the application of pesticides has demonstrated the potential to raise crop production in the short term. Moreover, both the expansion of cultivated land and the utilization of energy resources have played significant roles in enhancing agricultural output across both in the short term and in the long term. Furthermore, the robustness outcomes also validate the statistical importance of the factors examined in the context of Vietnam.

This study provides persuasive evidence for policymakers to emphasize advancements in intensive agriculture as a means to mitigate the impacts of climate change. In the research, the authors use average annual temperature as a surrogate measure for climate change, while using fertilizer and pesticide usage as surrogate indicators for agricultural technologies. Future research can concentrate on the impact of ICT, climate change (specifically pertaining to maximum temperature, minimum temperature and precipitation), and agricultural technological improvements that have an impact on cereal production.

To the best of the authors’ knowledge, this study is the first to examine how climate change and technology effect crop output in Vietnam from 1990 to 2018. Various econometrics tools, such as ARDL modeling, VDM and IRF, are used for estimation.

Smallholders are essential in ensuring food security; however, smallholder-dominated food production often involves high resource-environmental costs. This study analyzed the factors that differentiate horticultural practices, willingness to adopt technology and social networks between optimized practices (OPT) and farmer practices (FP) to provide localized and systematic solutions for the sustainable apple production.

To explore the approach of smallholder-dominated sustainable apple production, 257 apple producers in the Bohai Bay region, a major apple planting area in China, were investigated. Life cycle assessment (LCA), emergy analysis and social network analysis methods were used for evaluation.

The results showed that the net economic profit and emergy sustainability index (ESI) in OPT was 15.8 × 104 RMB·ha-1 and 1.2, respectively, which were 126.9 and 128.0% higher than FP. In contrast, greenhouse gas (GHG) emissions under OPT was 29.3% lower than those under FP. OPT has a higher percentage of adoption of scientific fertilizer application and water-saving irrigation technologies compared to FP. OPT has strong learning abilities, more social resources (such as technical training and sharing technical experience with others) and connections with stakeholders in the apple supply chain. Optimizing smallholders' social capital, willingness to adopt technology, behavioral willingness and technological awareness can promote sustainable apple production.

Considering the horticultural practices employed by smallholders in conjunction with their social networks, these factors contributed to the transition of smallholder-led apple production toward sustainability. The findings provided viable options and a theoretical basis for smallholder-dominated crop production to move toward sustainability, with significant implications for policymakers.

There will probably be nine billion people on the earth by 2050, meaning food consumption will rise dramatically. Pakistan, the fifth most populous nation in the world, is rapidly expanding its population, making it difficult for the nation to sustain its food supply. Unfortunately, the country's focus on ensuring food security has not kept up with the demographic shifts in its population. However, innovative solutions are sorely needed in the face of several worldwide problems, especially in the crucial agriculture sector. This underscores the need to integrate sustainable financial practices. Considering these circumstances, this research thoroughly examines the intricate relationship inside Pakistan between financial stability (FS), agricultural subsidies, and productivity. Acknowledging the underlying intricacies and asymmetries at work, this study aims to analyze the complex relationships influencing the nation's agricultural production.

The research tries to shed light on the subtle processes at the intersection of financial stability, agricultural subsidies, and agricultural productivity through a comprehensive investigation of these multiple challenges. A non-linear autoregressive distributive lag (NARDL) technique is used, using a dataset from 1980 to 2022.

The results show that FS has a mixed impact on agricultural productivity, both positive and negative. Increasing FS_POS has a beneficial influence on agricultural output, linked to a notable 1.404% increase in output. On the other hand, increasing FS_NEG causes a significant 11.441% decrease in agricultural output, demonstrating its negative impact on output. Subsidies for agriculture also have asymmetric impacts; SUB_POS and SUB_NEG influence variations in agricultural productivity. A substantial 2.414% rise in agricultural output is shown by SUB_POS, demonstrating its noteworthy beneficial influence. Conversely, SUB_NEG adds a relatively small increase of 1.659% in agricultural output. However, the different amounts of each person's contribution show how subtle their effects are.

The current study is limited to the relationship between financial stability, agricultural subsidies, and agricultural productivity, considering the inherent complexity and asymmetries at work in Pakistan only. Further studies are required in Asian markets to have a bigger picture of the agricultural sector.

Considering these critical empirical findings, the report recommends strategic strategies to promote long-term agricultural growth in Pakistan. These include providing integrated financial services customized to farmers' needs, such as credit, insurance, and savings alternatives. Transparency and efficiency in procedural frameworks and the formation of efficient public-private partnerships should be prioritized. Furthermore, improving agricultural subsidy schemes emerges as a crucial priority. Targeting marginalized farmers more effectively and optimizing distribution through transparent, digitally driven systems can significantly improve program performance.