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Article
Publication date: 2 February 2022

Chang Xu, Baodong Cheng and Mengzhen Zhang

This article's purpose is to examine the effect of a Classification-Based Forest Management (CFM) program on farmers' income and determine whether its effect varies with the…

Abstract

Purpose

This article's purpose is to examine the effect of a Classification-Based Forest Management (CFM) program on farmers' income and determine whether its effect varies with the degree of farmers' concurrent occupations.

Design/methodology/approach

The authors use representative panel survey data from Longquan to explore the welfare effects of CFM on farmers. The analysis uses differences-in-differences with propensity score matching (PSM-DID) estimation techniques to deal with endogeneity problems when farmers make the decision to participate in CFM.

Findings

The results show that CFM has a positive effect on part-time forestry households (where forestry income accounts for between 5 and 50% of total income). In contrast, it has a negative impact on full-time forestry households (forestry income accounts for more than 50%), and no clear effect on nonforestry households whose forestry income is less than 5%. This research also shows that the positive effect of CFM on farmers' total income is mainly due to increase of off-farm income driven by CFM, while the negative effects consist of CFM's reduction of forestry income.

Originality/value

The extent of CFM's economic benefits to farmers is uncertain and largely unexplored. This paper analyzes the impact of CFM on income structure to explore the mechanisms explaining its effects on farmers' income. There are still challenges in ensuring the reliability and accuracy of CFM assessment. This paper collected natural experimental data and used the estimation technology of PSM-DID to solve the possible endogeneity problems.

Details

China Agricultural Economic Review, vol. 14 no. 3
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 13 June 2019

Xiaoqiang Ma, Jiaqi Wang, Ling Zhao and Jinmian Han

The purpose of this paper is to investigate empirically the effects of different dimensions of social capital on the well-being of farmers in China’s undeveloped poverty-stricken…

Abstract

Purpose

The purpose of this paper is to investigate empirically the effects of different dimensions of social capital on the well-being of farmers in China’s undeveloped poverty-stricken areas, and study the equivalent multiple of social capital and income compensation.

Design/methodology/approach

The paper opted for an exploratory study using the open-ended approach of grounded theory, including 1,176 interviews with rural households in poverty-stricken areas in China. The data were complemented by documentary analysis. Then an econometric model of social capital and farmers’ well-being was applied to the data.

Findings

The results show that the number frequently visiting relatives, reciprocity, participation and trust level are significantly positively related to the well-being of the farmers, and the level of participation in social capital requires the most income compensation, while the level of trust comes second.

Originality/value

This paper can serve as a template for developing a useful tool that can be fitted to national or regional data for studying the effects of social capital on the well-being of farmers in poor areas or countries and for calculating the concrete equivalent multiple of social capital and income compensation.

Details

China Agricultural Economic Review, vol. 12 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 8 June 2015

Sitakanta Panda

The purpose of this paper is to examine the differences in the rural household agricultural income by farmers’ education while exploiting a nationally representative household

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Abstract

Purpose

The purpose of this paper is to examine the differences in the rural household agricultural income by farmers’ education while exploiting a nationally representative household survey data set, i.e. the India Human Development Survey-2005, in the rural Indian context. The author seeks to answer the question: how much variation in the household net agricultural income per acre of land cultivated can farmers’ education explain?

Design/methodology/approach

The author has employed the ordinary least squares regression model with village fixed effects. The author also analysed the data using some exploratory statistics.

Findings

The author finds that farmers’ education significantly increases the net household farm income per acre of land cultivated last year. The results are robust to the inclusion of the five educational degree categories (dummies) in lieu of the years of schooling variable. The results are also robust to its decomposition into that for men and for women separately. Women farmers’ education has an amplified impact on farm incomes. The author also confirms the inverse relationship between the household agricultural income and land area cultivated, which is consistent with the huge literature on the negative relationship between land size-class and farm productivity.

Practical implications

In a developing country with a not-so-modernized agriculture sector and low adoption of newer farming technologies, this validated importance of education in explaining the differences in rural farm earnings has guiding policy implications in that a positive return to farmer schooling signals the need for increased investments in the farmers’ education and awareness so as to enhance farm incomes and productivity. The special policy thrust on education of women and women farmers is critical to ensuring higher farm incomes and outcomes.

Originality/value

The literature on the impact of farmers’ education on rural household agricultural income is very sparse. To the best of the author’s knowledge, this issue has not been addressed before in the Indian context. The author explains the contribution of farmer education to farm income in rural Indian households. The author also revisits the negative relationship between farm income and land size holdings in the Indian agriculture.

Details

International Journal of Social Economics, vol. 42 no. 6
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 13 August 2020

Xin Deng, Dingde Xu, Miao Zeng and Yanbin Qi

Previous studies focused on the influence of outsourcing (labor division) on productivity, especially in the industrial economy. However, few studies have focused on how labor…

Abstract

Purpose

Previous studies focused on the influence of outsourcing (labor division) on productivity, especially in the industrial economy. However, few studies have focused on how labor division in agriculture affects agricultural productivity. To bridge this gap, this study uses survey data from 4864 farmer households in China to explore the impacts of outsourcing on agricultural productivity.

Design/methodology/approach

This study employs an endogenous switching regression to account for selection bias and a counterfactual framework to measure the degree of influence. Thus, this study analyzes determinants of outsourcing and the impacts of outsourcing on agricultural productivity under the same framework.

Findings

The results revealed the following. (1) Farmer households with the below average productivity tended to outsource; conversely, farmer households with the above average productivity tended to cultivate the land by themselves. (2) Productivity increased by 25.61% for farmer households who choose to outsource. Moreover, if nonoutsourcing farmer households would choose to outsource, their productivity would increase by 10.86%.

Originality/value

This study furthers one’s understanding of how outsourcing affects agricultural productivity among farmer households.

Details

China Agricultural Economic Review, vol. 12 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 29 November 2021

Andi Irawan, Saefudin Saefudin, Melli Suryanty and M. Zulkarnain Yuliarso

This study aimed to determine the impact of the COVID-19 pandemic on the oil palm smallholders' income, which includes both on-farm and off-farm resources.

Abstract

Purpose

This study aimed to determine the impact of the COVID-19 pandemic on the oil palm smallholders' income, which includes both on-farm and off-farm resources.

Design/methodology/approach

This study used a simultaneous equations system for arranging the oil palm household economic model.

Findings

The results showed that the negative effect of demand disruption (decreasing of household income) is more than supply disruption (production declining). Declining household income due to COVID-19 caused farmer households to have no access to both basic need and other goods.

Research limitations/implications

The samples for before-pandemic data differed from the situation during COVID-19 in both the location and the person due to technical constraints in research sites.

Originality/value

The main contribution of this study was providing an empirical understanding of how the COVID-19 pandemic influences the economic behavior of the most vulnerable entities in the Indonesian palm oil industry (oil palm smallholder farmers' households). This study would provide baseline information on the impact of the COVID-19 pandemic on the economy of oil palm smallholder's household income.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 12 no. 3
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 3 July 2017

Collins Asante-Addo, Jonathan Mockshell, Manfred Zeller, Khalid Siddig and Irene S. Egyir

The purpose of this paper is to analyze determinants of farmers’ participation and credit rationing in microcredit programs using survey data from Ghana.

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Abstract

Purpose

The purpose of this paper is to analyze determinants of farmers’ participation and credit rationing in microcredit programs using survey data from Ghana.

Design/methodology/approach

The authors use the Garrett Ranking Technique to analyze farmers’ reasons for participation or non-participation in credit programs, a probit regression model to estimate factors influencing farm households’ participation, and the Heckman’s sample selection model to identify factors influencing farm households’ probability of being credit rationed by microcredit programs.

Findings

The results reveal that farm households participate in credit programs because of improved access to savings services and agricultural loans. Fear of loan default and lack of savings are reasons for non-participation in credit programs. Furthermore, membership in farmer-based organizations (FBOs) and the household head’s formal education are positively associated with farmers’ participation in credit programs. The likelihood of farmers being credit rationed (i.e. their loan applications were either rejected or the amount of credit they applied for was reduced) is less likely among higher income farmers and members of FBOs such as farmer cooperatives and savings clubs.

Practical implications

The findings suggest that policy strategies aiming to improve access to savings and credit services should educate farmers and strengthen FBOs that could serve as entry points for financial service providers. Such market smart strategies have the potential to improve farmers’ access to financial services and reduce rural poverty.

Originality/value

Although existing studies have examined farmers’ participation in credit markets and credit rationing separately, the unique contribution of this paper is the analysis of participation in microcredit programs as well as the likelihood of farmers being credit rationed in Ghana.

Details

Agricultural Finance Review, vol. 77 no. 2
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 16 June 2021

Bismark Amfo, James Osei Mensah, Ernest Baba Ali, Gilbert Dagunga, Seth Etuah and Robert Aidoo

This study investigates implications of crop and income diversifications on consumption expenditure (welfare) of rice-producing households in Ghana. It further compares…

Abstract

Purpose

This study investigates implications of crop and income diversifications on consumption expenditure (welfare) of rice-producing households in Ghana. It further compares diversification by three rice production systems: two-season rain-fed, two-season irrigated and one-season rain-fed rice production.

Design/methodology/approach

Primary data were sourced from 225 rice farmers. Margalef index and three-stage least-squares were employed.

Findings

Majority of rice-farming households in Ghana diversify livelihoods. The extent of livelihood diversification differs among two-season rain-fed, two-season irrigated and one-season rain-fed rice-producing households. Credit, distance to district capitals, production purpose and number of farming seasons influence crop and income diversifications, and consumption expenditure of rice-producing households. While crop diversification reduces consumption expenditure, income diversification increases it. Crop and income diversifications positively influence each other. Consumption expenditure reduces crop diversification but increases income diversification.

Practical implications

Policy should be directed towards the promotion of more livelihood activities to boost rice farmers' welfare. There should be awareness creation and training programmes to enable rice farmers realize different economic activities within and outside the agricultural value chain.

Originality/value

Crop and income diversifications were measured as continuous response variables, unlike previous studies that used a binary response variable. The authors established a synergy among crop and income diversifications, and consumption expenditure (welfare). The authors further compared crop and income diversifications by three rice production systems: two-season rain-fed, two-season irrigated and one-season rain-fed rice production systems.

Article
Publication date: 2 October 2023

Andi Irawan

This study aims to reconstruct how smallholder farmers implement livelihood adaptation strategies to survive and escape poverty, thereby mitigating or eliminating potential…

Abstract

Purpose

This study aims to reconstruct how smallholder farmers implement livelihood adaptation strategies to survive and escape poverty, thereby mitigating or eliminating potential livelihood risks by utilizing their available assets.

Design/methodology/approach

This research employed a qualitative approach. For the collection of primary data, the researcher conducted observations and in-depth interviews and engaged with the lives of smallholder farmers during the data collection period.

Findings

Among the various livelihood adaptation strategies, only migration and profit-sharing strategies enable smallholder farmers to escape poverty. However, migration is an unsustainable adaptation strategy. When farmers move to new locations, they often resort to slash-and-burn methods for clearing land, which can lead to forest degradation and deforestation. Profit sharing is a sustainable livelihood adaptation strategy that falls into a different category. This approach can lift farmers out of poverty, increase their income and have no negative environmental impact. Other adaptation strategies include adjustments to traditional agriculture, both on and off-farm diversification, involving the family in income generation, reducing farming costs, practicing frugality in post-harvest processes, converting land from coffee cultivation to other crops and borrowing money and selling owned assets. Smallholder farmers implement these strategies to survive the existing economic conditions.

Originality/value

The profit-sharing strategy was a novel livelihood adaptation approach that previous studies had yet to uncover at the research site. In this strategy, farmers assume the roles of both managers and laborers simultaneously during farming, while toke (the capital owners) play the role of farming funders. The generated profit is then shared between farmers and toke based on the agreement established at the outset of their collaboration.

Details

Journal of Strategy and Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 12 April 2013

Jummai Othniel Yila and Bernadette P. Resurreccion

The purpose of this paper is to understand the factors determining smallholder farmers’ adaptation strategies to climate change, in the semi‐arid region of Nguru, Nigeria and…

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Abstract

Purpose

The purpose of this paper is to understand the factors determining smallholder farmers’ adaptation strategies to climate change, in the semi‐arid region of Nguru, Nigeria and toward sustainable management of their agricultural production and livelihood.

Design/methodology/approach

Both primary and secondary data were used. Primary data were collected by use of structured questionnaires, key informant interviews and focus group discussions. Based on the research plan, a total of 250 individual households were randomly selected and interviewed.

Findings

The stepwise multiple linear regression model ran using SPSS revealed nine variables significantly determining the adaptation of climate change strategies. The variables found significant were: agricultural labor force, level of education of the household head, land tenure arrangements, gender of the household head, extension service availability, out‐migration of labor, years of farming experience, household size and availability of farmer to farmer extension. The predicted R value of 0.87, R2 of 0.63, and adjusted R2 of 0.60 indicate high explanatory power of the model as a whole.

Originality/value

The acceptance of the variables included in the model helps very useful policy conclusions for climate change adaptations to be drawn. All these variables, except gender and out‐migration, have a positive influence on climate change adaptation strategies. The influence of agricultural labor force appeared to be strongest, indicating the very important role of this factor in adaptation and the need for promotion of less labour‐intensive, but more remunerative adaptation strategies that would enable smallholder farmers to manage all of their farm plots in an effective way.

Details

Management of Environmental Quality: An International Journal, vol. 24 no. 3
Type: Research Article
ISSN: 1477-7835

Keywords

Open Access
Article
Publication date: 21 August 2017

Erin Lynn Wilkus, Gian Nicola Francesconi and Matthias Jäger

This impact assessment provides empirical evidence from household producer surveys to test the assumptions surrounding the contribution of participatory varietal selection (PVS…

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Abstract

Purpose

This impact assessment provides empirical evidence from household producer surveys to test the assumptions surrounding the contribution of participatory varietal selection (PVS) activities on seed sector development. The purpose of this paper is to focus on household access and adoption of common bean varieties from seed provision services and local markets to determine if, and under what social conditions, PVS activities stimulated seed uptake and market participation.

Design/methodology/approach

The propensity score matching technique and simple regression analysis were used to estimate the impact and compare household performance across three farmer groups located in Hoima, Uganda.

Findings

PVS increased access to and adoption of improved varieties and supported additional intermediate development outcomes when farmer group characteristics were aligned with PVS efforts. Specifically, PVS was more likely to stimulate market purchases of newly introduced varieties in the farmer group located closest to markets. The project did not however, improve all the development objectives that were evaluated. PVS most critically, did not increase the probability that households received the specific varieties they desired.

Research limitations/implications

This study found that PVS can support the key pillars of seed sector development. In addition to increasing household access to new varieties, free seed dissemination promoted market participation and stimulated local seed market development.

Originality/value

This study addressed the need to consider intermediate development outcomes in impact assessments of development interventions. The findings clarified the contribution of PVS in the context of broader development goals and identified farmer group dynamics associated with enhanced impacts among rural producers in Uganda.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 7 no. 2
Type: Research Article
ISSN: 2044-0839

Keywords

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