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1 – 10 of 229Madhav Regmi, Allen M. Featherstone and Jesse Tack
Federally subsidized crop insurance aims to mitigate farm risks of crop producers. A body of literature has examined informational problems under this program. However, few…
Abstract
Purpose
Federally subsidized crop insurance aims to mitigate farm risks of crop producers. A body of literature has examined informational problems under this program. However, few studies empirically link crop insurance participation with farm financial performance. Most use county-level aggregates to argue that crop insurance participation is associated with increased farm financial debt. Using farm-level data, this study provides empirical evidence of crop insurance's effects on farm financial risk.
Design/methodology/approach
The impact of crop insurance on farm financial risks is assessed using farm-level data from Kansas. The sample consists of at least 1,600 farms each year from 2002 to 2015. Financial risks are measured using the probability of falling into the critical zone of five different financial ratios. The study uses two matching estimators to estimate the causal effects of crop insurance participation on farm financial risks. Several alternative empirical approaches account for unobserved heterogeneity and potential endogeneity.
Findings
Crop insurance participation has reduced the farm's likelihood of being in the critical liquidity risk by 8%. This result is robust across matching estimators and alternative specifications to account for unobserved heterogeneity and potential endogeneity.
Originality/value
This is one of the few studies to examine whether crop insurance reduces farm financial risks. This study provides empirical evidence of the extent to which crop insurance enrollment impacts farm financial risks. Findings suggest that crop insurance is critical to maintaining the financial well-being of crop producers, and significantly reduces the likelihood of producers being in a critical liquidity risk.
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Peihua Mao, Ji Xu, Xiaodan He and Yahong Zhou
The results of this study have significant policy implications for charting a new course toward enhancing agricultural productivity among Chinese farmers.
Abstract
Purpose
The results of this study have significant policy implications for charting a new course toward enhancing agricultural productivity among Chinese farmers.
Design/methodology/approach
By establishing a rural household decision-making model based on the transfer market of farmland operation rights, this paper systematically analyzes the effects of land transfer-in and land transfer-out on the productivity (per labor income) of rural households. The authors conducted basic regression analysis and robustness tests using propensity score-matching and proxy variable approaches based on the micro survey data from rural households in 30 counties in 21 provinces/municipalities/autonomous regions in 2013.
Findings
After the completion of land transfer, the total productivity of rural households transferring in lands will increase with an increase in the agricultural productivity; the total productivity of rural households transferring out land will increase due to a rise in non-agricultural productivity and the absolute total productivity of rural households not involved in land transfer will remain unchanged.
Originality/value
Unlike previous literature, this paper discusses the impacts of land transfer-in and transfer-out on total productivity, agricultural productivity and non-agricultural productivity among various rural households (i.e. those transferring in land, transferring out land or which are self-sufficient).
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Sandeep Kaur, Harpreet Singh, Devesh Roy and Hardeep Singh
Despite the susceptibility of cotton crops to pest attacks in the Malwa Region of Indian Punjab, no crop insurance policy has been implemented there– not even the Pradhan Mantri…
Abstract
Purpose
Despite the susceptibility of cotton crops to pest attacks in the Malwa Region of Indian Punjab, no crop insurance policy has been implemented there– not even the Pradhan Mantri Fasal Bima Yojana (PMFBY), which is a central scheme. Therefore, this paper attempts to gauge the likely impact of the PMFBY on Punjab cotton farmers and assess the changes needed for greater uptake and effectiveness of PMFBY.
Design/methodology/approach
The authors have conducted a primary survey to conduct this study. Initially, the authors compared the costs of cotton production with the returns in two scenarios (with and without insurance). Additionally, the authors have applied a logistic regression framework to examine the determinants of the willingness of farmers to participate in the crop insurance market.
Findings
The study finds that net returns of cotton crops are conventionally small and insufficient to cope with damages from crop failure. Yet, PMFBY will require some modifications in the premium rate and the level of indemnity for its greater uptake among Punjab cotton farmers. Additionally, using the logistic regression framework, the authors find that an increase in awareness about crop insurance and farmers' perceptions about their crop failure in the near future reduces the willingness of the farmers to participate in the crop insurance markets.
Research limitations/implications
The present study looks for the viability of PMFBY in Indian Punjab for the cotton crop, which can also be extended to other crops.
Social implications
Punjab could also use crop insurance to encourage diversification in agriculture. There is a need for special packages for diversified crops under any crop insurance policy. Crops susceptible to volatility due to climate-related factors should be identified and provided with a special insurance package.
Originality/value
There exist very scant studies that have discussed the viability of a central crop insurance scheme in the agricultural-rich state of India, i.e. Punjab. Moreover, they do not also focus on crop losses accruing due to pest and insect attacks.
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Sheu-Usman Oladipo Akanbi, Ridwan Mukaila and Abdourasaque Adebisi
After a long observation of the high rate of rice importation and low productivity in Côte d’Ivoire, the certified rice seed was introduced and encouraged to be used by the local…
Abstract
Purpose
After a long observation of the high rate of rice importation and low productivity in Côte d’Ivoire, the certified rice seed was introduced and encouraged to be used by the local farmers. This study evaluates the profitability of rice production and the impact of certified seed usage on the yield and income of farmers in Côte d’Ivoire.
Design/methodology/approach
Data were collected from 265 rice farmers. Descriptive statistics were used to identify the challenges faced in using certified seeds. Profitability analysis was used to examine the profitability of rice production. To eliminate bias due to the counterfactuals, the endogenous switching regression was employed to investigate the impact of the certified seeds on income and yield.
Findings
The difficulties faced by the rice farmers in the procurement of certified seeds were the unavailability of seeds, the high cost of seeds and poor credit access. Furthermore, rice farmers using certified seeds get a higher net income (USD 263.74/ha) than those using farmers' seeds (USD 212.31/ha). The average treatment on the treated was 1.61 for the yield and 574.75 for the income. The average treatment on the untreated was 1.20 for the yield and 422.59 for the income. These indicate a higher yield and income among adopters of certified rice seed.
Research limitations/implications
Certified rice seed usage is profitable and enhances the output and income of rice farmers. The study advocates the creation of a stronger relationship between the farmers and the extension agents to encourage the use of certified seeds and increase the profit of the farmers.
Originality/value
There is scant information on the profitability of certified rice seed usage and how it affect yield and income. Therefore, this study serves as empirical evidence for policymakers to develop strategies that are required to enhance certified seed usage, boost rice productivity and achieve food security.
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Lijuan Zhao, Yan Liu and Junhong Shi
In the context of carbon peaking and neutrality, effectively controlling agricultural carbon emissions has gained academic attention. As an essential form of agricultural service…
Abstract
Purpose
In the context of carbon peaking and neutrality, effectively controlling agricultural carbon emissions has gained academic attention. As an essential form of agricultural service scale management, this study investigates whether and how trusteeship affects the carbon emission behavior in planting production.
Design/methodology/approach
The authors established a theoretical framework to analyze the impact of agricultural production trusteeship on carbon emissions from planting. China's provincial panel data in the 2012–2021 period were selected to test the impact, mechanisms and heterogeneity of agricultural production trusteeship on carbon emissions from planting using the bidirectional fixed effect model and the panel correction standard error regression model.
Findings
The findings indicate that agricultural production trusteeship significantly inhibits carbon emissions from planting, especially in the dimensions of fertilizer input, pesticide application, agricultural film use and mechanical fuel. Agricultural production trusteeship primarily affects the intensity of these carbon emissions through contiguous farmland management and planting structure adjustment. Further examinations revealed that the influence of agricultural production trusteeship on carbon emissions from planting was heterogeneous with respect to geographical location, proportion of non-farming income and scale of agricultural production.
Originality/value
This study is the first to systematically evaluate the impact of agricultural production trusteeship on carbon emissions from planting.
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Yumei Zhang, Ming Lei, Xiangmin Lan, Xiangyang Zhang, Shenggen Fan and Ji Gao
As one of its major strategies, China has made a new plan to further expand High Standard Farmland (HSF) to all permanent basic farmland (80% of total farmland) for grain security…
Abstract
Purpose
As one of its major strategies, China has made a new plan to further expand High Standard Farmland (HSF) to all permanent basic farmland (80% of total farmland) for grain security over the next decade. Yet, what will be the impact of farmland infrastructure investment on agrifood systems? The paper aims to systematically evaluate the multiple effects (food security, economy, nutrition and environment) of expanding HSF construction under the context of the “Big Food vision” using an interdisciplinary model.
Design/methodology/approach
An interdisciplinary model – AgriFood Systems Model, which links the China CGE model to diet and carbon emission modules, is applied to assess the multiple effects of HSF construction on agrifood systems, such as food security and economic development, residents’ diet quality and carbon emissions. Several policy scenarios are designed to capture these effects of the past HSF investment based on counterfactual analysis and compare the effects of HSF future investment at the national level under the conditions of different land use policies – restricting to grain crops or allowing diversification (like vegetables, and fruit).
Findings
The investments in HSF offer a promising solution for addressing the challenges of food and nutrition security, economic development and environmental sustainability. Without HSF construction, grain production and self-sufficiency would decline significantly, while the agricultural and agrifood systems’ GDP would decrease. The future investment in the HSF construction will further increase both grain production and GDP, improve dietary quality and reduce carbon emissions. Compared with the policy of limiting HSF to planting grains, diversified planting can provide a more profitable economic return, improve dietary quality and reduce carbon emissions.
Originality/value
This study contributes to better informing the impact of land infrastructure expanding investment on the agrifood systems from multiple dimensions based on an interdisciplinary model. We suggest that the government consider applying diversified planting in the future HSF investment to meet nutritional and health demands, increase household income and reduce carbon emissions.
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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.
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The study attempts to estimate farm subsidies the governments can save by transitioning to a millet-based production system, replacing GHG emission-intensive crops.
Abstract
Purpose
The study attempts to estimate farm subsidies the governments can save by transitioning to a millet-based production system, replacing GHG emission-intensive crops.
Design/methodology/approach
It updates a 131 × 131 commodity input–output (IO) table of the year 2015–16 into 2021–22 using the RAS procedure and simulates the economy-wide impacts of replacing rice and wheat with pearl millet and sorghum using consumption and production approaches. It then quantifies fertilizer, electricity and credit subsidy expenses the government can save through this intervention. It also estimates the potential reduction in GHG emissions that the transition could bring about. India is taken as a case.
Findings
Results show pearl millet expansion brings greater benefits to the government. It is estimated that when households return to their pearl millet consumption rates that prevailed in the early-reform period, this could save the Indian government Rs. 622 crores (USD 75 m). The savings shall be reinvested in agriculture to finance climate adaptation/mitigation efforts, contributing to a sustainable food system. Net GHG emissions also decline by 3.3–3.6 MMT CO2e.
Practical implications
Indian government has been actively aiming to bring down paddy areas since 2013–14 through the Crop Diversification Program and promoting millets (and pulses and oilseeds) on these farms. The prime reason is to check rapidly declining groundwater irrigation in Green Revolution states. Regulations in the past in these states have not brought the intended results. Meanwhile, electricity and fertilizers are heavily subsidized for agriculture. A slight shift in the cropping system can help conserve these resources. Meanwhile, GHG emissions could also be brought down and subsidies could well be saved. The results of the study indicate the same.
Social implications
A less warm society is what governments and nongovernment organizations across the world are aiming for at present. Financial implications affect actions against climate change to a greater extent, apart from technological innovations. The effects of policy strategies discussed in the study, taking a large country as a case, when implemented appropriately around the regions, could help move a step closer to action against climate change.
Originality/value
The paper addresses a key but rarely explored research issue – that how a climate-sensitive crop choice will help reduce the government’s fiscal burden to finance climate adaption/mitigation. It also offers a mechanism to estimate the benefits within an economy-wide framework.
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M. Kabir Hassan, M. Zakir Hossain Khan, Mohammad Ayub Miah and Md. Karimul Islam
Zakat, one of the fundamental pillars of Islam, holds the potential to significantly contribute to fiscal consolidation, particularly in developing nations. However, the…
Abstract
Purpose
Zakat, one of the fundamental pillars of Islam, holds the potential to significantly contribute to fiscal consolidation, particularly in developing nations. However, the national-level potential of Zakat often remains unexplored. This study aims to explore the potential of national-level Zakat and the opportunity to integrate it into the fiscal framework.
Design/methodology/approach
This study estimates Zakat’s potential on national financial and economic components. The components include bank deposits, shares and securities, pensions (provident fund), industrial production and trade services, mining resources, Ushr on agro-crops and forestry, Ushr on livestock, Ushr on fishery, gross domestic product (GDP), national budget and national revenue. The study gathers data, ranging from FY2000 to FY2018, on national economic sectors from reliable secondary sources. The net value (NV) of each indicator is calculated as NV = TV − LA, where NV is the wage-adjusted net value after deducting the living adjustment (LA) value from the sectoral total. The proposed LA value, approximately 20%, is suggested to be deducted from the total sectoral value of each sector (excluding specific industries with preadjusted wages), equating to the Nisab value.
Findings
It is estimated that the aggregate potential of Zakat in Bangladesh was US$9,749m in FY2018, compared to US$809m in FY2000, revealing the value is 3.77% of GDP and 21% of the national fiscal budget. In FY2018, the service sector was the largest contributor (30%), followed by bank deposits (23%). Pension funds made minimal contributions, whereas shares and bonds, as well as the manufacturing sector, each made a 10% contribution to the estimated Zakat potential. Zakat on agriculture output accounted for 15% of the total. The aggregate potential Zakat in FY2018 was 12% higher than that in FY2000.
Originality/value
The paper highlights a novel contribution through its nuanced analysis of sector-specific Zakat on macrolevel data and its implications within the fiscal framework. The results suggest that Zakat has substantial potential to impact fiscal dynamics, providing valuable insights for policymakers and stakeholders to recognize the national-level Zakat for development plans such as the five-year plan. The study suggests piloting a central and independent national body to study the feasibility of national-level Zakat collection and its utilization in the fiscal budget. It will help the government reduce the burden of external debt and deficit budget and, instead, will promote revenue collection in collaboration with the National Board of Revenue.
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Gideon Danso-Abbeam, Abiodun Akintunde Ogundeji and Samuel Fosu
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…
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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.
Research limitations/implications
It can be concluded that participating in CF enhances farm performance and household welfare.
Originality/value
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.
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