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1 – 10 of 174N'Banan Ouattara, Xueping Xiong, Abdelrahman Ali, Dessalegn Anshiso Sedebo, Trazié Bertrand Athanase Youan Bi and Zié Ballo
This study examines the impact of agricultural credit on rice farmers' technical efficiency (TE) in Côte d'Ivoire by considering the heterogeneity among credit sources.
Abstract
Purpose
This study examines the impact of agricultural credit on rice farmers' technical efficiency (TE) in Côte d'Ivoire by considering the heterogeneity among credit sources.
Design/methodology/approach
A multistage sampling technique was used to collect data from 588 randomly sampled rice farmers in seven rice areas of the country. The authors use the endogenous stochastic frontier production (ESFP) model to account for the endogeneity of access to agricultural credit.
Findings
On the one hand, agricultural credit has a significant and positive impact on rice farmers' TE. Rice farmers receiving agricultural credit have an average of 5% increase in their TE, confirming the positive impact of agricultural credit on TE. On the other hand, the study provides evidence that the impact of credit on rice production efficiency differs depending on the source of credit. Borrowing from agricultural cooperatives and paddy rice buyers/processors positively and significantly influences the TE, while borrowing from microfinance institutions (MFIs) negatively and significantly influences the TE. Moreover, borrowing from relatives/friends does not significantly influence TE.
Research limitations/implications
Future research can further explore the contribution of agricultural credit by including several agricultural productions and using panel data.
Originality/value
The study provides evidence that the impact of agricultural credit on agricultural production efficiency depends on the source of credit. This study contributes to the literature on the impact of agricultural credit and enlightens policymakers in the design of agricultural credit models in developing countries, particularly Côte d'Ivoire.
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Abdul-Jalil Ma-Azu, Awal Abdul-Rahaman, Abraham Zakaria and Clement Yaw Lamptey
This study examines the drivers of marketing channel participation amongst smallholder rice farmers in the northern region of Ghana.
Abstract
Purpose
This study examines the drivers of marketing channel participation amongst smallholder rice farmers in the northern region of Ghana.
Design/methodology/approach
Using a sample of 397 smallholder rice farmers drawn from a multistage sampling procedure, the study employed multivariate probit (MVP) model in the empirical estimations. In this context, the model assumes that a rice farmer should at least participate in one market channel.
Findings
The study reveals that the wholesaler market channel is the most commonly used channel among farmers, followed by the aggregator channel. However, the processor market channel is the least patronized one in the study area. The results also show statistically significant correlation coefficients in four out of the six possible combinations, implying that market channel participation among smallholder farmers is not mutually exclusive. Rice market channel participation is positively and significantly influenced by age, gender, household headship, access to credit, extension service, irrigation, improved seed and access to price information.
Research limitations/implications
This study is limited in extending the analysis to include the impact of market channels on some outcome measures. This is due to data limitation.
Originality/value
The findings of this study add to the growing literature on smallholder market channel participation in Ghana.
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Samuel Kwabena Chaa Kyire, Richard Kwasi Bannor, John K.M. Kuwornu and Helena Oppong-Kyeremeh
Credit is essential in the farm business because it facilitates the adoption of productive technologies such as irrigation. However, access to credit remains a significant hurdle…
Abstract
Purpose
Credit is essential in the farm business because it facilitates the adoption of productive technologies such as irrigation. However, access to credit remains a significant hurdle for sub-Saharan Africa, including Ghanaian farmers. Therefore, the authors assessed credit utilization and the intensity of borrowing by irrigated rice farmers in the Upper East region. In addition, how extension moderates the amount borrowed was analysed.
Design/methodology/approach
The multistage sampling approach was used in the study. The Tono and Vea irrigation schemes were purposively selected. Proportionally, 318 rice farmers were sampled from the Tono irrigation scheme and 159 from the Vea irrigation scheme. Cragg's double hurdle and moderation analysis were used.
Findings
It was uncovered that gender, age, years of farming, total farm size, rice farm size, contract farming and off-farm employment explain farmers' decision to borrow. On the other hand, the intensity of borrowing was influenced by gender, age, years of farming, rice farm size, contract farming and the number of extension contact. The moderation analysis revealed that extension contact improves the amount borrowed by farmers.
Research limitations/implications
While there are irrigated rice farmers in other regions of Ghana, this study was limited to rice farmers under the Tono and Vea Irrigation schemes in the Upper East region.
Originality/value
This study investigated the moderating role of extension contact on amount borrowed in Ghana. This makes a modest addition to the limited literature on the moderating role of extension and credit access.
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Ganesh Thapa, Dyutiman Choudhary, Narayan Prasad Khanal and Shriniwas Gautam
Farmers in developing countries are used to recycling and purchasing seeds of old and low-yielding varieties, leading to low seed and varietal replacement rates. Seed companies in…
Abstract
Purpose
Farmers in developing countries are used to recycling and purchasing seeds of old and low-yielding varieties, leading to low seed and varietal replacement rates. Seed companies in Nepal have started to conduct traders' meetings (TMs) to promote new rice varieties. This paper aims to assess the effectiveness of this approach in promoting new rice varieties.
Design/methodology/approach
The authors assess the effectiveness of TMs by surveying 238 agrodealers from 7 districts of Nepal. The authors used the binary logit model to study the determinants of participation in TM and an instrumental variable approach to estimate the impact of TMs on sales of the promoted rice varieties.
Findings
Results indicate that the TM significantly influences traders' knowledge and increases the probability of selling new rice varieties promoted. However, TMs did not significantly increase the overall sales of promoted rice varieties.
Research limitations/implications
The study is based on cross-section data; thus, unobserved fixed effects could not be accounted for. The study finds only one relevant and valid instrumental variable and therefore could not conduct any exogeneity test.
Originality/value
Seed companies in Nepal started to conduct TMs to promote new rice varieties since 2019. However, to the best of the authors’ knowledge, the usefulness of TMs and the impact of these events in changing traders' attitudes toward domestic rice seed varieties or in business performance (annual sales of the promoted varieties) have not been assessed. Therefore, the study findings will help to promote the market-driven seed system and increase the seed replacement rate.
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Digvijay Singh Negi, Anjani Kumar, Pratap Singh Birthal and Gaurav Tripathi
This paper aims at understanding the causes of low adoption of hybrid rice technology. The paper also assesses the impact of adoption of hybrids and modern varieties on crop…
Abstract
Purpose
This paper aims at understanding the causes of low adoption of hybrid rice technology. The paper also assesses the impact of adoption of hybrids and modern varieties on crop yield, vis-à-vis the old or traditional varieties.
Design/methodology/approach
Using unit-level data from a large-scale survey of farm households (19,877 paddy cultivators), the authors applied multi-nomial regression method to understand the factors for adoption of hybrid rice and instrumental variable method of regression to estimate its impact.
Findings
The findings demonstrate that in India, hybrid rice is often grown on relatively poor soils, resulting in greater irrigation costs and for other inputs, such as fertilizers. Further, farmers' poor access to information on the traits of hybrid rice and the associated agronomic practices, as well as poor access to financial resources, hampers efforts to scale up its adoption. More importantly, the findings reveal that the relative yield advantage of hybrids over open-pollinated modern varieties is not large enough to incentivize the rapid adoption of hybrid rice technology.
Research limitations/implications
Given the higher cost of hybrids than the inbred varieties, enhancing paddy cultivators' access to financial resources can accelerate the adoption of hybrid rice in India.
Originality/value
The study is based on unit level data from a large-scale, nationally representative survey of farm households, comprising a sample of 19,877 paddy cultivators, spread across states in India.
Thuyen Thi Pham, Hoa Le Dang, Ngoc Thi Anh Pham and Huy Duc Dang
Farmers' risk attitudes and risk perceptions play an essential role in shaping risk management strategies to address risks and uncertainties. Contract farming is considered as one…
Abstract
Purpose
Farmers' risk attitudes and risk perceptions play an essential role in shaping risk management strategies to address risks and uncertainties. Contract farming is considered as one of the feasible approaches to tackle farmers' concerns. However, risk perspectives under various categories have not been included in studies on farmers' preferences for contract farming in the literature, especially in Vietnam. This study aims to determine factors affecting farmers' choices of different contract farming practices.
Design/methodology/approach
The explanatory factor analysis (EFA) and multinomial logit model (MNL) were applied to explore the impacts of risk perspectives on farmers' preferences for contract farming. Data have been collected from 211 rice farmers in An Giang Province, “the rice bowl” of the Mekong Delta, Vietnam.
Findings
The study found that farm size, cooperatives, extension, market access and trust have significantly impacted on contract participation while a delay payment was a barrier for farmers' motivation to opt for the contract. Farmers' contract choices were also influenced by their risk attitudes and perceptions under different risk dimensions. The financial, policy and human risk-averse behavior predisposed farmers to single out the full contract while the policy and human risk-loving and production, market and finance risk-averse respondents were in favor of the marketing contract. Moreover, the findings indicated that the more farmers concerned about risk of weather and market, the more choices for the full contract, whereas the risk perceptions of weather and policy encouraged farmers to use the limited contract. By contrast, farmers who perceived the impacts of risk of diseases/pests and human were likely to adopt the marketing contract.
Research limitations/implications
This study just focuses on collecting data from farmers’ perspective. Future studies involving stakeholders such as enterprises and policy makers are strongly recommended so as to design suitable contracts and enforce contract schemes effectively in Vietnam.
Originality/value
The findings also contribute to the literature on different types of contracts and the multidimensional aspect of risk for rice production in Vietnam.
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Shiladitya Dey and Piyush Kumar Singh
The study aims to analyze the impact of market participation on small paddy farmers' income and consumption expenditure. The study also estimates various determinants affecting…
Abstract
Purpose
The study aims to analyze the impact of market participation on small paddy farmers' income and consumption expenditure. The study also estimates various determinants affecting the market participation of smallholders. Further, the study computes the efficiency of different paddy marketing channels and identifies the determinants that impact the marketing channel selection of paddy growers in Eastern India.
Design/methodology/approach
The study used the propensity score matching (PSM) approach to measure the impact of market participation on farm income and per capita consumption. Further, the study employed Acharya and Aggarwal's composite index approach to estimate the marketing efficiency of various paddy marketing channels. Further, a multinomial logit model was used to determine the marketing channel selection constraints.
Findings
The outcomes indicate that market participation positively impacts farm income and consumption expenditure. Education, membership in farmers' organizations, price information and distance to the marketplace significantly affect farmers' market participation. The results show that the producer–retailer marketing channel is the most efficient compared to others. However, most paddy farmers sell paddy to farmgate collectors due to a lack of market information, vehicle ownership, storage system, and inability to take the risk of venturing out of the farmgate into markets.
Research limitations/implications
The study uses primary data and captures only farmers' perspectives to measure the impact of market participation, marketing channel efficiency and determinants for market channel selection. The other stakeholder's perceptions can be included in future studies.
Originality/value
Rarely does any study identifies the efficiency of different marketing channels for paddy farmers in India and includes cognitive factors like risk perception and trust in buyers as constraints for market channel selection.
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Numerical literature shows that agricultural insurance can affect pesticide investments, but few of them are devoted to explain how agricultural insurance affects farmers’…
Abstract
Purpose
Numerical literature shows that agricultural insurance can affect pesticide investments, but few of them are devoted to explain how agricultural insurance affects farmers’ selection on green or traditional pesticides. This paper aims to develop a theoretical model about how agricultural insurance influences on green pesticides selections and tests our conclusions by using the data from China land economic survey (CLES) from 2020 to 2021.
Design/methodology/approach
We employ probit model to capture the effects of agricultural insurance on green pesticides adoption.
Findings
We indicate that green pesticides have a stronger effect on stabilizing yield and increasing income than traditional pesticides, but there are still risks disturbing farmers’ decisions on green pesticides usage. By providing premium subsidies after the farmers are affected by natural risk, agricultural insurance improves the farmers’ expected income and encourages farmers to use green pesticides. Further, we further confirm these conclusions by considering different scenarios such as climate risks, farmers’ entrepreneurship and credit constraints. We find that the effects are more salient if croplands are under higher natural risks and, farmers are equipped with entrepreneurship and formal credit. This paper implies that the agricultural insurance decoupled with green technologies also have salient positive effects on agricultural pollution control.
Originality/value
The potential contributions of this paper can be outlined in three aspects in detail. Firstly, this paper aims to revel the effects of agricultural insurance on pesticide selection by structuring a general theoretical model. By using the CLES data from 2020 to 2021, we confirm that agricultural insurance increases the probability for adopting green pesticides. Secondly, this paper discusses the effects of farmers’ characteristics on the results and finds that if farmers have entrepreneurship, the effects of agricultural insurance on green pesticide usage will be more salient. Thirdly, it uncovers some practices in China, which will supply experiences for other developing countries. For example, this paper further demonstrates that “insurance + credit” plan the present Chinese government carried out will be an important measure for strengthening effects of agricultural insurance on green pesticides usage. Moreover, it shows that decouple agricultural policies will also guide farmers to use green technologies eventually if the technologies are reliable and farmers can afford.
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Post-harvest losses are becoming a huge issue worldwide and are predominantly severe in developing countries. Seeking ways to control post-harvest losses is important because…
Abstract
Purpose
Post-harvest losses are becoming a huge issue worldwide and are predominantly severe in developing countries. Seeking ways to control post-harvest losses is important because losses decrease farm income by more than 15% for approximately 480 million small-scale farmers.
Design/methodology/approach
The study engaged Wave 4 (2018/2019) of the Living Standards Measurement Studies–Integrated Survey on Agriculture, to examine the impact of soil technology such as fertilisers, herbicides, pesticides and certified crops on post-harvest losses in Nigeria. The study engaged descriptive statistics, logit regression and propensity score matching (PSM) to analyse the data.
Findings
The study found that approximately 38% of the household harvest was lost along the value chain. In addition, the results showed that among the indicators of soil technology, crop certification has a significant impact on the reduction of post-harvest losses. The implication is that from the nearest neighbour and kernel-based matching, the use of certified crops by households contributed to 1.62 and 1.36% reduction in post-harvest losses, respectively. In contrast, pesticide, herbicide and fertiliser use had no significant impact on post-harvest losses.
Research limitations/implications
One of the limitations is that this study applied the PSM, the model did not account for endogeneity. Therefore, in examining this concept, further studies should consider applying other impact model such as the difference-in-difference to account for endogeneity.
Originality/value
While previous studies have examined how ICT adoption, storage mechanisms and value chain among others help to minimise post-harvest losses, the aspect of how soil technology can reduce post-harvest losses has been a subject of exclusion in the extant literature. This study empirically examines the impact of soil technology adoption on post-harvest losses in Nigeria.
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Ganesh Thapa, Yam Kanta Gaihre and Dyutiman Choudhary
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.
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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.
Research limitations/implications
The design of the payment card and the estimation techniques used to fit the valuation function are likely to influence WTP.
Originality/value
Overall, literature on households’ WTP for fertilizers in developing countries is scarce. Our study contributes to the knowledge of WTP for fertilizers.
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