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This article aims to investigate the financial constraints and nonlinearity of farm size growth.
Abstract
Purpose
This article aims to investigate the financial constraints and nonlinearity of farm size growth.
Design/methodology/approach
Farm size growth is measured with land, labor and output using data from the Farm Accountancy Data Network (FADN) for Hungary and Slovenia. A dynamic panel model is applied to assess financial constraints and nonlinearity of farm size growth.
Findings
Results show that, except for land in Slovenia and output in Hungary, liquidity constraints are less important for farm size growth than endogenous factors based on farm size growth expectations and steady farm size restructuring. Smaller farms are growing faster than larger ones. The hypothesis that a higher level of subsidies would increase farm size is not supported for Hungary. When farms reach a certain size, the land area of the largest farms increases. Farm debts in Hungary are linked with land growth and in Slovenia with output growth.
Research limitations/implications
Further research on the impact of liquidity constraints and subsidies can be conducted at a disaggregate farm-type level to examine whether there is variability in the underlying interlinkages at the farm-type specialization level.
Practical implications
The implication that farm size growth is dependent on initial size and that smaller farms are growing faster than bigger ones indicates that it is not necessary to favor the fastest growing smaller farms thus supports the application of a non-discriminatory farm size policy for observing farm size structural changes.
Originality/value
The dynamic panel econometric model that incorporates cash flow as a measure of financial constraints provides insight into farm size growth in cross-country comparison in relation to potential farm liquidity constraints, farm debt and the nonlinearity of farm size, which information is of relevance to policy makers and practitioners.
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Abhishek Saxena and Shambu C. Prasad
Food systems research is typically focused on productivity and efficiency. But in the face of impending challenges of climate, investment, markets, and incomes small holders may…
Abstract
Purpose
Food systems research is typically focused on productivity and efficiency. But in the face of impending challenges of climate, investment, markets, and incomes small holders may do well to shift to diversity and sufficiency. The transition requires institutions such as Farmer Producer Organisations (FPOs) to play the role of intermediaries. This paper aims to understand this challenging phenomenon using a case from India.
Design/methodology/approach
In this article, drawing from the emerging literature of PO as a sustainability transition intermediary, this paper uses the case study of a women-owned FPO and explores its role in contributing to sustainable food systems through practices of non-pesticide management of agriculture. This paper explores, through non-participant observer methods, focus group discussions and interviews with multiple stakeholders how an FPO embeds sustainability in its purpose and the challenges faced in transforming producer and consumers towards sustainable food systems.
Findings
The study argues for early articulation of the “sustainability transition intermediary” role in the FPO’s vision and mission. Second, FPOs’ role of being a transition intermediary is impacted by the key stakeholders and the durability of relationship with them.
Originality/value
By studying FPOs in India, from the framework of sustainability transitions, this article adds to the limited literature that looks as POs as sustainability transition intermediaries.
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The purpose of this paper, applying concepts in the plant-based food sector, is a focus on the competitive rival trap for startup firms, with their initial advantage for…
Abstract
Purpose
The purpose of this paper, applying concepts in the plant-based food sector, is a focus on the competitive rival trap for startup firms, with their initial advantage for under-served market segments, only to be overtaken by scale, speed, and brands of incumbent brand firms. As a case study of industry transformation, the food production sector illustrates how organizational innovation brings new forms of rivalry, from the farm gate to the kitchen plate. As a result, startups face a rivalry trap, if unable to scale quickly, as incumbents reframe their strategic response with startup acquisitions, corporate incubators or alliance partnerships consumer demand.
Design/methodology/approach
This paper outlines the features of precision agriculture, a new paradigm for agriculture and food production, requiring new competences and skillsets in the protein revolution, including issues like virus, bacteria and the molecular structure of food groups, animal breeding and veterinary medicine. Plant-based foods is used as a case study for startups and the rivalry trap.
Findings
The emergence of plant-based foods is a case study of market opportunity and creative destruction, where the potential market varies from $25bn to $72bn, and growing faster in the dairy sector. However, food incumbents bring new strategic responses and a rivalry trap, where startups must gain scale quickly in capabilities, talent and marketing prowess, often exploiting demand in market niches unimpeded by incumbent rivals.
Research limitations/implications
Startups in biological sciences face massive challenges to increase scale and scope, even with unique intellectual property.
Practical implications
Startup firms need multidisciplinary management teams with a global outlook.
Social implications
Plant-based foods form part of the protein revolution but face challenges of scale, cost competitiveness and taste, despite advantages for climate mitigation.
Originality/value
The impact of technological and science applications has blurred the traditional concept of industry boundary, with huge variations in the intangible knowledge component in their core activities and capabilities. Underlying variations imply that not all industries have similar supply demand conditions, with variations in input costs, capital intensity and innovation needs, with strategic implications for the rivalry trap.
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Richard M. Friend, Samarthia Thankappan, Bob Doherty, Nay Aung, Astrud L. Beringer, Choeun Kimseng, Robert Cole, Yanyong Inmuong, Sofie Mortensen, Win Win Nyunt, Jouni Paavola, Buapun Promphakping, Albert Salamanca, Kim Soben, Saw Win, Soe Win and Nou Yang
Agricultural and food systems in the Mekong Region are undergoing transformations because of increasing engagement in international trade, alongside economic growth, dietary…
Abstract
Agricultural and food systems in the Mekong Region are undergoing transformations because of increasing engagement in international trade, alongside economic growth, dietary change and urbanisation. Food systems approaches are often used to understand these kinds of transformation processes, with particular strengths in linking social, economic and environmental dimensions of food at multiple scales. We argue that while the food systems approach strives to provide a comprehensive understanding of food production, consumption and environmental drivers, it is less well equipped to shed light on the role of actors, knowledge and power in transformation processes and on the divergent impacts and outcomes of these processes for different actors. We suggest that an approach that uses food systems as heuristics but complements it with attention to actors, knowledge and power improves our understanding of transformations such as those underway in the Mekong Region. The key transformations in the region include the emergence of regional food markets and vertically integrated supply chains that control increasing share of the market, increase in contract farming particularly in the peripheries of the region, replacement of crops cultivated for human consumption with corn grown for animal feed. These transformations are increasingly marginalising small-scale farmers, while at the same time, many other farmers increasingly pursue non-agricultural livelihoods. Food consumption is also changing, with integrated supply chains controlling substantial part of the mass market. Our analysis highlights that theoretical innovations grounded in political economy, agrarian change, development studies and rural livelihoods can help to increase theoretical depth of inquiries to accommodate the increasingly global dimensions of food. As a result, we map out a future research agenda to unpack the dynamic food system interactions and to unveil the social, economic and environmental impacts of these rapid transformations. We identify policy and managerial implications coupled with sustainable pathways for change.
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Navodika Karunarathna, Dinesha Siriwardhane and Amila Jayarathne
The main aim of this study is to explore the appropriate factors in measuring COVID-19-induced supply chain disruptions and the impact of these disruptions on the economic…
Abstract
Purpose
The main aim of this study is to explore the appropriate factors in measuring COVID-19-induced supply chain disruptions and the impact of these disruptions on the economic vulnerability of small-scale farmers in Sri Lanka.
Findings
The findings revealed that most of the farmers have continued to cultivate even during the pandemic despite several challenges which affected their economic status. Therefore, it is concluded that COVID-19-induced transportation and demand disruptions exacerbated the economic vulnerability of small-scale farmers over the disruptions in supply and production.
Practical implications
The findings of this study are crucial for formulating novel policies to improve the sustainability of the Sri Lankan agricultural sector and alleviate the poverty level of Agri-communities in the countryside. As farming is a vital sector in the economy, increased attention ought to be given on facilitating farmers with government-encouraged loans or allowances for their financial stability. Further, the respective government authorities should develop programs for importing and distributing adequate quantities of fertilizers among all the farmers at controlled prices so that they can continue their operations without any interruption. Moreover, the government could engage in collaboratively work with private organizations to streamline the Agri-input supply process. There should be a government initiative for critical consideration of the issues of farming families and their continued motivation to engage in agriculture. Thus, farmers' livelihoods and agricultural prosperity could be upgraded through alternative Agri-inputs and marketing strategies, providing financial assistance, encouraging innovative technology, etc.
Originality/value
Despite the significance and vulnerability of the vegetable and fruit sector in Sri Lanka, there is a limitation in the empirical studies conducted on the supply chain disruptions caused by COVID-19 measures and their implications on the farmers' livelihood. Furthermore, previous empirical research has not employed adequate quantitative tools to analyze the situation or appropriate variables in evaluating COVID-19-induced disruptions. Hence, the current study explored the appropriate factors for measuring COVID-19-induced supply chain disruption using exploratory factor analysis. Then, the impact of those factors on the economic vulnerability of the small scale farmers was revealed through the ordinal logistics regression analysis.
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Franklin Nantui Mabe, Seiba Issifu and Camillus Abawiera Wongnaa
In Ghana, legal and illegal artisanal small-scale mining (ASM) activities have attracted the attention of the general populace and academia with varied opinions. This study…
Abstract
Purpose
In Ghana, legal and illegal artisanal small-scale mining (ASM) activities have attracted the attention of the general populace and academia with varied opinions. This study examined how adopting the coping strategies for ASM operations affected the welfare of farm households.
Design/methodology/approach
Primary data were solicited from respondents using a semi-structured questionnaire. This paper used the endogenous treatment effect model to quantitatively estimate whether or not farmers who adopt coping strategies for activities of ASM have improved or deteriorated welfare.
Findings
The results revealed that households adopted coping strategies such as diversification, social networking, land reclamation, borrowing, dependence on the market for food and resettlement in other communities. The endogenous treatment effect model results show that households that adopted land reclamation and social networking had improved welfare regarding consumption expenditure and food security compared to non-adopters. Conversely, diversification was associated with lower consumption expenditures and high food insecurity among adopters.
Practical implications
This paper recommends that farm households in mining communities form cooperatives and farmer-based organizations to ensure improved access to joint resources for enhanced capacity to cope with ASM-induced shocks. There is a need for government and civil society organizations to encourage and support land reclamation measures.
Originality/value
This paper covers a broader perspective and deploys more than one welfare proxy, which has not been considered before in previous studies.
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Tien Dung Nguyen, Hung Gia Hoang and Le Thi Hoa Sen
The paper aimed to examine the determinants of agricultural commercialisation of farmers and measured its commercialisation level in the highland of Vietnam.
Abstract
Purpose
The paper aimed to examine the determinants of agricultural commercialisation of farmers and measured its commercialisation level in the highland of Vietnam.
Design/methodology/approach
A sample size of 360 was randomly chosen from a total population of 5,771 farmers, and a structured questionnaire was developed to collect data. Descriptive and inferential statistics, including linear regression analysis, were used to analyse the data.
Findings
The descriptive statistics showed that the average commercialisation level of farmers was 56.3%. The regression model result indicated that number of off-farm income sources, farmer's risk perception, farming practices, number of agricultural activities, motorbikes value, ethnicity, distance from the city centre, number of customers, non-traded inputs value, participation in training programmes, family size, farm size, mobile phones value, traded inputs value, land tenure, distance from the local market and education of household head significantly affected agricultural commercialisation of farmers.
Originality/value
Any development strategies that assist farmers in adopting commercial farming in the highland of developing countries should consider these determinants.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-03-2022-0161
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Kafferine Yamagishi, Cecil Gantalao and Lanndon Ocampo
This study aims to draw observations on the current status and potentials of the Philippines as a farm tourism destination and identify the underlying factors that inhibit farm…
Abstract
Purpose
This study aims to draw observations on the current status and potentials of the Philippines as a farm tourism destination and identify the underlying factors that inhibit farm tourism development. It intends to gauge the challenges that Filipino farmers face in diversifying farms and operating farm sites and uses these challenges in crafting strategies and policies for relevant stakeholders. It also provides Philippine farm tourism literature to address the limitations of references in the topic.
Design/methodology/approach
The study adopts an exploratory type of inquiry method and secondary data collection from various sources, such as published journal articles, news articles and reports, to gain insights and relevant information on farm tourism. The study also uses a threats, opportunities, weaknesses and strengths analysis approach to develop competitive farm tourism strategies.
Findings
The Philippines, with vast agricultural land, has the necessary base for farm tourism, and the enactment of the Farm Tourism Development Act of 2016 bridges this potential. With low agricultural outputs, the country draws relevance for farm tourism as a farm diversification strategy to supplement income in rural communities. While having these potentials, crucial initiatives in physical characteristics, product development, education and training, management and entrepreneurship, marketing and customer relations and government support must be implemented. Farmers' lack of skills, training and capital investment potential to convert their farms into farm tourism sites serves as the major drawback. Thus, developing entrepreneurial and hospitality skills is crucial.
Originality/value
This work presents a historical narrative of initiatives and measures of the Philippine farm tourism sector. It also provides a holistic discussion and in-depth analysis of the current state, potentials, strategies and forward insights for farm tourism development.
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Beshea Abdissa Chemeda, Feyera Senbeta Wakjira and Emiru Birhane
Background: A range of local social and environmental factors has an impact on farmers' views of climate change and choices on the use of coping mechanisms. This study examines…
Abstract
Background: A range of local social and environmental factors has an impact on farmers' views of climate change and choices on the use of coping mechanisms. This study examines the factors that are limiting farmers' perceptions of climate change and their coping mechanisms in Gimbi district, Western Ethiopia.
Methods: A household survey and focus group discussion were employed to collect relevant data. A total of 402 randomly selected households and six focus group discussions containing 72 participants were used to gather data. Binary logit models were used to analyze the collected data.
Results: Farmers noted that some of the signs of climate change included increasing temperature, erratic rainfall, late onset of rainfall, and early cessation of rainfall. We discovered that there are three distinct sets of climate adaption strategies used by farmers: crop management, soil and water conservation and intensive farm management. The primary determinants of farmers' perceptions of climate change and adaptation techniques were household head age, education, soil fertility, market access, and agricultural training. Age, education, and soil fertility level were the characteristics that significantly impacted farmers' perspectives and coping mechanisms among the primary drivers evaluated in the area. Use of agroforestry, shifting planting dates, and fertilizer application were all essential farming practices used as climate adaptation measures.
Conclusions: Both socioeconomic and environmental factors have found to affect farmers' perceptions of climate change in the area. The existing socioeconomic and environmental factors, in turn, affect their choice of strategies to adapt to climate change. When implementing climate change adaption strategies, it is critical to assess farmers' level of awareness of climate change and their coping strategies, as well as the factors limiting their ability to adapt to climate change.
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Anika Totojani and Veland Ramadani
This study aims to explore the grain chain in Kosovo. This study also aims to analyse the role of actors involved in the supply, production, processing, marketing and distribution…
Abstract
Purpose
This study aims to explore the grain chain in Kosovo. This study also aims to analyse the role of actors involved in the supply, production, processing, marketing and distribution of the grain value chain.
Design/methodology/approach
The study uses qualitative methods. A total of 60 semi-structured interviews are conducted with actors involved in the entire grain value chain.
Findings
Findings reveal that the country depends on grain imports and lacks an organised grain market, which is often distorted by the present political situation. Stakeholders are partly integrated in the grain value chain, and they are not very efficient in production. The existence of an informal market influences the decision-making of actors involved in the grain chain. The grain value chain displays mixed governance types, and the relationships among actors are based on the trust mechanism.
Originality/value
The research draws the importance of agriculture’s public policies to sustain domestic grain production. Public–private partnerships should be created to restore the grain market. Trading policies should be revised because they play a crucial role in enhancing fair competition between domestic and foreign traders.
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