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Article
Publication date: 2 June 2023

Harold Glenn A. Valera, Badri Narayanan Gopalakrishnan, Sumathi Chakravarthy, Sindhu Bharathi, Jean Balié and Valerien Olivier Pede

This paper investigates the effects of the total abolition of all forms of agricultural subsidies to producers and border tariffs on the prices of staple cereals.

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Abstract

Purpose

This paper investigates the effects of the total abolition of all forms of agricultural subsidies to producers and border tariffs on the prices of staple cereals.

Design/methodology/approach

The authors use the GTAP global economy-wide model and focus on 27 countries and 8 regions. The GTAP database that is used contains information on budgetary transfers to producers and market price support such as domestic price support, tariffs, export subsidies, quotas on exports or imports and other border measures.

Findings

The removal of subsidies is estimated to significantly increase the prices of wheat and other cereal grains in Japan, paddy rice in Malaysia and Indonesia, processed rice in Malaysia and Indonesia and wheat in Brazil and India. When border tariffs are removed, cereal prices are projected to fall in several countries, but the decline is more pronounced for wheat in Kenya and Japan, other cereal grains in South Korea and all staples in Nepal.

Research limitations/implications

The alternative scenarios on the removal of agricultural subsidies in all agricultural sectors and the elimination of border tariffs are purely speculative as the analysis ignores important political economy considerations of agricultural and food policy reforms.

Practical implications

The findings from this study point to the importance of implementing additional policy measures to mitigate the possible negative effect of repurposing the support to agriculture and ensure the food security and welfare of those categories of buyers who heavily depend on the price of staple food for their livelihoods.

Social implications

This study’s findings confirm that the elimination of agricultural subsidies would impact global food security directly by making staple food less affordable to the poorest and indirectly by decreasing the available household budget for other presumably more nutritious food groups. Consequently, it is expected that these price increases could make segments of the world population poorer, particularly the net-food buyers due to a decline in their real income.

Originality/value

The authors assess the impact of removing the subsidies on the economy in a comprehensive way, particularly given the recent policy focus on net zero emissions and Sustainable Development Goals that include healthy foods. The authors also consider the counter effects of tariff reduction on this, which is price-reducing.

Details

Journal of Economic Studies, vol. 51 no. 1
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 28 June 2013

Ivica Petrikova

The objective of this paper is to contribute to the existing literature by examining which combination of three important agricultural policies – land distribution, domestic food

Abstract

Purpose

The objective of this paper is to contribute to the existing literature by examining which combination of three important agricultural policies – land distribution, domestic food production, and trade liberalization – is most conducive to improving food security in developing countries.

Design/methodology/approach

This study uses panel‐data analysis of 58 developing countries between 1990 and 2009, employing OLS, GMM and 2SLS estimators.

Findings

The paper finds that more equal land distribution, higher domestic food production, and a greater degree of trade openness impact food security positively.

Research limitations/implications

Due to limited data on land distribution, the study analyzes data for 58 developing countries only. The fact that this sample is not statistically different from all developing countries, however, bolsters the validity of drawing generalized inferences about all developing countries based on the findings obtained. Another limitation rests with the paper's attempt at examining the effect of the three policies' joint impact on food security through the use of interactive terms, which should be developed further in future research.

Practical implications

The findings suggest that improving land distribution through land reforms, augmenting the level of domestic food production at the expense of non‐consumable crops, and liberalizing trade in a regulated manner could help developing countries bolster food security.

Originality/value

The paper presents a novel contribution to existing literature, both because it is one of the first to use empirical cross‐country analysis in the field of global food security and agricultural policy studies and the first to evaluate the conjoint effect of the three agricultural policy decisions on food security.

Details

International Journal of Development Issues, vol. 12 no. 2
Type: Research Article
ISSN: 1446-8956

Keywords

Article
Publication date: 6 November 2017

Fan Yang, Kirsten Urban, Martina Brockmeier, Eddy Bekkers and Joseph Francois

The purpose of this paper is to develop a modelling approach that enables the analysis of long-term food security policies. Specifically, the authors explore the effect of China’s…

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Abstract

Purpose

The purpose of this paper is to develop a modelling approach that enables the analysis of long-term food security policies. Specifically, the authors explore the effect of China’s agricultural domestic support on its agricultural and food market by also considering the impact of incomplete price transmission.

Design/methodology/approach

The authors extend the standard Global Trade Analysis Project (GTAP) modelling framework. First, the authors incorporate incomplete price transmission into the GTAP model by generating tariff-equivalent price transmission elasticities. Second, the authors improve the current representation of China’s agricultural domestic support in the GTAP model and the underlying database by considering the production requirements and the trade-distorting effect of different policy instruments. Running a set of simulations, the authors examine first how the incorporation of incomplete price transmission affects the model’s results and second how increased agricultural domestic support affects China’s agricultural and food market accounting for incomplete price transmission.

Findings

Considering incomplete price transmission mitigates the domestic price increases as responses to high international agricultural prices, which also lead to an increase in China’s trade deficit and prohibits net food sellers from receiving high prices. In the long term, an increase in China’s agricultural domestic support to its World Trade Organisation de minimis commitment level would increase domestic agricultural production and reduce its demand pressure on the international market.

Originality/value

This paper contributes to the literature by examining the impact of increased agricultural domestic support on the domestic market while innovatively accounting for incomplete food price transmission. The authors combine econometric estimated price transmission elasticities and an extended GTAP framework to underscore the importance of enhancing the model’s ability in accounting for incomplete price transmission when analysing the impact of agricultural policies.

Details

China Agricultural Economic Review, vol. 9 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

Book part
Publication date: 11 April 2012

Katrina Rønningen, Alan Renwick and Rob Burton

Purpose – This chapter aims to explore the consequences of a renewed impetus for ‘neo-productivist’ agriculture on multifunctionality in Western Europe.Design/methodology/approach…

Abstract

Purpose – This chapter aims to explore the consequences of a renewed impetus for ‘neo-productivist’ agriculture on multifunctionality in Western Europe.

Design/methodology/approach – We analyse how the issue of multi-functionality has been interpreted and implemented in Western Europe through a comparison between Norway and Scotland (as an EU example). Relevant policy documents and literature are analysed. The chapter explores whether European agricultural multifunctionality is being revised in response to the rise of neo-liberal (neo-productivist) ideologies, food security and climate change issues.

Findings – Our results suggest that Norway and the European Union have developed somewhat different understandings of multifunctionality. In response to recent events these forms are diverging further with the EU strengthening and Norway weakening their respective policies and discourses. However, in both cases, food security and climate change are emerging as key elements in the restructuring of both policy and rhetoric.

Research limitations/implications and practical implications – The study has been limited to an overview of multifunctionality within the European context and a case study approach using Norway and Scotland. Nevertheless, in highlighting the flexible use of the notion of ‘multifunctionality’, it illustrates to policymakers the importance of maintaining a focus on its key environmental and social objectives in the face of pressures to increase production and liberalise agricultural policies.

Originality/value – This is one of the first studies to point out the varied nature of the ‘multifunctionality’ discourse in Europe and how it is likely to change further in response to economic, environmental and social changes.

Details

Rethinking Agricultural Policy Regimes: Food Security, Climate Change and the Future Resilience of Global Agriculture
Type: Book
ISBN: 978-1-78052-349-1

Keywords

Article
Publication date: 3 June 2021

Manzamasso Hodjo, Acharya Ram, Don Blayney and Tebila Nakelse

This paper aims to investigate how climatic, market and policy factors interact to determine food production in Togo. Specifically, we estimate acreage and yield response to…

Abstract

Purpose

This paper aims to investigate how climatic, market and policy factors interact to determine food production in Togo. Specifically, we estimate acreage and yield response to market prices, weather and policy changes for maize and rice.

Design/methodology/approach

We use panel data estimators in a Seemingly Unrelated Regressions Equation (SURE) model with region-level data from the Food and Agriculture Organization statistics department and the National Oceanic and Atmospheric Administration (NOAA) of the US Department of commerce.

Findings

We found lower fertilizer price and higher grain price effects on maize acreage and yield. In addition, we found a positive effect of expected rice price on both its acreage and yield. As expected, rainfall during planting months has a significant impact on both maize (April) and paddy (May) acreage allocations. Similarly, total rainfall during the growing season has a positive impact on both maize and paddy yields. Moreover, recent agricultural policy initiative designed to boost domestic food production has significantly increased acreage and yield for maize, and yield for paddy, especially the strategy for agricultural growth.

Research limitations/implications

The dataset includes region-level observations from 1991 to 2012 which limits the observation span. However, we had enough variability in key variables to determine the estimated coefficients.

Practical implications

Although the dataset is limited in time (1991–2012) and uses national-level output prices, this investigation reveals that cropland allocation to maize and rice is sensitive to fertilizer and grain prices, weather expectations and policy interventions. These findings provide evidence for sustainable food production and productivity enhancement in Togo.

Social implications

Understanding drivers of cropland allocation and cereal yield contribute to better food security and poverty reduction in developing countries, especially Togo.

Originality/value

Prior to this study, little was known on the effect of price, climate and policy on cropland allocation in Togo. This investigation contributes significantly to filling this knowledge gap and provides insights for effective interventions.

Details

African Journal of Economic and Management Studies, vol. 12 no. 3
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 16 November 2012

Bruce A. Babcock

The purpose of this paper is to examine the market impacts of US biofuels and biofuel policies.

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Abstract

Purpose

The purpose of this paper is to examine the market impacts of US biofuels and biofuel policies.

Design/methodology/approach

Two methods of analysis are employed. The first method looks back in time and estimates what US crop prices would have been during the 2005 to 2009 marketing years under two scenarios. The second method of analysis is forward looking and examines the market impacts of the blender tax credit and mandate on the distribution of prices in the 2011 calendar and marketing year.

Findings

The results developed in the previous two sections show that US ethanol policies modestly increased maize prices from 2006 to 2009 and that market impacts of the policies will be larger under tighter market conditions.

Practical implications

More flexible US biofuel policy including removing the blenders tax credit, which does not help US biofuel industry as long as the mandates are in place, and relaxing blending mandates when feedstock supplies are low.

Originality/value

This report makes three contributions to understanding the extent to which US biofuel policies contribute to higher agricultural and food prices. First, estimates of the impact of US ethanol policies on crop and food prices reveal that the impacts of the subsidies were quite modest. The second contribution is to provide estimates of the impact on agricultural commodity prices and food prices from market‐driven expansion of ethanol. The final contribution of this report is improved insight into how current US biofuel policies are expected to affect crop prices in the near future.

Details

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

Keywords

Book part
Publication date: 12 January 2016

Kateryna G. Schroeder and William H. Meyers

This chapter analyzes and discusses the food insecurity and malnutrition situation in Europe and Central Asia (ECA), with a strong focus on the Caucasus and Central Asian…

Abstract

Purpose

This chapter analyzes and discusses the food insecurity and malnutrition situation in Europe and Central Asia (ECA), with a strong focus on the Caucasus and Central Asian countries.

Methodology/approach

Authors use descriptive statistics to examine macro-level, sectoral-level, and household-level data from national and international sources to review production, trade, and consumption of food and agricultural products in the selected countries. Overall trends in economic growth and poverty reduction, constraints and bottlenecks in agricultural productivity growth, as well as policies that shape food security in the ECA region are analyzed.

Findings

While the countries that constitute the focus of this chapter have shown significant progress in alleviating food insecurity and extreme poverty, many risk factors remain, such as inadequate micronutrient intake, sub-optimal quality diets, growing obesity rates, and high dependence on food imports in a number of the ECA countries.

Practical implications

Based on the assessment of the food security situation in the ECA countries, the authors discuss government actions, including those emanating from various global initiatives, being implemented to reduce food insecurity and malnutrition.

Details

Food Security in a Food Abundant World
Type: Book
ISBN: 978-1-78560-215-3

Keywords

Abstract

Details

Handbook of Microsimulation Modelling
Type: Book
ISBN: 978-1-78350-570-8

Book part
Publication date: 17 November 2005

Philip McMichael

The corporate food regime is presented here as a vector of the project of global development. As such, it expresses not only the social and ecological contradictions of…

Abstract

The corporate food regime is presented here as a vector of the project of global development. As such, it expresses not only the social and ecological contradictions of capitalism, but also the world-historical conjuncture in which the deployment of price and credit relations are key mechanisms of ‘accumulation through dispossession.’ The global displacement of peasant cultures of provision by dumping, the supermarket revolution, and conversion of land for agro-exports, incubate ‘food sovereignty’ movements expressing alternative relationships to the land, farming and food.

Details

New Directions in the Sociology of Global Development
Type: Book
ISBN: 978-1-84950-373-0

Book part
Publication date: 29 July 2020

Stefano Grando, Fabio Bartolini, Isabelle Bonjean, Gianluca Brunori, Erik Mathijs, Paolo Prosperi and Daniele Vergamini

This chapter opens the second part of the Volume, focusing on the small farms' role and dynamics within the evolving food system. Assessing small farmers' actual and potential…

Abstract

This chapter opens the second part of the Volume, focusing on the small farms' role and dynamics within the evolving food system. Assessing small farmers' actual and potential contribution to the change towards a sustainable food and nutrition security requires a deep understanding of their strategic decision-making processes. These processes take place in a context highly conditioned by internal and external conditions, including the complex relations between farm and household, which are mapped and described. Building on an adaptation of Porter's model (Porter, 1990), the chapter investigates how farmers, given those conditions, define their strategies (in particular their innovation strategies) aimed at economic and financial sustainability through a multidisciplinary analysis of scientific literature. Internal conditions are identified in the light of the Agricultural Household Model (Singh & Subramanian, 1986) which emphasizes how family farming strategies aim at combining business-related objectives, and family welfare. Then, a comprehensive set of external conditions is identified and then grouped within eight categories: ‘Factors’, ‘Demand’, ‘Finance and Risk’, ‘Regulation and Policy’, ‘Technological’, ‘Ecological’, ‘Socio-institutional’ and ‘Socio-demographic’. Similarly, six types of strategies are identified: ‘Agro-industrial competitiveness’, ‘Blurring farm borders’, ‘Rural development’, ‘Risk management’, ‘Political support’ and ‘Coping with farming decline’.

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