Semi‐Subsistence Farming: An Elusive Concept Posing Thorny Policy Questions

The massive expansion of semi‐subsistence farming in the European Union after the Eastern enlargements poses a real challenge to rural development. The problems of semi‐subsistence farms are low cash incomes and incidence of poverty, sub‐optimal use of land and labour, a lack of capital and poor contribution to rural growth. However, they play an important welfare function in some rural areas in Europe; they manage more than 11 million ha of agricultural land and deliver ecosystem services. The Common Agricultural Policy will have to accommodate this now widespread production system, through existing or new policy packages. Particularly important is support for commercialisation to incentivise and smooth the transition to commercial agriculture, and agri‐environmental payments to compensate the semi‐subsistence farmers for the provision of ecosystem services.     

Valuing Traits of Indigenous Cows in Central Ethiopia

This research aimed at identifying and estimating the relative weight assigned to the preferred traits of indigenous cow population in the most dominant crop–livestock mixed production system in Central Ethiopia. A choice experiment approach was employed to elicit the preferences and a random parameters logit model was used to estimate the relative importance of the preferred attributes of indigenous cows. The results show that fertility, disease resistance and calf vigour traits are at least as important as milk. The location the cows are brought from is also an important attribute for buyers. Results from the simulation on the influence of changes in attribute levels showed that fertility and disease resistance affect preferences more than other traits. The findings suggest that the smallholder community in this part of Ethiopia depends on semi‐subsistence agriculture and so livestock development interventions should focus on a multitude of reproductive and adaptive traits that stabilise the herd structure rather than focusing on traits that are only important for commercial purposes.     

Sales location among semi‐subsistence cassava farmers in Benin: a heteroskedastic double selection model

In much of rural Africa, high transaction costs limit farmers’ market participation and thus their potential for income growth. Transaction costs can affect not only whether a farmer sells product but also whether sales occur at the farm gate or at a market. If production behavior is related to a chosen sales location, then analysis of interventions can be improved by explicit consideration of the decision of where to sell. This article develops a double‐selection model that explains consumption and production decisions by semi‐subsistence farmers who first decide whether to be a seller and then whether to sell at the farm gate or at an off‐farm location before deciding on production and consumption. The study tests the validity of this dual‐criteria model against a single‐criterion model in which a grower first decides to be a seller and then decides production, consumption, and sales location simultaneously. The results suggest that the dual‐criteria model provides more information than the single‐criterion model using a sample of cassava producer in Benin.     

Minimum‐data analysis of ecosystem service supply in semi‐subsistence agricultural systems

Antle and Valdivia (2006, Australian Journal of Agricultural and Resource Economics 50, 1–15) proposed a minimum‐data (MD) approach to simulate ecosystem service supply curves that can be implemented using readily available secondary data and validated the approach in a case study of soil carbon sequestration in a monoculture wheat system. However, many applications of the MD approach are in developing countries where semi‐subsistence systems with multiple production activities are being used and data availability is limited. This paper discusses how MD analysis can be applied to more complex production systems such as semi‐subsistence systems with multiple production activities and presents validation analysis for studies of soil carbon sequestration in semi‐subsistence farming systems in Kenya and Senegal. Results from these two studies confirm that ecosystem service supply curves based on the MD approach are close approximations to the curves derived from highly detailed data and models and are therefore sufficiently accurate and robust to be used to support policy decision making.     

Does mixed crop‐livestock farming lead to less diversified diets among smallholders? Evidence from Laos

Malnourishment continues to remain a challenge in developing countries. As the undernourished are largely smallholder farmers, it is widely assumed that farm diversification and mixed crop‐livestock agricultural systems can help alleviate this problem. However, empirical evidence in this context is limited. Hence, we use a two‐year panel's data from Laos to examine whether farm production diversity as well as a mixed crop‐livestock farming system improves household dietary diversity among smallholder farmer. The results from the fixed effects regression indicate that although farm production diversity does lead to a higher dietary diversity, the effect diminishes with continued farm diversification. The counterfactual analysis from the endogenous switching regression reveals that mixed crop‐livestock farming systems do not necessarily enhance dietary diversity. However, we further find that purchasing food from the markets plays an important role in enhancing the dietary diversity of rural smallholder farmers.     

Are medium‐scale farms driving agricultural transformation in sub‐Saharan Africa?

This study presents evidence of profound farm‐level transformation in parts of sub‐Saharan Africa, identifies major sources of dynamism in the sector, and proposes an updated typology of farms that reflects the evolving nature of African agriculture. Repeat waves of national survey data are used to examine changes in crop production and marketed output by farm size. Between the first and most recent surveys (generally covering 6 to 10 years), the share of national marketed crop output value accounted for by medium‐scale farms rose in Zambia from 23% to 42%, in Tanzania from 17% to 36%, and in Nigeria from 7% to 18%. The share of land under medium‐scale farms is not rising in densely populated countries such as Kenya, Uganda, and Rwanda, where land scarcity is impeding the pace of medium‐scale farm acquisitions. Medium‐scale farmers are a diverse group, reflecting distinct entry pathways into agriculture, encouraged by the rapid development of land rental, purchase, and long‐term lease markets. The rise of medium‐scale farms is affecting the region in diverse ways that are difficult to generalize. Findings indicate that these farms can be a dynamic driver of agricultural transformation but this does not reduce the importance of maintaining a clear commitment to supporting smallholder farms. Strengthening land tenure security of local rural people to maintain land rights and support productivity investments by smallholder households remains crucial.     

The economic role of Russia's subsistence agriculture in the transition process

In this article, we analyze the role of subsistence‐oriented agriculture in Russia in the 1990s. We start out by discussing the diverging economic effects of the growth of subsistence agriculture in Russia since the transition process started. The quantitative analysis of this sector's role is carried out by means of an applied computable general equilibrium (CGE) model applying a 1994 social accounting matrix (SAM) as base year data. The novelty of the article is to disaggregate primary agricultural production not by products but by farm types, which enables us to distinguish their institutional and economic characteristics. The model also explicitly differentiates between marketed and subsistence consumption or formal and informal marketing activities of agricultural producers. We simulate two ex post and two ex ante experiments. The results of the first backward‐looking experiment highlight that Russia's subsistence agriculture was an important buffer against further agricultural output declines during transition and, hence, against food insecurity. A simulation, which looks into the effects of a devaluation of the Russian ruble, shows that the financial crisis should have increased the relative competitiveness particularly of large‐scale crop farms versus small‐scale farms. Two forward‐looking experiments indicate that efficiency enhancing institutional change would benefit both large‐scale and small‐scale farms. However, within small‐scale agriculture, a shift from subsistence to commercial agriculture would take place.     

Trade‐offs in the performance of alternative farming systems

Numerous alternative farming systems are proposed as solutions to the sustainability challenges of today's conventional farming systems. In this paper, we review the production, environmental, and socioeconomic performance of three widely discussed and promoted alternative farming systems—organic, smallholder, and urban agriculture. We show that both organic and smallholder agricultures have some benefits, but also entail important trade‐offs; organic has environmental benefits, and also livelihood, health, and nutritional benefits for producers and consumers, but is hampered by lower yields and higher prices. Smaller farms have higher yields and host higher biodiversity, but are hampered by lower incomes to farmers. Urban agriculture can take some pressure off rural landscapes, provide nutritional benefits to the urban poor, and engage urban dwellers in addressing food system challenges, but it simply cannot scale up to be a substantial solution in and of itself. We suggest that instead of focusing on alternative systems, we should identify pathways to sustainable farming for all systems, reforming conventional systems where they perform poorly, and transitioning to alternative systems in contexts where they perform best.     

Estimating the range of economic impacts on farms of nutrient leaching reduction policies

Declining agricultural incomes, increasing concern over rural poverty and sporadic crises such as those of Bovine Spongiform Encephalopathy (BSE) and Foot and Mouth Disease mean that the imposition of further costs on U.K. agriculture are likely to be politically and socially sensitive. Such additional costs are however on the agenda with the implementation of the Water Framework Directive (WFD; European Commission, 2000 ). The WFD aims to achieve “good ecological status” in EU water bodies reducing, inter alia, diffuse pollution from agriculture. In this study, we assess four possible WFD measures proposed to the U.K. Department for Environment, Food, and Rural Affairs: reducing inorganic fertilizer application, conversion of arable land to ungrazed grassland, reducing livestock stocking rates, and reducing livestock dietary N and P intakes. For each measure, changes in farm gross margins (FGMs) are estimated using a dataset of over 2000 farms. In contrast to previous analyses, which have focussed upon mean responses on stylized farms, our approach allows the analysis of the range of impacts across a wide variety of real‐world farms and farm types. Findings reveal high variability in impacts. Cost‐effectiveness analysis indicates that, on average, cropping farms seem capable of reducing nutrient leaching in a more cost‐efficient way than livestock or dairy enterprises.     

A Quantile Regression Analysis of the Effect of Farmers’ Attitudes and Perceptions on Market Participation

The objective of this study is to investigate the subjective determinants of farmers’ participation in output markets in five EU New Member States (NMS) characterised by large semi‐subsistence sectors. It employs quantile regression to model market participation reflecting the heterogeneity amongst farmers. The study also uses the Bayesian adaptive lasso to simultaneously select important covariates and estimate the corresponding quantile regression models. The empirical results show that only two variables affect all quantiles, while their effect varies across quantiles. Some of the remaining variables affect the share of output sold at the lower quantiles (i.e. for subsistence‐ and semi‐subsistence‐oriented farmers) only, whereas other variables are only significant at the upper quantiles (i.e. for more commercially oriented farms). Advisory services, and particularly agricultural business advice, and information and advice on markets and prices can facilitate the market participation of subsistence‐oriented farms.     

Conditioning trends shaping the agricultural and rural landscape in Africa

African countries continue to face deepening food crises that have been accentuated by the global food, energy, and financial crises. This situation is part of a long‐term structural problem: decades of under‐investments in agricultural sector and poor policies of support for smallholder farmers who form the bulk of the farming population. The inability of these farmers to achieve a supply response when commodity prices were high and market access was less of a problem suggests that there are multiple sets of binding constraints that continue to limit the potential of agricultural growth to reduce food security and poverty on the continent. This article reviews some of the historical trends that have hampered the performance of the agriculture sector. In addition, it reviews the impacts of more positive trends that could stimulate agricultural growth in Africa that could change the African agricultural landscape. The article however warns that there are more recent global developments and some continental challenges that could prevent or slow agricultural growth. These include the global financial crisis, public sector investments, inequities in global agricultural development policies, rush for agricultural lands by foreign investors, domestic commercial financing markets, climate change, and emerging carbon markets. The article argues that while opportunities for accelerated growth exists for African agriculture, new sets of policy instruments will be needed to support smallholder farmers to access new agricultural technologies, finance, reduce impacts of climate change, and adopt sustainable land use practices that can allow them to benefit from emerging global carbon markets.     

The role of nonfarm income in coping with the effects of drought in southern Mozambique

To reduce their dependence on subsistence agriculture, farm households in rural Africa may diversify their income sources by participating in the nonfarm sector. In years of drought, nonfarm income can also be part of the coping strategies. A multivariate sample selection model was used to analyze three years of data from a nationally representative household survey in Mozambique. The analysis was guided by the following three questions. During a drought year: (1) Do households increase their participation in nonfarm activities? (2) Are poorer households as likely as others to participate in and benefit from nonfarm activities? and (3) Which factors are associated with higher nonfarm incomes? The results suggest that households are more likely to engage in at least one nonfarm income‐generating activity during a drought year. Although poorer households are more likely to engage in nonfarm activities, they are less likely to participate in nonfarm activities of high return. The results suggest that policies reducing entry barriers (e.g., improved road infrastructure, micro‐credit schemes, and livestock promotion programs) and increasing education levels can facilitate income diversification, thus allowing rural households to better cope with the effects of drought. When designing polices, care must be taken to avoid exacerbating income inequality by targeting measures toward poorer and female‐headed households.     

Assessing Total Factor Productivity Growth in Sub‐Saharan African Agriculture

The importance of the agricultural sector in the economic development process is well known. Improvements in agricultural productivity are often found to spill into other areas of a developing economy, potentially improving the standards of living of urban and rural workers alike. Given the importance of this sector, accurate measures of total factor productivity (TFP) across countries can be helpful in identifying conditions, institutions or policies that promote agricultural development. In this article, we estimate TFP growth in agriculture for a panel of 39 sub‐Saharan African countries from 1961 to 2007. We also develop a set of development outcome measures theoretically consistent with strong agricultural performance to serve as external validation of our results. We find that three estimation methods (stochastic frontier, generalised maximum entropy, and Bayesian efficiency) generate relative rankings that are consistent with the development outcome measures, providing external validation of the methods. However, the data envelopment analysis approach performs poorly in this regard.     

Does carbon farming provide a cost‐effective option to mitigate GHG emissions? Evidence from China

In this study, we apply a whole farm bioeconomic analysis to explore the changes in land use, farm practices and on‐farm greenhouse gas (GHG) emission under varying levels of agricultural greenhouse gas abatement incentives in the form of a carbon tax for a semi‐arid crop‐livestock farming system in China's Loess Plateau. Our results show that the optimised agricultural enterprises move towards being cropping‐dominated reducing on‐farm emission since livestock perform is the major source of emission. Farmers employ less oats‐based and rapeseed‐based rotations but more dry pea‐based rotations in the optimal enterprise mix. A substantial reduction in on‐farm greenhouse gas emission can be achieved at low cost with a small increase in carbon incentives. Our estimates indicate that crop‐livestock farmers in China's Loess Plateau may reduce their on‐farm GHG emission between 16.6 and 33 per cent with marginal abatement costs <￥100/t CO₂e and ￥150/t CO₂e in 2015 Chinese Yuan. The analysis implies that reducing greenhouse gas emission in China's semi‐arid crop‐livestock agriculture is potentially a low‐cost option.     

Efficient versus Sustainable Livestock Grazing in the Sahel

To date, there is no consensus on optimal stocking rates in the semi‐arid Sahel. We develop a model for livestock management based on a detailed analysis of ecosystem dynamics, and we apply it to calculate optimal and sustainable livestock stocking rates in a Sahelian rangeland. The general model accounts for stochastic rainfall and the long‐term impact of grazing on rangeland productivity. For the case study area, the model shows that the optimal stocking rate is higher than the sustainable stocking rate. Hence, with current prices, it is optimal for the pastoralist society to deplete their resource base. In our case study, we also find that the current stocking rate exceeds the optimal stocking rate, which adds to soil depletion.     

How sustainable is participatory watershed development in India?

Watershed conservation is widely recognized as a major strategy for rural development throughout the developing world. In India, the apparent success of participatory approaches to watershed development resulted in a decentralization of project planning, implementation, and management to local communities at the village scale. We explore the effectiveness of this so‐called community‐based approach in achieving sustainable soil and water conservation in four semi‐arid regions in India, and analyze what factors explain project success. We confirm the result of earlier studies that participatory approaches are more effective in establishing soil and water conservation in the short run. However, our main result is that investments in community organization fail to ensure household commitment to maintenance in the longer term. Without better returns to investment in soil and water conservation and without local institutions to coordinate investment in the long run, the sustainability of participatory watershed management is seriously threatened.     

A trait-based model of the potential demand for a genetically engineered food crop in a developing economy

We predict the potential demand of smallholder farmers for genetically transformed varieties of a food crop, the cooking banana of the East African highlands. Farmer demand for planting material is derived in an agricultural household model that accounts for variety traits and missing markets. The demand for candidate host varieties is predicted using a Zero‐Inflated Poisson (ZIP) regression system. The fitted model is used to illustrate the sensitivity of farmer demand for improved planting material to (a) investments in research and development, represented by the effectiveness of gene insertion and expression, and (b) other public investments in education, extension, and market infrastructure that support diffusion. By comparing the characteristics of agricultural households we demonstrate that the choice of host variety can have social consequences, favoring one rural population compared with another. Clients for transgenic banana planting material are likely to be poorer, subsistence‐oriented farmers in areas greatly affected by biotic constraints. A model of this type might be useful in assessing the investments needed to support the systematic dissemination of improved planting material. The approach can be generalized to other crop biotechnologies for smallholder farming systems, particularly in developing economies.     

Characterization of urban and peri-urban agroecosystems in three West African cities

Systems of urban and peri-urban agriculture (UPA) take many forms in terms of integration of different activities, production intensities and production orientations. The present study is aimed at a refined characterization of the diversity in terms of production orientation, resource endowments and production strategies of the different types of farm households involved in urban and peri-urban agriculture in three West African cities. A total of 318 UPA households were surveyed using a standardized semi-structured questionnaire in the West African cities Kano (Nigeria), Bobo Dioulasso (Burkina Faso) and Sikasso (Mali). Through categorical principal component analysis and two-step cluster analysis, six distinct household clusters were identified based on resource endowments and the degree of integration of vegetable, field crop and animal production. Three clusters appeared in all three cities; the remaining three were specific for one of the cities each and comprised (i) commercial gardening plus field crop–livestock (cGCL) keeping, (ii) commercial livestock plus subsistence field cropping (cLsC), (iii) commercial gardening plus semi-commercial field cropping (cGscC), (iv) commercial gardening plus semi-commercial livestock (cGscL) keeping, (v) commercial field cropping (cC) and (vi) commercial gardening (cG). Production constraints were similar across the cities, that is, high costs of inputs, water shortages and lack of fertilizers in the garden and field crop production systems, while feeding constraints and animal diseases were the main constraints in livestock production. UPA remains an important economic activity to livelihood strategy for urban and peri-urban farmers. Appropriate policies should be formulated that efficiently target the site-specific constraints for improving the quality and sustainability of UPA production systems.     

Labour Migration and Gendered Agricultural Relations: The Feminization of Agriculture in the Ejidal Sector of Calakmul,Mexico

We examine the nature of the ‘feminization of agriculture’ in the semi‐subsistence, peasant production sector of southeastern Mexico, as associated with male labour out‐migration. Presenting findings from empirical work with smallholder producers, we discuss the impact of men's migration to the United States on women's participation in agriculture and gendered relations of agricultural production. In 2007, we conducted a survey of 155 semi‐subsistence, smallholder households in six ejidos. This survey was supplemented by ethnographic research in a single ejido. Our findings demonstrate the need to distinguish between farm labour and management in this sector, and the potentially significant (but focused) changes in the local relations of agricultural production wrought by gendered patterns of labour migration – specifically in tenure, land‐use decision‐making and the management of hired labour.     

The adoption of intensive monocrop horticulture in southern Cameroon

Results from a 1997 survey of 208 households in the humid forest zone of southern Cameroon indicate that African policy makers seeking to intensify agricultural production should focus attention on the horticultural sub‐sector. The survey, which gathered information on horticultural production practices, found that the average expenditure on agro‐chemical inputs by horticultural producers using monocrop production systems was 190US$/ha, which greatly exceeds the FAO reported national average expenditure of 6.50 US$/ha. A logit model of monocrop adoption indicated that the size of land holding per household had a negative effect on adoption, congruent with population‐driven technical change and that increases in unit transportation costs significantly decreased the probability of adoption. These findings suggest that policy makers should target horticultural intensification in areas of higher population density and promote investment in rural roads. The age of the household head had a significant negative and elastic effect on adoption, which in combination with an increase in the cohort of younger farmers in the rural population induced by macro‐economic events contributed to the spread of intensified horticulture. In the study area, roughly two‐thirds of rural households also produce cocoa and the quantity of cocoa produced was positively associated with adoption of intensive horticultural systems suggesting that export crop promotion indirectly facilitated diversification of agriculture. Women's participation in intensive monocrop production was limited and efforts to promote their greater involvement are recommended.