How has microcredit supported agriculture? Evidence using panel data from Bangladesh

Improving agricultural productivity has received a greater attention in recent years amid concerns about rising food insecurity, population pressures, and climate change. Many believe that better access to institutional credit, spanning microcredit as well as commercial and agricultural banks, can help rural households smooth risks, and access inputs and other technology to modernize agriculture and improve farm/nonfarm linkages. We use recently augmented household panel data spanning over 20 years in Bangladesh to examine the effects of rural credit expansion (both microcredit and formal bank channels) on outcomes for agricultural households. We find that microcredit has benefited households with lower landownings, raising agricultural income from activities such as livestock rearing that require less land, as well as nonfarm income diversification for all households, but with the strongest effect for landless or near‐landless households. We do not find effects of microcredit on crop income, but do, however, find that reported supply‐side credit constraints significantly lower crop income. Borrowing by both men and women has contributed to nonfarm income growth for marginal farmers, but only men's borrowing has contributed to nonfarm income growth among higher landowning groups.     

Matching food security and malnutrition indicators: evidence from Southeast Asia

This article aims to understand the relation between household food security and individual undernutrition. The multitude of indicators available raises the question which aspects of food security are captured by the respective indicator. In our analysis, we first assess the relation between the dimensions of food security and households’ socioeconomic characteristics. Second, we examine whether household indicators detect undernutrition in children. Finally, we investigate the role of individual‐specific characteristics for child undernutrition. The analysis is based on a novel data set of 1,200 rural households from Cambodia and Lao PDR, which combines household‐ and individual‐level data. We capture household food security by three indicators including a dietary diversity score, a consumption behavior measure, and an experiential measure. Individual nutrition status is measured via anthropometric indicators. Our results show that different household‐level indicators capture fundamentally different aspects of food security. Moreover, household food security fails to explain stunting for children under five. Dietary diversity indicators, however, explain underweight in children to a small extent. We call for more research on intrahousehold allocation of food and stress the implications of our research for the design and targeting of food and nutrition support programs.     

Agricultural production and children's diets: evidence from rural Ethiopia

We study the relationship between pre‐school children's food consumption and household agricultural production. Using a large household survey from rural Ethiopia, we find that increasing household production diversity leads to considerable improvements in children's dietary diversity. However, we also document how this nonseparability of consumption and production does not hold for households that have access to food markets. These findings imply that nutrition‐sensitive agricultural interventions that push for market integration are likely to be more effective in reducing under‐nutrition than those promoting production diversity.     

Health and hunger: nutrient response to income depending on caloric availability in Nepal

Using data from NLSS III, we estimate nutrient‐income elasticities for macronutrients, vitamins, and minerals. We further allow for differential nutrient demand response to income depending on where a household is in the caloric availability distribution. We find that some nutrients are income inelastic indicating that they are necessity goods while others are relatively income elastic. We further test and reject equivalent nutrient‐income elasticities across the caloric availability distribution. Households in the lowest calorie quintile have highly income elastic nutrient demand leaving them vulnerable to income fluctuations. Moreover, as households meet their first‐order caloric needs, they substitute away from cheap calorie‐dense staples toward more expensive nutrient‐dense foods. Finally, for most nutrients, households in the highest calorie quintile exhibit more elastic nutrient demand, similar to households in the lowest quintile. Our results suggest that policies aimed at improving income will likely also improve household nutrient availability, particularly for the most calorie poor households. They further suggest that policies aimed at protecting poor households from negative income shocks will also likely yield nutritional benefits.     

Floods,food security,and coping strategies: Evidence from Afghanistan

In this paper, we assess the long‐term effect of floods on food security (as measured by calorie and micronutrient consumption) by applying an instrumental variable approach to data from the Afghanistan National Risk and Vulnerability Assessment survey. To identify the determinants of this effect, we also estimate how floods affect per capita yearly household income and poverty status. We find that exposure to flooding during a 12‐month period decreased daily calorie consumption by approximately 60 kcal while increasing the probability of iron, vitamin A, and vitamin C deficiency by 11, 12, and 27 percentage points, respectively. Controlling for price shocks and income only marginally reduces this flood effect on food security, suggesting that impaired livelihoods (rather than price hikes) are its primary driver. We further determine that exposure to this natural disaster decreases income by about 3% and makes flood‐affected households about 3 percentage points more likely to be poor. Lastly, we show that experience of floods is strongly and significantly associated with lower diet quality and quantity, and with engaging in consumption smoothing coping strategies, such as buying food on credit and taking loans. These findings underscore the serious direct impact of floods on both diet and effective behavioral responses to such shocks while emphasizing the need for targeted micronutrient supplementation in disaster relief and food aid measures even after the period of natural disaster emergency.     

Agricultural Commercialisation and Nutrition in Smallholder Farm Households

Commercialisation of smallholder agriculture is important for rural economic growth. While previous studies have analysed effects of commercialisation on productivity and income, implications for farm household nutrition have received much less attention. We evaluate the effects of commercialisation on household food security and dietary quality with a special focus on calorie and micronutrient consumption. We also examine transmission channels by looking at the role of income, gender, and possible substitution effects between the consumption of own-produced and purchased foods. The analysis uses survey data from farm households in Kenya and a control function approach. Generalised propensity scores are employed to estimate continuous treatment effects. Commercialisation significantly improves food security and dietary quality in terms of calorie, zinc and iron consumption. For vitamin A, effects are insignificant. Commercialisation contributes to higher incomes and increased nutrients from purchased foods, but it does not reduce the consumption of nutrients from own-produced foods. Enhancing market access is important not only for rural economic growth, but also for making smallholder agriculture more nutrition-sensitive.     

Does food market modernisation lead to improved dietary diversity and diet quality for urban Vietnamese households?

This study investigates the possible mechanisms through which modern food markets may affect Vietnamese households’ dietary diversity and diet quality using data from a survey of 1,700 urban households with seven‐day food recall. We calculate Household Dietary Diversity Scores to measure dietary diversity, and use consumption frequencies of micronutrients (vitamin A and heme iron) and a macronutrient (protein) to create a household measure of diet quality. We estimate a Poisson regression model using a two‐step control function approach to address the potential endogeneity of our key explanatory variable, modern market food expenditure shares. Higher modern market food expenditure share is positively and significantly associated with consumption frequency of heme iron, but there are no significant associations with consumption of vitamin A and protein. We further explore indirect linkages between food expenditure shares and dietary diversity, which in turn, may be linked to household diet quality. Results from a system of equations show that the food expenditure share variable has no significant relationship with dietary diversity, but dietary diversity is positively and significantly associated with diet quality. Our results indicate that alone, policies which encourage ‘food market modernisation’ are not enough to improve diet quality in urban Vietnam.     

Do Plant Clinics Improve Household Food Security? Evidence from Rwanda

One of the main drivers of food insecurity is pests, which are estimated to cause around 40% of crop losses worldwide. We examine the food security effects of plant clinics, a novel agricultural extension model that aims to reduce crop losses due to pests through the provision of demand‐driven plant health diagnostic and advisory services to smallholder farmers. The study is based on survey data from maize‐growing households in Rwanda, where 66 plant clinics have been established. Using switching regression and matching techniques as well as various food security metrics, including the food insecurity experience scale, we find evidence that participation in plant clinics is significantly associated with a reduction in household food insecurity. For instance, among the participating households, plant clinics contribute to a decrease in the period of food shortage by one month and a reduction in the severity of food insecurity by 22 percentage points. We also show that these effects are more pronounced for female‐headed households. Overall, our findings suggest that plant clinics can play an important role in achieving the Sustainable Development Goal 2 of zero hunger.     

Off‐farm work,land tenancy contracts and investment in soil conservation measures in rural Pakistan

This study examines the impacts of participation in off‐farm work and land tenancy contracts on the intensity of investment in soil‐improving measures and farm productivity. A multivariate Tobit model that accounts for potential endogeneity between the intensity of investment and the off‐farm work and tenancy contract variables is estimated for 341 rural households in Punjab province of Pakistan. An instrumental variable approach is also used to analyse the impact of tenancy contract and off‐farm work on farm productivity. The empirical results show that participation in off‐farm work and tenure security tends to increase the intensity of investment in long‐term soil‐improving measures. We also find that increases in off‐farm work and tenure security exert significant and positive effects on farm productivity.     

Dynamics of smallholder participation in horticultural export chains: evidence from Ecuador

We study the dynamics of smallholder participation in export value chains focusing on the example of small‐scale broccoli producers in the highlands of Ecuador. Combining cross‐sectional data from a household survey with 11‐year longitudinal data on export market transactions, we explain the hazards of dropping out of a high‐value export chain. We apply a multispell cox duration model that allows us to consider multiple entries and exits from the supply chain. We also provide evidence on the welfare impacts associated with participation. The results suggest that small‐scale farmers’ exit from the export sector is accelerated by high transaction risks experienced in the past. While we find no particular evidence for the exclusion of small‐scale farmers from the export sector, we do find that poorer households and female‐headed households tend to drop out faster, especially as long as the sector is still prospering. Finally, when considering welfare effects, we do not find evidence that participation translates into tangible benefits for broccoli farmers. We discuss some measures that could help improve the long‐term sustainability of smallholder integration in high‐value chains.     

From Farm to Kitchen: How Gender Affects Production Diversity and the Dietary Intake of Farm Households in Ethiopia

Malnutrition in farm households remains a significant problem in many developing countries and is linked to a lack of diversity in diets. We explore how gender differences might affect household dietary diversity using the LSMS‐ISA Ethiopia panel dataset. Drawing on a farm household framework, nonlinear panel models are estimated allowing for unobserved heterogeneity and production endogeneity using a control function. We use decomposition techniques to identify the impact of different potential sources of gender difference in dietary diversity. Our results provide evidence of significant gender effects in production diversity and in dietary diversity using the food variety score (FVS). For other indicators of dietary diversity, the evidence of gender effects is weaker. The decomposition results suggest that, after controlling for differences in characteristics, female‐headed households are at a dietary diversity disadvantage. Gender differences in the relationship between production diversity, price and income and dietary diversity and the production diversity decisions appear to be the main drivers. The results also suggest that female preferences are more orientated towards ensuring greater dietary diversity in the household. Our evidence also suggests that a key driver of gender disadvantage in dietary diversity is related to whether food is sourced from the household’s own production or the market. This implies that part of the observed negative gender impact on dietary diversity may stem from differences in marketing and storage of own production through the year.     

Good debts,bad debts: Microcredit and managing debt in rural south India

This paper engages with debates around microcredit, once a development success story, but now much critiqued. Arguing that microcredit can only be understood within the wider context of debt, we draw on ethnographic material from two villages in Tamil Nadu, to examine how microcredit through self‐help groups sits within a broader context of indebtedness among the rural labouring classes. We describe patterns and sources of borrowing among the poor, the ways in which debts are managed, negotiated and settled within households and the ways in which the management of debt is mediated by gender, caste, class and aspiration. The paper calls for a more nuanced understanding of debt: some debts are seen as ‘good’ and others as ‘bad’. We explore the ways in which microcredit, channelled through self‐help groups, is—against much contemporary criticism—perceived by women borrowers in our study villages as a source of ‘good debt’ and praised as an enabling factor in their everyday household management as well as in aspirations for mobility and development. We also argue that microcredit can have positive impacts by enabling social investments that enhance status and reduce dependency.     

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.     

The impact of safety nets on technology adoption: a difference‐in‐differences analysis

This article contributes to a growing body of empirical literature relating credit constraints and incomplete insurance to investment decisions. We use panel data from rural Ethiopia to investigate whether participation in a safety net program enhances fertilizer adoption. Using a difference‐in‐differences estimator and inverse propensity score weighting, we find that participation in Ethiopia's food‐for‐work (FFW) program increased fertilizer adoption in the short run, but not in the long run. Results also indicate that the intensity of fertilizer usage increased with livestock holdings for FFW‐participant households, providing some evidence that the intervention helped asset‐rich farm households more than asset‐poor households. We find no significant effects of free distribution on fertilizer adoption or intensification. Our results are consistent with the hypothesis that safety nets can be viewed as mechanisms that allow households to take on more risk to pursue higher profits. The results highlight the importance of safety net programs, their effectiveness in ensuring farmers that they will be protected against uninsured shocks, and how that assurance can translate into productivity‐enhancing behavior.     

Can women's self‐help groups improve access to information,decision‐making,and agricultural practices? The Indian case

Effective agricultural extension is key to improving productivity, increasing farmers’ access to information, and promoting more diverse sets of crops and improved methods of cultivation. In India, however, the coverage of agricultural extension workers and the relevance of extension advice is poor. We investigate whether a women's self‐help group (SHG) platform could be an effective way of improving access to information, women's empowerment in agriculture, agricultural practices, and production diversity. We use cross‐sectional data on close to 1,000 women from five states in India and employ nearest‐neighbor matching models to match SHG and non‐SHG women along a range of observed characteristics. We find that participation in an SHG increases women's access to information and their participation in some agricultural decisions, but has limited impact on agricultural practices or outcomes, possibly due to financial constraints, social norms, and women's domestic responsibilities. SHGs need to go beyond provision of information to changing the dynamics around women's participation in agriculture to effectively translate knowledge into practice.     

Risk aversion in agricultural water management investments in Northern Ghana: experimental evidence

Sub‐Saharan Africa (SSA) is one of the regions in the world most affected by food price volatility and production variability. Poor small‐scale farmers in this region are particularly vulnerable to this variability. As a result, households may be reluctant to adopt new agricultural water management (AWM) technologies when they involve more risk than what they mitigate. Despite risk's role in AWM investments, there have been few attempts to estimate the magnitude and nature of risk aversion in relation to this type of farm decisions. To partially close this gap, this article uses an experimental approach applied to 137 households in Northern Ghana. We find that more than 70% of households are moderately or slightly risk averse. This contrasts with other studies in SSA, where most household decision‐makers exhibit severe to extreme risk aversion. We also find that households that stand to lose as well as gain something from participation in games are less risk averse than households playing gains‐only games. This result suggests that most farmers’ current wealth put them at risk of falling into a poverty trap. Thus, the losses from the riskiest investments on AWM technologies may fall more heavily on the poor, suggesting that additional efforts be given to the creation of viable insurance mechanisms.     

中国西南贫困山区道路与农户食物获得能力——基于贵州住户调查数据的分析

本文采用国内外研究最常用的3d—24h膳食回顾法,调查贵州普定县随机抽取的3个行政村8个自然村的全户数据,运用多元回归方程分析西南贫困山区道路是否会影响其农户食物获得能力。研究发现,调查地区农民的基本温饱问题尽管已经能够得到基本保障,但农民的营养结构还不太合理,蛋白质摄入量普遍不足,膳食质量有待进一步提高;居住地离集贸市场越远、道路状况越差,农民食物的多样性及膳食综合评价得分(DDP分值)越差。     

Diet transformation in Africa: the case of Ethiopia

Africa's food systems are changing fast amid rapid economic growth, emerging urbanization, and structural transformation. In this study, we use four rounds of nationally representative data from Ethiopia to document changes in household food consumption patterns over a period of unprecedented economic growth. We find that while the share of food in the total consumption basket is declining, food quantities and calorie intakes have considerably increased between 1996 and 2011. A decomposition analysis suggests that this was mostly driven by improvements in household incomes—a finding that is consistent across the calorie distribution. Also, the content of the food basket is changing with a gradual shift toward high‐value foods such as animal products, fruits and vegetables and processed foods. Overall, this diet transformation has important implications for the food security debate and for agricultural and food policy in the country.     

Input subsidies and crop diversity on family farms in Burkina Faso

Since their independence, many countries in sub-Saharan Africa have used input subsidies to increase agricultural productivity and improve food security. We analyse the effects of both a fertiliser and a seed subsidy on farming households' land allocation among crops and crop diversity in Burkina Faso. Although previous studies investigated either the impact of a fertiliser or a seed subsidy on targeted crops, few examined the effects of both subsidies combined. Applying a correlated random-effects model with a control function approach to nationally representative, 2-year panel data collected from farming households, we find that those with access to the fertiliser subsidy allocate more land to the crops it targets (rice, maize and cotton) than non-targeted crops. Focusing on a minor crop with key agronomic and nutritional attributes, we conclude that land allocation to cowpea as the primary crop and intercrop declined with the fertiliser subsidy. The fertiliser subsidy also negatively affects crop diversity. However, we find that the cowpea seed subsidy offsets the bias of fertiliser subsidy toward fertiliser-targeted crops and enhances diversity.     

The impact of strengthening agricultural extension services on women farmers: Evidence from Ethiopia

This paper evaluates the effect of the Rural Capacity Building Project (RCBP), which aimed at promoting growth by strengthening the agricultural service systems in Ethiopia, and by making them more responsive to smallholders’ needs, in particular women farmers. We examine the gender‐differentiated impact of the RCBP using panel data on 1,485 geographically dispersed households in project and control kebeles. We find that women farmers’ access and satisfaction with extension services increased significantly immediately after the start of the project, but that effect did not last into the medium term. The project led to an increase in the adoption of high‐value crop farming, area of land cultivated, and economic participation of household members, benefiting male‐ and female‐headed households equally. Results point to the positive impact of incorporating women's needs and constraints in the design of the agricultural extension system. However, the project was not able to reduce the preexisting gender gap in agricultural outcomes.