Agricultural input subsidies,extension services,and farm labour productivity nexus: Evidence from maize farmers in Tanzania

This paper examines the effect of agricultural input subsidies (AIS) and agricultural extension services (AES) on farm labour productivity in plots planted with maize in Tanzania, using panel data from the National Panel Survey in Tanzania. To control for the endogeneity of the two programmes, a control function and instrumental variable approach is used to estimate the effects of AIS and AES on farm labour productivity. The results show that AIS and AES are significant in raising labour productivity in maize-planted plots. Similarly, AIS and AES are also effective in increasing land productivity in these plots. Moreover, each programme has comparable effects on land productivity and farm labour productivity. These findings imply that public investments in AIS and AES are effective in raising farm productivity.     

Government Expenditures,Health Outcomes and Marginal Productivity of Agricultural Inputs: The Case of Tanzania

This paper examines the impact of health expenditures on agricultural labour productivity in order to inform the necessary policy decisions about targeting scarce public resources towards their most effective uses. We link health sector expenditures in rural Tanzania to health outcomes and agricultural labour productivity using data from the 2008 Household Budget Survey (10,975 households) and the 2007/08 Agricultural Census (52,594 households) across 113 districts in Tanzania. The results indicate that the marginal productivity of labour as well as land and fertilisers respond significantly to health expenditures. However, the magnitude of the response varies across types of disease, categories of expenditures and agricultural inputs. These findings suggest both the need and scope for targeting public expenditures in the health sector to achieve better agricultural growth outcomes.     

Land Distribution and International Agricultural Productivity

The unequal distribution of agricultural land is often cited as a source of inefficiency in agriculture. Previous cross-country studies of agricultural productivity differences, though, have not considered land inequality. This article addresses this issue by using cross-country data on inequality in operational holdings of agricultural land from Deininger and Squire (1998) . In an estimation of an agricultural production function, the Gini coefficient for land holdings is found to have a significant negative relationship with productivity. This is consistent with the existence of heterogeneity in productivity by farm size within countries. A one standard deviation drop in the Gini coefficient implies an increase in productivity of 8.5%.     

Land use dynamics in the central highlands of Vietnam: a spatial model combining village survey data with satellite imagery interpretation

The paper investigates geo‐physical, agro‐ecological, and socio‐economic determinants of past land use change in two districts of Dak Lak province in the Central Highlands of Vietnam and assesses the influence of rural development policies on land cover change. Landsat satellite images from the years 1975, 1992 and 2000 are interpreted to detect land cover in two time periods. A survey in randomly selected villages provides primary recall data on socio‐economic and policy variables hypothesised to influence land use change. Secondary data on rainfall, soil suitability, and topography was obtained from meteorological stations and from a digital soil map and digital elevation model. All data were spatially referenced using geographic information systems (GIS) software. A reduced‐form, multinomial logit model is used to estimate the influence of hypothesised determinants on land use and the probabilities that a certain pixel has one of five land classes during either of the two periods. Results suggest that the first period from 1975 to 1992 was characterised by land‐intensive agricultural expansion and the conversion of forest into grass and agricultural land. During the second period, since 1992, the rapid, more labour‐ and capital‐intensive growth in the agricultural sector was enabled by the introduction of fertiliser, improved access to rural roads and markets, and expansion of the irrigated area. These policies, combined with the introduction of protected forest areas and policies discouraging shifting cultivation during the second period reduced the pressure on forests while at the same time increasing agricultural productivity and incomes for a growing population. Forest cover during the second period mainly increased due to the regeneration of areas formerly used for shifting cultivation.     

Technology catch-up in agriculture among advanced economies

We examine whether countries with low initial levels of agricultural total factor productivity (TFP) tend to ‘catch up’ with the technology leaders. We first compare relative levels of agricultural TFP, capital services and labour input levels in agriculture for 17 OECD countries between 1973 and 2011. Then we apply (conditional) convergence analysis to the panel data to examine the speed of convergence and test whether the convergence is transitory or permanent by analysing TFP changes over the business cycle. Capital intensities, quality improvement of capital, factors such as human capital spillovers, and certain agricultural policies are conditioning variables. We examine how differences in relative capital intensities affect agricultural productivity convergence over the business cycle. We find evidence that the speed of convergence increases during periods of contraction in economic activity.     

Agricultural technology and land use futures: The UK case

This paper explores how agricultural technology has interacted with recent land use in the UK and how it might do so in the next 50 years. From 1960 to 1985, farmers successfully used technology to increase the output of crop and animal products per unit of land and particularly of labour. This reduced the number of people employed in agriculture, and promoted larger and more specialised farm enterprises. Between 1985 and 2006, food prices were relatively low, and although labour productivity continued to increase, land productivity remained relatively static. However during this period, farmers started to address the effects of agriculture on reduced water quality and habitat loss.For established agricultural products, technological innovation tends to have an incremental effect, working through genetic improvement, the removal of abiotic and biotic stress (e.g. crop nutrition and protection, irrigation and drainage, and animal nutrition, health and housing) and the substitution of labour. Whereas the first two processes tend to be scale-neutral, the substitution of labour is usually easiest to achieve on larger farms. Other key areas for technological innovation include addressing air, soil and water quality, biodiversity, waste reduction, and information management. Over the next 50 years, large step-changes in land use arising from agricultural technology are predicted to arise from the development of new markets for agricultural products. A strong bioenergy sector will strengthen the links between crop commodity and energy prices and will have a major effect on future land use. Climate change and the regulation of greenhouse gas emissions will alter the relative profitability of crop and animal production systems. Lastly, increased public awareness of the links between food, health and the environment could substantially shift the demand for specific agricultural products.Continual improvements in agricultural technology are pivotal to providing society with the flexibility to balance the challenges of improving human well-being with the management of the planet's ecosystem. Increased technological innovation increases the probability that agricultural land can be used for other purposes, but the exact relationship is dependent on trade and environmental policies. The large external effects of agriculture mean that decisions regarding the adoption of future technologies should be taken by farmers working with other stakeholders.     

The trends in bioeconomy development in the European Union: Exploiting capacity and productivity measures based on the land footprint approach

Bioeconomy comprises a novel approach towards economic development in the European Union (EU). Its development should be confined by the planetary boundaries (biocapacity). We integrate the land footprint approach related to production and land biocapacity to assess the trends in capacity and productivity of bioeconomy in the EU countries throughout 1997–2013. Results show that the level of production-based land footprint and land biocapacity vary across the EU countries. However, Belgium is the sole case where production-based land footprint exceeds land biocapacity. The highest possibilities for development of the bioeconomy sector are observed for Slovenia, Croatia, Romania and Slovakia. Meanwhile, Estonia, Denmark and the United Kingdom have almost achieved the level of land biocapacity. Considering the catch up growth rate, almost all of the EU countries (with exception of Greece, France, Italy and Romania) show increasing footprint-to-biocapacity ratios with the highest values for Estonia and Latvia. The significant absolute decoupling between production-based land footprint and agricultural value added is observed in Denmark. Meanwhile, Italy, Lithuania and Spain show relative decoupling. Thus, these countries should pay particular attention to productivity improvements in forestry and agriculture. This study contributes to setting the targets for bioeconomy policy that can support the sustainable and efficient use of biological resources.     

Labour-Related Structural Trends in South African Maize Production

The substitution of capital goods, including new technology, for land and labour has played an important role and has influenced the structure of Sout African agriculture. Farm labour-related trends in the summer rainfall grain-producing area of South Africa are considered. The amount of labour used, the remuneration of labour, the substitution of capital for labour and productivity trends are analyzed. Growth rates were obtained by fitting exponential functions with time as independent variable. The decline in the number of farm employees per 1000 hectares under cultivation since 1970 probably resulted from mechanization and thus capital-labour substitution in maize production, especially in harvesting. Tax concessions on new capital improvements, the subsidization of agriculture in general and the increasing rate of urbanization contributed to this trend. The scarcity of capital relative to unskilled labour, which has been reinforced by policy measures favouring capital intensity (capital formation has increased by 4.0% per annum between 1950 and 1980, compared with an increase of 0.71% per annum in the number of farm employees in the same period); this implies that corrective policy changes are required to improve the present distorted situation. This will enable the commercial agricultural sector of South Africa to play a more meaningful role in the socio-economic development of the whole subcontinent.     

THE VALUE OF AGRICULTURAL LAND

Ricardo's discovery that the rents of agricultural lands arise essentially out of the differences between them can be restated by saying that the rent of land should depend on its marginal product. In come countries the Ricardian situation persists; where agricultural labour has “nowhere else to go” rents rise as a function of rural population density. The paper reviews the measures of marginal product which have been made using three methods of estimation: the production function (Cobb Douglas): estimates made by precise linear programming; and estimates of the “residual” income to land. The production function technique has been applied in countries at all stages of development ranging from African hand hoe agriculture to Australia and Belgium, and for a range of farm sizes. There are fewer examples of measures made by the other two methods; they are more suitable for use in advanced economics.     

The highly variable economic performance of European agriculture

The successive reforms of the Common Agricultural Policy (CAP), the enlargements of the European Union (EU) and the impacts of climate change have amplified the diversity of European agriculture. These rapid changes have resulted in the intensification of agricultural activities in some regions, while they have led to the marginalization of agriculture and its eventual abandonment in others. The objective of this paper is to investigate the factors that are behind the differential performance of agriculture across the EU-27 countries. Ward's, k-means and two-step clustering methods were used to classify European agriculture based on gross-value-added farm, land and labour productivity indicators. Significant differences were revealed between the Northern-Central counties and the continental peripheries (Mediterranean, Eastern, Northern Scandinavian). An exact logistic regression model was used to analyse the factors behind this differential performance. Agricultural sectors characterized by a young and better trained farm population are more likely to attain high economic performance. The odds to attain high economic performance are almost 9 times greater for countries with a highly trained farm population, namely, the Netherlands (72%) and Germany (69%), than for countries with poor farm training, while an ageing farm population such as in Portugal (72%) and Bulgaria (66%) is 92% less likely to be high performing. The importance of investments in agriculture was also identified. The significance of the wheat yield variable highlights the importance of both environmental conditions and technical efficiency on farm economic performance. Similarly, countries with a high share of utilized agricultural land in less favoured areas, such as in the Mediterranean, are 94% less likely to attain high economic performance. The redesign of CAP direct payments between old and new member states after 2013 combined with the impacts of agricultural trade liberalization and climate change are expected to deteriorate the position of low performing agricultural sectors further.     

Impact and implications of price policy and land degradation on agricultural growth in developing countries

In many developing countries, a high proportion of the population resides and works in rural areas. Agriculture is the dominant sector in rural areas and has the greatest concentration of poverty: landless workers, small tenant farmers, and small farm owners. Thus, any development strategy that is directed towards increasing employment and alleviating a country's hunger must concentrate on sustainable agricultural growth. Historically, economic development in most countries has been based on exploitation of natural resources, particularly land resources. Soil erosion and land degradation have been serious worldwide. Due to reasons such as high population pressure on land and limited fossil energy supplies, land degradation is generally more serious in the developing world. Empirical studies show that soil erosion and degradation of agricultural land not only decrease the land productivity but they can also result in major downstream or off-site damage which may be several times that of on-site damage. In promoting industrialization, governments of many developing countries adopt a package of price and other policies that reduce agricultural production incentives and encourage a flow of resources out of agriculture. Increasing evidence shows that these policies cause a substantial efficiency or social welfare loss, and a great loss in foreign exchange earnings. In addition, a World Bank study on the effect of price distortions on economic growth rates concluded that neither rich resource endowments, nor a high stage of economic development, nor privatization are able to make up the adverse effects caused by high price distortions. This analysis is primarily concerned with identifying the factors that determine the agricultural production growth rate and in testing the effects these factors have on agricultural growth in developing countries. Specifically, this study involves statistical estimation of an aggregate agricultural growth function based on cross-country data for 28 developing countries. Special attention is devoted to land degradation and agricultural pricing policy, and to the policy implications resulting from the effects these variables have on agricultural and food production growth. The overall results of this study show that price distortions in the economy and land degradation had statistically significant negative impacts while the change in arable and permanent land was positively related to the growth of agricultural production and food production in 28 developing countries from 1971 to 1980. These results emphasize the importance of ‘getting prices right’ and implementation of sustainable land and water management practices if future growth in food and agricultural output is to be realized and sustained in developing countries.     

Productivity growth and convergence in crop, ruminant, and nonruminant production: measurement and forecasts

Projections of future productivity growth rates in agriculture are an essential input for a great variety of tasks, ranging from development of an outlook for global commodity markets to the analysis of interactions between land use, deforestation, and ecological diversity. Yet solid projections for these variables have proven elusive—particularly on a global basis. This is due, in no small part, to the difficulty of measuring historical total factor productivity growth. Consequently, most productivity projections are based on partial factor productivity measures that can be quite misleading. The purpose of this work is to provide worldwide forecasts of agricultural productivity growth till the year 2040 based on the latest time series evidence on total factor productivity growth for crops, ruminants, and nonruminant livestock. The results suggest that most regions in the sample are likely to experience larger productivity gains in livestock than in crops. Within livestock, the nonruminant sector is expected to continue to be more dynamic than the ruminant sector. Given the rapid rates of productivity growth observed recently, nonruminant and crop productivity in developing countries may be converging to the productivity levels of developed countries. For ruminants, the results show that productivity levels in developing countries are likely to be diverging from those in developed countries.     

Structural transformation in emerging economies: leading sectors and the balanced growth hypothesis

The paper uses the World Input-Output Database to address patterns of structural transformation in BRIC countries, Indonesia, South Korea, Mexico and Turkey. Sectoral drivers of aggregate labour productivity growth, and the relative importance of within-sector versus employment reallocation effects on aggregate labour productivity growth, are evaluated using growth accounting decomposition methods. Decomposition results are used to assess how patterns of structural transformation relate to macroeconomic performance in terms of aggregate labour productivity, output and employment growth. Together with the construction of ‘Hirschman compliance indices’, decomposition results are also used to shed light on the balanced versus unbalanced growth debates. The paper goes on to assess the extent of complementarities between manufacturing and information and communications technology-intensive advanced services through intermediate inputs, comparing the eight emerging countries with G7 countries over time.     

Agriculture in transition economies: from common heritage to divergence

The 23 former socialist countries in Central and Eastern Europe (CEE) and the Commonwealth of Independent States (CIS) started the transition in 1989–1990 from a common institutional and organizational heritage, represented by the Soviet agricultural model. Despite the common heritage in agriculture, the reform policies in CEE and CIS diverged from the start, as significant differences emerged between the two groups of countries in legal attitudes to private land ownership, transferability of land, the extent of agricultural privatization and individualization, and restructuring of farms. This divergence in the implementation of agricultural reform has led to divergence in standard development measures: the CEE countries are outperforming the CIS countries by growth in GDP and agricultural product since 1992; the productivity of agricultural labor in CEE is generally increasing, and in CIS it is decreasing. While the CIS countries at best can be characterized as reluctant reformers, the CEE countries have achieved significantly higher levels of economic and institutional reform. Better performance in CEE is associated with greater readiness of the governments in these countries to implement a comprehensive package of economic and social reform policies, including more radical land reform and deeper individualization and restructuring of agriculture.     

Modernization of a peasant crop in Colombia: evidence and implications

The survival of the small-farm sector in the process of agricultural modernization in Latin America has been a concern for many authors and institutions. It is generally believed that the small-farm sector is bypassed in the process of agricultural development. The authors analyze modernization of bean/maize cropping systems in Southern Colombia. Prices, production practices and profitability are compared for 1975 and 1989. By means of a production function, the effects of allocative efficiency, technical efficiency and technical change on productivity and profitability are analyzed. The observed changes reflect very well the price trends over the period. Between 1975 and 1989, total factor productivity increased by 50%. Bean/maize producers almost doubled returns to land and labor. Increased technical efficiency had most effect on profitability, followed by technical change. Allocative efficiency had more impact on yields than on profitability because it was associated with high input costs. Considerable opportunities for further productivity increases were identified. Conclusions on the nature of the modernization process are drawn. Implications for agricultural policy, research and the role of the small farm in agricultural development are derived.     

Measuring the production efficiency of alternative land tenure contracts in a mixed crop-livestock system in Ethiopia

In this paper, we test the hypothesis that land held under varying configurations of property rights will be farmed at different levels of production efficiency. Production data were collected from 477 plots in a fairly productive, mixed fanning system in the Ethiopian highlands. Interspatial measures of total factor productivity, based on the Divisia index, were used to measure the relative production efficiency of three informal and less secure land contracts (rented, share-cropped and borrowed) relative to lands held under formal contract witli the Ethiopian government. Although the informally-contracted lands are farmed 10-16% less efficiently, the analysis indicates that farmers of such lands actually apply inputs more, rather than less, intensively (i.e., more inputs per unit of land). The gap in total factor productivity thus results from the inferior quality of inputs (or lack of skills in applying them) rather than a lack of incentive to allocate inputs to mixed crop-livestock farming. For this reason we find no empirical basis to support the hypothesis that land tenure is a constraint to agricultural productivity.     

要素市场扭曲对农业全要素生产率空间影响效应分解研究

目的 通过对要素市场扭曲下的农业全要素生产率的系统分析,以期为提升农业全要素生产率以及要素市场改革进程中的中国农业可持续发展提供参考。方法 文章基于资本、劳动力、土地等要素市场严重扭曲的事实,利用1997—2018年中国28个省（ 市、自治区）面板数据,通过构建空间计量模型检验要素市场扭曲对农业全要素生产率的空间影响及其溢出效应。结果 中国资本市场、劳动力市场、土地等要素市场扭曲度比较高,同时呈现显著地区差异;中国农业全要素生产率增长以技术进步驱动为主,大多数省份的技术效率不高,同时呈现出东部地区高于中西部地区的区域不平衡特点;要素市场扭曲对农业全要素生产率的影响为负,资本市场、劳动力市场、土地等要素市场扭曲在一定程度上阻碍农业全要素生产率的提升;要素市场扭曲对全要素生产率具有一定的空间溢出效应,也在一定程度抑制了全要素生产率增长。结论 考虑要素市场扭曲对农业全要素生产率影响的空间分析,更能客观反映当前不断深化的农业农村改革发展所引发的地区差距,应充分重视要素市场扭曲对农业全要素生产率的空间溢出效应,通过要素市场化改革,持续加大涉农政策调整,不断加大对农业农村生产经营的金融资源投入,逐步实现农业全要素生产率的全面提升。     

Market Imperfections and Land Productivity in the Ethiopian Highlands

This study analyses how market imperfections affect land productivity in a degraded low‐potential cereal‐livestock economy in the Ethiopian highlands. A wide array of variables is used to control for land quality in the analysis. Results of three different selection models were compared with least squares models using the HC3 heteroskedasticity‐consistent covariance matrix estimator. Market imperfections in labour and land markets were found to affect land productivity. Land productivity was positively correlated with household male and female labour force per unit of land. Female‐headed households achieved much lower land productivity than male‐headed households. Old age of household heads was also correlated with lower land productivity. Imperfections in the rental market for oxen appeared to cause overstocking of oxen by some households. Conservation technologies had no significant positive short‐run effect on land productivity. The main results were consistent across the different econometric models.     

土地流转背景下农户经营规模与土地生产率关系再审视——来自固定粮农和地块的证据

农户经营规模和土地生产率关系是发展经济学领域的经典议题之一。本文在土地流转加速发展的背景下讨论了我国农户经营规模扩大对土地生产率的影响以及测量两者之间关系面临的种种干扰。除了农户规模本身的作用外,理论和实证检验均表明存在土地流转市场时不同规模农户在土地生产率上的差异还可能源于农户和土地的异质性,譬如土地更多流向经营能力强的农户、流转多劣地等等。基于固定农户的固定地块数据可以有效控制异质性的实证策略,本文利用4个省两期跟踪调查数据对两者关系进行了再检验。研究发现,来自固定农户固定地块的证据表明农户土地经营规模扩大并不会影响粮食单产,而不控制固定地块时往往会得到两者负相关的伪结论,并且仅控制固定农户时上述伪结论更为明显。这一结果意味着不必担心规模经营会威胁粮食供给。     

What do Agricultural Income and Productivity Measurements Really Mean?

Statistical data on labour productivity and income in agriculture reveal large discrepancies between various EC member states, both with respect to their absolute levels and in relation to non-farm productivity and income in the respective countries. Insofar as they appear to reflect the failure of markets in allocating agricultural resources efficiently, and seem to be inconsistent with conventional wisdom concerning structural adjustment of agriculture, however, it can be seen that those data are misleading to a large extent. Based on a simple model of optimal time allocation between farm and non-farm activities of members of farm households, it is demonstrated that farm labour productivity and income must be different according to differences in the relation of farm to non-farm labour supply. The implications concerning international, interregional, intersectoral and intertemporal comparisons of income and productivity are discussed as well as the relevance of market failure in agriculture.