Diversification economies and specialisation efficiencies in a mixed food and coffee smallholder farming system in Papua New Guinea

Smallholder farming systems in Papua New Guinea are characterised by an integrated set of cash cropping and subsistence food cropping activities. In the Highlands provinces, the subsistence food crop sub-system is dominated by sweet potato production. Coffee dominates the cash cropping sub-system, but a limited number of food crops are also grown for cash sale. The dynamics between sub-systems can influence the scope for complementarity between, and technical efficiency of, their operations, especially in light of the seasonality of demand for household labour and management inputs within the farming system. A crucial element of these dynamic processes is diversification into commercial agricultural production, which can influence factor productivity and the efficiency of crop production where smallholders maintain a strong production base in subsistence foods.
In this study we use survey data from households engaged in coffee and food crop production in the Benabena district of Eastern Highlands Province to derive technical efficiency indices for each household over two years. A stochastic input distance function approach is used to establish whether diversification economies exist and whether specialisation in coffee, subsistence food or cash food production significantly influences technical efficiency on the sampled smallholdings.
Diversification economies are weakly evident between subsistence food production and both coffee and cash food production, but diseconomies of diversification are discerned between coffee and cash food production. A number of factors are tested for their effects on technical efficiency. Significant technical efficiency gains are made from diversification among broad cropping enterprises.     

Registration and release of customary-land for private enterprise: Lessons from Papua New Guinea

Land held under customary tenure has proven difficult to register and release for private enterprise globally. This is because the costs of developing secure rights to land held under communal ownership is high given that such ownership rules out a ‘pay-to-use-the-property’ system while punitive negotiation and policing costs make a ‘pay-him-not-to-use-the-property’ system ineffective (Demsetz, 1967, p. 355). Here I document reforms to institutions governing access to land held under customary title in Papua New Guinea that has imbedded collective ownership whilst allowing for a ‘pay-to-use-the-land’ for private enterprise. Reforms put in place over the past decade have allowed for voluntary incorporation of landowning clans, the registration of their land, and the leasing of this land for up to 99 years. The ongoing reforms provide lessons both for Papua New Guinea and for others wrestling with the challenges of making available land held by customary groups for individual enterprise.     

Institutions for improving access to land for settler-housing: Evidence from Papua New Guinea

This paper provides household level evidence of the institutions that are developing to provide security of access to land for housing within the settlements of Port Moresby, the capital of Papua New Guinea. Data collected from a survey of 441 randomly selected households shows that households organise around regional, family, and professional cleavages to provide security to person and property. Further, some households pay rent to landlords and keep evidence of the above to legitimise their claims to the land settled upon. In one case, a community has formed an organisation to mediate between the settlers and the customary landowning group. The above is evidence of the maturation of institutions to provide tenure security. It also provides the opportunity for policymakers to adopt and then adapt (migrate) the existing institutions into the formal system as part of ongoing reforms.     

Poverty analysis in the lowlands of Papua New Guinea underscores climate vulnerability and need for income flexibility*

A severe El Niño event in 2015/16 decimated an important share of Papua New Guinea's (PNG) local crop production, leaving 10 per cent of the population with significant food shortages. Lack of recent socio‐economic data and analysis of the country's rural population impeded efforts to plan and mitigate the ensuing food crisis. This paper presents the most recent poverty analysis in Papua New Guinea in nearly a decade, and a renewed effort to inform rural production, consumption and livelihood patterns in some of the country's most remote, lowland areas. We designed a rural household survey that collected detailed consumption and expenditure data to explore poverty prevalence and correlates of per capita household expenditure. Results suggest that approximately half of the sampled individuals live in households with total per capita expenditures below the poverty line. Climate shocks have significant and possibly long‐term consequences for household welfare. Households that experienced a drought in the last 5 years are associated with significantly lower per capita expenditures. Labour diversification, via migration, is associated with greater welfare. Households with at least one migrant member are associated with 13 per cent greater per capita expenditure.     

Exploiting comparative advantage in agriculture and resources: the way forward for Small Island States

Using Papua New Guinea as a case study, this paper investigates the macroeconomic and sectoral impacts of various developments in its agricultural and resource sector. It was found that commodity booms from 2004 to 2009 and the proposed large liquefied natural gas project increase output growth substantially but with Dutch disease consequences. The output expansion of the agricultural and fishery sectors on the other hand has limited positive impacts and the challenge lies in raising the productivity growth in these sectors and the better use of foreign aid. Lastly, the optimal policy strategy for sustainable development in the agricultural, fishery and resource sectors lies in the packaging of appropriate complementary policies (both institutional and economic) that support one another and the coherent implementation of these policies in a timely manner.     

城乡建设用地增减挂钩中地方政府意志与农民意愿协调研究

城乡建设用地增减挂钩中地方政府意志主要表现为以最低成本实现政绩最大化,农民意愿则表现为以最低成本改善居住生活条件,两者存在一定博弈关系。两者之间博弈状况主要取决于地方政府的发展理念、地方政府的违规挂钩行为造成农民的损失、农民的抵制成本、地方政府违规挂钩行为的收益与成本等因素。地方政府发展理念不科学、地方政府违规挂钩行为造成农民的损失较大、地方政府违规挂钩行为的收益大于成本是目前地方政府意志与农民意愿不协调的主要原因。因此,应促使地方政府树立协调的发展理念;重构增减挂钩机制,细化增减挂钩步骤;完善增减挂钩中监督机制与责任追究机制;推进地方政府转变经济增长方式。     

Dutch Disease and the crime epidemic: an investigation of the mineral boom in Papua New Guinea

Papua New Guinea has pinned its hopes for economic development on its mineral wealth but, so far, this has been a false promise. Given Papua New Guinea's vulnerability, this raises questions of a Dutch Disease effect. Dutch Disease is dismissed in principle, but an appreciating real exchange rate is considered to have important offsetting economic consequences via its implications for crime. Using a CGE model incorporating crime as an economic activity, the contribution to welfare of a resources boom is investigated. The results confirm that a resources boom will deliver a net welfare benefit, but far smaller than the revenues generated would suggest, and at a cost to equity.     

Health and environmental impacts of pesticide use practices: a case study of farmers in Ekiti State,Nigeria

Commonly used pesticides and handling practices which might expose farmers and their environment to chemical hazards were investigated in the Irepodun/Ifelodun local government area of Ekiti State, Nigeria. Direct field observations and answers to a structured questionnaire from a random sample of 150 farming households showed that commonly used pesticides comprised herbicides (48.3 per cent), fungicides (28.2 per cent) and insecticides (23.5 per cent). Of these, 86.7 per cent are classified as ‘highly’ hazardous by the World Health Organization (WHO) and have been banned or restricted in many developed countries. Nearly all of the farmers (94.7 per cent) had received no formal training in safe pesticide use and mixed different products. Farmers suffered from discomforts ranging from eye irritation (91.3 per cent), skin problems (87.3 per cent), nausea (86.0 per cent), headache (83.3 per cent) and vomiting (58.0 per cent). More than half of the pesticide applicators (61.3 per cent) sprayed pesticides near water bodies. Only a few farmers reported decreasing trends in numbers of beneficial insects (27.3 per cent) and other animals (29.3 per cent). The results showed that the awareness of farmers and authorities needs to be raised regarding the use of protective equipment and correct procedures when handling pesticides and, also, that there should be stricter enforcement of existing pesticide regulation and monitoring policies to minimize the threats that the farmers' current practices pose to their health and to the environment.     

Estimating the joint effect of multiple soil conservation practices: A case study of smallholder farmers in the Lake Naivasha basin,Kenya

The current study seeks to assess the private benefits associated with multiple soil conservation practices (MSCPs) by estimating the marginal value of crop production that can be attributed to such practices. In areas where land degradation associated with soil erosion causes serious agri-environmental challenges such as loss of soil fertility, siltation and eutrophication, a multiple approach to soil conservation is neccessary. However, notwithstanding efforts to encourage adoption of such practices, their uptake remains generally low. Analysing the effect of MSCPs on crop productivity is one of the ways through which the incentives for soil conservation can be explored. To achieve the stated objective, the current study applied propensity score matching and exogenous switching regression techniques to cross-sectional data collected from a random sample of farm households located in Lake Naivasha basin, Kenya. Results indicate that there is a significant positive effect of implementing multiple soil conservation practices on crop productivity. However, we note that whether the additional benefits will cover the opportunity costs associated with the implementation of these practices will depend on farm specific attributes such as slope and the soil conservation effort. In cases where marginal benefits are not substantial to cover opportunity costs for implementation of soil conservation practices, intrinsic or external incentives could be necessary. Policy interventions could focus on offering technical assistance to farmers in selecting soil conservation practices that are best suited to their local condition.     

Farmers’ Preferences for Production Practices: A Choice Experiment Study in the Rhone River Delta

This article examines farmers' preferences for both cropping and management practices, which are of policy interest because of their environmental impact. We present the results of a choice experiment survey of all agricultural decision makers in the Camargue region. A latent class model identified three classes. The main class encompasses farmers complying with the norms of the Protected Geographical Indication (PGI): Riz de Camargue. We estimated the monetary value of each of the relevant agricultural practices. Our results make a strong case for differentiating incentives to encourage environmentally friendly practices and identify the diversity of values attached to the main components of rice cropping technology in the area. Estimates of the implicit prices indicate that most rice growers can be persuaded to adopt environmentally friendly practices. These findings could help in designing targeted contracts according to farmers' preferences, in line with conservation or environmental objectives.     

Droughts and farms’ financial performance: a farm‐level study in New Zealand

We quantify the impacts of droughts in New Zealand on the profitability of dairy, sheep and beef farms using a comprehensive administrative database of all farms in New Zealand. For dairy farms, we found that drought events have positive impacts on dairy farms’ revenue and profit in the year of the drought. This effect is most likely attributable to drought‐induced increases in the export price of milk solids, as New Zealand is the market maker in this global market and almost all domestic dairy production is exported. All of these quantified impacts, however, are not very large, suggesting that, at this point in time, droughts have a fairly moderate impact on New Zealand dairy and sheep–beef businesses.     

Adoption of climate‐smart practices and its impact on farm performance and risk exposure among smallholder farmers in Ghana

Increased climate variability during the last four decades has made the agricultural environment in many developing countries more uncertain, resulting in increasing exposure to risk when producing crops. In this study, we use recent farm‐level data from Ghana to examine the drivers of individual and joint adoption of crop choice and soil and water conservation practices, and how adoption of these practices impacts on farm performance (crop revenue) and exposure to risks (skewness of crop yield). We employ a multinomial endogenous switching regression model to account for selectivity bias due to both observable and unobservable factors. The empirical results reveal that farmers’ adoption of crop choice and soil and water conservation leads to higher crop revenues and reduced riskiness in crop production, with the largest impact on crop revenues coming from joint adoption. The findings also show that education of the household head, access to extension and weather information influence the likelihood of adopting these practices. Thus, enhancing extension services and access to climate information and irrigation can reduce gaps in adoption of soil and water conservation and crop choice, considered as climate‐smart practices that will eventually improve crop revenues and reduce farmers’ exposure to climate‐related production risks.     

Country‐Specific Determinants of Horizontal and Vertical Intra‐industry Agri‐food Trade: The Case of the EU New Member States

Intra‐industry trade (IIT) has become a widespread phenomenon with a growing role in international trade, though agricultural trade is usually neglected in empirical works. This article identifies the determinants of horizontal and vertical intra‐industry agri‐food trade between New Member States (NMS) and the EU‐27 in 1999–2010, by applying static and dynamic models with different specifications to panel data. Results show that IIT is mainly of a vertical nature in the NMS, though the majority of NMS export low quality agri‐food products to EU‐27 markets. Factor endowments are negatively related to agri‐food horizontal intra‐industry trade (HIIT), but positively to vertical intra‐industry trade (VIIT). Economic size is positively and significantly related to both types of IIT, while distance and IIT are found to be negatively related in both cases. Results also suggest that HIIT and VIIT are greater if a New Member State exports agri‐food products to another NMS while EU accession has had positive and significant impacts on both HIIT and VIIT, suggesting that economic integration fosters IIT.     

The impact of coffee certification on small‐scale producers’ livelihoods: a case study from the Jimma Zone,Ethiopia

What is the impact of product certification on small‐scale farmers’ livelihoods? To what extent does the participation of Ethiopian small‐scale coffee farmers in certified local cooperative structures improve their socioeconomic situation? To answer these questions, this article employs household data of 249 coffee farmers from six different cooperatives collected in the Jimma zone of Southwestern Ethiopia in 2009. Findings show that the certification of coffee cooperatives has in total a low impact on small‐scale coffee producers’ livelihoods mainly due to (1) low productivity, (2) insignificant price premium, and (3) poor access to credit and information from the cooperative. Differences in production and organizational capacities between the local cooperatives are mirrored in the extent of the certification benefits for the smallholders. “Good” cooperatives have reaped the benefits of certification, whereas “bad” ones did not fare well. In this regard the “cooperative effect” overlies the “certification effect.”     

对接黑龙江粮食产业发展的新型粮食类专业人才培养的研究

培养新型粮食类专业人才是促进粮食区域经济高速发展的必要措施,而传统的高职粮食人才培养模式已无法满足市场和社会的需求。基于此,本文分析了当前粮食类专业人才培养中存在的主要问题,并提出解决方法,初步探索以粮食产业发展为导向的新型粮食专业人才培养模式。     

Social learning and technology adoption: the case of coffee pruning in Peru

A unique natural experiment involving a coffee pruning technology is used to study social learning. The yield effects of pruning take two years to appear, a characteristic that aids in identifying social learning apart from correlated unobservable variables that are a concern in the social learning and technology adoption literature. Panel data are employed that start with a private initiative which introduced systematic pruning in central Peru and that contain the population of participating growers. Results show a jump of at least 0.15 in the probability of adoption two years after the first pruning in a grower's group.     

Revisiting the World Bank's land law reform agenda in Africa: The promise and perils of customary practices

This paper revisits the World Bank's land law reform agenda in Africa by focusing on two central issues: (1) land law reform as a tool for resolving land conflicts, and (2) the role of land law reform in addressing gender inequalities. While the Bank's recent land report provides insights for improving land governance in Africa, it fails to acknowledge the exploitative and contentious politics that often characterize customary land tenure systems, and the local power dynamics that undermine the ability of marginalized groups to secure land rights. Using insights from recent fieldwork, the paper analyses the links between land law reform and conflict in Ghana, and the gendered dynamics of reforming land governance in Tanzania. These “crucial cases” illustrate how land law reform can provoke conflicts over land and threaten the rights of vulnerable populations (e.g. migrants and women) when customary practices are uncritically endorsed as a means of improving land governance. As such, the paper concludes with a series of recommendations on how to navigate the promise and perils of customary practices in the governance of land.     

An assessment of the policies and practices of selective logging and timber utilisation: A case study from natural forests of Tarai Nepal and Queensland Australia

Selective logging (SL) contributes nearly 15 percent of the global timber needs. Considering its role in sustainable timber production, biodiversity conservation and forest carbon enhancement, assessment of SL policies and practices is crucial. This paper assesses the policies and practices of SL in natural production forests of the Tarai region of Nepal and Queensland Australia to explore the key differences in such policies and practices and their possible implications in achieving sustainable forest management objectives. The primary methods applied in the study were review and synthesis of key policy documents and qualitative analysis of the information gathered from key informant interviews and stakeholders’ workshop. Altogether, 53 respondents from a wide range of stakeholder groups (government organizations-15, non-government organizations/networks-15, private sector including the individual landowners-13, local political leaders-3 and independent forest experts/scientists-7) were consulted. Findings suggest that: (1) frequent and inconsistent changes in policy provisions, lengthy administrative procedures and heavy engagement of state forest agencies in forest product harvesting and sales processes play key roles in sub-optimal forest production in Nepal, whereas lower dependency on forest-products, higher labour costs, lack of species-wise royalty rate and flexibility in selecting optional logs are the key factors for increased wastages of forest products in Queensland; (2) recovery and utilisation of the harvested forest product is better in Nepal but policy and practical considerations on biodiversity and environment are better in Queensland; and (3) Forest harvesting specific codes of practice, occupational health and safety standards, and their compliance mechanism of Queensland could be beneficial for Nepal to minimise operational harvesting risks and to attract professional harvesters that support promoting sustainable use and management of natural forests, as we found this aspect almost neglected in Nepal.     

Neoliberalism and the revival of agricultural cooperatives: The case of the coffee sector in Uganda

Agricultural cooperatives have seen a comeback in sub‐Saharan Africa. After the collapse of many weakly performing monopolist organizations during the 1980s and 1990s, strengthened cooperatives have emerged since the 2000s. Scholarly knowledge about the state–cooperative relations in which this “revival” takes place remains poor. Based on new evidence from Uganda's coffee sector, this paper discusses the political economy of Africa's cooperative revival. The authors argue that donors' and African governments' renewed support is framed in largely apolitical terms, which obscures the contested political and economic nature of the revival. In the context of neoliberal restructuring processes, state and non‐state institutional support to democratic economic organizations with substantial redistributional agendas remains insufficient. The political–economic context in Uganda—and potentially elsewhere in Africa—contributes to poor terms of trade for agricultural cooperatives while maintaining significant state control over some cooperative activities to protect the status quo interests of big capital and state elites. These conditions are unlikely to produce a conflict‐free, substantial, and sustained revival of cooperatives, which the new promoters of cooperatives suggest is under way.     

Out‐of‐sample testing price discovery in commodity markets: the case of soybeans

Price discovery, a central function of futures markets, has been usually tested in‐sample by studying the common stochastic trend between spot and futures prices. Instead, to evaluate futures as anticipatory prices, we develop a forecast approach to out‐of‐sample test price discovery in a multivariate framework. We apply it to the soybeans market. Results indicate futures prices as the best available “predictors” of future spot prices, although this finding holds only on average and for certain periods, other models show forecasting gains.