Horticulture exports, agro-industrialization, and farm–nonfarm linkages with the smallholder farm sector: evidence from Senegal

In this article we address the question of farm–nonfarm linkages at the household level in Senegal. We examine whether increasing off-farm employment opportunities for rural households—resulting from increased horticulture exports and associated agro-industrialization—has benefitted the smallholder farm sector through investment linkages. We use data from a household survey in the main horticulture export region in Senegal. We find that access to unskilled employment in the export agro-industry has contributed to the alleviation of farmers' liquidity constraints, resulting in increased smallholder agricultural production.     

Nonfarm employment,agricultural intensification,and productivity change: empirical findings from Uganda

This article uses panel data from the Living Standards Measurement Study‐Integrated Surveys on Agriculture for Uganda to assess the farm‐level effects of nonfarm employment on agricultural intensification and productivity change. A sample selection model is used to account for both unobserved heterogeneity and potential simultaneity between agricultural production and nonfarm income. Results show that nonfarm employment can have differential impacts on farm technology intensity and productivity. Nonfarm income is found to have a positive impact on farm hired labor and improved seed intensity; a negative effect on on‐farm family labor use; and no significant impact on fertilizer, soil water management, and joint use of farm technologies. The econometric evidence also indicates that agricultural productivity declines as nonfarm income increases. Taken together, our findings reveal important trade‐offs between nonfarm employment and income and farm productivity growth under smallholder agriculture. The results indicated that targeted policies are required to reduce these potential trade‐offs between nonfarm employment and agricultural intensification and productivity change.     

The increasing importance of nonfarm income and the changing use of labor and capital in rice farming: the case of Central Luzon, 1979–2003

There have been sharp increases in nonfarm income among farm households in Central Luzon for the last few decades. This study attempts to identify the effects of the increasing nonfarm income on the use of tractors and threshers and on the employment of hired labor as a substitute for family labor. We found that while the increased nonfarm income positively affects the ownership of tractors, it has no significant impact on the use of agricultural machines due presumably to the development of efficient machine rental markets. We also found that the increased nonfarm income leads to the increased use of hired labor, thereby releasing family labor to nonfarm jobs.     

The Local Impacts of Agricultural Subsidies: Evidence from the Canadian Prairies

We estimate the impact of removing an export subsidy on the local economies of Alberta, Saskatchewan and Manitoba, exploiting the large regional variation of a 1995 reform. We find that the loss of the subsidy resulted in significantly lower farm value‐added, farm asset values and local non‐farm employment. The results suggest that the subsidy removal had detrimental spillover effects on the local non‐agricultural economy that varied spatially across the Prairies. The point estimates suggest that the marginal effect of the subsidy loss on non‐agricultural employment was five times as large as those obtained from traditional estimates of the multiplier effect.     

Poverty decline, agricultural wages, and nonfarm employment in rural India: 1983–2004

We analyze five rounds of National Sample Survey data covering 1983, 1987/1988, 1993/1994, 1999/2000, and 2004/2005 to explore the relationship between rural diversification and poverty. Poverty in rural India has declined at a modest rate during this time period. We provide region-level estimates that illustrate considerable geographic heterogeneity in this progress. Poverty estimates correlate well with region-level NSS data on changes in agricultural wage rates. Agricultural labor remains the preserve of the uneducated and also to a large extent of the scheduled castes and scheduled tribes. We show that while agricultural labor grew as a share of total economic activity over the first four rounds, it had fallen back to the levels observed at the beginning of our survey period by 2004. This all-India trajectory also masks widely varying trends across states. During this period, the rural nonfarm sector has grown modestly, mainly between the last two survey rounds. Regular nonfarm employment remains largely associated with education levels and social status that are rare among the poor. However, casual labor and self-employment in the nonfarm sector reveals greater involvement by disadvantaged groups in 2004 than in the preceding rounds. The implication of this for poverty is not immediately clear—the poor may be pushed into low-return casual nonfarm activities due to lack of opportunities in the agricultural sector rather than being pulled by high returns offered by the nonfarm sector. Econometric estimates reveal that expansion of the nonfarm sector is associated with falling poverty via two routes: a direct impact on poverty that is likely due to a pro-poor marginal incidence of nonfarm employment expansion; and an indirect impact attributable to the positive effect of nonfarm employment growth on agricultural wages. The analysis also confirms the important contribution to rural poverty reduction from agricultural productivity, availability of land, and consumption levels in proximate urban areas.     

U.S. Agricultural Trade with Mexico

Abstract

This study examined the effects of exchange rates, economic growth, trade liberalization, and export assistance programs on U.S. agricultural exports to Mexico. The Commodity Credit Corporation's GSM-102 Export Credit Guarantee Program reduces the risk associated with export financing and payment. The impact of the export credit guarantee program on U.S. agricultural exports to Mexico was estimated in an import demand model using quarterly data from 1980 to 1996. The results indicate that for every $1 of export credit guarantees, Mexican imports of U.S. farm products increased $0.30. Real income growth in Mexico, however, was the most important factor in the expansion of U.S. exports. Trade liberalization under NAFTA also increased U.S. exports to Mexico.     

Intertemporal analysis of employment decisions on agricultural holdings in Slovenia

The article attempts to quantify determinants influencing the dynamics of employment decisions on agricultural holdings in Slovenia and to test specific aspects of labor reallocation during the transition period by the application of an agricultural household model. Through the use of a 1991–2000 longitudinal data set for 22,055 farm households, quantitative analysis of intertemporal employment decisions by farm holders is carried out using probit techniques. The determinants tested relate to the personal characteristics of farm holders (gender, age, education level, and potential off‐farm income), household characteristics (size, structure), characteristics of the agricultural holding (economic size, labor intensity), and local labor market conditions. The model results generally confirm existing empirical evidence on asymmetrical and irreversible participation of holders on the labor market. Despite intensive restructuring of agriculture and profound changes in the nonfarm labor market in the analyzed period, labor supply of farm holders remains rigid. The mobility of labor supply is lower than expected, which can be attributed to the importance of structural problems constraining intersectoral mobility. Low labor mobility reduces the efficiency of labor allocation on agricultural holdings in Slovenia. Elements of this problem emerge on both supply (e.g., low level of educational and professional attainment of reference persons) and demand sides of the labor market (e.g., unfavorable local labor market conditions). A marked tendency toward maintaining the same employment status is more distinct in the case of holders employed on‐farm only.     

Rural nonfarm activities and agricultural crop production in Nigeria

Although most rural households are involved in the farm sector, the nonfarm sector has grown significantly in recent decades, and its role in rural development has become increasingly important. This article examines the effect of participation in nonfarm activities on crop expenses of farm households in Nigeria. The relationship is modeled using a nonseparable agricultural household model that suggests that participating in nonfarm activities can relax the credit constraints facing farm households and reduce risk thereby helping households improve farm production and smooth consumption over time. The results show that participation in nonfarm activities by Nigerian farmers has a positive and significant effect on crop expenses and in particular on payments for hired labor and inorganic fertilizers. Separate analysis of the six geopolitical zones in Nigeria indicates that it is in the South-South and South-East zones where nonfarm participation appears to induce more hiring of labor. The results support the hypothesis that nonfarm participation helps relax liquidity constraints but suggests how that liquidity is used is zone-specific. In general, the results also indicate that liquidity is used more to pay for inputs into staple production as opposed to cash crops.     

Rural nonfarm employment and farming: household-level linkages

This article introduces the articles in Agricultural Economics , vol. 40 no. 2 (March 2009). First, we introduce their objectives in a brief review of existing literature on developing country trends in rural income diversification, in particular rural nonfarm employment (RNFE) and its impact on farm technology choice in crops and livestock, and thus on agricultural modernization and diversification. Then we preview the key points of the articles, which use distinctive primary datasets from Albania, Bulgaria, China, India, Mexico, Nigeria, the Philippines, Senegal, and Vietnam to document the impacts of RNFE and their implications for farm technology and farm activity.     

Rural nonfarm income and its impact on agriculture: evidence from Albania

Using data from the 2005 Albania Living Standards Measurement Study (ALSMS05) survey, this article analyzes the overall impact of household nonfarm income-generating activities (RIGA) on agricultural expenditures as well as technical efficiency of rural farm households. We also differentiate the impact for subsistence and commercial farmers, who are in the top 25% of the distribution of value of annual agricultural sales. Our results show that on the whole, Albanian rural households utilize their nonfarm earnings not to invest in time-saving, efficiency-increasing technologies, but to move out of crop production. We derive similar findings when we try to estimate the same relation separately for commercial and subsistence farmers. However, for commercial farmers, we find a positive impact of household nonfarm earnings on livestock expenditures.     

The Socio-Economic Effects of the Countryside Stewardship Scheme

The Countryside Stewardship Scheme was launched by the Countryside Commission in 1991 and before its transfer to the Ministry of Agriculture in April 1996, underwent a socioeconomic evaluation. This study looked at the impact on income and employment both on the farm and in the wider local and national context, using a stratified sample survey in conjunction with national and regional input-output models. Case study areas were chosen in Norfolk, Devon and Derbyshire, and by interviewing local businesses, and analysing farm accounts, a clearer picture of the spatial distribution of income and employment effects was obtained. In overview, the quantitative effect of the scheme on income and employment appears negligible or mildly positive: however, there are marked distributional effects. The negative impact is most likely to be dissipated in larger urban centres and among capital-intensive agricultural supply and food industries, while the positive effects tend to be concentrated in rural areas.     

Distortions to World Trade: Impacts on Agricultural Markets and Farm Incomes

The latest versions of the Global Trade Analysis Project database and the Linkage model of the global economy (projected to 2015) are used to estimate the impact of removing all merchandise trade distortions (including agricultural subsidies). Results suggest that a move to free merchandise trade would increase farm employment, the real value of agricultural output and exports, real returns to farm land and unskilled labor, and real net farm incomes in developing countries. This would occur despite the decline in international terms of trade for some developing countries that are net food importers or are enjoying preferential access to agricultural markets of high-income countries.     

The effect of nonfarm income on investment in Bulgarian family farming

This article documents a relationship between nonfarm income (primarily earnings and pensions) and agricultural investment in Bulgaria, specifically, expenditures on working capital (variable inputs such as feed, seed, and herbicides) and investment in livestock. Among those with positive spending on farm inputs, the estimated elasticity of these expenditures with respect to nonfarm income is 0.14. Nonfarm income also has an effect on the number of households that purchase farm animals, with an estimated elasticity of 0.35. The use of nonfarm income for farm investment is consistent with the presence of credit constraints, as is the fact that less than one percent of farmers report outstanding debts for agricultural purposes. Yet many farm households take out large unsecured loans for other purposes, primarily to cover consumption expenditures, implying that credit is available, but that farmers prefer not to use borrowed funds to finance agricultural investment. This would suggest that increases in the availability of agricultural credit may have little effect on farm outcomes, whereas increases in nondebt-financed sources of liquidity, such as subsidies or transfers, may better stimulate investment.     

The impact of migration on rural poverty and inequality: a case study in China

Large numbers of agricultural labor moved from the countryside to cities after the economic reforms in China. Migration and remittances play an important role in transforming the structure of rural household income. This article examines the impact of rural‐to‐urban migration on rural poverty and inequality in a mountainous area of Hubei province using the data of a 2002 household survey. Since migration income is a potential substitute for farm income, we present counterfactual scenarios of what rural income, poverty, and inequality would have been in the absence of migration. Our results show that, by providing alternatives to households with lower marginal labor productivity in agriculture, migration leads to an increase in rural income. In contrast to many studies that suggest that the increasing share of nonfarm income in total income widens inequality, this article offers support for the hypothesis that migration tends to have egalitarian effects on rural income for three reasons: (1) migration is rational self‐selection—farmers with higher expected return in agricultural activities and/or in local nonfarm activities choose to remain in the countryside while those with higher expected return in urban nonfarm sectors migrate; (2) households facing binding constraints of land supply are more likely to migrate; (3) poorer households benefit disproportionately from migration.     

基于二元边际和贸易关系的中国农产品出口动态研究

[目的]文章基于动态的视角,测度中国农产品出口的贸易关系和二元边际变化,对农产品出口整体情况以及出口源地维度和出口目的国维度的时空分布进行研究。[方法]基于2000—2016年中国海关贸易库数据,测算出口贸易关系、贸易二元边际和区位基尼系数,对农产品出口动态的整体情况及其在出口源地和出口目的国维度的时空分布进行描述,并进行聚类分析。[结果]（1）从出口动态整体情况看,农产品出口增长迅速,集约边际占据主导,贸易关系“大进大出”。（2）从时空演化格局看,在出口源地维度,东部省份出口优势明显,空间格局高度集中,近年来集聚程度有所下降。（3）在出口目的国维度,东亚、东南亚、北美是主要的出口目的地和出口扩展地,集聚水平长期下降,原因是出口格局由“一超”变“多强”且中国出口到了更多的国家。（4）当同时考虑两个维度时,中国城市的出口扩展结构高度相似,绝大多数城市的扩展边际的贸易在全球分布相对均匀,东亚和东南亚为主要的出口扩展市场。[结论]为了保障农产品出口的稳定增长,既要努力维护贸易关系、实现集约边际增长,也要积极扩展新贸易联系;为了优化农产品出口格局,要推进中西部地区因地制宜挖掘特色农产品、开拓新...     

Land rental markets and labor productivity: Evidence from rural China

This study investigates the impact of the land rental market on labor productivity in rural China. Particular attention is given to farm and nonfarm labor productivity. Using 2012 household‐level data and a multinomial endogenous switching treatment regression technique, we find that rural households renting in farmland increased labor productivity in the farm sector by about 55%, whereas labor productivity in the nonfarm sector decreased by about 6%. We also find that rural households renting out farmland had lower labor productivity in both the farm and nonfarm sectors by 13% and 9%, respectively. More family labor transferred from the farm to the nonfarm sector after renting out land.     

Stability of Farm Income and the Role of Nonfarm Income in U.S. Agriculture

This study measures the variability in real net farm income in the U.S. agricultural sector and per farm and determines if variability has diminished over 1933 to 1999. Second, the role of nonfarm income in reducing the variability in total farm household income is examined. Results indicate that the variability in real net farm income in the sector and at the farm level has not diminished and that nonfarm income has helped to reduce the variability in total farm household income.     

Rural Population Growth, 1950–1990: The Roles of Human Capital, Industry Structure, and Government Policy

Human capital raises rural incomes, but this effect is swamped by higher returns to human capital in urban markets. This leads to "brain drain" from rural areas. Populations grow more rapidly in rural counties that have a diversified employment base. Farm population grows faster (or declines more slowly) in counties with relatively high farm income, and nonfarm populations grow faster in counties with relatively high nonfarm income. However, higher farm incomes lead to slower nonfarm population growth and vice versa. Rural county government services financed by local taxes or debt have neutral or negative effects on population growth.     

Public works programmes and agricultural risk: Evidence from India

The agricultural sectors in many low- and middle-income countries remain highly vulnerable to weather risk, a vulnerability that will only intensify under climate change. The globally trending public works programmes have the potential to impact weather-related agricultural risk. I explore the impact of India's National Rural Employment Guarantee Act (NREGA) on weather-related agricultural risk. My empirical strategy explores the staggered roll-out of NREGA and random weather fluctuations. Using a nationwide panel of data, I find that NREGA makes crop yields more sensitive to low rainfall shocks. I posit that these results are consistent with a labour market channel, by which NREGA increases nonfarm labour supply in low rainfall years, and an income channel, by which NREGA leads to riskier agricultural practices. These results highlight the importance of understanding how social protection programmes shape agricultural risk.     

MEASURING THE RELATIVE INCOME OF FARM LABOUR, 1941–611

This is an analysis of farm labour income at an aggregate level for the period 1941 to 1961. The income of farm labour was estimated for paid workers, operators or self-employed workers, and total paid and unpaid workers, These incomes were compared with five sub-sectors of the nonfarm economy and for five geographical regions. In estimating income, adjustments were made for the age and sex composition of labour force, bours of work in various industries, movement of prices of inputs and output, and period of employment of farm workers. The results show significant differences in incomes of various categories of workers, and incomes of farm workers compared to various sub-sectors of the nonfarm economy. Similarly, various regions were found to. be highly heterogeneous with respect to relative labour income levels. When the farm and nonfarm sectors were adjusted for differences in characteristics, the labour income ratio of Canadian agriculture on a normalized man equivalent basis ranged between 41 and 63 percent.