Does participation in the conservation reserve program impact the economic well‐being of farm households?

This study uses U.S. farm household survey data to examine how participation in the Conservation Reserve Program (CRP) affects farm household economic well-being. Further, the study also examines the effects of CRP participation on farm household consumption, income, and imputed savings. In contrast to previous studies that assume the relationships are homogenous across the population, quantile regression is used to investigate the association between CRP participation across the entire distribution of farm household consumption and income. Empirical findings suggest that the effect of CRP participation on household economic well-being differs across the income and consumption distribution. For households in the lower percentiles of the distribution, the CRP participation is associated with an increase in household consumption, but a decrease in farm household income and savings. In contrast, farm households at the median and higher income and consumption quantiles, participation in CRP is associated with lower levels of household consumption and income, but with higher levels of savings.     

A New System of Labour Management in African Large‐Scale Agriculture?

This paper applies a convention theory (CT) approach to the analysis of labour management systems in African large‐scale farming. The reconstruction of previous analyses of high‐value crop production on large‐scale farms in Africa in terms of CT suggests that, since 1980–95, labour management has moved from a ‘domestic’ to a ‘market’ system. However, data collected by the authors from a sample of 11 large‐scale rose farms in Kenya in 2011 (covering around 20% of national output) points to the adoption of systems that, in CT terms, combine ‘industrial’ and ‘civic’ elements. The paper concludes by suggesting a series of hypotheses that might explain this trend.     

How do individuals and groups perceive wetland functioning? Fuzzy cognitive mapping of wetland perceptions in Uganda

Wetlands are critical natural resources around the globe, providing many direct and indirect benefits to local communities. However, wetland degradation and conversion to other land uses are widespread. Sustainable wetland management requires an understanding of stakeholders’ perceptions of the ecosystem and its management. This paper uses fuzzy cognitive mapping to capture individual stakeholder perceptions and group knowledge of wetland ecosystems in order to assess areas of consensus and opposing interests between different stakeholders and to develop future management scenarios. For this purpose, the Rushebeya-Kanyabaha wetland, which is one of the few wetlands in southwest Uganda that is still largely intact, is used as a case study. Our findings reveal differences in perceptions between different resource users. Papyrus harvesters, beekeepers, fishermen, wetland non-users, and hunters associate the largest livelihood benefits with a wetland conservation scenario, while farmers and government officials perceive increased agricultural production in the wetland area to be more livelihood enhancing. This poses a challenge to sustainable wetland management. The scenario results also suggest that centralized top-down laws and rules on wetland use are not sufficient for maintaining the wetland ecosystem. Therefore, there is a need to develop shared understanding through bottom-up approaches to wetland management that are nested within national regulatory frameworks, ideally combined with awareness building and knowledge sharing on the ecological benefits of the wetland.     

Is Input Mix Inefficiency Neglected in Agriculture? A Case Study of Pig‐based Farming Systems in England and Wales

The principal concern of this article is the relative importance of input mix as a source of inefficiency. Emphasis in efficiency analysis studies in agricultural production has historically focused on technical inefficiency as a single concept until methodological advances enabled it to be decomposed into pure technical inefficiency and scale inefficiency. But, this advance was insufficient to identify what we consider to be the major source of inefficiency in agricultural production, namely mix inefficiency. We consider that farm enterprises may be particularly susceptible to input mix inefficiency because of restrictions on movement around the frontier isoquant; delays in the adoption of improved technologies embodied in new vintages of production processes; risk as a source of friction in input allocation decisions; and the potential for inconsistency in simultaneously attempting to reach points of allocative efficiency and mix efficiency in input use. We use non‐parametric methods to calculate a Hicks–Moorsteen productivity index using panel data for a sample of specialised pig producers in England and Wales. This index is then decomposed into measures of technology, technical efficiency, scale efficiency and mix efficiency for an input orientation. Results of the analysis show that the estimated mean mix inefficiency (0.736) was substantially larger than mean technical inefficiency (0.975) and mean scale inefficiency (0.957) over the study period.     

How do informal farmland rental markets affect smallholders’ well‐being? Evidence from a matched tenant–landlord survey in Malawi

We estimate the efficiency and equity returns to farmland rental markets in Malawi using a matched tenant–landlord survey of smallholder farm households in four districts. Our sample allows us to more fully observe the landlord side of the rental market, which is almost always missing in previous studies. Our results suggest that land rental markets promote efficiency by facilitating a net transfer of land to more productive farmers. We also find that land rental markets promote equity as conventionally defined in the land markets literature, that is, by transferring land from land‐rich households to land‐poor households, and from labor‐poor to labor‐rich households. However, our study identifies some important challenges for land rental markets in this context. First, we find that tenants in our sample are wealthier than their landlord counterpart on average in all dimensions other than landholding. In addition, most landlords report the motive for renting out their land as either the need for immediate cash, or the lack of labor and/or capital to cultivate the plot that was rented out. These findings align with concerns about potential “stress renting” by poor landlords and suggest the value of defining equity along a broader set of dimensions other than simply equalizing the distribution of farmland and labor.     

Does Choice Context Affect the Results from Incentive‐Compatible Experiments? The Case of Non‐GM and Country‐of‐Origin Premia in Canola Oil

We seek to design and implement a WTP elicitation instrument closely resembling an actual grocery shopping experience. An incentive-compatible choice experiment is used to elicit values for a non-GM attribute and a country-of-origin attribute of Canola oil. The choice context is varied to assess whether revealed-preference choice experiments are affected by choice variety. A median premium for non-GM Canola oil is found to approximate C$0.45 or C$0.62/liter according to the choice variety context; different country-of-origin effects are also found as choice context varies. Hypotheses as to why these significant effects of choice contexts occur are suggested.
Nous cherchons à concevoir et à mettre en application un instrument de révélation de la VDP qui ressemble étroitement aux choix que fait un consommateur lorsqu'il effectue son marché. Nous avons utilisé une méthode expérimentale compatible avec les incitations des participants afin de découvrir la valeur accordée à deux caractéristiques de l'huile de canola: non génétiquement modifiée et étiquetée selon le pays d'origine. La liste des choix est variée afin d'évaluer si les préférences révélées sont influencées par la gamme de choix. La prime médiane de l'huile de canola non génétiquement modifiée est d'environ 0,45 $CAN ou 0,62 $CAN le litre selon les choix proposés. Différents pays d'origine figurent aussi dans cette liste de choix. Nous avons formulé des hypothèses quant aux raisons pour lesquelles la gamme de choix a des effets importants.     

Is Bt Cotton a Pro‐Poor Technology? A Review and Critique of the Empirical Record

Policy makers, journalists and other commentators have hailed genetically modified (GM) crops as a ‘pro‐poor’ success in the developing world. Their confidence appears to be justified by the encouraging conclusions reached by academic studies on the performance and impacts of GM crops, which seem to provide convincing evidence of substantial benefits for smallholders in developing countries. However, a detailed, critical examination of studies on transgenic, insect‐resistant cotton in China, India and South Africa demonstrates that the technology's impacts have been evaluated and represented in selective and misleading ways. The performance and impacts of GM crops have in fact been highly variable, socio‐economically differentiated and contingent on a range of agronomic, socio‐economic and institutional factors. The shortcomings of the GM crop‐impacts literature have done a disservice to public and policy debates about GM crops in international development and impeded the development of sound, evidence‐based policy.     

The Formation of GM‐free and GM Coasean Clubs: Will They Form and If So How Much Can They Achieve?

The unintended presence of traces of genetically modified (GM) crops in the harvests of non‐GM crops plays a prominent role in the debate over the coexistence of GM and non‐GM crops. One way to address the issue is the formation of GM‐free or GM‐only clubs. We model the decisions of individual farmers to cultivate either GM or non‐GM crops and combine this with a game theoretic model of club formation to investigate the feasibility of such clubs. We consider two liability regimes: GM farmers are liable or they are not. We consider two benchmarks: Nash equilibrium without negotiations and the efficient allocation and compare those with partial co‐operation through a Coasean club. We find that in both regimes a relatively large club can form but they are not always necessary to reach the efficient allocation. In fact, if farmers can freely decide under profit maximisation what to cultivate, they reach 95% of an efficient allocation. This holds independent of the property rights system and provides strong support for coexistence policies based on ex‐post liability such as in the US and Spain.     

A Case Study of Technological Switching and Technological Lock‐In in the French Fisheries Sector: Why is Sustainable Change so Difficult?

Many sectors such as the fishery show classic examples of technological lock‐in and path dependence, even though some economists might predict smooth switching toward technologies that are more cost effective and sustainable. We use ideas from the evolutionary economics and public choice literatures to explain why trajectories of technological change, especially in fisheries, may not be smooth at all, but rather punctuated. The interest of technological change and switching behavior for fisheries economists and managers stems from the fact that control of effective effort, often necessary for sustainable management of the resource, remains a central management problem for that sector worldwide, even in developed countries. However, various policies put in place by governments to support the fishing sector, and often put in place to “correct” for certain market failures, may inadvertently produce other “nonmarket” failures, which result in technological lock‐ins which are unsustainable. For example, the trawling technique was widely promoted in France in the 1970s and 1980s. Path dependency developed in such a way that the preferred choice of new entrants into the fishery was this technology. Technological lock‐in occurred on the trawling technique as the trawling sector also became more politically active, making it ultimately the most widely used technique in the French fisheries sector in the Atlantic. Switching away from this technology has not taken place even with poorer economic performance of that technology. This paper also discusses the influence of state subsidies on the adoption of trawling. Even if trawling was a major innovation in fisheries in the past, its potential for technological adaptations or minor innovations is limited now. These limitations are more obvious during periods of increasing energy prices, especially in the absence of state aid. However, due to collective choice phenomena, switches to more sustainable technologies will occur more slowly. Plusieurs secteurs, tel que celui des pêcheries, offrent des exemples de verrouillage technologique et de dépendances au sentier, alors même que les économistes s’attendent à un changement régulier vers une technologie plus efficace en termes de coûts et plus soutenable. Nous nous appuyons sur la littérature évolutionniste et des choix publics afin d’expliquer pourquoi les trajectoires du changement technologique, en particulier dans les pêcheries, peuvent ne pas être régulières, mais au contraire discontinues. L’intérêt des économistes et des gestionnaires pour le changement technologique et le comportement face au retour des techniques est lié au contrôle de l’effort réel, souvent nécessaire pour une gestion durable de la ressource. Le contrôle de l’effort reste le problème essentiel de la gestion des pêches à l’échelle mondiale, y compris dans les pays développés. Toutefois, de nombreuses mesures publiques mises en place par les gouvernements pour soutenir le secteur des pêcheries, afin de «contrecarrer» certaines défaillances du marché, peuvent déboucher involontairement sur d’autres défaillances «non marchandes», se traduisant par des verrouillages technologiques non‐soutenables. Par exemple, la technique du chalutage fut largement diffusé en France dans les années soixante‐dix et quatre‐vingt. Un sentier de dépendance s’est développé tel que les nouveaux entrants dans la pêcherie optaient pour cette technologie. Un verrouillage technologique s’est produit sur la technique du chalutage rendant ce secteur politiquement important, et finalement la technique la plus répandue parmi les pêcheries françaises de l’Atlantique. Un changement de technologie n’a donc pu survenir, même en présence de faibles performances économiques. L’article traite de l’influence des subventions étatiques liées à l’adoption du chalutage. Même si cette technologie fut une innovation majeure dans les pêcheries par le passé, les adaptations techniques potentielles ou les innovations mineures sont désormais limitées. Ces limites apparaissent clairement dans les périodes de coûts énergétiques croissants, notamment en l’absence d’aides étatiques. Toutefois, en raison du phénomène de comportements collectifs, les changements vers des technologies plus soutenables se déroulent avec lenteur.     

How and why large scale agricultural land investments do not create long-term employment benefits: A critique of the ‘state’ of labour regulations in Ghana

Support for large scale agricultural investments in Africa has been mainly premised on their employment prospects for local populations. However, despite earlier calls by Tania Li to centre labour in the land grabs debate, labour is generally invisible in both mainstream policy and academic research. This paper, through a governance lens, draws attention to the implications of the global land rush on wage labour. In principle, policy frameworks that emphasise the labour potentials from large-scale land investments also gravitate towards regulations that seek to facilitate capital accumulation and mitigate negative impacts on communities – congruent with Ghana’s policy direction. This paper assesses the political-economic context of the legislative gaps in the current governance framework for wage labour and large-scale agriculture in Ghana; characterised mainly by absent, illusively present and repressive institutions. It is supported with empirical findings from the nature of farm workers’ incorporation into a transnational oil palm plantation in Ghana, their struggles over the nature of the investment, and the political orientation of the existing regulatory institutions. The study calls for policy measures which address power relations that shape the distribution of benefits from land investments, and also recognise structural inequalities that exist in and outside of agriculture.     

Protester or non‐protester: a binary state? On the use (and non‐use) of latent class models to analyse protesting in economic valuation*

In the analysis of stated preferences studies, it is often assumed that protesting is a discretely measured item only occurring among those who are not willing to pay. However, various studies have recently shown that protest beliefs are as well held by respondents who state a positive willingness to pay (WTP). Using latent class (LC) models, we investigate the extent of heterogeneity with respect to protest beliefs among all respondents of two contingent valuation studies. The advantage of LC models is that classes of individuals are endogenously identified and no selection bias is introduced by ad hoc definitions of protesters. Further we investigate whether it is possible to identify a class of non‐protesters. Finding a group of pure non‐protesters could indicate how strongly stated WTP in the whole sample is affected by protest beliefs. For both samples, we find a class with strong protest beliefs but no pure non‐protest class. Overall, our results suggest that LC models might not be the first choice to determine unbiased WTP measures, but they provide valuable insights into the degree of protesting expressed by different groups and corresponding determinants of group membership.     

What socioenvironmental impacts did 35 years of export agriculture have in Mexico? (1980–2014): A transnational agri‐food field analysis

In this article, I propose to study environmental degradation and the deterioration of the health of workers and other inhabitants in regions of Mexico where intensive fruit and vegetable production for export has been developed. My proposition is that to understand the unsustainability of such agricultural practices in all their complexity, it is necessary to analyse historically the total agri‐food field of relations established by producers, distributors, and consumers in codependency with the natural environment. This analysis of the agri‐food field allows a multidimensional and multiscale study to be conducted of the hierarchical distribution of power and of economic benefits among the different social actors of the food system. This analysis also allowed us to study the development of the capitalist regime without going into the dichotomy of centre and periphery and to propose that it is a decentralized process with a multiplicity of locations that operates on the basis of mutual associations and influences between human and non‐human elements, with the active participation of a great variety of independent, collective, and institutional actors who have differentiated motivations, ranges of power and scales of value. The case study of Mexican export agriculture was the result of long‐term research based on a wide review of regional studies, field work statistics, and archives in Mexico and the United States. This cross‐border study makes it possible to identify asymmetrical transnational relations in a context in which the Mexican government has renounced its territorial and agri‐food sovereignty and Mexican consumers face greater vulnerability.     

A thing of the past? Household surveys in a rapidly evolving (agricultural) data landscape: Insights from the LSMS‐ISA

Household surveys, a pivotal component of every country's national statistical system, continue to be criticized and praised in equal manner. While recognizing their limitations, it is clear that certain types of data must continue to be collected through household surveys, preferably in an integrated manner with other data sources. This is particularly true in the agricultural space for which household and farm surveys will be critical both to collect primary data as well as to validate alternative data sources. Recent methodological gains and technological innovations offer a unique opportunity to address many of the shortcomings of agricultural data. In this article, we briefly describe select examples of such methodological and technological changes, drawing from the Living Standards Measurement Study‐Integrated Surveys on Agriculture, a survey program aimed at improving the availability, quality, and relevance of agricultural data in multitopic, multipurpose household surveys.     

Short and long‐run returns to agricultural R&D in South Africa,or will the real rate of return please stand up?

This paper briefly presents the results of a total factor productivity (TFP) study of South African commercial agriculture, for 1947‐1997, and illustrates some potential pitfalls in rate of return to research (ROR) calculations. The lag between R&D and TFP is analyzed and found to be only 9 years, with a pronounced negative skew, reflecting the adaptive focus of the South African system. The two‐stage approach gives a massive ROR of 170%. The predetermined lag parameters are then used in modeling the knowledge stock, to refine the estimates of the ROR from short‐ and long‐run dual profit functions. In the short run, with the capital inputs treated as fixed, the ROR is a more reasonable 44%. In the long run, with adjustment of the capital stocks, it rises to 113%, which would reflect the fact that new technology is embodied in the capital items. However, the long‐run model raises a new problem since capital stock adjustment takes 11 years, 2 years longer than the lag between R&D and TFP. If this is assumed to be the correct lag, the ROR falls to 58%, a best estimate. The paper draws attention to the possible sensitivity of rate of return calculations to assumed lag structure, particularly when the lag between changes in R&D and TFP is skewed.