Two-Step Econometric Estimation of Farm Characteristics Affecting Marketing Contract Decisions

We examine how farm characteristics affect marketing contract decisions. We relax the restrictive assumptions of Tobit, Poisson, and multinomial logit models and consider the quantity, frequency, and contract type decisions conditional on, rather than jointly with, the contract adoption decision. In contrast to earlier studies on marketing contract decisions, we estimate a two-step econometric model using Agricultural Resource Management Study data and find that farm characteristics affecting decisions to adopt marketing contracts differ from those affecting decisions regarding quantity, frequency, and contract type.     

Causes of Changes in Agricultural Employment in Slovenia: Evidence from Micro‐data

This paper analyses labour adjustment in and out of agriculture during transition to a market economy. A multinomial logit model is used to determine the factors that affect these processes. The results show that elderly, less educated and full‐time employees on a farm are more likely to continue with farming. Inflow of labour into agriculture is largely associated with the unemployment and retirement of farm household members. Age, education and investment in human capital are the key factors that improve the quality, mobility and flexibility of labour, which is crucial for efficient labour adjustment at the micro‐level and sector level. Better‐educated individuals are more likely to enter into employment in non‐agricultural, particularly service, activities.     

The dynamics of Chinese rural households' participation in labor markets

The work is devoted to the dynamics of labor market participation of Chinese rural households. Based on a theoretical farm household framework the choice between four distinct labor market participation states is empirically analyzed. Using household data over the period 1995–2002 from the province Zhejiang we apply a discrete time hazard approach to analyze households' labor market participation histories. In particular, we investigate the movements between autarky and participation in general and, more specifically, the shifts between part-time and full-time farming. Estimation results suggest significant duration dependence, more precisely, a decreasing risk of moving from one state to another with an increasing time a household occupies one of these states. Further, the likelihoods of starting any participation in labor markets and to start part-time farming are considerably higher than to end participation or to return to full-time farming. In addition, we find that labor market participation decisions are significantly related to several household and farm characteristics.     

Factors Affecting Technical Efficiency of Rice Farmers in Village Reservoir Irrigation Systems of Sri Lanka

Given the importance of water for rice production, this study examines the factors affecting the technical efficiency (TE) of irrigated rice farmers in village irrigation systems (VIS) in Sri Lanka. Primary data were collected from 460 rice farmers in the Kurunagala District, Sri Lanka, to estimate a stochastic translog production frontier for rice production. The mean TE of rice farming in village irrigation was found to be 0.72, although 63% of rice farmers exceeded this average. The most influential factors of TE are membership of Farmer Organisations (FOs) and the participatory rate in collective actions organised by FOs. The results suggest that enhancement of co‐operative arrangements of farmers by strengthening the membership of FOs is considered important for increasing TE in rice farming in VIS.     

Forecasting the Adoption of GM Oilseed Rape: Evidence from a Discrete Choice Experiment in Germany

This paper explores farmers’ willingness to adopt genetically modified (GM) oilseed rape prior to its commercial release and estimates the ‘demand’ for the new technology. The analysis is based upon choice experiments with 202 German arable farmers. A multinomial probit estimation reveals that GM attributes such as gross margin, expected liability from cross pollination, or flexibility in returning to conventional oilseed rape significantly affect the likelihood of adoption. Neighbouring farmers’ attitudes towards GM cropping and a number of farmer and farm characteristics were also found to be significant determinants of prospective adoption. Demand simulations suggest that adoption rates are very sensitive to the profit difference between GM and non‐GM rape varieties. A monopolistic seed price would substantially reduce demand for the new technology. A monopolistic seed supplier would reap between 45% and 80% of the GM rent, and the deadweight loss of the monopoly would range between 15% and 30% of that rent. The remaining rent for farmers may be too small to outweigh possible producer price discounts resulting from the costs of segregating GM and non‐GM oilseed rape along the supply chain.     

An Analysis of the Key Factors Influencing Farmer’s Choice of Crop,Kibamba Ward,Tanzania

The need for further research into indigenous knowledge, in the context of agrarian development strategies, led to this investigation of one aspect of local knowedge; that of crop choice. Through the use of point score analysis, research was conducted in the Kibamba Ward located in the peri‐urban zone of Dar es Salaam, Tanzania. The main aims were to investigate the key factors underlying farmers’ choice of crop as well as to assess the differences in the decision‐making process between commercial and subsistence farmers. Vegetable cultivation was observed as the main practice, influenced particularly by the physical environment, the availability of machinery as well as certain economic factors. A significant difference in decision making among subsistence and commercial farmers was found. Subsistence farmers placed greater emphasis on the taste of the crop, whereas commercial farmers were predictably more influenced by the market. In addition, this study highlights several practical areas of concern regarding water resources, basic machinery and the lack of formal extension provision in the area. Although the complexity of crop choice is portrayed, a need for future research in different geographical contexts is noted.     

Gender and agricultural productivity: implications of the Farm Input Subsidy Program in Malawi

Alleviating gender differences in agricultural productivity is vital for poverty reduction. While numerous studies suggest that gender differences in agricultural productivity are a result of female farmers having limited access to resources, few studies investigate the role of agricultural interventions in alleviating the constraints to input use and subsequently the gender gap in productivity. This study investigates whether there are gendered gains in agricultural productivity from participating in an input subsidy program and if these gains help reduce the gender gap. Using nationally representative data that is disaggregated at the plot level, this study analyzes the large‐scale voucher‐based Farm Input Subsidy Program in Malawi. Focusing on the total value of output per hectare, relationships are identified using weighted estimators, where the weights are constructed from propensity scores, and spatial fixed effects, to address the unobservable factors that may confound the relationship between program participation and productivity. The findings suggest that participation in the program improves agricultural productivity for both male and female farmers but it does not provide disproportionate help to female famers to overcome gender disparities in agricultural productivity. This suggests that female farmers face additional constraints to productivity apart from nonlabor input use.     

Evaluating the Productivity Performance of Agricultural Enterprises in Ireland using a Multiple Output Distance Function Approach

This paper uses a distance function approach to measure and decompose productivity growth of Irish agriculture between 1984 and 2000 for four principal farming systems. The technology used by each system is found to be sufficiently different as to warrant a system‐by‐system approach. The overall rate of productivity growth in Irish agriculture is found to be just over 1% for this period, but there are significant differences between systems. Sheep systems had the highest rate of productivity growth followed by dairy and tillage. Productivity in cattle farms fell during this period although there is evidence that this trend has been reversed in more recent years.     

Challenging Small‐Scale Farming: A Non‐Parametric Analysis of the (Inverse) Relationship Between Farm Productivity and Farm Size in Burundi

We use a non‐parametric approach to investigate the (inverse) relationship between farm productivity and farm size. A kernel regression is used on data of mixed cropping systems to study the determinants of production including different factors that have been identified in literature as missing variables in the testing of the inverse relationship such as soil quality, location and household heterogeneity. Household data on farm activities and crop production were gathered from 640 households in 2007 in two Northern provinces of Burundi. Our results do not reject the findings of an inverse relationship between farm size and productivity. However, we find that size returns vary substantially with farm size, that is, between 0.2 for the smallest farms and 0.8 for the largest farms. Other factors that significantly affect production include soil quality. Finally, we find a significant positive association between food security and farm size.     

Heterogeneity of commercialization gains in the rural economy

Farmers in low‐income rural economies often fail to switch to cash crops from staple production despite the positive income effects of commercialization expected by policy makers. The literature suggests that market failures prevent households from cash crop adoption but remains inconclusive regarding farmers' motives and the effects of commercialization. This article contributes to the debate by offering an original approach to the analysis of commercialization outcomes and farmers' decisions. It consists of applying a model with essential heterogeneity and a semiparametric estimation technique to analyzing harvest value returns to cash cropping. Using Malawian data, we show considerable heterogeneity in harvest value returns to cash cropping both within and between groups of farmers choosing different crop portfolios. Importantly, the results imply rational choices based on comparative advantage considerations of farming households: farmers self‐select into the activity where they expect higher gains and adopt cash crops when facing weaker market barriers.     

Health care expenditures of self‐employed farm households in the United States

For self‐employed individuals and their families, purchases of health care services and health insurance policies have the potential to impact their health status, as well as the financial viability of their businesses. Most people in the United States receive health insurance coverage through employer‐sponsored programs. Self‐employed individuals and their households, such as farm households, may face a greater challenge in getting affordable health insurance. Using a large cross‐sectional farm household level dataset, we estimate the impact of the source of health insurance on health care expenditures of farm households in the United States. Results suggest that farm households purchasing individual health insurance directly from vendors are likely to spend more on health care than those with other sources of health insurance. After controlling for a variety of personal and local area characteristics, having health insurance was negatively related to total health care expenditures. Age and income, not surprisingly, were also found to be significant in explaining health care expenditures.