Determinants of millet diversity at the household-farm and village-community levels in the drylands of India: the role of local seed systems

This research characterizes the biological diversity of millet crops in the semiarid regions of India at the household and village‐community ( panchayat) scales of analysis, placing that evidence in the context of local seed systems. A set of seed system parameters that span formal and informal exchange and can be measured empirically are proposed. The analysis is based on data collected through sample surveys of farmers and traders in selected sites of Karnataka and Andhra Pradesh, combined with cultivar taxonomies developed with geneticists and applied to seed samples. Findings demonstrate that millet crop diversity levels at both scales of analysis are significantly influenced by seed system parameters, factors which related studies have omitted. In particular, the presence of active local (formal and informal) seed markets enhances millet richness among and within farming communities. Crop improvement strategies oriented toward local seed markets could provide important benefits and incentives to farm households living in these marginal environments. There is a need, however, for an enhanced theoretical understanding of local seed markets in analyzing crop variety choices and the diversity of materials grown in less favored environments.     

The impact of social networks on hybrid seed adoption in India

This article adds to the literature about the impact of social networks on the adoption of modern seed technologies among smallholder farmers in developing countries. The analysis centers on the adoption of hybrid wheat and hybrid pearl millet in India. In the local context, both crops are cultivated mainly on a subsistence basis, and they provide examples of hybrid technologies at very different diffusion stages: while hybrid wheat was commercialized in India only in 2001, hybrid pearl millet was launched in 1965. The analysis is based on surveys of wheat and millet farmers in the state of Maharashtra. Comprehensive data on farmer characteristics and social interactions allow for identifying individual networks, thereby improving upon previous research approaches that employed village-level variables as proxies for network effects. Using econometric models, we find that individual social networks play an important role for technology adoption decisions. While village-level variables may be used as suitable proxies at later diffusion stages, they tend to underestimate the role of individual networks during early phases of adoption.     

Evaluation of drought management in irrigated areas

This paper focuses on the economic consequences of droughts for the irrigation sector. We develop a dynamic‐recursive mathematical programming farm model that assumes imperfect mobility of capital and labour as well as rational expectations about future water availability. The model is calibrated to 12 representative farms belonging to three irrigation communities of the Guadalquivir Basin (south Spain) and used to simulate the 1991–1997 period, which included 3 years of intense drought. Results indicate that the drought imposed significant costs on farmers, but show also that water managers partly exacerbated these costs by allocating excessive amounts of water to irrigators in the abundant years. The model is also used to evaluate the benefits of a perfect water supply forecast and to simulate the economic gains of a voluntary water banking scheme. Results show that the benefits resulting from the perfect forecast of water supply 1 year ahead would represent a relative gain of 5%. However, a voluntary banking system would allow farmers to increase their benefits by 32–82% depending on the supply system.     

The impact of soil conservation and output diversification on farm income in Central American hillside farming

This article analyzes the determinants of farm income among hillside farmers participating in natural resource management projects in El Salvador and Honduras. The farm income function was evaluated using a system of equations in which income is determined simultaneously by the farmer's decision to adopt soil conservation technologies and by the level of diversification (number of agricultural activities) on the farm. The database used comes from surveys administered to 678 beneficiaries of these projects during 2002. The econometric results suggest that all the variables related directly to land use (i.e., output diversification, soil conservation practices and structures, and the adoption of forestry systems) have a positive and statistically significant association with farm income. Also, farmers who own land enjoy higher farm incomes than those who do not. The results indicate that when investing in natural resource management projects, governments and multilateral development agencies should pay close attention to output diversification, land tenure, and human capital formation as effective instruments in increasing farm income.     

Estimating the supply response of cotton and cereal crops in smallholder production systems: recent evidence from Mali

Cotton is one of the most important crops in West Africa and is a major catalyst of economic development in rural areas, but the sector has suffered from a decline in the world cotton price after 1999. This article exploits an unusual data set following 82 farmers over 14 years, from 1994 through 2007, to estimate a Nerlovian supply response model for cotton, maize, sorghum, and millet in long-term rotation. The resulting system of equations is estimated with two-stage least squares (2SLS), showing that this sample of Malian cotton producers have responded to prices in a relatively inelastic manner, with supply elasticities only about one-half of those estimated for producers in developed countries. Policy reforms could help producers respond more easily to prices changes, as well as to raise average productivity levels.     

Diet,trade and land use: a socio-ecological analysis of the transformation of the olive oil system

Within only two decades olive oil developed from a niche product which could hardly be found in food stores outside the producing regions towards an integrated component in the diets of industrial countries. This paper discusses the impacts of the promotion of the “healthy Mediterranean diet” on land use and agro-ecosystems in the producing countries. It examines the dynamics of olive oil production, trade and consumption in the EU15 in the period 1972–2003 and the links between dietary patterns, trade and land use. It analyses the underlying socio-economic driving forces behind the increasing spatial disconnect between production and consumption of olive oil in the EU15 and in particular in Spain, the world largest producer during the last three decades.     

The impact of the 1999 CAP reforms on the efficiency of the COP sector in Spain

The cereal, oilseeds, and protein crop sector (COP) occupies a prominent position within the European Union's agricultural sector. Within Spain, the COP sector accounts for almost a third of total Agricultural Guidance and Guarantee Fund expenses, and half of the utilized agricultural area (UAA). The COP sector is not only relevant because of its physical and economic magnitude, but also because of the political attention it receives. The Common Agricultural Policy (CAP) reforms that occurred during the 1990s paid special attention to this sector. This article aims to determine the impacts of Agenda 2000 on a sample of Spanish COP farmers' production decisions by using an output-oriented stochastic distance function. The distance function allows for an assessment of the reform-motivated changes on total output, input used, input composition, and crop mix. It also permits an assessment of the impacts of the reform on farms' technical efficiency.
Results show that the reform has shifted the production frontier inward and changed output composition in favor of voluntary set-aside land. With respect to input composition, Agenda 2000 induced a decrease in land, fertilizers, pesticides, and other inputs in favor of labor. In addition, Agenda 2000 has had a negative impact on technical efficiency.     

Characteristics and hedonic pricing of differentiated beef demands

We estimate a CBS system model of U.S. derived demand for meat. We use this model (1) to examine relationships between three quality categories of beef and three other meats and (2) to simulate how taste shifts have affected demands for meats over time. We extend previous studies by disaggregating wholesale beef production into three quality categories: (1) USDA Choice grade or higher, (2) USDA Select or lower, and (3) cow and bull beef. Innovative features of our empirical model include a breakout of ‘table cuts’ into Choice and Select and the use of a hedonic characterization of the two breakouts to value “Choice‐ness” and “beef‐ness.” Our model demonstrates important shifts in separate demands for Choice and Select beef. We show that, separately, the demand for Choice‐grade beef declined in the 1980s and 1990s and the demand for Select beef increased, a departure from the relatively stable demand characterizations of more aggregated measures of combined Choice and Select beef.     

Measuring the relative importance of preferences for country of origin in China, France, Niger, and the United States

Recent labeling policies in developed countries place new focus on origin labeling, especially country of origin labeling, for a variety of food products. It is not clear if this new emphasis on origin is the result of more ethnocentric consumer preferences for food. We measure consumer preferences for country of origin in four different international locations and one domestic control location using a conjoint experiment to test the null hypotheses that consumers do not have stronger own-country preferences. In addition, we compare the relative importance of consumer preferences for origin to their preferences for genetically modified food and pesticide-free production using attribute coefficients from within location ordered probit models. The study was conducted in China, France, Niger, and the United States. We find consumers tend to prefer food from their own location indicating ethnocentric tendencies do play a role in shaping country-of-origin preferences. Country of origin is generally less important to consumers than genetically modified food content and pesticide use in food production.     

Modeling determinants of agricultural production cooperatives' performance in Iran

The purpose of this article is to identify the fundamental factors that are key determinants in promoting effective operation of Agricultural Production Cooperatives (APCs). A theoretical framework “determinants of APCs' performance” was used to analyze the links between the webs of factors. A survey method was used to collect data from two southern provinces in Iran. Data were collected from 52 managers and 260 member farmers in 52 APCs using a stratified random sampling method. It is concluded that the theoretical model can to a great extent predict the performance of APCs. Cooperative structure and government support factors are the most important factors explaining the performance of APCs. Also, policy strategies need to focus on conditioning variables that affect the performance of APCs.     

Managing economic risk in value-based marketing of fed cattle

This research investigates optimal price risk management strategies for fed cattle producers engaged in grid pricing. Stochastic simulation is used to determine optimal hedge ratios for fed cattle priced on a live weight basis or on a series of grids that vary in terms of premium/discount structure as well as base price. Results indicate that the optimal hedging strategy is greatly affected by the base price used in a particular grid. This has significant implications for pricing efficiency in the cattle market. Base prices that are linked more closely with downstream markets offer the potential to improve pricing efficiency; however, the risk associated with these prices is difficult to manage effectively with existing futures instruments.     

Agriculture, pesticides and the ecosystem

Economists have a good understanding of intra-economic interdependence and a mature methodology of modelling it. Ecologists focus on the complex and sensitive interactions of species in ecosystems. This paper’s objective is to suggest a new micro-foundation of ecosystem analysis based on economic methodology, to integrate the analyses of the ecosystem and the economy and focus on the interface of ecosystem-economy relations. Agriculture forms a major part of this interface. The basic assumption is that in the short run the individual organisms of all species behave as if they optimise their costly offensive and defensive activities given other organisms’ activities (Nash-behaviour).We consider an ecosystem with three species in a unidirectional food chain: buzzards feed on mice, mice feed on grain, and grain feeds on solar energy. A fourth species, humans, also feeds on grain. Humans intervene in the ecosystem in various ways. They can grow grain by using seed, farm labour, pesticides and possibly nature conservation measures to maintain buzzard habitat. Short-run ecosystem equilibrium is characterised, and it is shown, in particular, how this equilibrium depends on farming activities. We then link this ecosystem model to a simple model of an agricultural economy. Both systems are solved for equilibrium simultaneously. From an economic perspective the ecosystem induces positive and negative externalities in agricultural production and in consumer ‘green’ preferences.The inefficiencies of the competitive economy are identified and some possibilities to restore efficiency through corrective taxes or subsidies are briefly discussed. We also outline how short-run equilibria are connected through ecosystem stock-flow relationships. Due to the complexity of the inter-temporal analysis, the resulting ecosystem dynamics cannot be characterised in general analytical terms. It is a topic for future research to study the dynamics in numerical analysis to understand under which conditions the joint ecological and economic system is driven toward a (sustainable) steady state.     

Asymmetric information in cattle auctions: the problem of revaccinations

We analyze the problem of asymmetric information between buyers and sellers in cattle auctions, using the problem of revaccinations as the point of departure. We present a simple model to show that if buyers do not know and cannot verify whether sellers have vaccinated their animals, then they may consider revaccination. Revaccination is only a part of the broader problem of information asymmetry that includes other quality issues and costs that can be saved, thereby affecting the welfare of both buyers and sellers. We consider structural characteristics of ranching, traditions, and consumers' preferences as well as proposals regarding third‐party certification to argue that the problem of asymmetric information in cattle auctions is a persistent one. We also argue for a comprehensive empirical study of the incidence and impacts of buyer revaccination.     

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.     

Empirical measurement of credit rationing in agriculture: a methodological survey

Empirical analysis of rural credit market failure has been of key scientific and political interest in recent years. The aim of this article is to give an overview of the various methods for measuring credit rationing that are employed in the literature. Furthermore, the methods are subjected to a comparative evaluation of their specific strengths or shortcomings. Six approaches are distinguished: measurement of loan transaction costs, analysis of qualitative information collected in interviews, analysis of quantitative information collected in interviews using the credit limit concept, analysis of spill‐over effects with regard to secondary credit sources, econometric household modeling, and the econometric analysis of dynamic investment decisions. An explicit comparison with a first‐best solution is impossible in the first three approaches, since they essentially rely on a subjective assessment of borrowers' access to credit, based on qualitative or quantitative indicators. The fifth and sixth approaches allow a rigorous interpretation in the framework of neoclassical equilibrium theory. The fourth approach takes an intermediate position, since spill‐over on segmented loan markets reveals a willingness to pay with regard to the supposedly less expensive but rationed primary source. The approaches are fairly data demanding in general, usually requiring specific data on loan transactions. Even so, most approaches are applicable to cross‐sectional household data. With the exception of the first, all methods surveyed might plausibly be used to empirically detect credit rationing.