Applying economic sociology to understand the meaning of “Quality” in food markets

This article reviews the concept of the “market” and questions the standard view of the “market” developed by orthodox economic theory. The article highlights how Economic Sociology and Convention Theory is more useful in understanding markets and appreciating markets as social constructs, which are governed by institutions and social orders. This adjustment in the analytical framework to study markets and especially food markets, is useful in unpacking the various dimensions of “quality” in food products and illustrating that “quality” is an institution that is shaped by society and by culture.     

Evaluating the long‐term impacts of promoting “green” agriculture in the Amazon

Frontier development in the Brazilian Amazon has created vast areas of largely deforested landscapes. Conservation efforts in these post‐frontier zones seek to protect the remaining forest fragments and promote sustainable agricultural practices that absorb labor, meet market demand, and generate ecosystem services. Assessments of these efforts often find that rates of sustained uptake are disappointingly low and that impacts are difficult to discern, but this could be due to the short‐time frames of both the efforts themselves and their evaluation. We investigate the impacts of participation in an internationally sponsored farmer association that for 15 years promoted sustainable agricultural practices in the heavily deforested state of Rondônia, Brazil. Using data from a georeferenced four‐period panel survey of farmers in combination with remote sensing data on land use spanning the life of the association, we apply matching methods to estimate the impacts of participation. We find that membership resulted in more diversified production systems, including more land allocated to agroforestry. Members also deforested less of their farms, but this difference is not statistically significant after we control for selection bias in membership.     

Policy review of water reform in the Murray–Darling Basin,Australia: the “do's” and “do'nots”

The water reforms undertaken in the Murray–Darling Basin, Australia since 2007 have been viewed as a model for other countries seeking to respond to water insecurity. Here, a policy review is provided of this water reform and whether it delivers on key environmental objectives in the 2007 Water Act (the Act). The evaluation includes a review of the 2012 Basin Plan, a key instrument of the Act, and complementary policies associated with the acquisition of water entitlements for the environment via direct (reverse tenders) and indirect (infrastructure subsidies) means. Using the objects of the Act as a benchmark, an evaluation is provided of the following: (i) planned reductions in irrigation water extractions in the 2012 Basin Plan; (ii) risks associated with the 2018 amendments to the Basin Plan that, collectively, allow for an increase in irrigation water extractions of some 22 per cent, relative to the sustainable diversion limits specified in the 2012 Basin Plan; (iii) Basin‐scale environmental outcomes achieved, as of the end of 2018; and (iv) economic effects of direct and indirect methods of acquiring water for the environment. Findings from the review generate the “Do's” and “Do Nots” of water reform for Australia, and possibly other countries, when managing the trade‐offs between water for irrigation and the environment.     

Risk Management for Grain Processors and “Copulas”

The importance of calibrating hedging strategies for processors has escalated primarily due to the sharply increased volatility of futures, product, and by‐product prices. The purpose of this paper is to analyze price risk‐management strategies for wheat flour milling using copula distributions. While the application is for flour milling, it has similarities with other processing industries which confront one or more ingredients, one or more outputs, and futures for one of the commodities and/or products. The paper develops utility maximizing models encompassing expected return and risk. Alternative scenarios are evaluated. First, the models were used to derive optimal hedge ratios, as well as various measures of risk and return under alternative scenarios, and hedge durations. The results indicated hedge ratios are typically less than 1. The hedge ratios for the Mean‐value‐at‐risk (M‐VaR)‐Copula model increased with greater durations. Second, the VaR for the M‐VaR‐Copula was in most cases less than the noncopula specifications. Thus, noncopula models may over state risk as represented by VaR.     

Home‐grown food and the benefits of sharing: The “intergenerational pact” in postsocialist Moldova

The policy literature on postsocialist Europe tends to frame smallholders' practices of food self‐provisioning and sharing as driven by necessity and proposes land consolidation to increase productivity and efficiency. However, these practices generate nonfinancial benefits, which need to be accounted for. In this paper, I test the socio‐economic relevance of these practices in the Republic of Moldova, the country with the highest density of farming households in Europe and whose government has embraced the rural modernization agenda to integrate into the EU economic space. I carry out quantitative estimates using the household budget survey and complement the results with qualitative insights from an original smallholder survey. I find that food self‐provisioning and sharing are positively related to subjective well‐being and that there is an “intergenerational pact,” with home‐grown food flowing from late‐adulthood smallholders to urban‐based young families and the vulnerable elderly. A counterfactual analysis shows that poverty and inequality would be higher in the absence of donated food, especially in urban areas. The preservation of smallholder farming through widespread access to land could thus help fight poverty and provide social benefits vis‐à‐vis land consolidation.     

The “left behind”: Smallholders in contemporary Russian agriculture

Smallholder production in Russia has been in decline for more than a decade. The likelihood is for continued marginalization. Smallholders confront four obstacles. First, path dependencies, which includes the fact that smallholders' production remains traditional and subsistence oriented. Second, institutions in the form of state policy restrict land and animals. Third, Russia's role in the third food regime means that smallholders are unable to help Russia's emergence as a global food superpower. Fourth, smallholders are being left behind in the ongoing technological revolution led by agroholdings. As technological advancement expands in scope, the gap between large farms and smallholders will widen.     

Afterword: Reflections on “Capitalist development in hostile environments”

This afterword places the long essay “Capitalist Development in Hostile Environments” in the context of Giovanni Arrighi's overall intellectual trajectory. It highlights several crucial theoretical and methodological contributions to debates, including on the relationship between proletarianization and capitalist development, and between labour migration, class formation, and class conflict; on the interrelationship between “internal” and “external” processes in the explanation of social change; and on the distinction between economic progress, “catching‐up” development, and popular welfare. It concludes with a brief discussion of ways in which Arrighi's later theorization of the longue durée evolution of historical capitalism provides a robust conceptual framework for ongoing studies of proletarianization and capitalist development.     

Introduction to the special issue “small farms: decline or persistence?”

This issue of Agricultural Economics contains articles from a seminar entitled “Small Farms: Decline or Persistence?” held at the University of Kent. This issue includes nine papers selected from more than 50 papers presented at the seminar. Articles published use a range of econometric and simulation methods to provide a suite of case studies. Topics studied range from such fundamental issues as what constitutes a small farm to recent trends in the diversification of small farms and their integration into modern globalized food chains. Several papers emphasize the link between agricultural policy development and the future of small farms.     

Land administration “best practice” providing the infrastructure for land policy implementation

Land administration systems, and particularly their core cadastral components, are an important infrastructure which facilitates the implementation of land use policies. While most land administration systems traditionally have a primary objective of supporting the operation of land markets, they are increasingly evolving into a broader land information infrastructure which supports economic development, environmental management and social stability in both developed and developing countries. While a great deal of attention is given to land use policies worldwide concerned with such areas as forest management, coastal zone management, environmental sustainability and managing the urban environment, less attention is given to the infrastructures which facilitate the implementation of the associated policies and programmes. Importantly, all these activities rely on some form of land administration infrastructure which permits the complex range of rights, restrictions and responsibilities in land to be identified, mapped and managed as a basis for policy formulation and implementation. As a result, there is an increasing interest in the concept of land administration infrastructures and their core cadastres, in the principles and policies concerned with establishing such infrastructures and in “best practices”. In addressing this need, this paper attempts to explain the evolving concept of land administration infrastructures, the concept of “best practice” and the concept of a land administration “tool box” of principles, policies, laws and technologies which are useful in reforming or re-engineering land administration systems in support of a broader land policy agenda.     

Collaborative growth management in metropolitan Denver: “Fig leaf or valiant effort?”

Metro Vision 2020 is a collaborative effort to manage growth in metropolitan Denver. Based on interviews, surveys and document analysis, an evaluation revealed that it was a well-managed process that raised awareness about growth problems. The efforts also resulted in an approved regional plan that initiated an innovative urban growth boundary policy. However, the lack of broad-based participation, limited understanding of policy effects, and inadequate implementation tools raised doubts about long-term effectiveness. The broader implications are that collaboration at the metropolitan scale needs to explore more participatory models, stronger implementation tools, and institutional structures that will support consensus.     

Information and consumer perception of the “organic” attribute in fresh fruits and vegetables

Using a double hurdle model on panel data from 3,200 Danish households (monthly observations for 2002–2007), we study the effects of health‐related media information on the demand for organic fruit and vegetables. We find that “negative” information about pesticides contained in conventional fruit and vegetables mainly influences the probability of a consumer entering the organic market, not the quantities consumed by households that are already active on the organic market. “Positive” information that links health and the consumption of organic food influences both steps of the decision process. Our dataset includes information about consumers’ media habits, which allows us to disentangle the direct effects of media information from the indirect effects of this information as it is disseminated through the population. Our results suggest that directly obtained information is the main type of information influencing consumers, while information loadings by dissemination through the population have almost no effect on consumption.     

What farmers want: the “gustibus multiplier” and other behavioral insights on agricultural development

Behavioral economic experiments have not only identified realms where human behavior systematically deviates from the predictions of the standard neoclassical model, they have also devised way to measure individuals’ deep preferences concerning risk and time. Preference measurement has in turn opened the door to two area of inquiries: preference heterogeneity as an explanation of fundamental choices concerning savings and investment; and endogenous preference mutations as an explanation for the surprising success or failure of policies and interventions. These new insights and measures allow economics to expand beyond its traditional reliance on variation in prices and incomes as the primary explanators of economic behavior. Drawing on recent work on technology adoption in the face of risk and uncertainty, as well as work on the evolution of hope and aspirations that shape what farmers want, this article articulates frontier issues in agricultural development economics where the tools and perspectives of behavioral economics promise new and important insights.     

The political economy of agriculture for development today: the “small versus large” scale debate revisited

The role of agriculture in economic development and the development politics of promoting smallholder versus large‐scale agriculture have both been at the center of a long‐lasting and controversial debate. Using an innovative methodology which combines a value chain approach with input‐output‐analysis, the growth multipliers and productivity of both farm types in Guatemala are analyzed. Results show that smallholder agriculture has the same potential to stimulate output growth as large‐scale agriculture. Smallholder value chains include mainly informal sectors and create more jobs than commercial agriculture. Therefore, a reorientation of agricultural and land policies toward small‐scale food producers and within a comprehensive policy of integrated rural development is not only necessary in terms of social equity but also for boosting economic development.     

When the theory is not enough - valuation of forest resources with “efficiency” prices in practice

In resource accounting, simple theoretical models built upon efficiency prices have been developed to capture changes in social welfare generated by natural resources. We examine whether changes in market stumpage prices, as proxies for efficiency prices, have actually reflected changes in the physical timber inventories in Finland and Sweden during the past seventy years. Cointegration and unit root tests show that no long-term equilibrium relationships exist between the timber prices and stocks. After identifying a potential reason for the result, the basic theoretical growth model is slightly elaborated to provide a more appropriate framework for measuring net domestic product for the forest sector.     

The social construction of “shared growth”: Zambia Sugar and the uneven terrain of social benefit

Recent years have witnessed a growing trend in agricultural investment and large‐scale farmland acquisition in the Global South and a rapid expansion of scholarship and public debate over the nature, consequences, and desirability of these trends. The polarization of this debate into “win/lose” narratives raises the question of whether, and under what conditions, the logic of capital accumulation driving farmland acquisition and investment can engender broad‐based social benefits akin to “shared growth.” This paper sheds light on this question through a detailed look at the recent expansion of Zambia Sugar's Nakambala Estate in Mazabuka, Zambia. We explore outcomes linked to two of the most prominent pathways through which social benefits are said to accrue: smallholder incorporation and employment. Findings demonstrate the unevenness of outcomes linked to both pathways, with the concrete benefits both claimed and observed through some measures quickly eroding under the weight of alternative performance metrics. The unevenness produced by the intensification of capitalist relations is manifested not just between those differentially positioned with respect to the incoming investment (“outgrower,” “employee,” and “land loser”) but within each of those conditions. This ambiguity opens spaces for competing representations of the promises and pitfalls of these processes, while highlighting the shaky ground on which shared growth and inclusive business agendas stand.