Which farmers benefit the most from Bt corn adoption? Estimating heterogeneity effects in the Philippines

The potential contributions of new biotechnologies to sustainable food and income security have been the subject of widespread discussions around the turn of the 21st century. But distributional issues of which segments of adopters of genetically modified (GM) crops benefit the most have not been given ample attention). Using propensity scores, we apply the (a) stratification‐multilevel method of estimating heterogeneous treatment effects; and the (b) matching‐smoothing method of estimating heterogeneous treatment effects proposed by Xie et al. We find that the incidence of higher yields, lower insecticide use, and reduced seed utilization in the Philippines diminishes progressively as a farmer's propensity to adopt Bt corn increases. Farmers with a low propensity to adopt Bt are those who farm smaller, nonirrigated farms located farther from seed suppliers and farmers without previous training on pest identification. In most cases, while these farmers are typically poorer farmers in smaller parcels, cannot afford irrigation and are situated in remote areas away from easily accessible seed suppliers, there is no evidence, however, that profits differ across farmers with varying propensities to adopt the Bt variety.     

Investigating rice farmers’ preferences for an agri-environmental scheme: Is an eco-label a substitute for payments?

In some Asian countries, the pursuit of high yields often leads to excessive application of chemical fertilizer, negatively impacting the environment. We use the Choice Experiment approach to investigate the preferences of rice farmers in Taiwan for a potential Agri-environmental Scheme (AES), which would aim at an optimization of fertilizer use. We are especially interested in how such an AES would optimally be designed and whether it is possible to reduce its costs by offering the farmers lower payments in exchange for an eco-label. We find that farmers have a significant preference for an eco-label and would accept lower payments in exchange. They also prefer to retain some flexibility and keep some land out of the AES. Moreover, we also find that a share of the farmers would never join an AES.     

Is There an Image Crisis in the Spanish Vegetables?

Abstract

The Spanish horticultural sector has been adversely affected by recurring crises in the last years, showing a significant economic impact upon demand. These crises have different sources (internal and external) and origins (food safety, social, and environmental issues). However, research devoted to analyzing the nature and scope of these events and their influence on consumers’ perception is scarce. For this purpose, this research provides a conceptual framework that defines and classifies the main image crises that have affected the sector. Consequently, an exploratory study is conducted to analyze to what extent European consumers know the sector and to determine how consumer knowledge influences the Spanish product-country image. Data were analyzed using a Logit Model. Results suggest that crises have seriously affected the demand of Spanish vegetables and consumers’ perceived image. Factors affecting the sector’s image through consumer knowledge are different depending on consumers’ country-of-origin (national vs. foreign countries).     

Is intraregional trade an opportunity for industrial upgrading in East Africa?

Regional integration has been promoted in Africa for decades. However, the potential effects of regional integration on Africa are still contested. To analyse whether intraregional trade can be an opportunity to stimulate product or intersectoral upgrading in East Africa, this paper compares the technological level of goods in intraregional and extra-regional trade of five East Africa countries. It finds that the five East Africa countries have performed better in exporting technology-based products to intraregional trading partners than to extra-regional ones. This result suggests the continued expansion of intraregional trade will be helpful for these nations to upgrade their existing industrial base through the growth of technology-based sectors. In addition, because they import larger amounts of technology-based products from extra-regional partners, gradual import substitution could be also an effective strategy to further diversify and upgrade industries.     

The economic viability of smallholder timber production under expanding açaí palm production in the Amazon Estuary

Relatively little attention has been paid to the economic potentials and limitations of tropical timber production and management at smallholder scales, with the most relevant research focusing on community forestry efforts. As a rare tropical example of long-lasting small-scale timber production, in this study we explore the economics of smallholder vertically integrated timber use to better understand the activity in the context of its primary land use alternative in the Amazon Estuary, açaí palm fruit production. We use data from landowner and firm surveys, participatory monitoring of firms, and detailed forest and sawmill operation monitoring to devise financial returns models of smallholder timber micro firms and açaí palm fruit production. We then compare the economics of the two activities to better understand how differences may shape decisions at the small holder scale that impact current land use shifts in the region.     

Is land cover an important asset for addressing the subjective landscape dimensions?

This paper explores which physical landscape components relate to subjective landscape dimensions. The ways in which people describe their surrounding cultural landscape was analyzed through an assessment of their representations of it. A special focus was placed on assessing the role of land cover as a means to communicate landscape meanings regarding a specific geographical region. The methodological framework was built on the basis of a questionnaire survey, multivariate statistical analysis and mapping approaches. This research shows that there is a set of physical landscape components that relate to subjective landscape dimensions which can be disclosed through the assessment of social representations. Enhancing and safeguarding those physical landscape components associated with the subjective landscape dimensions are important aspects in both framing and targeting land cover/use policies and decision making. Results also suggest that land cover can be understood as an important asset for describing landscapes as more than 30% of respondents referred to it when asked to represent the case study region of Alentejo in southern Portugal. This might mean that in addition to objective ecological and biological functions, land cover is also an important asset for evaluating subjective landscape dimensions in line with place attachment and landscape identity. Finally, the ways in which the empirical material gathered here can be used to inform policy and planning are explored.     

Is Passive Farming A Problem for Agriculture in the EU?

We address a new agricultural policy concern following the decoupling of CAP direct payments in 2005: passive farming, whereby landowners maintain their agricultural area to collect payments without producing commodities. It is claimed that passive farming is hindering agricultural development by ‘blocking’ access to farmland for expanding farmers. We evaluate the links between the EU's Single Payment Scheme (SPS), passive farming, land use and agricultural development. Following identification of the rational landowners’ optimal land‐use choice, we evaluate the effects of the SPS using a spatial, agent‐based model that simulates farmers’ competition for land in a case‐study region of Sweden. We show that passive farming does not constrain land from being used in production; on the contrary more land is used than would be the case without the SPS. We conclude that passive farming is not a problem for agriculture, but provides public goods that would otherwise be under provided: preservation of marginal farmland and future food security. However SPS payments on highly productive land inflate land values (capitalisation) and slow structural change, which hinder agricultural development. Consequently CAP goals could be better served by targeting payments on marginal land and phasing out payments to highly productive land.     

Can smallholder farmers adapt to climate variability,and how effective are policy interventions? Agent‐based simulation results for Ethiopia

Climate variability with unexpected droughts and floods causes serious production losses and worsens food security, especially in Sub‐Saharan Africa. This study applies stochastic bioeconomic modeling to analyze smallholder adaptation to climate and price variability in Ethiopia. It uses the agent‐based simulation package Mathematical Programming‐based Multi‐Agent Systems (MPMAS) to capture nonseparable production and consumption decisions at household level, considering livestock and eucalyptus sales for consumption smoothing, as well as farmer responses to policy interventions. We find the promotion of new maize and wheat varieties to be an effective adaptation option, on average, especially when accompanied by policy interventions such as credit and fertilizer subsidy. We also find that the effectiveness of available adaptation options is quite different across the heterogeneous smallholder population in Ethiopia. This implies that policy assessments based on average farm households may mislead policy makers to adhere to interventions that are beneficial on average albeit ineffective in addressing the particular needs of poor and food insecure farmers.     

The demise of swidden-fallow agriculture in an Atlantic Rainforest region: Implications for farmers’ livelihood and conservation

The Brazilian Atlantic Forest is widely recognized for its high levels of biodiversity and endemism. Its vast region concentrates also a large number of small farmers, who historically have been practicing swidden-fallow cultivation. Globally, there is contradictory evidence of the current fate of this traditional, integrated agricultural system, and the new land uses may have a strong impact on farmers’ livelihoods and ecosystem conservation. In this study, we assessed the land cover and land use change in a watershed where slash-and-burn cultivation was prevalent, aiming at understanding the drivers of change and discussing past and possible future impacts, including the perception of farmers on the drivers of land use change. We combined information gathered from interviews with 15 key informant farmers and from the analysis of remote sensing images for the years 1957, 1978 and 2011. Swidden-fallow cultivation has declined steadily since the 1950s. Part of the land was abandoned and forest succession was allowed to occur, increasing the total forest area; an apparently positive outcome. However, conversion to pastures and Eucalyptus plantations not only used much of the open land but also converted successional forests through deforestation, based on remote sensing. The willingness of farmers to grow more Eucalyptus and raise more cattle further increases concerns about the prospect for conservation. Our approach, combining remote sensing-based land change quantification and interviews, revealed to be complementary, allowing a better understanding of the past and possible future scenarios for the land use dynamics.     

Is farming enough in mountain areas? Farm diversification in the Pyrenees

The continuity of farming in mountain areas in Europe is at severe risk and its future faces manifold uncertainties. Mountain farms are immersed in a long-term process of reorganization. Farm diversification plays a prominent role in this process of adjustment and reallocation. However, little work has been done explicitly on the role farm diversification plays in the current structural changes occurring. In order to fill this void, the nature of farm diversification has been examined in the Pyrenees, where four different typologies of farms have been identified: absence of diversification, agricultural diversification, farmland diversification and finally farm labour diversification. These typologies reflect a gradation along which the farm diversification practices are applied to more aspects of the farm household. Throughout this gradation farming is increasingly marginalised. Finally, it is argued that the endorsement of policy measures stimulating farm diversification in mountain regions should be cautiously considered, since there is high risk of encouraging further agricultural abandonment.     

Is there a future for small farms in developed countries? Evidence from the French case

This research aims to identify the specific characteristics of small farms in developed countries and the factors that influence their survival and growth. Using the case of France, we employ statistical and econometric analysis of data from the Farm Structure Survey (N = 70,000) for the period 2000–2007. The principal findings suggest that small farms are no more likely than other farms to employ “alternative” strategies to the predominant model of increasing farm size, nor are they more likely to diversify on‐farm activities or operate under quality‐labeled production systems, with the notable exception of organic agriculture. However, where small farms do adopt or practice these activities, they are seen to have a favorable effect in ensuring their survival and growth. In contrast, we are unable to conclude that pluriactivity of farm households has a positive impact on the survival of small enterprises. The effect of geographical location on small farms is largely expressed in their concentration in mountainous or disadvantaged regions. Overall, the trajectory of small farms is marked by farm exit, principally as the result of farmers retiring at the end of their careers. The small farm sector is also revitalized by both larger farms declining and thus being reclassified as small farms, as well as the progressive entry into agriculture of small farm holders whose income was previously derived largely off‐farm.     

Is property assessment really essential for taxation? Evaluating the performance of an ‘Alternative Assessment’ method

Many countries evade the formal valuation of real property for taxation purposes by using qualitative and spatial criteria in order to pursue an equitable distribution of burden. This paper evaluates the performance of a prototypical setup as such, by analyzing the relationship between property value, household income and the actual tax paid, in the exact framework of which the qualitative criteria are set to determine tax assessment. Drawing on detailed data from the Israeli Household Expenditure Surveys 1997–2005, the strong correlation between the three variables is evident. Yet, the limited differences in rates, compared with large variation in property value, make it regressive. Policy implications are relevant for many other countries using non-ad valorem taxation.     

Hope for new communities as an alternative to sprawl?: Insights from developer perceptions of amenities in future new communities in the U.S. and U.K

New Communities are again being promoted as an alternative to sprawling urban growth. This paper uses the results of a unique survey of the real estate development communities in the U.S. and U.K. to examine the likelihood that future New Communities will provide the array of amenities necessary to create developments that provide a true alternative to sprawl. Based on an analysis of this data we conclude that while developers do envision New Communities as more amenity rich than much of the suburban master-planned communities of the last few decades, they are nonetheless still likely to produce developments that have an insufficient array of amenities to make future New Communities a strong alternative to sprawl.     

Does participation in the sloping land conversion program reduce the sensitivity of Chinese farmers to climate change?

Over the last two decades, extensive literature has examined the socioeconomic and environmental impacts of China's Sloping Land Conversion Program (SLCP), a program that was launched in late 1990s to mitigate the environmental effects of agricultural production and reduce rural poverty. However, little empirical evidence exists with regard to the impact of SLCP on rural households' sensitivity to nature-induced changes and environmental challenges. In this study, household-level data covering the period 1995–2010 from five Chinese provinces were used to examine the effect of SLCP on farmers' sensitivity to climate change. The empirical results show that participation in SLCP significantly reduced farmers' sensitivity to climate change by reducing their dependency on land and natural resources for income, and by diversifying their livelihood options. Spatially, the results reveal that the effect of SLCP on farmers' sensitivity vary across regions. Specifically, SLCP was found to have a ‘rate effect’ on farmers in the Northern regions and a ‘level effect’ on farmers in the Southern regions. Likewise, we found that the effect of SLCP differs considerably across income groups, with the effect on low- and middle-income groups being most significant. The results indicate that subsidy is the main pathway through which SLCP reduces farmers' sensitivity to climate change. In contrast, we found inclusive evidence about the indirect effect of SLCP farmers' sensitivity through the promotion of non-agricultural employment. These results carry major implications with regard to the effectiveness of ecological conservation programs and their mitigation potential through building farmers' resilience in China and ecologically fragile environments.     

How do producer organisations enhance farmers’ empowerment in the context of fair trade certification?

ABSTRACT

In the fair trade (FT) coffee sector, collective dynamics are viewed as a prerequisite for empowerment. The question of whether and how collective organisations empower farmers in the context of FT has yet to be fully explored. Using the concepts of collective agency and empowerment, this paper analyses the case of four farmers’ groups involved in two FT certified producer organisations in Peru. The results show that collective dynamics are drivers of change in this context oand help provide a ‘power to’ change coffee-related activities. They also generate a sense of ‘power with’, which improves group visibility and capacity to build new partnerships. Farmers gain the opportunity to develop their livelihood activities and women farmers develop ‘power from within’. TDespite that, collective action still focuses primarily on coffee and members-only projects. Inclusive rural development depends on extending ‘power with’ to other agricultural domains and to networks in the social and economic spheres.     

Will the application of spatial multi criteria evaluation technique enhance the quality of decision-making to resolve boundary conflicts in the Philippines?

Systematic studies that evaluate the quality of decision-making processes are relatively rare. Using the literature on decision quality, this research develops a framework to assess the quality of decision-making processes for resolving boundary conflicts in the Philippines. The evaluation framework breaks down the decision-making process into three components (the decision procedure, the decision method, and the decision unit) and is applied to two ex-post (one resolved and one unresolved) and one ex-ante cases. The evaluation results from the resolved and the unresolved cases show that the choice of decision method plays a minor role in resolving boundary conflicts whereas the choice of decision procedure is more influential. In the end, a decision unit can choose a simple method to resolve the conflict. The ex-ante case presents a follow-up intended to resolve the unresolved case for a changing decision-making process in which the associated decision unit plans to apply the spatial multi criteria evaluation (SMCE) tool as a decision method. The evaluation results from the ex-ante case confirm that the SMCE has the potential to enhance the decision quality because: a) it provides high quality as a decision method in this changing process, and b) the weaknesses associated with the decision unit and the decision procedure of the unresolved case were found to be eliminated in this process.     

Ride the trend: Is there spread momentum profit in the US commodity markets?

Some previous researchers have argued that trading strategies based on calendar spread time series momentum (STSM) can deliver significant returns (Szymanowska et al. 2014; Boons and Prado 2019), which, if true, is at odds with the efficient market hypothesis. These arguments however, do not exclude the unrealisable futures contract roll yield and are also affected by other empirical and statistical issues that may lead to misleading results. With more than 30 years of data, we investigate STSM in 22 US commodity futures markets. First, we assess whether past spread returns can predict future returns, a necessary condition for the existence of momentum. We find predictability to be very weak after correcting for the issues affecting prior research. Second, we implement STSM-based investment strategies. We compare STSM profits for individual markets and portfolios to profits generated by a simple long-only benchmark strategy that does not require any predictability. STSM does not generate returns statistically different from the benchmark trading strategy, with both strategies generating very low or negative returns. For the momentum to outperform the benchmark strategy, predictability should be three times larger than observed from real data, but would entail substantial downside risk. In sum, the empirical evidence indicates that returns from STSM-type strategies are illusive for the commodities and period studied. Our results strongly suggest that inclusion of unrealisable roll yield generates the illusion of profitable STSM trading strategies in previous research.     

Is a slowdown in agricultural productivity growth contributing to the rise in commodity prices?

A slowdown in the rate of agricultural productivity growth is thought by many observers to be contributing to the recent rise in agricultural prices. In this article I decompose sources of output growth in global agriculture into aggregate input and total factor productivity (TFP) components and examine whether productivity growth slowed substantially in the years leading up to the recent rise in commodity prices. Contrary to widely held perceptions, I find no evidence of a general slowdown in sector‐wide agricultural TFP, at least through 2006. If anything, the growth rate in agricultural TFP accelerated in recent decades. However, the results do show a slowdown in the growth of agricultural investment. Accelerating TFP growth largely offset decelerating input growth to keep the real output of global agriculture growing at about 2% per year since the 1960s. Regionally, however, agricultural productivity performance has been uneven. These findings have important implications for the appropriate supply‐side policy response to the current agricultural price crisis.     

Identifying livelihood strategies and transitions in rural China: Is land holding an obstacle?

Using nationally representative rural survey data from 2010 and 2014 in China, this paper quantitatively investigates the factors determining Chinese rural households’ livelihood strategies and dynamics in transitions. Using a multinomial probit regression and ordered logit regression (OLR), we find that human assets and transport facilities are the most important factors in improving the livelihood strategies of rural Chinese households. These factors also encourage upward livelihood mobility. However, factors such as land endowment, land renting-in, and land expropriation have a negative effect on rural Chinese households’ upward mobility in livelihood strategies.