Do Chinese farmers benefit from farmland leasing choices? Evidence from a nationwide survey

Using China Family Panel Studies (CFPS), this study investigates factors associated with the choice of farmland leasing strategies and the impact of leasing options on farm performance. Particular attention is given to off‐farm employment and farm subsidies. Additionally, the study applies a selectivity‐based approach to assess the relationship between farmland leasing choices and farm businesses’ performance. Off‐farm employment, older and educated operators, large farms and old‐age pension plans increase the likelihood of leasing out farmland. Part‐time off‐farm employment, grain subsidies and mechanised farms increase the likelihood of leasing in farmland. Finally, the selectivity correction terms in the value of crop production are significantly negative in the choices of farmland leasing, indicating the presence of sample selection effects. Accounting for selectivity is essential to ensure unbiased and consistent estimates.     

Is native timber tree intercropping an economically feasible alternative for smallholder farmers in the Philippines?

Integration of trees on upland farms in the Philippines has been slower than expected and desirable from an environmental perspective. Our economic and risk analysis points to current policies as part of the problem. The study compares three domesticated indigenous timber trees (Shorea contorta V., Pterocarpus indicus J., and Vitex parviflora W.) intercropped with maize against a benchmark of the widely used exotic mahogany (Swietenia macrophylla K.). We used a biophysical simulation model (WaNuLCAS 3.1) to represent interaction between trees and crops for a fundamental level of water, nutrient and light capture as the basis for production functions. External conditions affecting systems profitability were accounted for in the Policy Analysis Matrix (PAM). Elements of risk were introduced through Monte Carlo simulation. Study results revealed that from a farmer’s perspective intercropping systems provide similar (within an uncertainty range of + or ? 10%) returns to monocropping scenarios. When net subsidies and taxes are accounted for, social profitability evaluations favour tree intercropping at high tree densities. The net effect of the current bias in price policies towards food production therefore refrains farmers from making decisions to integrate trees on farms; a decision that is actually in the national interest on economic grounds, even without consideration of positive environmental effects.     

Would Indian farmers benefit from liberalization of world cotton and sugar markets?

Rich-country support programs for cotton and sugar producers are frequently claimed to be detrimental for developing-country farmers. This study investigates whether a reduction in protectionist policies for Organization for Economic Cooperation and Development cotton and sugar producers would have a measurable effect on the welfare of Indian farmers. The fact that these sectors are intensively regulated within India might suggest that any such effect will be small. However, this study shows econometrically that prices in Indian rural markets closely follow world prices, and that Indian farmers are flexible in the medium to long run in changing production according to price signals from these markets. Depending on the crop and the nature of liberalization, producer surplus increases from 4.2% to 22.3% in the long run.     

Do Vietnamese upland farmers benefit from high world market prices for maize?

For rural households in the north of Vietnam, maize cropping is the main source of income. In the face of the world market price increases of the recent past, we analyze the regional marketing chain of this commodity qualitatively and econometrically investigating to what extent smallholder farmers in developing countries are affected by international price movements. Vietnamese maize markets are found to be well integrated. Recent price hikes have fully transmitted along the regional supply chain so that farmers profited. Nevertheless, adverse factors such as increasing input prices have neutralized these benefits resulting in a decline in real income of smallholders.     

A recipe for success? Learning from the rapid adoption of improved chickpea varieties in Ethiopia

Many studies detail constraints deemed responsible for the limited adoption of new technologies among smallholder farmers in sub-Saharan Africa. By contrast, here we study the conditions that led to the remarkably fast spread of improved chickpea varieties in Ethiopia. Within just seven years, the adoption rate rose from 30 to 80% of the farmers. A combination of factors explains the rapid uptake. Their attraction lay in superior returns and disease resistance. Chickpea was already an important crop for rural households in the studied districts, for both cash income and consumption. Good market access and an easy accessibility of extension services advanced the adoption process. Thus, an attractive technology suitable for rural households in a conducive environment enabled adoption. Our findings prompt us to stress the importance of tailoring agricultural innovations to the realities and demands of rural households, and the need to design and deploy interventions on the basis of ex-ante knowledge on factors potentially determining their success or failure.     

Changes in farmers’ welfare from land requisition in the process of rapid urbanization

The marked impact of the welfare gap on total welfare within collectives has rarely, if at all, been addressed in traditional welfare theories and in Amartya Sen's theory of welfare functioning and capabilities. With this observation as our starting point, we constructed a research framework that combined welfare functioning, the welfare gap, and welfare capability to assess and analyze changes in the welfare of farmers whose land was requisitioned in Zhejiang province. The findings of our study were as follows. (1) The total welfare functioning of farmers whose land was requisitioned increased by 11.8% as a result of improvements in economic and dwelling conditions and community surroundings. However, social security and psychological conditions deteriorated. (2) Although total welfare functioning has improved, gaps are widening in the distribution of welfare functioning among farmers who underwent land requisition. This was evidenced by the increase of the weighted Gini coefficient, which rose from 0.26 to 0.32 after land requisition. (3) As a result of the improvement in welfare capability, a judgmental bias is evident when farmers assess whether they have gained or lost welfare after land requisition. We conclude that welfare studies should focus not only on the quantitative aspects of welfare distribution, but should also pay more attention to its fairness and impartiality. This can prevent social problems posed by an oversized welfare gap. Moreover, after land requisition, the government and community should provide education and training services, and the current one-time compensation model should be replaced by a lifelong compensation model. At the same time, endowment insurance should be extended in rural areas and urban medical insurance should be progressively incorporated into the social security benefits of farmers who have undergone land requisition.     

Is late really better than never? The farmer welfare effects of pineapple adoption in Ghana

Export agriculture offers potentially high returns to smallholder farmers in developing countries, but also carries substantial market risk. In this article we examine the intertemporal welfare impact of the timing of a farmer's entry into the export pineapple market in southern Ghana. We examine whether farmers who never cultivated pineapple are better or worse off than farmers who decided to adopt pineapple earlier or later relative to their peers and experienced a significant adverse market shock several years prior to our endline survey. We use a two‐stage least squares model to estimate the causal effect of duration of pineapple farming on farmer welfare. Consistent with economic theory, we find that earlier adoption of the new crop brings greater welfare gains than does later uptake. But we find that the gains to later uptake of pineapple—just before the market shock—are small in magnitude, just 0.1 standard deviations of a comprehensive asset index, indicating that the gains to adoption may be precarious and depend on the context, in particular on the severity of prospective market shocks.     

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.     

Who drives the formation and adoption of the increasing versus decreasing balance policy?—Evidence from a policy process analysis

The “increasing versus decreasing balance policy (IDB)” is an important land use innovation in China and it transfers developmental rights from less productive rural land to more productive urban construction land. Since its initiation in 2000, it was soon adopted in almost all provinces in China. In the process of transferring developmental rights, what roles do different levels of governments play and why? To answer these questions, this research conducts a policy process analysis by combing the methods of process tracing and multi-level event history analysis. It finds that the policy process of IDB is a bottom-up one. The prefectural level governments are the engine of the whole process for they gain direct benefit from the transfer of developmental right. Provincial governments, on the one hand, act as a hub connecting local to central; on the other hand, fail to regulate and supervise the implementation. Central government is pushed by the force from local to enact the policy of IDB but also shows lukewarm support to it with a concern that it might deviate from the Pareto increase and damaged peasants’ wellbeing. This research explores the complicated inter-governmental relations in land policy-making process in China and also proposes policy implication on IDB’s future implementation.     

Agriculture and proximity to roads: How should farmers and retailers adapt? Examples from the Ile-de-France region

The present study was carried out in the Ile-de-France region surrounding Paris, which is both the biggest conurbation in France and a large agricultural area. In areas such as these, airborne pollutants from road traffic may adversely affect the quality of the food produced by farms close by. This raises questions about the spatial compatibility of farming and road networks, although there is currently no scientific consensus concerning potential health risks for producers and consumers. Some actors in agricultural supply chains have tried to limit potential risks by producing technical guidelines, including isolation distances between major roads and fields farmed under contract. This paper analyses these “isolation distances”, using approaches from the agricultural and social sciences: surveys on stakeholders in agribusiness and on farmers, and a cartographic simulation submitted to the surveyed farmers for discussion. The results show that isolation distances serve to create market opportunities in a context of market segmentation, or are applied as a precautionary principle. Though not a widespread practice, safety distances could have considerable impacts on farms in terms of both technical management and total farm area, thus calling for further scientific research on this issue.     

Do farmer,household and farm characteristics influence the adoption of sustainable practices? The evidence from the Republic of Moldova

Drought represents the main constraint on agricultural production in the Republic of Moldova indicating the need to shift from conventional agricultural practices to more sustainable ones. To provide a more comprehensive understanding of the determinants and barriers influencing the adoption of conservation agriculture practices, an analytic framework combining both binary and ordered probit models addressing the potential endogeneity of variables was applied. A survey was conducted among 234 smallholders in three districts in the Republic of Moldova from July to September 2016. The results indicated that the adoption of sustainable practices by small-scale farmers is influenced predominantly by farmer characteristics and by their perception of risk. The findings of this research confirmed that households with lower access to financial resources are less likely to adopt these practices. Consequently, the provision of alternative financing is needed in the promotion of sustainable agriculture practices.     

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.     

Agriculture trade restrictiveness in Canada: How important are the cross effects?

A trade restrictiveness index (TRI) aggregates an entire protection structure into a single uniform measure that is consistent with trade theory and reflects the extent of policy interventions on trade or welfare. Although there are several variants of a TRI, all approaches aggregate protective measures using weights that depend on import demand and export supply elasticities; some studies ignore cross-price effects while others account for them. This study measures the degree of bias introduced by ignoring cross effects. It provides a practical approach to account for demand- and supply-side cross-price effects in a multi-commodity TRI setting. This approach is illustrated with a case study of distortions in the Canadian crop and livestock sector. Domestic demand and supply cross effects are approximated using a “constant differences of elasticities of substitution” functional form. On average, over the period 1996–2016, we find that cross-price effects do make a difference, and that including them makes the TRI 27% higher than an approach which ignores them. Furthermore, both TRI approaches produce indices that are higher and more variable than the OECD's percentage Producer Support Estimate (PSE) that measures policy transfers as a share of gross farm receipts. The fundamental differences between a TRI and PSE% is driven by market price support for milk.     

Which smallholders are willing to adopt Acacia mangium under long-term contracts? Evidence from a choice experiment study in Indonesia

Smallholder ownership of forests has grown rapidly over the last 25 years, leading to global forest transition; however, incentives are required to keep smallholders growing trees under long-term afforestation contracts. This article reports on smallholders’ willingness to join afforestation programs, growing Acacia mangium under contract on their private farmland. In a Choice Experiment, we examine the effects of policy attributes of afforestation contracts, including contract duration, labour participation, timber insurance, training opportunities, road improvement, and expected income. We report the marginal value of changes in monetary terms. A scale-extended latent class model was used to analyse preference heterogeneity in data of 323 smallholders from three different regions in Indonesia (West Kalimantan, Yogyakarta, and South Sumatera). These regions are at different forest transition stages. Our results indicate that there are four latent preference classes, which value attributes of the contract differently. Individual characteristics (risk orientation, tree growing experiences, and occupation), and regional differences explain the probability of preference class membership. Our findings have important implications for enhancing afforestation strategies that improve social welfare of smallholders in various forest transition stages.     

Does the Decoupling Reform Affect Agricultural Employment in Sweden? Evidence from an Exogenous Change

This study uses aggregated municipality data, for the years 2001–2009, to explore whether direct payments to farmers affect agricultural employment in Swedish municipalities. The decoupling reform in 2005 included a new grassland support payment accompanied by management obligations that had unexpectedly high redistributive consequences as it greatly increased common agricultural policy payments to municipalities with large areas of grassland. In some municipalities, total payments more than doubled. Thus, since the reform seems exogenous to the behaviour of farmers and the regional economy, the reform can be used to identify a subsidy effect. We find that a permanent increase in agricultural employment can be attributed to the new grassland support. Our results indicate that the grassland support generates an additional job at a cost of SEK 250,000, relative to the average agricultural wage of SEK 333,000. However, the subsidy effect is largely keeping jobs in agriculture, i.e. the grassland support may be slowing down the process of structural change in grassland regions.     

Can farmers extend their cultivation areas in urban agriculture? A contribution from agronomic analysis of market gardening systems around Mahajanga (Madagascar)

The rapid urbanization in developing countries implies an increasing pressure on urban agriculture for production. As most perishable food products come from this agriculture in close proximity to population concentrations, we analysed from an agronomic point of view how market-garden farmers can meet this increasing urban demand. This work took place in the case of Mahajanga, a secondary city with high increasing demographic rate on the Northwest coast of Madagascar. Based on preliminary surveys to characterize the farming systems (on a sample of 91 farms), 11 market-garden farmers chosen in the three main agricultural zones of the urban area were surveyed during two years. Surveys aimed at understanding their decision rules in crop choices, crop allocation to land and resource management, and to estimate their room for manoeuvre to increase their leafy vegetable areas under cultivation. The wholesalers and retailers who buy the farmers’ produce were also surveyed. A previous model of decision rules regarding crop location on farm territory was used to analyse the on-farm surveys and cartographic methods (GIS and on-farm manual representations) were used to quantify the land use. We highlight the following major points. (1) The leafy vegetable production in the surveyed farms already intensively uses land: farmers have complex decision rules largely depending on the water dynamics in the two main environments (lowlands and lakesides) where leafy vegetables are cultivated during the dry season. (2) The scarcity of farmers’ resources (labour money and water) leads to very little internal room for manoeuvre to increase the leafy vegetable production in the farms. (3) At territorial level however, some land reserve exist in one of the lowlands, but not on lakesides. The water availability for agriculture must be better informed through specialized hydrologic studies, as one of the main constraints nowadays to extend the agricultural area. An extrapolation to other cases of urban agriculture is then discussed as well as the role of agronomy to help urban planners to consider the place of agriculture in the urban development.     

What is the value of built heritage conservation? Assessing spillover effects of conserving historic sites in Singapore

Quantifying the economic benefits of built heritage facilitates the formulation and assessment of conservation policies and programs. There is however a lack of empirical research about the economic value of built heritage in Asian cities. This lack is problematic, given the rapid pace of demolition and redevelopment of historic landscapes in Asian cities. This study seeks to reduce the current gap in built heritage research by examining whether real estate premiums are generated by the designation of buildings as ‘conserved’ in Singapore, a city-state in South East Asia. Using 20 years of housing transaction data, and controlling for building, neighborhood and year fixed effects, we found that conservation designation had a positive impact on average sale prices per square meter of built area that was largest at residential locations between 800 m to 1.6 km from the conserved site. Findings also suggest that lower-cost public housing resale units gained a substantially smaller premium compared to private housing units. While our findings suggest an economic justification for building conservation programs in Asian cities, they also raise questions about such programs potential impact on neighborhood gentrification, and the need for appropriate taxation policies to ensure horizontal equity between property owners.     

Agents or stewards in community forestry enterprises? Lessons from the Mayan Biosphere Reserve,Guatemala

Community forestry enterprises are increasing participation in forestry activity and have become a favoured approach for reaching goals of conservation, poverty reduction and community development. Much has been written about the importance of supportive policy frameworks, technical assistance, the broader market in which these enterprises operate and the need for more significant control by communities over forests and their benefits through secure resource rights as key points of action. However, there is still a considerable knowledge gap in terms of understanding their organizational behaviour and how it affects the accomplishment of their goals. This paper takes a first step in filling this gap and analyses managerial behaviour in CFEs through the use of theories on principal–agent relationships. Data collected from CFEs in the Mayan Biosphere Reserve in Petén, Guatemala reveal important insights about managerial behaviour in these firms and how embeddedness of the CFE within the wider community plays a major role in managerial decision-making. Several policy implications are derived from these findings.     

Does the spatial representation affect criteria weights in environmental decision-making? Insights from a behavioral experiment

The need and interest to consider cognitive and motivational biases has been recognized in different disciplines (e.g. economics, decision theory, risk analysis) and has recently reached environmental decision-making. Within this domain, the intrinsic presence of a spatial dimension of both alternatives and criteria calls for the use of maps throughout the decision-making process to properly represent the spatial distribution of the features under analysis. This makes spatial Multi Criteria Decision Analysis (MCDA) a particularly interesting domain to explore new dimensions of cognitive biases. This study proposes a behavioral experiment aimed at discovering to what extent the spatial visualization (i.e. maps) of criteria versus the non-spatial one (i.e. tables) can bias the weight elicitation phase of a spatial MCDA process. The experiment simulates a very common analysis in environmental and land use planning: land suitability analysis. Our findings show that there are significant consequences on how important we perceive a certain criterion to be, depending on whether it is represented as a map or as a table among a mix of maps and tables. Indeed, the map representation of the same criterion leads to higher weights attributed to that criterion compared to the table representation. Visualizing the same information as a map or as a table, although technically equivalent, is thus not psychologically equivalent for Decision Makers. The results of this experiment are expected to have implications for spatial decision-making processes, by generating better awareness on the impacts of map-mediated land suitability analysis.