THE ANALYSIS OF MEMORY BIAS IN AGRICULTURAL LABOUR DATA COLLECTION: A CASE STUDY OF SMALL FARMERS IN NIGERIA

An analysis is undertaken of daily labour data collected once-per-week for a sample of 129 farm households in Benue State, Nigeria during 1979/80. The purpose of the analysis is to test for the presence of memory bias in these data for which the recall period is up to seven days. The analysis indicates significant between-day differences in hours of agricultural work. This is partly due to the low work input for Sunday but it is also noted that the mean number of hours of agricultural work reported for the day prior to data collection is significantly lower than the means for days further removed from the time of data collection. This finding is taken to be confirmation that a significant level of memory bias exists in the labour data and it is estimated that reported hours of agricultural labour may overstate actual hours of such work by almost 38 per cent.     

THE SHORT-TERM EFFECT OF DOMESTIC OIL PRICE INCREASES ON THE AUSTRALIAN ECONOMY WITH SPECIAL REFERENCE TO THE AGRICULTURAL SECTOR

The rise in the domestic price of oil products implied by the new import parity pricing policy for domestic crude oil is likely to pose some problems for macroeconomic management. In this paper an attempt has been made to quantify the short-run adjustment problems involved, using the ORANI 78 model of the Australian economy. Results are presented for a range of variables of interest, including macroeconomic variables, industrial and workforce composition and farm incomes. With fixed real wages, farm incomes are projected to decline by between 6 and 8 per cent.     

EFFECTS ON FARM INCOMES AND RURAL LABOUR OF A RELATIVE INCREASE IN WAGES*

We use the concept of the elasticity of farm incomes with respect to changes in input prices to analyse the effects of a large increase in relative wages on selected measures of farm incomes. In order to estimate the elasticity of farm incomes we have to estimate elasticities and cross-elasticities of demand and supply for farm labour and capital. The estimates of elasticity of demand for operator and hired labour allow us to calculate the impact of a rise in wages on numbers of farmers and hired labour employed in agriculture.     

MEASURING THE RELATIVE INCOME OF FARM LABOUR, 1941–611

This is an analysis of farm labour income at an aggregate level for the period 1941 to 1961. The income of farm labour was estimated for paid workers, operators or self-employed workers, and total paid and unpaid workers, These incomes were compared with five sub-sectors of the nonfarm economy and for five geographical regions. In estimating income, adjustments were made for the age and sex composition of labour force, bours of work in various industries, movement of prices of inputs and output, and period of employment of farm workers. The results show significant differences in incomes of various categories of workers, and incomes of farm workers compared to various sub-sectors of the nonfarm economy. Similarly, various regions were found to. be highly heterogeneous with respect to relative labour income levels. When the farm and nonfarm sectors were adjusted for differences in characteristics, the labour income ratio of Canadian agriculture on a normalized man equivalent basis ranged between 41 and 63 percent.     

Measuring the economic inefficiency of Nepalese rice farms using data envelopment analysis

A data envelopment analysis of a sample of 76 Nepalese rice farmers reveals average relative economic, allocative, technical, pure technical and scale inefficiencies as 34, 13, 24, 18 and 7 per cent, respectively. The significant variations in the level of inefficiency across sample farms are attributed to the variations in the 'use intensities' of resources such as seed, labour, fertilisers and mechanical power. In addition, a second stage Tobit regression shows the variation is also related to farm-specific attributes such as the farmers' level of risk attitude, the farm manager's gender, age, education and family labour endowment. Based on the empirical findings, policy implications and development strategies for improving efficiency of Nepalese rice farms are briefly discussed.     

THE EFFECT OF PRICE SUPPORT POLICIES ON AGRICULTURAL INVESTMENT,EMPLOYMENT, FARM INCOMES AND LAND VALUES IN THE U.K.

Agricultural price policy has a major impact on the input markets as well as the output markets and a model is developed to analyse the effects of changes in support levels on U.K. agricultural employment, earnings, investment and land prices. This paper describes the specification, estimation and evaluation of the model and simulates the effects of a one per cent increase in support prices. The main conclusions are that net investment would increase in the years following the rise by a maximum in the second year of £12m and by a cumulative total of £44m (representing an increase of about 0.4 per cent in the capital stock). Employment on the other hand, while rising at first, would subsequently fall to almost one per cent below its original level, and earnings of hired labour also fall slightly. Net farm income increases by around 10 per cent and this is capitalised into a similar increase in land values.     

FARMERS‘ WIVES - THEIR CONTRIBUTION TO THE FARM BUSINESS

The contribution which farmers' wives make to the farm business is typically overlooked and under-valued, yet the farm could not function without it. The paper describes the nature of the work done by wives on farms in the UK and Ireland as revealed by two recent postal surveys. Using data from the Farm Business Survey for England and Wales, it attempts to quantify some aspects of the work. It is suggested that farm wives may contribute 5 per cent of the manual hours worked by the regular labour force and 9–10 per cent of the total regular labour input on main holdings. Further, as hired and family labour is shed and farmers seek additional employment, the wife's labour contribution is likely to become more significant. Continued neglect of women's involvement may jeopardise the future of the family farm. The paper suggests how data collection procedures might be improved to give a more realistic picture of the wife's contribution.     

THE ESTIMATION OF OFF-FARM LABOUR SUPPLY FUNCTIONS IN SASKATCHEWAN

In this paper, a farm-household utility maximising model which incorporates the time of both the farm operator and his wife is developed. The model is then used to estimate the off-farm labour supply of the operator and his wife, and develop policy recommendations concerning further increases in off-farm labour participation by farmers and their wives. A Heckman procedure is employed to test for sample selectivity bias. The results suggest that the supply of off-farm labour is inelastic for men but quite responsive to the estimated shadow wage for women.     

Economic Liberalization and Smallholder Productivity in Tanzania. From Promised Success to Real Failure, 1985–1998

In the mid-1980s, Tanzania adopted a programme for economic liberalization of the entire economy, including agriculture. After pressure from the IMF and the World Bank in particular, but also from most of the bilateral donors, agricultural producer and input prices were decontrolled, panterritorial prices were abolished, subsidies were removed and trade in agricultural products and inputs was to a large extent taken over by private traders. The international donor community promised that economic liberalization would provide a strong stimulus to Tanzanian agriculture, resulting in increasing yields, increased labour productivity, rising agricultural production and higher incomes. However, available data show that, as far as food crop production is concerned, this promise has not been fulfilled. Even compared to the 'crisis years' 1979–1984, labour productivity, yields and production per capita of food grains stagnated or declined up to the end of the 1990s. Some causes of this failure are discussed.     

INPUTS,OUTPUTS AND PRODUCTIVITY CHANGE IN THE AUSTRALIAN SHEEP INDUSTRY

Tornqvist quantity indexes of output and input are computed for the period 1952/53 to 1976/77 from Australian Sheep Industry Survey data. The computation includes estimating the annual service flow from durable inputs. Total productivity in the sheep industry is estimated to have increased by 2.9 per cent per annum during this 25-year period. While the ratio of capital employed per unit of labour has increased, materials, services and livestock have been the inputs for which the quantity used has increased most rapidly. On the output side, there has been a move towards greater diversification with both crop and cattle enterprises on 'sheep properties' increasing in relative importance.     

THE DEVELOPING FRAMEWORK FOR THE ECONOMIC EVALUATION OF FORESTRY IN THE UNITED KINGDOM*

This paper evaluates the economic worth of forestry projects in the United Kingdom by using two different public sector investment appraisal criteria; the traditional discounted cash flows and the recently-established sum of discounted consumption flows. In the latter, in view of the intergenerational distribution aspect of government projects, the conventional rules are modified, enabling the decision-maker to treat all generations, present and future, in an equitable manner. Forestry is an excellent example to highlight the issue that many public sector investment projects re-distribute income between generations. Its long gestation periods make it obvious that there is more than one generation involved in the venture. In this analysis a one hectare plantation of Sitka spruce, class 20, is considered for a single 50-year rotation. Three different interest rates, 10 per cent test rate of discount, 5 per cent required rate of return, and 3 per cent forestry target rate are used under 4 different assumptions regarding the future price of timber.     

AGRICULTURAL POLICY IN WEST GERMANY

Much of the area which at present constitutes the German Federal Republic was, in the past, agriculturally backward. Since 1949, West German agriculture has made considerable technical progress, but still suffers from severe structural problems. These problems of small farm size and fragmentation have their origin in the 18th century, when farmers obtained control of the land without the enclosure movement experienced in Britain, and no serious programme of structural reform was undertaken before 1939. In recent years, West German agriculture has increased production very greatly and at the same time reduced its labour force at an unprecedented rate. Moreover, a substantial programme of structural reform was initiated in the 1950's. As a result, farmers' incomes have risen at roughly the same rate as other incomes. In the last few years, West German agriculture has come under increasing pressure as a result of economic developments and the competition of other Common Market countries. It is clear that a more radical programme of structural reform is needed.     

A NOTE ON OFF-FARM INCOME OF FARM FAMILIES IN AUSTRALIA*

Past studies of the farm sector have concentrated on the use of farm based resources in the farm context alone. Changes in the economic environment have widened the opportunities available to these resources and have thus tended to make this narrow definition of the farm firm less relevant. Some recognition of this situation has emerged in more recent studies. The aim of this note is to collate and examine the degree to which farm labour resources are employed in off-farm activities in Australia. The main conclusion drawn from the evidence available is that, while in aggregate part-time farming is a fairly minor activity, in some sectors it is increasing in importance and constitutes a considerable outlet for farm based labour resources.     

Drinking water and off‐farm labour supply: between‐gender and within‐gender bias

In this paper, we use the China Health and Nutrition Survey (CHNS) panel data to analyse the impact of drinking water on off‐farm labour supply. A two‐stage least squares (2SLS) multivariate Tobit regression model with random effects was applied. We find that impacts of drinking water conditions on off‐farm labour supply may be greater for women than men but depends on the specific family role or family structure. A strong within‐gender effect exists in households. For example, daughters are not sensitive to water access nor water quality, but householder's spouses are sensitive to water access, and daughters‐in‐law are sensitive to water quality. Our findings suggest that infrastructure development in improved access to safe water has contributed positively to reductions in traditional gender biases, evening the playing field between daughters, daughters‐in‐law, mothers and mothers‐in‐law. We also find that water the infrastructure program may actually encourage off‐farm labour mobility, reducing the supply of agricultural labour and the share of household labour on the farm. Thus, a broader approach to water policy should also include public investment in achieving greater labour efficiency and productivity.     

Will China Become a Major Force in World Food Markets?

From the perspective of China's trading partners, few policy issues are as important as China's emergence onto world agricultural markets. In this essay, we argue that if China is to become a modern developed country, a massive structural transformation of China's agricultural sector must occur. We offer a forward-looking vision of China's food economy and its links with the world in the 21st century. We believe that gains from specialization when China moves to a country with specialized family farms will be huge compared to the returns that have resulted from decollectivization. Following a structural revolution in China's agricultural sector, China will become a major force in world food markets. This transformation will be characterized by land reform, a massive shift of labor out of agriculture, expanded farm size, a significant change in regional cropping patterns, more interprovincial trade, and greater international trade. This structural transformation will occur as long as there is strong economic and political pressure to raise agricultural labor productivity, liberalize markets, boost the rule of law, and increase per capita farm incomes relative to urban incomes.     

DYNAMIC INTERRELATED DEMAND FUNCTIONS FOR FACTORS OF PRODUCTION AND THE AGGREGATE PRODUCTION FUNCTION IN UNITED KINGDOM AGRICULTURE

Taking the price situation as given in product and factor markets, a non-linear differential equation model of gross output, employment, capital accumulation, and gross input for united Kingdom agriculture is derived by incorporating internal adjustment cost functions into the representative decision-maker's objective function, and estimated using a discrete approximation. The results are consistent with efficient use of resources, but further incentives for capital investment and a greater exodus of labour could upset this. Adjustment costs as estimated account for 2.6 per cent of the value of output; those associated with net investment for 1.8 per cent, and those associated with employment and gross input for 0.57 and 0.23 per cent respectively.     

PLURALISM IN ENVIRONMENTAL ECONOMICS: A SURVEY OF THE SUSTAINABLE ECONOMIC DEVELOMENT DEBATE

It is claimed that the concept of ‘sustainable economic development’ is central to the new ‘practical’ environmentalism of the 1980s. Intuitively, sustainability perspectives seem to suggest that knowledge accumulated in the natural sciences ought to be applied to economic processes. They contain the proposition that there is a real prospect that increasing per capita real incomes over time can be achieved in an environmentally benign manner, or at least without posing severe environmental risks. A working definition of sustainable development might be as follows: Sustainable development involves maximising the net benefits of economic development, subject to maintaining the services and quality of natural resources over time. Economic development is broadly construed to include not just increases in real per capita incomes but also other elements in social welfare. Development will necessarily involve structural change within the economy and in society. Maintaining the services and quality of the stock of resources over time implies, as far as practicable, acceptance of the following rules: utilise renewable resources at rates less than, or equal to, the natural or managed rate at which they can regenerate; optimise the efficiency with which non-renewable resources are used in the long run, subject to substitutability between resources, and technological progress.     

Agricultural input subsidies,extension services,and farm labour productivity nexus: Evidence from maize farmers in Tanzania

This paper examines the effect of agricultural input subsidies (AIS) and agricultural extension services (AES) on farm labour productivity in plots planted with maize in Tanzania, using panel data from the National Panel Survey in Tanzania. To control for the endogeneity of the two programmes, a control function and instrumental variable approach is used to estimate the effects of AIS and AES on farm labour productivity. The results show that AIS and AES are significant in raising labour productivity in maize-planted plots. Similarly, AIS and AES are also effective in increasing land productivity in these plots. Moreover, each programme has comparable effects on land productivity and farm labour productivity. These findings imply that public investments in AIS and AES are effective in raising farm productivity.     

Gender and conservation agriculture in sub-Saharan Africa: a systematic review

Conservation agriculture (CA) involves the practice of concurrent minimum tillage, permanent soil cover using crop residue, and crop rotation. Evidence indicates that CA increases agricultural productivity, reduces farming labour requirements, and improves soil quality. While CA is practised in several African contexts, little is known about its interaction with gender. This review synthesized knowledge on the interplay of gender and CA in sub-Saharan Africa. The review highlighted the relative neglect of gender issues in research on CA in SSA. Existing research was limited both in quantity and to a few countries in the region. There was also little critical focus on gender as a social phenomenon: a few of the studies conceptualized gender in terms of the socially constructed roles of men and women while the majority framed it in terms of the sexual categories of male and female. Compared to men, and due largely to gendered barriers, including lack of access to land; machinery; inputs; extension services; and credit facilities, women farmers adopted CA less and dis-adopted it more. CA increased women’s incomes, labour involvement, household food security, as well as risks for land and crop dispossession by men when farming becomes lucrative. It also increased workloads, employment opportunities and health risks for women. CA positively altered gender relations, boosting women’s participation in agricultural decision-making at the household level. Deliberately enlisting women as beneficiaries; working with men to advance their understanding of women’s needs in agriculture; and offering agricultural inputs directly to women are some strategies that enhanced women’s participation in CA. Gaps in current research on gender and CA include: critical focus on and understanding of gender as a social construct in relation to CA; the long-term impacts on CA for gender relations, incomes for men and women, and women’s empowerment; the sustainability of strategies for supporting gendered participation in CA; and the dynamics of gendered access to local farmland markets for CA.     

Agricultural Commercialisation and Nutrition in Smallholder Farm Households

Commercialisation of smallholder agriculture is important for rural economic growth. While previous studies have analysed effects of commercialisation on productivity and income, implications for farm household nutrition have received much less attention. We evaluate the effects of commercialisation on household food security and dietary quality with a special focus on calorie and micronutrient consumption. We also examine transmission channels by looking at the role of income, gender, and possible substitution effects between the consumption of own-produced and purchased foods. The analysis uses survey data from farm households in Kenya and a control function approach. Generalised propensity scores are employed to estimate continuous treatment effects. Commercialisation significantly improves food security and dietary quality in terms of calorie, zinc and iron consumption. For vitamin A, effects are insignificant. Commercialisation contributes to higher incomes and increased nutrients from purchased foods, but it does not reduce the consumption of nutrients from own-produced foods. Enhancing market access is important not only for rural economic growth, but also for making smallholder agriculture more nutrition-sensitive.