Agricultural productivity growth in Brazil: Large and small farms excel

The long-standing debate on the relationship between farm size and productivity has been generally limited by the range of farm sizes evaluated and the definition of productivity. In this paper we use data from three Brazilian agricultural censuses to address these issues. In particular, we introduce a wider distribution of farm sizes than presently available from the literature and we employ total factor productivity (TFP) as our performance measure. In doing so, we test which farm size class had the highest TFP levels in 1985 and 2006, how factor productivity growth varied within and across farm size classes between those years, and which policy or factor had the greatest productivity enhancing effect. When examining TFP growth, we move beyond the common decomposition into technical and efficiency changes by identifying the complete distribution of farm productivity performances. We find that by 2006 a U-shaped distribution of productivity over farm sizes had emerged. Considerable 1985–2006 TFP growth differences are prevalent; positive rates for the majority accompany stagnant or negative rates for some. Public education investments were associated with faster productivity growth regardless of farm size, while technical assistance’s positive effect and credit’s negative effect were associated with larger farm sizes. The role of specialization varied by size.     

Principles of innovation to build nutrition-sensitive food systems in South Asia

Innovations within global food systems have contributed to the predicament known as the triple burden of malnutrition – the co-existence of hunger and micronutrient deficiency with the diseases of overnutrition, such as obesity, diabetes and hypertension. We use the case of the triple burden in South Asia to demonstrate analytically that innovation is a double-edged sword, with positive and negative potential, rather than a simple good. To achieve the Sustainable Development Goals that target food and nutrition security and sustainable agriculture (e.g. SDGs 2, 3 and 12), the countries of South Asia need more innovation, but, first, they would also benefit from some intelligent reflection about what innovation means, the directions it should take, and its risks and downsides alongside its benefits. In the present juncture, South Asian countries have an opportunity to learn from the experiences of other developing nations, and choose from alternative options to steer their own course. In this paper, we discuss how innovation has contributed to the present situation and ask how alternative kinds of innovation may enable South Asian countries to escape from the triple burden. We describe a conceptual framework that may be useful for thinking about how innovation pathways can be created and directed towards the goal of improving nutritional outcomes in South Asia. The framework draws attention to the direction of socio-technical change, the distribution of technologies and their risks and benefits, and the diversity of possible innovation pathways (STEPS Centre, 2010). We illustrate these points using examples of innovations in the areas of agricultural production, value chain interventions, and policy and institutional reforms.     

Integrating livestock feeds and production systems into agricultural multi-market models: The example of IMPACT

The various ways in which livestock production systems can be incorporated into economic, partial-equilibrium, multi-market models are presented, and the challenges outlined. A particular focus and illustrative case is livestock feed. Foremost among the challenges is the reconciliation of scientific understanding of livestock feed requirements and production characteristics with the available national data. Another challenge is in estimating herd structures. An economic, multi-market modeling approach is presented which has been widely used in policy analysis and advocacy, and an account is given of the necessary recent enhancements for addressing livestock.     

The geographic and sectoral patterns of large-scale farmland investments in sub-Saharan Africa

Following the food and energy price crises of the mid 2000s, sub-Saharan Africa has become one of the largest recipients for large-scale farmland investments. While much has been written on the phenomenon, scant reliable empirical evidence is available as to the precise geographic and sectoral patterns and underlying drivers. Employing strict data quality requirements, this paper addresses these knowledge gaps by analyzing 563 farmland projects that have been established between 2005 and 2013 in sub-Saharan Africa. Findings show that the investment intensity and associated risks are not geographically uniform. Moreover, the study highlights a number of popular misconceptions regarding investor origin and their sectoral interests and motives.     

Recommendations arising from an analysis of changes to the Australian agricultural research,development and extension system

The business of agricultural research, development and extension (RD&E) has undergone considerable change in Australia since the late 1980s, moving from a domain largely dominated by government departments to a situation of multiple actors, and where rural industries now directly contribute funds towards RD&E efforts. However, the transition has not been without impacts on the overall agricultural RD&E agri-food capacity of the nation, and there are now indications of reduced capacity and slowing productivity gains in certain sectors. If not addressed, there is the risk that the future resilience of industries could be threatened, affecting parts of the Australian economy and compromising Australian contributions to global food supply on export markets and a slowing of agricultural innovation. There are also comparable divestment trends and the loss of capacity and risks to future resilience of agricultural systems in other developed nations. Importantly, research and extension are discussed as interdependent partner disciplines, and that the separation of the two has deleterious effects on capacity and resilience building. The authors investigate, through six case study institutions, organisational innovations that may provide direction towards the future restructuring of agricultural RD&E effort in Australia. These insights have application to both the Australian and the international reader, warning about the consequences of reduced investment in agricultural RD&E, and learning about how research and extension can transition from traditional public sector models to systems that have greater flexibility and, importantly, ownership by the industries themselves.     

Bread or justice - Land restitution and investments in Montes de Maria,Colombia

In 2011, Colombia started a legal land restitution process whereby government institutions help internally displaced people (IDPs) reclaim land dispossessed after 1991 through the violent conflict involving the communist guerilla, paramilitaries and the army. The designated land courts normally covers voluntary sales at the going market price at the time of dispossession, presuming buyers took advantage of the IDPs’ need for money and their low expectations of returning from their current sites of refuge. We study the rise and fall of a commercial cassava operation that started to buy land from IDPs openly in the Montes de María region on Colombia’s Caribbean coast after peace returned in 2007. After losing several land restitution court cases, the company shifted from dairy cattle that required high investments to the less demanding, but also less productive, buffalo to minimize losses in case of future successful restitution claims. The land restitution law will probably be extended beyond the initial 2021 limit due to slow progress, thereby perpetuating the insecure property rights situation that hinders investments in agriculture.     

Efficiency and equity of rural land markets and the impact on income: Evidence in Kenya and Uganda from 2003 to 2015

This study examines the evolution of land sales and rental markets and their impact on agricultural efficiency in rural Kenya and Uganda using panel data spanning over 10 years. Both countries show that land markets induce efficiency by transferring land to households with higher farming ability. In both countries, land markets enhance equity by transferring land from land-abundant to land-constrained households. Although renting in land increases crop income in Kenya, we find no evidence that it enables households to escape from poverty. In contrast, increase in owned land helped decrease poverty in Uganda. Parcel-level analysis reveals that rented-in land and owned land differ in productivity levels and crop choice. These findings point to the potential weaknesses in the land markets in Kenya and Uganda that impede their ability to contribute to poverty alleviation.     

New perspectives on farm size and productivity

The farm size and productivity debate has been limited by the focus on land or labor productivity, generally showing respective productivity advantages to smaller or larger sized farms. Our purpose is to provide new perspectives on the debate by bringing together evidence from a set of novel case studies in both rich and poor countries. Common to them are the adoption of total factor productivity (TFP) as the comparative performance measure, and the reliance on panels of farm micro data. The present article presents a synthesis of findings from five case studies in (i) Malawi, Tanzania, and Uganda; (ii) Bangladesh; (iii) Brazil; (iv) Australia; and (v) the United States. The preponderance of evidence from these studies suggests that there is no single economically optimal agrarian structure; rather, it appears to evolve with the stage of economic development. Certain farm sizes face relative productivity advantages, such as small farms in Africa. But with economic and market growth, that smallholder advantage will likely attenuate, moving toward constant and eventually increasing returns to size. Yet, importantly, small farms may be quite dynamic, and need not be a drag on agricultural growth until perhaps well into the development process.     

The state of foresight in food and agriculture: Challenges for impact and participation

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The role of price risk in China’s agricultural and fisheries exports to the US

This article explores the effect of price risk on the US importers’ optimal allocation of agriculture imports between the major supplier, China, and other competing countries. We first modify a demand system to account for the impacts of own-price risk and cross-price risk, and then apply the model to 16 agricultural and fisheries commodities exported to the US. The estimation results show that importers are sensitive to price risks of 14 Chinese commodities. Comparisons between price risk–trade relations of agricultural and fisheries products and between trade effects of cross-price risk on Chinese goods and substitutes provide strong evidence for explaining the observed trade patterns. Our study highlights the importance of price stability in promoting international trade, especially from developing countries to developed countries.