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NEW INSTITUTIONAL ECONOMIC ANALYSIS OF EMERGING IRRIGATION FARMERSâ FOOD VALUE CHAINSJordaan, Henry 17 May 2013 (has links)
The main objective of this research was to develop and apply an integrated framework that will
allow researchers to comprehensively investigate agri-food chains within which emerging
farmers operate to identify potential leverage points that will contribute towards improving the
financial performance and hence the livelihoods of emerging farmers. An integrated value chain
(VC)-New Institutional Economics (NIE)-Structure-Conduct-Performance (SCP) framework was
developed to allow for considering the constraints associated with institutional failure, high
transaction costs, and the lack of support structures that typically exclude emerging farmers
from participating in commercial agri-food chains, but also vertical coordination and collective
action that contribute to the successful participation of emerging farmers in commercial agrifood
chains. The integrated VC-NIE-SCP framework allows for a comprehensive analysis of the
behaviour and performance of emerging farmers in their social, physical and institutional
environment.
The integrated VC-NIE-SCP framework was applied to the case of emerging raisin producers
from Eksteenskuil who export raisins via the fairtrade initiative. Correctly aligned incentives
through the Fairtrade initiative (price premium for good quality raisins) incentivised the farmers
to comply with the strict rules of Fairtrade, but also to establish additional rules by registering
the EAC to improve their ability to meet the strict rules and regulations of the fairtrade initiative.
The incentives through fairtrade also incentivised the support structures to actively support the
farmers to comply with the strict rules and regulations. Support structures, especially the board
of directors of EAC, play a major role in the operations of the farmers from Eksteenskuil in the
fairtrade value chain. Correctly aligned incentives thus have a major influence on the behaviour
of the farmers and other role-players that may support them to meet the strict requirements of
participating in commercial agri-food chains.
The technical and cost efficiency levels of the respondents were examined to gain insight into
their current performance and the scope for improving their performance in their current
technology set. A cash flow optimisation model was also developed to model the potential
impact of recommended changes on the financial performance of the farmers from
Eksteenskuil. The results show that there is major scope to improve the financial performance of
the raisin producers from Eksteenskuil by improving the levels of efficiency with which they use
their production inputs. The current incentive structure, however, is not conducive to improving
the efficiency levels of the farmers. The lack of secure land tenure means that the farmers do
not have the primary incentive to invest in their land. Insecure tenure also contributes to the lack
of cash flow which is central to most of the stumbling blocks that constrain the behaviour, and
hence the performance, of emerging farmers. Land tenure reform has to be concluded promptly
to contribute to an enabling environment for emerging farmers to allow them to improve their
livelihoods through irrigated agriculture. Emerging farmers need effective support, extension and education to successfully operate in
the liberalised market environment. Providing such support to emerging farmers, however,
should not be the sole responsibility of government. The private sector has a major contribution
to make in this regard. Key role-players in agri-food chains exhibit the necessary skills to
successfully operate in the chain. Government should rather focus on creating incentives for
such role-players to get involved with emerging farmers to develop the necessary skills of the
farmers. Correctly aligned incentives that create a vested interest for such firms in the
performance of emerging farmers may convince the private sector to effectively support the
farmers. Such a vested interest may convince the key role-players to enter into vertical
coordinated relationships (i.e. strategic alliances) with emerging farmers, giving farmers access
to the accompanying benefits of effective support, and a ready market for their produce.
Government then can focus on meeting its responsibility of providing the farmers with an
enabling environment.
The main conclusion from this research is that the integrated VC-NIE-SCP framework provides
a holistic approach to identify workable solutions that may improve the financial performance of
emerging farmers, and hence the livelihoods of emerging farmers. By understanding the social
and institutional dynamics in the system within which the emerging farmers operate, the
incentive structure can be adjusted accordingly to effectively guide the behaviour of all parties
involved to contribute towards the successful participation by emerging farmers in the
mainstream of the economy. Each case, however, needs to be assessed comprehensively to
ensure that recommendations will optimise the benefits for the farmers under consideration.
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DIE EFFEK VAN VERSKILLENDE GRAANOPBERGMETODES OP DIE AANWENDING VAN KAPITAAL IN âN MIELIEBOERDERY IN DIE NOORDWES PROVINSIEvan der Merwe, Charl David 18 July 2013 (has links)
According to Liversage (2003: 1) maize was marketed through the one channel marketing system between 1944 and 1994. According to this system the Maize Board and its agents (the former agriculture co-operatives) were responsible for the buying and storing of maize in South Africa (Maize Board 1987: 134-147). After the closing of the Maize Board, a free market system was implemented and currently any person or organization can store maize (Murray, 2011: personal communication) in South Africa. Due to the above mentioned changes, 1.85 million tons of storage capacity was erected on farms in South Africa since 1996 (SIQ, 2011).
Apart from storing maize at the silos of commercial storage companies, maize can also be stored on the farm by using zinc silos, silo bags and grain dams according to Genis (2012). If storage takes place on the farm it will need the erection of storage structures. Dhyuvetter (2007: 4-6) showed that additional capital is needed to erect new storage structures on the farm. According to Steitz & Ehmke (2005) any capital expenditure, influences the farm over a long period and need careful planning (Boehlje & Ehmke (2005: 1). According to Louw (1996: 20) models for complete farm planning can be used to evaluate the effect of capital spending on the farm. According to Koch (1992: 20) these models take the soil, farm operations, market plans and capital resources into account when different options is evaluated by developing varies scenarios. There is currently no farm planing model available in South Africa witch can be used to evaluate the effect of different storage methods on the use of capital resources of the farm. In this study ân holistic farm planning model is developed to be use in evaluating the effect of different storage methods on the use of capital on a maize farm. The effect of the use of commercial silos and the use of zinc silos, silo bags, plastic dams and zinc dams is evaluated in the study. The effect of certain variables like the size of the farm, the distance of the farm from the commercial silo and the marketing strategy are evaluated in the model by using different scenarios. According to the results of the study, the highest margin after specified cost was realized by using zinc silos. The Net present value was used to evaluate the application of capital on the Farm. The use of commercial silos realized the highest Net Present Value. Based on the results of the study the size of the farm, the marketing strategy, the distance between the farm and the commercial silo and the method of transport between the farm and commercial silo, can influence the choice of storage method if the calculation of net present value is used as a tool of measurement. According to the results of the study it is important to take the effect of the fixed and variable costs into account when evaluating the different storage options on a Farm. It is even more important if the size of the harvest varies.
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TECHNICAL EFFICIENCY AND RISK PREFERENCES OF CROPPING SYSTEMS IN KEBBI STATE, NIGERIAJirgi, Abigail John 18 July 2013 (has links)
The research investigated the risk attitude, risk sources and management strategies, and the
technical and cost efficiencies of farmers in Kebbi State, Nigeria, with the aim of generating
reliable information on the influence of risk attitudes of the decision-making behaviour of
farmers and determinants of efficiency.
Various techniques were applied in order to achieve the objectives of the study. They
include: the Experimental Gambling Approach, Factor Analysis, Logit regression, Data
Envelopment Analysis, Double Bootstrapping procedure and the Metatechnology Approach.
Data to conduct the research was obtained mainly from primary sources through a
questionnaire survey of 256 farmers, comprising 98 monocroppers and 158 intercroppers.
Some of the important findings from the research are:
· All the farmers exhibit some level of risk aversion. The intercroppers were
statistically significantly more risk-averse than the monocroppers. Risk attitude
influences the decisions farmers make in the production process and should be
considered when formulating agricultural policies.
· The most important sources of risk for both monocroppers and intercroppers are
diseases, erratic rainfall, changes in government policy, changes in climatic
conditions, price fluctuation (of inputs and outputs) and floods/storms. The most
important risk management strategies for monocroppers are spraying for diseases and
pests, spreading sales, borrowing (cash or grains) and fadama cultivation. These
factors should be considered when designing extension programmes and insurance
schemes. The intercrop farmers perceived family members working off-farm,
spreading sales, intercropping and borrowing (cash or grains) as the most important
coping strategies.
· The main findings from the factor analysis for the sources of risk for the
monocroppers and intercroppers are that the factors âsocialâ, ârainfallâ and
âuncertaintiesâ are important to both groups of farmers. Since farmers do not have
control over the rainfall factor as a source of risk, there is, inter alia, a need to have an
effective agricultural insurance scheme for the farmers in the study area. Farming
experience, asset value, risk aversion and land degradation were found to have
statistical significant influences on the choice of cropping systems in Kebbi State.
· The results from the technical efficiency analysis suggest that there is scope for
increasing the technical efficiency levels of both monocrop and intercrop farmers and
hence their ability to increase output levels at current input levels and within the
existing technology set.
· Based on the metatechnology ratio, the millet/cowpea group were the more
technically efficient, followed by the sorghum/cowpea group. The sorghum group
were less technically efficient. This suggests that crop diversification, in order to
manage risk sources, has the potential for improving crop productivity in Kebbi State.
Crop combinations, however, prove to play an important role. Care should be taken
to select the optimal combination of crops to include in the intercropping system.
· In terms of cost efficiency, farmers in the study area were relatively cost-inefficient.
The metatechnology ratio for cost efficiency depicts that the sorghum/cowpea group
were more cost efficient than their counterpart sorghum, and millet/cowpea group.
Selection of farm inputs at minimum cost will help to reduce production cost and
hence improve profitability of the farmers.
· Low levels of technical and cost efficiency suggest that major scope exists to increase
performance of the farmers, even at their current output levels and within their
existing technology set. Support services, such as subsidies on farm inputs, provision
of credit and extension services of the new Agricultural Transformation Agenda
Programme (ATAP), should be properly implemented and targeted at the small-scale
farmers.
· The determinants of efficiency differ between the monocroppers and intercroppers,
and also differ between the intercrop groups. This suggests that different groups of
farmers operate under different technology sets.
· The results also suggest that the existing knowledge on the various factors that
influence both technical and cost efficiency is not exhaustive and accordingly that
there is a need to explore other characteristics that influence the farmersâ decision
process within their technology set.
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ASSESSING THE IMPACTS OF SADC FREE TRADE AGREEMENTS (SADC FTA) ON SOUTH AFRICAN AGRICULTURAL TRADEFadeyi, Oluwatoba Akinsuyi 22 July 2013 (has links)
In todayâs economically integrated world, trade matters more than ever before. Nations
are signing various bilateral trade agreements and are engaged in various form of
economic integration. Developing countries are also involved in economic integration
for vital developments. Free trade areas (FTA), which is a form of economic integration,
is formed by removing tariffs on trade among member nations leaving the autonomy in
setting their tariffs on trade with non-members. The Southern Africa Development
Community (SADC) became a Free Trade Area in 2008 for the economic integration of
members.
Literature reviews revealed that econometric models (gravity model in particular) have
not been extensively used to estimate the impact of free trade agreements on South
African agricultural trade at commodity level using disaggregated data. This study,
therefore, evaluates the impact of Southern Africa Development Community Free Trade
Agreements (SADCFTA) on South African agricultural trade using gravity model.
The study focuses on South African data for agricultural exports and imports with
SADC member countries and EU-15 countries for meat of bovine, maize and wheat
commodities from 2000 to 2011. These products were selected based on their
sensitivity, relative importance in terms of their contributions to the gross value of agricultural production, consumption and their tradability. The study used the gravity
modeling technique to analyse the impact of SADC free trade agreement. The applied
regression method used is the Poisson Pseudo Maximum Likelihood (PPML) estimator
to determine the significance of variables within the model. The PPML was preferred to
the ordinary least square (OLS) method of estimation. In the presence of
heteroskedasticity the standard OLS methods can severely bias the estimated
coefficients, casting doubt on the empirical findings. The PPML is robust to different
patterns of heteroskedasticity and provides a natural way to deal with zero values in
data.
The result shows that there has been a significant increase in trade for meat of bovine
and maize among SADC members. There has been a net trade creation and an
increasing intra-SADC bloc bias for meat of bovine. The intra-regional trade in maize
has also been stimulated by the implementation of the free trade agreements. The study
cannot identify any strong bloc effect in wheat trade. Therefore a trade diversion effect
was established.
The empirical findings of this study can be considered as an intermediate step to address
the relative trade creation and trade diversion effects. The study also signifies the
importance of analyzing the effects of SADCFTA for major agricultural commodities.
In order to assess the progress of the SADCFTA scheduled of full liberalization up till
the end of 2012, it is imperative that the study recommends carrying out further studies
to assess the full liberalization of trade in the agricultural sector.
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The Role of Futures Prices in Pricing Commodity Exports of Developing CountriesHandal Reyes, Jorge Jose 29 July 2014 (has links)
The purpose of this thesis is to study the empirical linkages between nearby futures prices for coffee at the New York (NY) Intercontinental Exchange (ICE)/NY Board of Trade (NYBOT) and cash prices (producer and export prices) in selected Latin American countries. This theme was entertained in Fortenbery and Zapata (2004) and subsequently by Fortenbery and Zapata (2004) and Li and Fortenbery (2013). This thesis uses data from January 1990 to May 2013 and adds producer cash prices in addition to export prices, thus expanding the dataset by over a decade and adding local market cash prices relative to the first paper, and also adds Brazil (the largest Arabica coffee exporter) and Colombia (a producer of high quality coffee) to the country mix; all cash prices were provided by the International Coffee Organization. Cointegration methodology is used to study price linkages between nearby futures prices in New York and the above spot prices. Implications for speculative activity are derived in light of the more recent paper above.
Cointegration tests suggest that nearby futures market prices in New York are strongly linked with export prices in Brazil and Guatemala as well as with producer prices in Brazil and Honduras. Weak linkages exist for the remaining series of producer and export prices. Finding strong linkages for some markets is consistent with anecdotal evidence on the partial use of ICE/NYBOT futures prices to set domestic producer level prices in some countries. When evaluating the price relationship between producer and export prices in each country, Brazilian producer and export prices were the only ones that resulted to be cointegrated with each other, suggesting that local prices for coffee at different market levels are strongly linked and causal in at least one direction for Brazil. Optimal lag lengths used for the cointegration tests imply that the information transmission between the cointegrated series is slower than expected when compared to some US commodity markets where price changes can be reflected in 1 to 3 days. Impulse response functions from error correction models and vector autoregressive models confirm the causal nature of the relationship between coffee futures prices and cash prices in the four countries.
When considering the implications of this research, preliminary results from a very simple regression analysis suggest that, consistent with Li and Fortenbery (2013), increases in intertemporal spreads by noncommercial speculative activity significantly decreases price volatility. This adds to existing evidence that efforts to limit the size of speculative positions may not strongly contribute to commodity price stability. For countries where coffee contributes to significant economic activity, and in which there is a large number of small producers, the gains from using commodity futures markets for coffee price risk management has considerable appeal. Hedging in futures markets, for example, or distributing futures price information to local cash market participants in developing countries could lead to more stable coffee producers income and possibly higher prices.
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Three Essays on Migration Decision, Migration Destination Choice, and Food Security: Evidence from Chitwan, NepalRegmi, Madhav 30 July 2014 (has links)
This thesis research is based on data obtained from the Nepal Ethno Survey of Family, Migration and Development conducted in 396 farming households in the Eastern part of the Chitwan, Nepal. In a three essay thesis format, I explore the factors affecting migration decision and migration destination choices. I then establish a link between remittance and food security status of the surveyed households.
In the first essay, I use a probit model to identify household decisions to send or not to send migrants, and identify factors affecting the decision process. I include individual, household and social network characteristics in the regression model. Results suggest that migrants who are males, young and non-household head, households which have higher number of adult males, lower number of adult females, lower number of males with secondary education, higher number of females with secondary education and lower land holding size positively affect the decision to migrate.
In the second essay, I use a multinomial logit model to first identify the pertinent variables related to choice among those that do not to migrate, migrate internally and migrate outside of the country. I then follow up this analysis with another multinomial logit model in which I identify variables that are critical for migrants to choose among four major international migration destinations (India, Malaysia, Gulf Countries and other countries). Results indicate that along with individual and family characteristics, the migration networks are crucial factor for the selection of migration destinations.
The third essay explores the impact of remittances on food security status at household, adult and children levels. Results from an ordered probit regression model indicates that higher education level, higher income from agriculture source and adoption of hybrid rice/maize have a positive effect on food security while age of household head and number of conservation technologies adopted have a negative impact on food security. Also, results indicate that remittance-receiving households are more food secured than those that did not receive remittance. Findings suggest that Nepal should address migration issues as resulting remittance has multiple impacts that reverberate through the economy.
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The Vulnerability of Louisiana to Hurricane Damage and the Value of Wetlands for Hurricane Risk ReductionBoutwell, James Luke 15 November 2016 (has links)
Coastal Louisiana is annually threatened by coastal storms. Population grown, wetland loss, and potentially increasing storm frequency are likely to increase coastal vulnerability to these events. Increasingly, coastal management entities are managing land resources to reduce the economic impact of natural disasters with the use of natural infrastructure. This is true in Louisiana where the Louisiana Coastal Master Plan allocates billions of dollars to coastal restoration projects, many of which are intended to mitigate economic damages from tropical storms and hurricanes. Despite this significant proposed investment, the risk reduction value provided by these projects is not well known.
This analysis uses model simulation data and hurricane impact data to estimate the parish-level impacts of hurricanes in coastal parishes from 1997-2008. Using this information, an expected damage function is estimated that describes economic damages as a function of population, relative wetland area, and storm intensity. The model is used to estimate the annual vulnerability of coastal parishes to hurricane damage. Future scenarios of hurricane regime change, wetland loss, and population growth are imposed to estimate the increase in coastal storm vulnerability that can be expected under these scenarios. The model parameters are used to estimate the value of coastal wetlands as natural infrastructure for hurricane risk reduction, and important trends in coastal wetland loss are highlighted in terms of their importance for the future vulnerability of coastal Louisiana.
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The impact of the foot and mouth disease control pathway on milk production in IndiaAllen, Benjamin 02 September 2016 (has links)
<p>India has decided to invest in eradicating foot and mouth disease (FMD). If successful, this investment would increase milk production. In the past, gains in milk production from Operation Flood Programs I, II, and III, a growing national milk animal population, as well as the eradication of rinderpest have resulted in increases in per capita milk production. In this context, the effects on producers and consumers of declining FMD as the result of an FMD control program were investigated. The objectives set forth were to evaluate whether potential benefits from the FMD control program outweigh the expenditure on the program, how a delay in the program implementation would affect the results, and how the impacts of the program would be distributed among producers and consumers. </p><p> A model was developed that simulates fluid milk production and demand in India. This was a dynamic partial equilibrium model with endogenous milk prices and production. Dairy herd dynamics were modeled to obtain milk price and calf crop elasticities. A differential form version of the model was then used to evaluate three FMD control scenarios in comparison to a projection of the OECD agricultural outlook forecast to 2050. </p><p> It was found that a control program for FMD in India results in 8–11% lower milk prices. This benefits consumers but leads to lower revenue for the fluid milk production sector. Consumer surplus increases 4–6% due to lower prices and increased per capita milk production resulting from the control program. Rural consumers have a higher change in consumer surplus than urban consumers. For rural consumers it is 8–11% higher while urban consumers see an increase of 3–5% in consumer surplus. FMD causes a 17–30% reduction in income from milk producing animals. With an FMD control program, individual farms are better off as the risk of loss from FMD impacts decreases. Owners of crossbred cattle benefit more than owners of buffaloes or indigenous cattle due to the higher yields and value of milk produced from crossbred cattle. </p>
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Private Market Alternatives for Maintaining Wetland Viability in Coastal Louisiana: A Double-Hurdle ApproachWang, Hua 08 December 2016 (has links)
The coastal zone of Louisiana contains more than three million wetland acres, or about 40 percent of the nations total. Since 1930, Louisiana has experienced a net loss of over 1,900 square miles of coastal wetlands. Currently at risk are the remaining coastal wetlands, 80 percent of which are under private ownership. The acceptance of private wetland owners to restoration programs and their participation in these programs are critical if future coastal restoration efforts are to be successful. Gaining the cooperation by the coastal landowners, however, is complicated by the fact that while the public benefits accruing from wetland protection and restoration projects are likely to be large, private benefits are likely to be small and, potentially, negative. The primary goal of this research is to examine the factors that motivate private coastal landowners to participate in income-generating activities and the level of income derived from their coastal wetland parcels and with this understanding to assess current and potential policy instruments that might provide incentives for private coastal wetlands stewardship.
Using data collected from a sample of coastal wetland owners, a double-hurdle model was used to econometrically identify the determinants on the participation and level of participation in income-generating activities. The results based on the estimated parameters and marginal effects confirmed that decisions to participate in income-generating activities and the level of participation are related to physical characteristics of the property and socioeconomic characteristics of the landowner.
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Transatlantic Trade and Investment Partnership: Implications to Global Wine MarketAntosova, Natalia 17 November 2016 (has links)
Transatlantic Trade and Investment Partnership was first introduced in 2013, with the goal of liberalization of the trade and investments, better coordination of trade by specific regulations, enhancing intellectual property protection and lifting governments impediments to trade. This Thesis is concerned on potential implications of the TTIP on the wine industry in the European Union and particular consequences related to EU wine producers. The literature review of this paper is developed with the purpose to bring general knowledge in the matter of the TTIP. In addition, linkages of the TTIP with the political economy are provided in the latter part of this chapter. We conducted our methodological approach through the Gravity model in the international agricultural trade. The pooled linear regression analysis was utilized, where the dependent variable was wine trade intensity. We have discovered variables, which directly affect the fluctuations in the wine trade intensity, as the income, distance, exchange rate volatility or relative wine endowment of a country. Remarkably interesting result conveyed by regression analysis was the fact, that developed countrys membership in the FTA with the United States does not have significant impact on the trade intensity. The European Union is currently battling with the wine oversupply and low prices. Within the TTIP, additional amount of wine would be imported from the United States to the European Union. In addition, the conclusion of the TTIP agreement is questionable as the harmonization of the sanitary and phyto-sanitary standards in the wine sector with the lower standards of the United States might have direct impact on consumers health. In spite of that, the cost-efficiency would be advantageous feature of lowering wine production standards. The last part of this Thesis is dedicated to the suggestions for further research, with respect to development of the TTIP negotiations in future time periods.
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