Journal of Agricultural Economics最新文献

The integration of smallholder farmers into emerging value chains for fine-grain and aromatic ‘premium quality rice’ (PQR) could prove to be crucial to improving rural livelihoods in Bangladesh, though efforts could be constrained by farmers' differing levels of agronomic knowledge. Based on a pre-analysis plan, we analyse farmers' ability to efficiently allocate production enhancing inputs in PQR cultivation based on a survey of 1420 farmers in key PQR producing areas. Farmers received a hypothetical budget to allocate to six different inputs advised for efficient production of PQR, mimicking familiar production decisions made seasonally on their own farms. Our results suggest that even without budget or input access constraints farmers tend to inefficiently allocate inputs in PQR in this hypothetical setting. In particular, they tend to overspend on seeds, fertiliser and pesticides. Farmers with better access to agricultural information, such as through PQR specific extension services, conversely reach substantially higher efficiency scores and decided to spend significantly less on fertiliser. Without future adjustments such as more targeted extension services, implied higher production costs will likely lower the profitability of PQR cultivation for smallholder farmers, thereby limiting potential income gains. Besides these economic concerns, excessive input use is associated with environmental externalities. Improved efficiency is therefore desirable from both an economic and environmental standpoint.

Index-based microinsurance is a promising risk management tool for smallholder farmers. Recently, several mobile-delivered insurance schemes have entered the market. Depending on the degree of digitisation of the product, farmers can learn about the insurance, register, pay premiums and receive payouts via a mobile phone. As cell phone usage and network coverage constantly increase, digitally enabled insurance distribution may overcome previous barriers for insurance adoption. Still, farmers' preferences for these products remain largely unknown. We address this knowledge gap by means of a discrete choice experiment applied to 499 maize farmers in Mali. The experiment presents an easy-to-understand multi-peril crop insurance linked to a greenness index. It focuses on attributes related to the distribution channel and product design. Using mixed logit models, we find that the insurance attributes enabled by mobile-delivery are attractive to farmers. Product bundles that include mobile-delivered weather information and agricultural advice in addition to the insurance policy or credit access increase the likelihood of farmers taking out insurance. Similarly, recommendations from fellow farmers increase interest in the insurance product. The results are highly relevant for future product improvements that are needed to increase adoption rates and ultimately realise the loss-hedging potential of microinsurance.

This paper analyses the potential impacts of a hypothetical implementation of the Income Stabilisation Tool (IST) in France for the field crops sector. The IST is a risk management tool available within the 2014–2020 Common Agricultural Policy (CAP) to support farmers facing a severe drop in their incomes. This analysis was conducted using a farm-level model relying on expected utility theory and based on positive mathematical programming with risk. The model was applied to a sample of 1375 field crop farms in France derived from Farm Accountancy Data Network (FADN) data. Simulation results show that the uptake rate of the tool is relatively low, less than 37% in all scenarios. It is strongly dependent on CAP public support and on how much premium farmers have to pay. Highest uptake rates are observed in farms specialising in Other Field Crops, such as potatoes, pulses and sugar beet, and farms located in regions highly exposed to climatic risks. Previous experience with insurance favours the acceptance of the IST. Model results also show that the IST improves adopters' income and reduces income inequality. However, its impacts on crop diversity, measured by the Shannon index, are negative.

Income comparisons between farm and non-farm households play a crucial role in many aspects of farm policy. Using household income data from tax returns of all Norwegian taxpayers in the period 2006–2015 we study these income differences. We find that the unconditional mean income is higher for farm households, but with important differences depending on the comparison group considered. We also find that the income difference is reduced when we control for differences in the personal characteristics of the different non-farm comparison sub-groups. This finding implies that income comparison using unconditional means, as frequently done in agricultural policy making, is potentially misleading. We also show that the income effect of personal characteristics is not the same for different comparison sub-groups, as has been assumed in previous studies of income disparities. Differences in personal characteristics, and the income effect of those characteristics, therefore need to be accounted for if income comparisons between farmers and non-farmers are to inform farm support policies.

Modern communication technologies make information more easily and quickly accessible, leading to more transparent and competitive markets. Based on a theoretical model, this paper provides new empirical evidence on the potential impact of online search intensity on asymmetric cost pass-through. Prices often move as ‘rockets and feathers’: they rise quickly in response to cost increases and they fall slowly in response to cost reductions. A panel threshold error correction model is applied to weekly producer and retail prices of chicken and mutton in Iran. The results suggest that the volume of online searches is associated with a more complete and less asymmetric cost pass-through from farmgate to retail prices. Thus, online platforms and search engines have the potential to increase competition by bringing prices closer together and reducing profit margins.

Geographical indications (GIs) aim to protect the names of specific high-quality products (food and wine) to preserve and promote the uniqueness linked to their geographical origin and traditional know-how. EU and extra-EU countries register domestic products with GIs. This study disentangles the effects of such registrations on the quality of imports using country-level product import data for the fruit, vegetable, coffee, tea, and spice sectors. Our results show that the registration of domestic products as GIs enhances the quality of imported goods only if the importing country has a lower level of quality of domestic production. The introduction of GIs into high-quality domestic markets can discourage import quality upgrades. This is because domestic producers may prefer to compete for quality rather than price, and imported goods represent a less expensive alternative to high-quality national goods for consumers. Conversely, in countries where domestic product quality is lower, the introduction of GIs may enhance import quality upgrading because the diffusion of GIs induces domestic consumers to become more demanding in terms of quality for foreign products.

We examine the evolution of productivity and markups in US food and beverage manufacturing from 1959 through 2018. We account for non-Hicks-neutral (labour-augmenting) productivity changes and compare markups with those in general manufacturing using the same dataset and model. We also compare our results with those of the increasingly popular De Loecker and Warzynski (2012, American Economic Review, 102, 2437) method, which does not account for non-Hicks-neutral productivity growth. Empirical results show that productivity growth in the food and beverage sector has been relatively slow and driven with equal intensity by Hicks-neutral and labour-augmenting productivity gains. General manufacturing shows higher productivity growth that is mostly labour-augmenting, with markups comparable to those of food manufacturing. We find that accounting for labour-augmenting productivity produces more moderate markup estimates than the De Loecker and Warzynski (2012) method. We also find no evidence of markups rising in either food manufacturing or general manufacturing in the last 20 years, in contrast to much of the recent economic literature.

The agglomeration bonus (AB) has been advocated as an incentive mechanism to boost spatially coordinated conservation efforts, where such coordination is thought to be beneficial to achieving biodiversity or other ecological outcomes. Specifically, an AB is paid to individual landholders if their conserved habitats are spatially connected to the conserved habitats of adjacent neighbours. This paper employs a series of controlled lab experiments with agriculture students to investigate the performance of AB in budget-constrained discriminatory-price auctions across different landscape types. We focus on the spatial correlation of opportunity costs and environmental benefits as one potentially important aspect of the landscape. We set up a stylised agricultural landscape where the conservation agency aims to connect fragmented wildlife habitats by incentivising farmers to enrol land in a conservation programme. We investigate the effects of an AB in landscapes where opportunity costs and environmental benefits are uncorrelated, negatively correlated or positively correlated over space. We found that the benefits of an AB in improving landscape-scale environmental outcomes were significant in the positive correlation landscape. However, the AB resulted in worse outcomes in the uncorrelated and negative landscapes.

Farmers' preferences toward practice- and results-based agri-environmental schemes (AES) are analysed using a labelled choice experiment. The analysis focuses on schemes involving an innovative satellite-based monitoring system, with different environmental objectives. Olive groves in southern Spain are used as a case study. Results show no statistically significant differences in farmers' willingness to accept (WTA) payment for participating in practice- versus results-based AES when the scheme targets carbon sequestration. By contrast, farmers require a significantly higher WTA payment for results-based AES when targeting biodiversity (using bird species as an indicator), mostly due to the uncertainties related to its provision and monitoring. WTA significantly increases with provision level and remote sensing monitoring, regardless of the type of scheme. Significant preference heterogeneity is observed, partly explained by farmers' attitudes toward risk and their beliefs about environmental service provision and monitoring capacity. The results suggest useful policy implications, including the potential of making use of joint provision of environmental services in the design of results-based AES and accompanying them with uncertainty mitigating measures.

Though tariffs have declined in recent years, the number of applied non-tariff measures (NTMs) in meat trade has expanded. We estimate the impacts of tariffs and NTMs (sanitary and phytosanitary [SPS] measures, technical barriers to trade [TBTs], quantitative restrictions, and special safeguard measures) on beef, pork and poultry trade using a structural gravity model. Our baseline regression results show tariffs hinder trade, but SPS measures and TBTs on average expand trade for these three meat products. Using the estimates from our structural gravity model, we simulate the differential effects of declining tariffs versus proliferation of NTMs between 2003 and 2019. The simulation results show that tariff reductions during this period expanded global trade by a cumulative US$466.2 million for the three products, ceteris paribus. In contrast, growth in the number of NTMs caused global meat trade to rise by US$8.4 billion. Our findings thus suggest that the marked increase in the number of applied NTMs in recent decades has had a dramatically larger impact on global meat trade than tariff reductions.