Manuel A. Hernandez, Francisco Ceballos, Maria Lucia Berrospi, Viviana M. E. Perego, Melissa Brown, Elena Mora Lopez
Recent global shocks have triggered sharp spikes in international food and fertilizer prices, raising concerns about their domestic impacts. This study examines the extent to which international price levels and volatility are transmitted to domestic food and fertilizer markets in seven Central American countries. We follow a multivariate GARCH approach using monthly data over the period 2000–2024. While results vary by country and commodity, we find overall low to moderate elasticities of price transmission in levels, but a stronger degree of volatility transmission in the very short term (1-month). Interestingly, price transmission tends to strengthen after 3 months, whereas volatility transmission is more short-lived and appears to dissipate. The co-movement between international and domestic prices shows no apparent trend over time and lacks consistency across countries and commodities following major global events. Back-of-the-envelope simulations of higher international food and fertilizer prices suggest modest, though non-negligible, impacts on local consumer and producer welfare.
{"title":"Price and Volatility Transmission From International to Domestic Food and Fertilizer Markets in Central America","authors":"Manuel A. Hernandez, Francisco Ceballos, Maria Lucia Berrospi, Viviana M. E. Perego, Melissa Brown, Elena Mora Lopez","doi":"10.1111/agec.70071","DOIUrl":"https://doi.org/10.1111/agec.70071","url":null,"abstract":"<p>Recent global shocks have triggered sharp spikes in international food and fertilizer prices, raising concerns about their domestic impacts. This study examines the extent to which international price levels and volatility are transmitted to domestic food and fertilizer markets in seven Central American countries. We follow a multivariate GARCH approach using monthly data over the period 2000–2024. While results vary by country and commodity, we find overall low to moderate elasticities of price transmission in levels, but a stronger degree of volatility transmission in the very short term (1-month). Interestingly, price transmission tends to strengthen after 3 months, whereas volatility transmission is more short-lived and appears to dissipate. The co-movement between international and domestic prices shows no apparent trend over time and lacks consistency across countries and commodities following major global events. Back-of-the-envelope simulations of higher international food and fertilizer prices suggest modest, though non-negligible, impacts on local consumer and producer welfare.</p>","PeriodicalId":50837,"journal":{"name":"Agricultural Economics","volume":"57 1","pages":""},"PeriodicalIF":4.0,"publicationDate":"2025-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/agec.70071","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146096397","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Biodiversity loss on agricultural land is progressing while European farmers’ participation in agri-environmental-climate schemes (AECS) is limited. Meanwhile, weather extremes are increasingly affecting agricultural production and, thus, land management decisions. Using a discrete choice experiment in Southern Germany, we explore determinants of farmer participation in biodiversity AECS. Management flexibility emerged as a key factor for scheme adoption. Farmers who experience negative impacts from climate change or have pessimistic expectations about future climatic conditions tend to invest less in non-productive AECS if they believe they have effective adaptation practices that support continued crop production. To ensure the transition to sustainable food production in the future, our results highlight the need to design and promote sustainable adaptation strategies to climate change in addition to AECS. Our results also highlight the need to consider different farm types, considering that forage farms seem less reactive to climatic changes.
{"title":"Influence of Climatic Changes on Farmers’ Participation in Biodiversity-Enhancing Agri-Environmental-Climate Schemes","authors":"Carina Ober, Fabian Frick, Johannes Sauer","doi":"10.1111/agec.70069","DOIUrl":"https://doi.org/10.1111/agec.70069","url":null,"abstract":"<p>Biodiversity loss on agricultural land is progressing while European farmers’ participation in agri-environmental-climate schemes (AECS) is limited. Meanwhile, weather extremes are increasingly affecting agricultural production and, thus, land management decisions. Using a discrete choice experiment in Southern Germany, we explore determinants of farmer participation in biodiversity AECS. Management flexibility emerged as a key factor for scheme adoption. Farmers who experience negative impacts from climate change or have pessimistic expectations about future climatic conditions tend to invest less in non-productive AECS if they believe they have effective adaptation practices that support continued crop production. To ensure the transition to sustainable food production in the future, our results highlight the need to design and promote sustainable adaptation strategies to climate change in addition to AECS. Our results also highlight the need to consider different farm types, considering that forage farms seem less reactive to climatic changes.</p>","PeriodicalId":50837,"journal":{"name":"Agricultural Economics","volume":"57 1","pages":""},"PeriodicalIF":4.0,"publicationDate":"2025-10-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/agec.70069","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146096395","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Agricultural subsidies are a key policy tool for improving farm productivity, yet their effectiveness depends on how they interact with land market conditions and farmers’ behavioral responses. This study examines the pathways through which coupled and decoupled subsidies influence farm-level production efficiency in China, focusing on farmland market rental distortions and farmers’ perceived tenure security. Using nationally representative household-level survey data and a multilevel chain mediation model, the results show that both types of subsidies are positively associated with farm-level production efficiency. However, only coupled subsidies exhibit significant indirect effects on farm-level production efficiency by reducing farmland market rental distortions and enhancing farmers’ perceived tenure security. In contrast, decoupled subsidies display limited transmission through these intermediate mechanisms. Further analysis reveals that the indirect effects of coupled subsidies are more pronounced in major grain-producing regions, where farmland market structures and subsidy targeting are better aligned. These findings suggest that farmland market conditions play a critical role in translating subsidies into productivity gains and that improving subsidy design to better reflect local farmland market rental distortions and tenure security can enhance their overall effectiveness.
{"title":"Agricultural Subsidies and Productivity: Unpacking the Role of Land Transfer Markets in China","authors":"Qi Xing, Jian Wang","doi":"10.1111/agec.70068","DOIUrl":"https://doi.org/10.1111/agec.70068","url":null,"abstract":"<p>Agricultural subsidies are a key policy tool for improving farm productivity, yet their effectiveness depends on how they interact with land market conditions and farmers’ behavioral responses. This study examines the pathways through which coupled and decoupled subsidies influence farm-level production efficiency in China, focusing on farmland market rental distortions and farmers’ perceived tenure security. Using nationally representative household-level survey data and a multilevel chain mediation model, the results show that both types of subsidies are positively associated with farm-level production efficiency. However, only coupled subsidies exhibit significant indirect effects on farm-level production efficiency by reducing farmland market rental distortions and enhancing farmers’ perceived tenure security. In contrast, decoupled subsidies display limited transmission through these intermediate mechanisms. Further analysis reveals that the indirect effects of coupled subsidies are more pronounced in major grain-producing regions, where farmland market structures and subsidy targeting are better aligned. These findings suggest that farmland market conditions play a critical role in translating subsidies into productivity gains and that improving subsidy design to better reflect local farmland market rental distortions and tenure security can enhance their overall effectiveness.</p>","PeriodicalId":50837,"journal":{"name":"Agricultural Economics","volume":"57 1","pages":""},"PeriodicalIF":4.0,"publicationDate":"2025-09-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/agec.70068","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146096591","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}