Agricultural Economics最新文献

The study investigates the effect of price support policies on market price distribution and its dynamics in the Indian wheat market. The analysis uses a quantile autoregression model that provides a flexible representation of price dynamics and the 2001–2020 monthly wholesale market price data. The analysis is conducted conditional on the net stock level held in the previous period. The results reveal that the net purchase by the government prevented very low market prices for wheat but resulted in price spikes. It has a price-enhancing effect as well. The associated moments of price distribution show that public stockholding reduced variation in market price distribution. However, the government's release of stock did not prevent price rises. Findings show that dynamic adjustments tend to be qualitatively different across regimes. Government intervention in the grain market reduced stability through dynamic adjustments in wheat market prices. The results have policy implications for India and other countries in Southeast Asia in the context of the WTO's negotiations on public stockholdings and using public stockholdings as an instrument in addressing price volatility and food shortages.

We assess exchange rate pass-through when the Ruble exchange rate was managed in comparison with when it became free-floating. Estimates of the error correction model for milling wheat prices suggest exchange rate pass-through to be strongest in Russia's North Caucasus, the region closest to the Black Sea ports, and weakest in the remote regions of Volga and West Siberia since the Ruble exchange rate became free-floating in 2014. In contrast, we find Russian regional wheat prices and the Ruble/USD exchange rate not cointegrated when the exchange rate was managed. Further, feed wheat (Class 5) is only weakly integrated compared to wheat Classes 3 and 4 for human consumption. With Russia's invasion of Ukraine, exchange rate pass-through to Russian wheat prices has decreased sharply. Thus, the Ukraine war drives the disintegration of Russia's wheat sector from international markets and adds to the risks of supply chain disruption and geopolitical risks, which may increase export supply volatility. To strengthen trade resilience, countries that are dependent on wheat imports should diversify their import sources.

The agriculture sector receives substantial fiscal subsidies in various forms, including through programs that are linked to production and others that are decoupled. As the sector has reached the technology frontier in production over the last three decades or so, particularly in high- and middle-income countries, it is intriguing to investigate the impact of subsidies on productivity at aggregate level. This study examines the impact of subsidies on productivity growth in agriculture globally using a long time series on the nominal rate of assistance for 42 countries that covers over 80% of agricultural production. The econometric results show heterogenous effects from various subsidy instruments depending on the choice of productivity measure. Regression results suggest a strong positive effect of input subsidies on both output growth and labor productivity. A positive but relatively small impact of output subsidies is found on output growth only.

Sustainability labelling is an extremely complex, multifaceted, and debated topic. Through a systematic and meta-analytical approach, we disentangled the informative contents of environmental and social labels and investigated their effect on the consumer willingness to pay for food products. The premium prices for sustainability labels are largely heterogeneous depending on the information disclosed. Generic and specific messages seem not to differ in terms of consumer acceptance. Not all facets are equally important as social issues tend to be less considered. Policy interventions should combine hard and soft measures to holistically achieve sustainability in the food system.

The decision of farmers to reduce fertilizer applications and, thus, the achievement of agri-environmental policy goals interacts with market price developments. In this study, we analyze how changes in price levels and volatility over time (i.e., 1991–2006 vs. 2007–2022) affected farmers’ preferences to reduce fertilizer application using statistical inferences of stochastic dominances. The analysis considers two cropping systems and fertilizer reduction measures: (i) grassland-based milk production and the use of legumes and (ii) wheat production and the use of variable rate application. We show that the economic value of reducing fertilizer increased over time in both grassland-based milk and wheat production. However, only in the case of wheat production was the reduction in fertilizer application observed as more risk-reducing over time. In contrast, in grassland-based milk production, the co-movement of fertilizer and milk prices canceled out the increase in risk reduction. We conclude that changes in market price, along with agri-environmental subsidies, can increasingly incentivize the reduction of fertilizer use.

European countries have set ambitious policy goals to reduce the risks of pesticides to the environment and human health. European agriculture could play a leading role in the transition to a low pesticide risk future, with various societal benefits. However, such a transition also involves trade-offs, costs, and risks for farmers and society. Here, we summarize possible implications for agriculture and food systems in Europe and beyond and discuss avenues for future research.

Smallholder farmers often bundle different sustainable agricultural intensification (SAI) practices to boost crop yield and address soil fertility challenges. However, there is a dearth of empirical studies that investigate farmers’ adoption of SAI bundles and their subsequent impacts. Using data from a three-wave panel survey of smallholder maize-legume producers in Kenya, we examine the adoption and payoffs from 10 SAI practices clustered into five dominant groups. We use a random effects multinomial logit model to determine the choice of SAI cluster at the plot level while controlling for unobserved individual heterogeneity. The results show that the number of extension contacts, farm labor availability, household wealth, and education of household heads positively and significantly affect the adoption of SAI clusters while renting plots and poor soil quality have negative effects. The multinomial endogenous treatment effects model results reveal significant variability in crop yield, total variable cost, revenue, and net income across the five SAI clusters. The benefits vary by crop system, region, and cropping year, indicating that a one-size-fits-all extension design is unsuitable for farmers. The study suggests the promotion of participatory extension policies that would allow locally adaptable and highly profitable bundles of SAI practices to be identified, refined, and disseminated.

Participatory approaches for crop variety testing can help breeding teams to incorporate traditional knowledge and consider site-specific sociocultural complexities. However, traditional participatory approaches have drawbacks and are seldom streamlined or scaled. Decentralized on-farm testing supported by citizen science addresses some of these challenges. In this study, we compare a citizen science on-farm testing approach — triadic comparisons of technology options (tricot-PVS) — with the benchmark state-of-the-art group-based participatory variety testing approach (group-PVS) over a set of socioeconomic outcomes. We focus on on-farm testing of common bean (Phaseolus vulgaris L.) in the Trifinio area of Central America. We measure the impact of these two approaches on bean growers in terms of on-farm diversification and food security. We use data from 1978 smallholder farmers from 140 villages, which were randomly assigned to tricot-PVS, group-PVS or control. Utilizing a difference-in-difference model with inverse probability weighting and an instrumental variable approach, we observe that farmers involved in group-PVS, and tricot-PVS had comparable levels of on-farm varietal diversification with respect to control farmers. Nonetheless, group-PVS appears to be significantly more effective in boosting household food security, which can be attributed to improved agronomic management of the crops. This study contributes to the next generation of innovations in exploring trait preferences to produce more inclusive, demand-driven varietal design that democratize participatory varietal selection programs.

This paper carries out a thorough review of the literature on the estimation of hedonic price functions in the wine market, compiling and carefully documenting all research work on the subject. The review analyses the main methodological decisions taken by the different authors, as well as the typology of the available databases: identification of the relevant market, specification of the price function, sources and types of prices, econometric methodology, and type of publication. The variance decomposition analysis of the Adjusted-R-squared values from the estimated hedonic price functions suggests that attribute selection, the definition of the product market, the characteristics of information sources, and the implemented econometric procedures are the most relevant factors in explaining the models’ explanatory power.

Although agricultural machinery is indispensable for modern agriculture, the effect of machinery structure on food production is rarely scrutinized. Machinery structure, referring to the proportion of high-capacity machines which are represented by tractors with relatively high horsepower, is used to measure the scale of agricultural machinery. In response, this article investigates how agricultural machinery structurally impacts grain production theoretically and empirically, with particular emphasis on the effects of capacity structure and subsidy policy. The article estimates a Translog production function with a panel dataset covering 126 counties across Xinjiang and Hubei provinces in China from 2002 to 2012. Though we find the general elasticity of output with respect to machinery inputs is .03, the capacity structure of agricultural machines could impact agricultural production by inducing the reallocation of other input factors. Along with the upsizing of farming machines, we observe the complementarity between machinery horsepower and land inputs in production increases, while the joint effect of machinery and fertilizer decreases. The positive land channel is found in areas with fewer high-capacity machines, while the negative fertilizer channel occurs when there are more large machines.