The Effect of the Sloping Land Conversion Programme on Farm Household Productivity in Rural China

Credit has been considered to play a pivotal role in the agricultural development of Nepal. A large number of institutions are involved in the disbursement of credit to agriculture. In this backdrop, the present study has examined the performance of agricultural credit and has identified the determinants of increased use of credit at the farm household level in Nepal. The study was based on survey data consisting of 107 samples collected randomly from the Chitwan district. The study has revealed that the quantum of credit availed by the farming households is affected by several socio-demographic factors which include caste, economically active population, food sufficiency, and membership in an organization. The research revealed that if the household is Brahmin/ Chettri, the probability of borrowing loans decreased by 32% as compared to other castes. Similarly, if the household’s economically active population increased by one unit, the probability of taking a loan increased by 16%. The results also show that, if household food sufficiency increased by one month the probability of taking loans decreased by 4 % but if the household head is a member of an organization, the probability of taking a loan increased by 28%. The congenial environment to increase the involvement of the household head to an organization like cooperative and farmers group, increasing the food self-sufficiency through productivity enhancement program and creating awareness on credit utilization helps to increase credit use performance in Agriculture.

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Algorithm of Ecocompensation in Sloping Land Conversion Program Based on Heckman’s Two-Step Model

Scientific Programming ◽

10.1155/2021/7880461 ◽

2021 ◽

Vol 2021 ◽

pp. 1-9

Author(s):

Haotian Wang ◽

Chen Ke ◽

Xiaojun Yang

Keyword(s):

Social Capital ◽

Role Models ◽

Risk Preference ◽

Land Conversion ◽

Willingness To Participate ◽

Step Model ◽

Cognitive Preference ◽

Sloping Land ◽

Conservation Auctions ◽

Bid Prices

In this paper, we broadly generalize the assignment auction algorithm to solve linear minimum cost network flow problems. It is significant to establish a market-based compensation mechanism by way of conservation auctions based on peasant households’ willingness, which can promote the innovation of ecocompensation policies, green development, and balanced growth. Using the survey data collected from 453 households within 3 national pilot counties in ecologically fragile regions in northwest Liaoning for the Sloping Land Conversion Programme, measuring peasant households’ willingness to accept ecocompensation through sealed auctions, we built a database through cloud computing to realize information collation and query and applied the Heckman’s Two-Step Model to study the impact of risk preference, social capital, cognitive preference, land parcel characteristics, and family endowments on farmers’ willingness to participate in protection auctions and their bid prices. The results reveal that the average bid price of peasant households in the ecologically fragile region in northwest Liaoning for the Sloping Land Conversion Programme is annually 274.5 yuan per mu and that risk preference and social capital have positive impacts on peasant households’ willingness to participate in conservation auctions and on their bid prices, cognitive preference has a positive impact on peasant households’ bid prices in conservation auctions, and land plot characteristics have a negative impact on peasant households’ bid prices in conservation auctions. It is suggested that ecocompensation policies should be optimized with such methods as lowering peasant households’ perception of high risks, setting role models for them to follow, and strengthening their perception of the environment, income, and property rights.

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