scholarly journals Agricultural Decisions after Relaxing Credit and Risk Constraints *

2014 ◽  
Vol 129 (2) ◽  
pp. 597-652 ◽  
Author(s):  
Dean Karlan ◽  
Robert Osei ◽  
Isaac Osei-Akoto ◽  
Christopher Udry
Keyword(s):  
Northern Ghana ◽  
Small Scale ◽  
Index Insurance ◽  
Basis Risk ◽  
Demand For Insurance ◽  
Rainfall Index ◽  
Small Scale Farmers ◽  
Investment Patterns ◽  
The Village ◽  
To Receive

Abstract The investment decisions of small-scale farmers in developing countries are conditioned by their financial environment. Binding credit market constraints and incomplete insurance can limit investment in activities with high expected profits. We conducted several experiments in northern Ghana in which farmers were randomly assigned to receive cash grants, grants of or opportunities to purchase rainfall index insurance, or a combination of the two. Demand for index insurance is strong, and insurance leads to significantly larger agricultural investment and riskier production choices in agriculture. The binding constraint to farmer investment is uninsured risk: when provided with insurance against the primary catastrophic risk they face, farmers are able to find resources to increase expenditure on their farms. Demand for insurance in subsequent years is strongly increasing with the farmer’s own receipt of insurance payouts, with the receipt of payouts by others in the farmer’s social network and with recent poor rain in the village. Both investment patterns and the demand for index insurance are consistent with the presence of important basis risk associated with the index insurance, imperfect trust that promised payouts will be delivered and overweighting recent events.

scholarly journals MOTIVATIONS AND RESOURCES OF SMALL-SCALE FARMERS FOR STAYING IN THEIR VILLAGE IN NORTHEAST THAILAND

2019 ◽  
Vol 3 (1) ◽  
pp. 35
Author(s):  
Masatoshi Uehara
Keyword(s):  
Urban Areas ◽  
Small Scale ◽  
Natural Environments ◽  
Worth Living ◽  
Northeast Thailand ◽  
Simple Question ◽  
Small Scale Farmers ◽  
Decision To Stay ◽  
Profit Maximisation ◽  
The Village

This study aims to examine one simple question: Why do some small-scale farmers in rural, northeast Thailand keep staying on in their villages despite the fact that they could earn a much higher income if they worked in urban areas? To answer this question, this study which is based on first-hand observations from nine years of intensive fieldwork in rural, northeast Thailand provides a detailed description of the small-scale farmers’ resources that enable them to sustain a living and also provides them motivations to stay in their village. The decision to stay on in the village and forgo the option to move out in pursuit of a higher income may seem irrational in the opinion of economists. However, the author, by employing the “capability approach” argument by A. Sen, argues that their behaviour could be understood as efforts of pursuing “lives worth living” (as expressed in his later work as an architect of the UN’s “human security” program) and not solely profit maximisation. Their efforts include establishing “community groups” and practising “sustainable agriculture” including “organic farming” and “integrated farming”. These activities are well-suited to their natural environments and economic conditions and, at the same time, give them autonomy in their villages.

Evaluating effectiveness of rainfall index insurance

2018 ◽  
Vol 78 (5) ◽  
pp. 611-625 ◽  
Author(s):  
Rui Zhou ◽  
Johnny Siu-Hang Li ◽  
Jeffrey Pai
Keyword(s):  
Crop Yield ◽  
Variance Reduction ◽  
Index Insurance ◽  
Corn Yield ◽  
Basis Risk ◽  
Content Type ◽  
Optimal Insurance ◽  
Rainfall Index ◽  
Temperature And Precipitation ◽  
Insurance Portfolio

Purpose The purpose of this paper is to examine the reduction of crop yield uncertainty using rainfall index insurances. The insurance payouts are determined by a transparent rainfall index rather than actual crop yield of any producer, thereby circumventing problems of adverse selection and moral hazard. The authors consider insurances on rainfall indexes of various months and derive an optimal insurance portfolio that minimizes the income variance for a crop producer. Design/methodology/approach Various regression models are considered to relate crop yield to monthly mean temperature and monthly cumulative precipitation. A bootstrapping method is used to simulate weather indexes and corn yield in a future year with the correlation between precipitation and temperature incorporated. Based on the simulated scenarios, the optimal insurance portfolio that minimizes the income variance for a crop producer is obtained. In addition, the impact of correlation between temperature and precipitation, availability of temperature index insurance and geographical basis risk on the effectiveness of rainfall index insurance is examined. Findings The authors illustrate the approach with the corn yield in Illinois east crop reporting district and weather data of a city in the same district. The analysis shows that corn yield in this district is negatively influenced by excessive precipitation in May and drought in June–August. Rainfall index insurance portfolio can reduce the income variance by up to 51.84 percent. Failing to incorporate the correlation between temperature and precipitation decreases variance reduction by 11.6 percent. The presence of geographical basis risk decreases variance reduction by a striking 24.11 percent. Allowing for the purchase of both rainfall and temperature index insurances increases variance reduction by 13.67 percent. Originality/value By including precipitation shortfall into explanatory variables, the extended crop yield model explains more fluctuation in crop yield than existing models. The authors use a bootstrapping method instead of complex parametric models to simulate weather indexes and crop yield for a future year and assess the effectiveness of rainfall index insurance. The optimal insurance portfolio obtained provides insights on the practical development of rainfall insurance for corn producers, from the selection of triggering index to the demand of the insurance.

Who and what set the price of walnuts for small-scale farmers in Southwest China?

2017 ◽  
Vol 7 (2) ◽  
pp. 135-152 ◽  
Author(s):  
Mei Yan ◽  
Anne Terheggen ◽  
Dagmar Mithöfer
Keyword(s):  
Value Chain ◽  
Food Systems ◽  
Tree Planting ◽  
Small Scale ◽  
Structured Interviews ◽  
Data Set ◽  
Content Type ◽  
Village Level ◽  
Small Scale Farmers ◽  
The Village

Purpose Domestic demand for walnuts has been on the rise for the last decades. Consumption outstrips domestic production capacities, which led to increasing prices until recently. Small-scale farmers are at the centre of walnut tree planting and walnut collection efforts. Farmers are now integrated into rapidly expanding agrifood value chains. The purpose of this paper is to investigate the walnut value chain originating in Yunnan (the dominant producer of walnuts in China). The authors are especially interested in the position of small-scale farmers in the chain and the factors affecting the price that they receive. Design/methodology/approach Price and intra-chain governance information were collected through structured interviews with value chain actors like certified and conventional small-scale farmers, traders, processors, food manufacturers and wholesalers. The resultant price data set was analysed using a multiple regression analysis. Findings Timing of harvest, distance to market and sales volume are correlated with the village-level price. Farmers are in a market governance segment of the chain. Lead firms (e.g. supermarkets) are price-setters and determine the value distribution, with farmers receiving a smaller share relative to downstream actors’ shares. Research limitations/implications Improved connectivity to markets, transparency of standards and price (formation), processing and certification could improve farmers’ profits. Originality/value The authors contribute to the growing literature of value chain studies focussing on farmers’ integration into food systems at different scales. The authors investigated the price determinants at the village level and additionally provide information on an organic marketing arrangement.

scholarly journals Perceptions of Brazilian small-scale farmers about genetically modified crops

2015 ◽  
Vol 18 (1) ◽  
pp. 193-210 ◽  
Author(s):  
Carla Almeida ◽  
Luisa Massarani ◽  
Ildeu de Castro Moreira
Keyword(s):  
Decision Making ◽  
Focus Groups ◽  
Genetically Modified ◽  
Genetically Modified Crops ◽  
Free Food ◽  
Economic Feasibility ◽  
Small Scale ◽  
Small Scale Farmers ◽  
The Impact ◽  
To Receive

The aim of this paper is to investigate the perceptions of small-scale farmers in Brazil towards genetically modified (GM) crops based on a sample of 15 focus groups involving 111 individuals. The analysis of the corpus shows heterogeneous perceptions regarding these crops, shaped by diverse factors, including economic prospects and concerns with the impact on health and the environment. There are many misgivings about these effects among the farmers, who are keen to receive unbiased information on the topic. These uncertainties affect them more as consumers, as most would prefer eating GM-free food, than as producers, as they consider other aspects, especially economic feasibility, when deciding what to grow. Although most farmers believe they should have a voice in decision-making on agricultural issues, few have made concerted efforts to be heard.

scholarly journals Village Environment, Capital Endowment, and Farmers’ Participation in E-Commerce Sales Behavior: A Demand Observable Bivariate Probit Model Approach

Agriculture ◽  
2021 ◽  
Vol 11 (9) ◽  
pp. 868
Author(s):  
Xiaojing Li ◽  
Apurbo Sarkar ◽  
Xianli Xia ◽  
Waqar Hussain Memon
Keyword(s):  
Smallholder Farmers ◽  
Probit Model ◽  
Small Scale ◽  
Practical Training ◽  
Bivariate Probit ◽  
Bivariate Probit Model ◽  
Capital Endowment ◽  
Sales Behavior ◽  
Small Scale Farmers ◽  
The Village

With the recent developments in widespread internet usage and digital technology, an ultimate worldwide transformation in information and communications technology has occurred. Especially, how people engage in the virtual market for buying and selling goods has changed dramatically, which flourished the playground of electronic commerce (EC). Interestingly, it has become crucial to create an ample opportunity for farmers to utilize a more comprehensive market range for selling their products. However, farmers participating in e-commerce sales platforms may be interrupted by various internal and external factors. Therefore, the study’s primary goal is to evaluate the impacts of various external and internal factors on shaping farmers’ behavior in participating in e-commerce sales platforms. The study utilized a demand observable bivariate Probit model to analyze the village environment and capital endowment effects to craft the findings. The study utilized micro-survey data from 686 households in the leading kiwifruit-producing area as the empirical setup. The findings illustrated that the village environment is the main factor that restricts farmers’ e-commerce sales behavior, among which the infrastructure and policy environments have a significant contribution to farmers’ e-commerce sales intention and behavior. However, the effect of capital endowment on farmers’ e-commerce selling behavior has been found as significant. The village environment significantly affects both large- and small-scale farmers, and the capital endowment has a higher binding effect on small-scale farmers. Therefore, the paper suggests that improving the village environment for e-commerce development and laying the foundation for e-commerce development should be fostered. A differentiated incentive mechanism to improve the capital endowment of farmers should be constructed. A well-structured capital endowment triggering small farmers to capture the benefits of e-commerce sales should be imposed. The government should extend the support of the agricultural demonstration zone to facilitate practical training among the smallholder farmers. The formal and informal risk-sharing and financial institutions should prioritize building infrastructure to support farmers’ short- and long-term investments. Farmers should realize the importance of e-commerce for integrating the agricultural value chain.

scholarly journals Reproductive performance of indigenous Lao pigs reared by small-scale farmers in northern provinces of Laos

2021 ◽  
Vol 64 (2) ◽  
pp. 365-373
Author(s):  
Somsy Xayalath ◽  
Gabriella Novotni-Dankó ◽  
Péter Balogh ◽  
Klaus-Peter Brüssow ◽  
József Rátky
Keyword(s):  
Litter Size ◽  
Reproductive Performance ◽  
Small Scale ◽  
Weaning Weight ◽  
Indigenous Pigs ◽  
Pig Performance ◽  
Small Scale Farmers ◽  
The Village ◽  
Gathering Data ◽  
Poor Management

Abstract. Indigenous pigs are essential domestic animals for rural life and meat supply in Laos, especially for ethnic people in remote areas. Northern provinces have the most numerous indigenous pig populations, i.e. covering 84 % of the total pig population. This study was conducted in northern Laos, where 164 pig-raising households, 325 sows and 1246 piglets were included. The study aimed to observe the general trend of change in indigenous pig utilization and the altered reproductive performance regarding village location and rearing systems. The semi-structured questionnaires were a key tool for gathering data required through personal interviews and field observations. Two types of indigenous Lao pig breeds (locally named Moo Lath and Moo Hmong) were found in study areas. The village locations were not influencing on reproductive performance of indigenous Lao pigs. Larger litter size and birth weight (P<0.004–0.000) was found in the second cluster (15 to 30 km away from downtown) with an average of 8.24 heads and 0.88 kg, while the first (<15 km) and third (>30 km) clusters had 7.72 versus 7.12 heads, and 0.70 versus 0.63 kg, respectively. Conversely, the second cluster had lower litter per year (P<0.001) by 1.04, compared to 1.38 for the first and third clusters. The free-scavenging rearing system (FRS) had a higher litter size (8.5) than the confinement (CRS) and semi-scavenge (SRS) rearing system (7.36 versus 7.54). The FRS had a marginally smaller litter per year (0.87) that differed from the CRS and SRS (1.45 and 1.41). The CRS had a shorter suckling period (2.38 months) with a lower weaning weight (6.74 kg), while the FRS and SRS had longer (2.72 versus 2.8 months) and higher weaning weight (7.76 and 7.57 kg). The mortality before weaning was 15 %, and no difference was found related to the villages' location or rearing systems (P>0.070 versus 0.839). Around 56 % of the piglet's deaths were due to poor management that caused piglets to be crushed/injured by sow or starvation. More than 54 % of farmers did not keep sows in pens before the farrowing, and 53 % of sows gave birth near forests. In conclusion, the village locations and rearing systems did not influence the reproductive performance of indigenous pigs in northern Laos. However, pre- and post-farrowing management had a strong effect on it. During the whole study, we took into consideration the successful example of Hungarian Mangalica pig, which could find a proper new role in the global premium markets. Our results suggest that similar complex semi-intensive farm operations as indigenous Mangalica pig farms in Hungary should be a great option for introducing and adapting to improve indigenous pig performance in Laos.

Rainfall Insurance Scheme for Coffee in Karnataka: Exploring the Indicators of Performance

2015 ◽  
Vol 3 (1) ◽  
Author(s):  
Minnappa Prabhu ◽  
Gowdara Kotreshwar
Keyword(s):  
Factor Analysis ◽  
Principal Component ◽  
Index Insurance ◽  
Insurance Scheme ◽  
Basis Risk ◽  
Factors Affecting ◽  
Rainfall Index ◽  
Several Variables ◽  
Risk Protection ◽  
The Impact

The purpose of this paper is to explore the factors influencing the design and the development of Rainfall Insurance scheme for coffee plantation. The method used is qualitative design with some quantitative elements. Data were collected through a field survey of 390 growers who have purchased the rainfall insence contracts. Factor Analysis, Principal Component Analysis, Kaiser-Meyer-Olkin, Bartletts Test of Sphericity, and Kaisers Varimax rotation were used to measure the sample adequacy and to extract the factors affecting the rainfall index insurance. In this study several variables impacting rainfall index insurance have been identified for factor analysis. On the basis of Varimax with Kaiser Normalization, eight factors have emerged. These include: Rainfall Risk, Trigger Rainfall, Sum Insured, Rainfall Risk Protection, Basis Risk, Claim Settlement, Payout, and Premium. The study highlights the impact of factors on the performance of RISC. The findings reveal the need for redesign and recasting existing Rainfall Insurance Scheme for efficient risk management in coffee industry. The findings of study reinforce the need for better understanding of the factors impacting Rainfall Insurance Scheme for coffee performance. The study is useful in generating inputs for redesigning Rainfall Insurance Scheme for coffee by insurers.

Leslie Burrowes: A Young Dancer in Dresden and London, 1930–34

2010 ◽  
Vol 28 (2) ◽  
pp. 153-178 ◽  
Author(s):  
Larraine Nicholas
Keyword(s):  
Modern Dance ◽  
Small Scale ◽  
Cultural Environment ◽  
Home Studio ◽  
To Receive

Leslie Burrowes (1908–1985) was the first British dancer to receive the full diploma of the Wigman School in Dresden and subsequently became Wigman's official UK representative. The letters she wrote to her benefactor, Dorothy Elmhirst, with the addition of my commentary and annotations, provide a lens through which to view the School as she experienced it. Her return to London brought her into a quite different cultural environment. I argue that she energetically launched her career, performing and teaching in her new style and contesting what she considered to be false charges against modern dance. But it appears that, by the end of this period, she had adjusted her expectations, away from solo theatrical recitals (in the Wigman mode) and more towards the education of children and students, and a small-scale but intense programme centred on her home studio.

Researching Alternative Cash Crops for Small Scale Farmers in Southern Ohio

HortScience ◽  
1998 ◽  
Vol 33 (3) ◽  
pp. 530a-530
Author(s):  
Brad Bergefurd ◽  
Gary Gao
Keyword(s):  
Applied Research ◽  
Small Scale ◽  
Extension Agents ◽  
Research Projects ◽  
Cash Crops ◽  
Grant Program ◽  
Culinary Herbs ◽  
Small Scale Farmers

Speciality crops are great alternative cash crops for small scale farmers. Small scale farmers are constantly searching for viable economic crops to grow. We have been conducting applied research on the production and marketing of culinary herbs, oriental vegetables, colored peppers, and muskmelons to name a few. These crops show excellent potential for southern Ohio. Field demonstration, seminars, and surveys were used to gather and disseminate information on these speciality crops. More than 230 people attended our seminars on alternative cash crops. More than 150 people attended our field days. In addition, we had identified many chefs that are willing to purchase from local speciality crop growers. It will be a win-win situation for both chefs and growers. Growers will be able to maximize their profitability while chefs will receive fresh and unique produce. As a result of our research, we were able to show small scale growers what they can grow successfully and how they can market their crops for most profit. These applied research projects received a combined funding of $10000.00 from OSU Extension-Innovative Grant program. These projects are a great way to establish credibility among clients. We would also like to demonstrate how other extension agents can help their clients. A lecture utilizing slides and overhead transparencies will be the format of the seminar.

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