scholarly journals Determinants of Off-Farm Income among Smallholder Rice Farmers in Northern Ghana: Application of a Double-Hurdle Model

2019 ◽  
Vol 2019 ◽  
pp. 1-7 ◽  
Author(s):  
Benjamin Tetteh Anang ◽  
Richard W. N. Yeboah
Keyword(s):  
Rural Areas ◽  
Smallholder Farmers ◽  
Northern Ghana ◽  
Farm Income ◽  
Hurdle Model ◽  
Income Diversification ◽  
Farm Work ◽  
Double Hurdle Model ◽  
Rice Farmers ◽  
Double Hurdle

Income diversification by farm households has gained the attention of researchers and policy makers due to its commonness especially in developing countries. This study sought to empirically investigate the determinants of off-farm income among smallholder farmers in northern Ghana using a sample of 300 rice farmers. A double-hurdle model was used to determine the factors influencing participation in off-farm work as well as the predictors of actual amounts earned from working outside the farm. The results revealed that gender, farming experience, years of education, and access to credit are the factors determining participation in off-farm work while farming experience, years of education, and geographical location are the determinants of income from off-farm work. The paper concludes that measures to enhance rural income diversification will spur the rural economy and these measures should seek to address the problem of low level of formal education in rural areas.

scholarly journals The impact of social grant dependency on smallholder maize producers’ market participation in South Africa: Application of the double-hurdle model

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Sikhulumile Sinyolo ◽  
Maxwell Mudhara ◽  
Edilegnaw Wale
Keyword(s):  
South Africa ◽  
Rural Areas ◽  
Smallholder Farmers ◽  
Hurdle Model ◽  
Market Participation ◽  
Double Hurdle Model ◽  
Social Grants ◽  
Double Hurdle ◽  
Social Grant ◽  
The Impact

Background: Social grants have become an increasingly popular means of improving the welfare of poor households in South Africa and beyond. While the goals of these transfers are to alleviate current poverty as well as to improve human capital capacity, they also have unintended effects, positive or negative, on beneficiary households. A question that has not been adequately addressed in the literature is the role that social grants play in the efforts to commercialise smallholder farming.Aim: The aim of this study was to examine the impact of social grant dependency on the incentives of smallholder maize producers to participate in the market.Setting: The study was done in the rural areas of four districts (Harry Gwala, Umzinyathi, Umkhanyakude and Uthukela) in the KwaZulu-Natal province, South Africa.Methods: The study adopted a quantitative research design. A total of 984 households were randomly selected from the four districts, of which 774 had planted maize in the previous season. The analysis was done on the 774 farmers who had planted maize. The double-hurdle model was used for statistical analysis.Results: The results show a negative association between social grant dependency and market participation, suggesting that social grant-dependent households are more subsistent, producing less marketable surplus. Moreover, households with access to social grants sold less quantities of maize in the market, indicating reduced selling incentives.Conclusion: The study indicates that social grants reduce the incentives of smallholder farmers to commercialise their production activities. The results suggest that, while policies aimed at reducing transaction costs would increase smallholder market participation, attention should be paid on how to reduce social grants’ dis-incentive effects. To reduce spill over effects to unintended household members, the study recommends offering part of the grant as ‘in-kind support’, which is specific to the intended individual beneficiary.

scholarly journals Adoption of NPS Fertilizer on Sorghum Crop Production by Smallholder Farmers in Gemechis and Mieso Districts of West Hararghe Zone, Oromia Regional State, Ethiopia

2020 ◽  
Vol 9 (2) ◽  
pp. 46
Author(s):  
Muhammed Shako Hiko
Keyword(s):  
Smallholder Farmers ◽  
Econometric Models ◽  
Inorganic Fertilizer ◽  
Farm Income ◽  
Hurdle Model ◽  
Economic Factors ◽  
Adoption Decision ◽  
Double Hurdle Model ◽  
Double Hurdle ◽  
Socio Economic Factors

The adoption of inorganic fertilizer such as NPS which is concerned by development clients and government is different from one farmer to another farmer and this makes productivity of agricultural crops to vary from one plot to another plot due to socio-economic, institutional and other factors. Therefore, this study was intended to know the socio-economic factors that significantly affect utilization of inorganic fertilizer NPS. Primary data was collected from 201 sampled households of selected districts. Secondary data was collected from stakeholders related with production of sorghum and inorganic fertilizer NPS in the study areas. In the sampling procedure, two stage simple random sampling was used. In the first stage, kebeles were randomly taken from total kebeles in the two districts. In the second stage, households were randomly selected from the selected kebeles. Data was analyzed using descriptive, inferential statistics and econometric models methods of data analysis. In econometric models Double Hurdle model was use to know factors affect adoption decision of inorganic fertilizer NPS and intensity use of inorganic fertilizer NPS. Double Hurdle model result confirms that district of the household, education level, family size, extension visit, expectation of the coming rainfall by the household, number of farm plot owned, total farm land owned and off/non-farm income earned by the household significantly affect adoption decision inorganic fertilizer NPS. Double hurdle model result also reveals that, district of the household, livestock holding, number of farm plot owned, participation on agricultural training by the household significantly affect intensity use of inorganic fertilizer NPS. Government and concerned stakeholders should give attention on these significant socio-economic factors so that utilization inorganic fertilizer can be improved to sorghum crop productivity.

scholarly journals Determinants of Inorganic Fertilizer Use Intensity on Cereal Crop among Smallholder Farmers: The Case of Toke Kutaye District, West Shewa Zone, Oromia National Regional State, Ethiopia

2022 ◽  
Author(s):  
Aman Dassa ◽  
Abera Ifa ◽  
Efa Gobena
Keyword(s):  
Inorganic Fertilizer ◽  
Farm Income ◽  
Hurdle Model ◽  
Cereal Crop ◽  
Fertilizer Use ◽  
Explanatory Variables ◽  
Double Hurdle Model ◽  
Small Holders ◽  
Double Hurdle ◽  
Land Size

Abstract The study was aimed to analysis determinants of inorganic fertilizer use intensity on cereal crops among small holders in Toke Kutaye District, West Shewa Zone, Ethiopia. Correctional data were collected from 156 respondents using two stage random sampling methods. Data analyses were carried out using descriptive statistics and Double hurdle model. Result of the first hurdle reveals that out of twelve explanatory variables Sex ,Education, Off/non-farm income, Land size and Improved seed were determine positively whereas Age and Distance from nearest market determine small holders use of inorganic fertilizer negatively. The result of second stage of double hurdle model indicate that, out of twelve explanatory variables Sex, family size and Land size were positively affect extent (intensity) of inorganic fertilizer use whereas Age and Distance of household from nearest market determine use intensity negatively. Therefore, these results implied that there is a room to increase inorganic fertilizer use intensity on cereal crop productions. Hence, Farmers capacity to purchase this input beginning from lower income farmers to model farmers should be acknowledged; and should be designed the means to address those who have no ability to use inorganic fertilizer in their own farm through diverse development interventions.

scholarly journals A Quest for Livelihood Sustainability? Patterns, Motives and Determinants of Non-Farm Income Diversification among Agricultural Households in Punjab, Pakistan

2021 ◽  
Vol 13 (16) ◽  
pp. 9084
Author(s):  
Muhammad Amjed Iqbal ◽  
Muhammad Rizwan ◽  
Azhar Abbas ◽  
Muhammad Sohail Amjad Makhdum ◽  
Rakhshanda Kousar ◽  
...  
Keyword(s):  
Low Income ◽  
Rural Areas ◽  
Social Protection ◽  
Family Income ◽  
Sampling Technique ◽  
Farm Income ◽  
Income Generation ◽  
Income Diversification ◽  
Farm Work ◽  
Agricultural Households

Many farmers worldwide resort to choosing various income-earning options for diversifying their income sources as a means of risk-avoidance, social protection, and, above all, to finance agricultural operations. Non-farm income generation among farm families has become an imperative part of livelihood earning strategies in recent years amid fast-evolving climatic and sociodemographic changes. In this regard, this study seeks to identify the patterns and socioeconomic factors responsible for the uptake of various non-farm income diversification sources among agricultural households in southern Punjab, Pakistan. For this purpose, a total of 290 farm households were sampled using a random sampling technique to collect relevant data through structured questionnaires. Results show that approximately 79% of the surveyed farmers were involved in non-farm income generation activities, whereas, the income from these sources accounts for about 15% of total household income. The majority of the respondents offered labour for off-farm work followed by self-employment ventures. The major reason to pursue non-farm work includes low income from agriculture, mitigating risks associated with farming, and acquiring funds to finance farming operations, along with the desire to increase family income. A range of socioeconomic and infrastructure-related variables are associated with the decision to participate in specific off-farm activity, such as age, education, family size, farm income, dependency burden, farming experience, and distance to the main city. Results imply the provision of technical support to increase livelihood from farming operations to ensure food security and curb rural-urban migration. However, vocational training can enhance the rural inhabitants’ skillset to diversify on the farm through agribusiness development within rural areas, enabling them to employ local people instead of populating urban centres.

scholarly journals Farmers’ willingness-to-pay for weather information through mobile phones in northern Ghana

2020 ◽  
Vol 6 (2) ◽  
pp. 19-36
Author(s):  
Samuel A. DONKOH
Keyword(s):  
Willingness To Pay ◽  
Adaptive Capacity ◽  
Information Source ◽  
Weather Forecast ◽  
Northern Ghana ◽  
Hurdle Model ◽  
Climate Information ◽  
Weather Forecasts ◽  
Double Hurdle Model ◽  
Double Hurdle

Access to climate information is one of the ways by which farmers can reduce the adverse effects of climate variability and change. However, in Ghana, and in particular, Northern Ghana there is a gap between meteorological information and farming activities. This paper examined farmers’ willingness-to-pay for weather forecasts provided through mobile phone messaging. A total of 391 respondents, selected through a multi-stage sampling procedure was used. Based on the contingent valuation framework, a double-hurdle model was estimated. On average, a farmer was willing to pay GH₵ 122.15 annually for weather forecasts in the form of a text message. The results of the selection equation of the double-hurdle model show that sex, education, production aim, adaptive capacity and climate information source were significant and positively influenced willingness to pay for weather forecast while age and credit access negatively influenced same. Similarly, while dependency, extension service and adaptive capacity were significant and positively influenced the amounts farmers were willing to pay, sex and climate information access, negatively influenced the same. It is concluded that although the willingness-to-pay for weather forecast is low, especially, among male farmers, there exists a market for weather forecast that can be harnessed by the meteorological agencies. Some of the categories of farmers that may be targeted for demand and policy formulation are the following: farmers with formal education; farmers with access to extension services; market-oriented farmers; and farmers with adaptive capacity to climate change.

scholarly journals Factors Affecting Farmers’ Access to Formal and Informal Credit: Evidence from Rural Afghanistan

2020 ◽  
Vol 12 (3) ◽  
pp. 1268 ◽  
Author(s):  
Masaood Moahid ◽  
Keshav Lall Maharjan
Keyword(s):  
Rural Areas ◽  
Credit Constraints ◽  
Probit Model ◽  
Small Scale ◽  
Hurdle Model ◽  
Informal Credit ◽  
Double Hurdle Model ◽  
Agricultural Income ◽  
Double Hurdle ◽  
Farming Households

Adequate access to credit is necessary for the sustainable development of agriculture. This study uses a double hurdle model to investigate what affects farming households’ credit participation and amount, and a Probit model to find out credit constraints. For this purpose, the data from a survey of 292 farming households in Afghanistan was utilized. The study finds that households obtain credit for their agricultural activities from various formal and informal sources. The results of the double hurdle model reveal that the financial activities of the households were positively determined by crop diversity, education, number of adults in a household, size of land, and access to extension. Non-agricultural income decreases the likelihood of participation. The results of the analysis of credit constraints indicate that formal credit did not help small-scale and remoter farming households; however, these households relied on informal credit, especially when they faced income shock. Furthermore, religious belief increased the chances of avoiding formal credit but not informal credit. It is suggested that formal credit should be expanded to rural areas, especially to small-scale farming households. Policy makers should also consider increasing access to extension. Formal financial institutions should provide Sharia-compliant credit, which increases the confidence level of households in using formal credit in Afghanistan.

scholarly journals Does Off-Farm Work Improve Farm Income? Empirical Evidence from Tolon District in Northern Ghana

2020 ◽  
Vol 2020 ◽  
pp. 1-8
Author(s):  
Benjamin Tetteh Anang ◽  
Kwame Nkrumah-Ennin ◽  
Joshua Anamsigiya Nyaaba
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Empirical Evidence ◽  
Farm Size ◽  
Northern Ghana ◽  
Farm Income ◽  
Income Diversification ◽  
Farm Work ◽  
On Farm ◽  
The Impact

Participation of farm households in off-farm work has gained prominence in recent times as an income diversification strategy. The effect of off-farm work on farm income is however unclear. This paper therefore sought to provide empirical evidence of the income effect of off-farm activity participation using a cross section of maize farmers in Tolon District of Ghana as a case study. In order to account for sample selection bias, the Heckman selection model was used to estimate the factors influencing participation in off-farm work and the determinants of farm income. Furthermore, the study employed propensity score matching to evaluate the impact of off-farm work on farm income. The results indicate that participation in off-farm work is influenced by sex, age, and years of formal education of the respondent, farm size, and number of dependents while farm income is influenced by age of the respondent, farm size, and access to credit. In addition, the result of the propensity score matching revealed that participants in off-farm work increased their farm income by at least GH¢ 1702 as a result of income diversification. The rural economy therefore provides off-farm and on-farm linkages that enhance farmers’ income from agriculture. The creation of employment opportunities outside the farm will therefore complement on-farm work and enhance income from farming.

scholarly journals Adoption of On-Farm Plantation Forestry by Smallholder Farmers in Uganda

2016 ◽  
Vol 9 (2) ◽  
pp. 153 ◽  
Author(s):  
I. Kiyingi ◽  
A. Edriss ◽  
M. Phiri ◽  
M. Buyinza ◽  
H. Agaba
Keyword(s):  
Smallholder Farmers ◽  
Household Head ◽  
Skills Training ◽  
Plantation Forestry ◽  
Hurdle Model ◽  
Farm Forestry ◽  
Double Hurdle Model ◽  
Factors Influencing ◽  
Double Hurdle ◽  
On Farm

<p>The study assessed the factors influencing adoption and intensity of adoption of on-farm plantation forestry by comparing results from a censored Tobit model and a Double-hurdle model. Analysis indicated that determinants of adoption and intensity of adoption of on-farm plantation forestry are different, thus indicating a double-hurdle process. Results from the double-hurdle model indicated that size of landholding, secondary school education,  forestry skills training, extension services and farmers’ perceptions significantly explain the variation in the decision to invest in on-farm plantation forestry. On the other hand, gender of household head and size of landholding  influenced the intensity of adoption. This study highlights some of the areas that should be considered in developing adoption strategies for on-farm plantation forestry. It also highlights the importance of farmers’ perceptions in influencing adoption of farm forestry. The study suggests that since the factors influencing adoption and intensity of farm forestry adoption are made separately, it is important that both stages are considered in developing adoption strategies for farm forestry.</p>

Adoption of crop insurance in Ghana: an application of the complementary log-log truncated Poisson double-hurdle model

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kwame Asiam Addey ◽  
John Baptist D. Jatoe ◽  
George Tsey-Mensah Kwadzo
Keyword(s):  
Crop Insurance ◽  
Hurdle Model ◽  
Content Type ◽  
Double Hurdle Model ◽  
Rice Farmers ◽  
Normal Regression ◽  
Insurance Programme ◽  
Truncated Normal ◽  
Double Hurdle ◽  
Insurance Decisions

PurposeThe aim of this paper is to identify the factors that influence rice farmers' decisions to adopt crop insurance and premium payments (willingness to pay [WTP] amounts). The paper also demonstrates the usefulness of the complementary log-log (cloglog) truncated Poisson double-hurdle model as an alternative hurdle model.Design/methodology/approachThe study first investigated the nature of the dependent variable, which had non-normal residuals and was overdispersed. The probit truncated normal regression double-hurdle model was tried but it failed the normality and homoscedasticity tests; hence, the cloglog truncated Poisson double-hurdle model was employed in the study.FindingsAn estimated 61% of respondents would purchase crop insurance, despite farmers not having prior experience with this product. Amongst others, the factors that influence insurance adoption amongst rice farmers are the share of rice in total income, reliability perception of crop insurance schemes and the probability of failure to achieve target yields. The latter helps the authors to address adverse selection, a central issue to the viability of such an insurance programme. The determinants of farmers' WTP are also identified.Research limitations/implicationsSampling was limited to farmers using irrigation and living in one region of Ghana, which may limit the study’s wider applicability.Originality/valueAs far as the authors are aware, this study is the first to select the appropriate hurdle model based on established properties of the dependent variable on this topic – crop insurance decisions.

scholarly journals A Typology of the Level of Market Participation among Smallholder Farmers in South Africa: Limpopo and Mpumalanga Provinces

2021 ◽  
Vol 13 (14) ◽  
pp. 7699
Author(s):  
Simphiwe Innocentia Hlatshwayo ◽  
Mjabuliseni Ngidi ◽  
Temitope Ojo ◽  
Albert Thembinkosi Modi ◽  
Tafadzwanashe Mabhaudhi ◽  
...  
Keyword(s):  
South Africa ◽  
Family Member ◽  
Smallholder Farmers ◽  
Wealth Index ◽  
Household Wealth ◽  
Government Support ◽  
Hurdle Model ◽  
Market Participation ◽  
Double Hurdle Model ◽  
Double Hurdle

Smallholder farmers face several challenges that limit their access to markets and prevent them from taking advantage of market opportunities. This study sought to provide observed information on households’ involvement in the output market and to analyse the determinants of the level of market participation among smallholder farmers in South Africa. Data (secondary) for this study were collected from a total of 1520 respondents who were selected through stratified random sampling. Descriptive statistics, t-test and a double-hurdle model were used to analyse factors influencing smallholder farmers’ decisions regarding participation in the agricultural market. The first-hurdle equation of the double-hurdle model showed that gender of the household, family member working on the farm, wealth index, and agricultural assistance had a positive significant impact on the decision of smallholder farmers to participate in the market, while household age and family member with HIV had a negative significant impact. The results of the second-hurdle model showed marital status, educational level of household, wealth index, and access to agricultural assistance had a negative significant effect on the extent of market participation among smallholder farmers, while household size, household age, and family member with HIV had a positive significant impact. The suggestions emanating from the results as to what factors need to be addressed to encourage smallholder farmers to participate in the market indicate that there is a need for government to hire sufficient and skilled extension workers who understand the market related issues. With the help of extension workers and policymakers, government need to organize smallholder farmers into groups that are easy to manage, train, and support. Smallholder farmers’ groups should have their farmers registered, visible, and easily accessible for coordinated government support services. They also need to do more workshops in rural areas to encourage young people to be involved in agriculture. This will lead to sustainable production, alleviation of poverty, improvement of the economy, and food security.

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