scholarly journals Effect of market participation on household welfare among smallholder goat farmers in Botswana

2021 ◽  
Vol 60 (2) ◽  
pp. 151-160
Author(s):  
Gomolemo Ngwako ◽  
Mary Mthenge ◽  
Eric Gido ◽  
Keneilwe Kgosikoma
Keyword(s):  
Rural Areas ◽  
Household Income ◽  
Smallholder Farmers ◽  
Effective Means ◽  
Household Welfare ◽  
Switching Regression ◽  
Market Participation ◽  
Access Technology ◽  
Policies And Programs ◽  
Goat Farming

Goat farming is a major livelihood activity for most smallholder farmers in Botswana. To ensure sustainable livelihoods for these farmers, a shift from the prevalent traditional and subsistence system to a more market-oriented one is considered necessary. Market participation is widely viewed as an effective means of addressing poverty which is particularly rampant in most rural areas of Botswana and other developing countries. Little evidence is however available on the link between market participation and household welfare, especially among livestock and, in particular, small stock farmers. This paper evaluates the effect of market participation on household welfare among smallholder goat farmers. Estimating an endogenous switching regression model, the results show a positive and significant effect of market participation on household income for both participant and non-participant farmers. This effect was found to be more pronounced among the non-participants had they decided to sell. The results suggest that goat farmers should be encouraged to engage in market participation other than their traditional ways of keeping goats. This implies that existing policies and programs that increase market participation and encourage market-oriented farming should be revised in order to provide efficient and sustainable support. Furthermore, the study recommends that information on goat markets should reach rural areas where most farmers reside and are unable to access technology.

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 Welfare Impact of Moringa Market Participation in Southern Ethiopia

2020 ◽  
Vol 9 (3) ◽  
pp. 98
Author(s):  
Tezera W. Meskel ◽  
Mengistu Ketema ◽  
Jema Haji ◽  
Lemma Zemedu
Keyword(s):  
Basic Education ◽  
Smallholder Farmers ◽  
Calorie Intake ◽  
Southern Ethiopia ◽  
Switching Regression ◽  
Market Participation ◽  
Moringa Stenopetala ◽  
Cross Sectional ◽  
Welfare Impact ◽  
Per Capita

Increasing demand for Moringa stenopetala suggests that great opportunities exist for a supply-side response amongst rural smallholder farmers, especially in Southern Ethiopia. It needs evidence to understand whether or not smallholders farmers participate or if they benefit from participation in these new market opportunities. This study analyzes the welfare impact of smallholder farmers’ participation in Moringa market (measured in terms of crop income, per-capita annual consumption expenditure and per capita daily calorie intake) in Segen area people zone of Southern Ethiopia. Cross-sectional data from 385 randomly selected smallholder farmers were used in the analysis. Endogenous Switching Regression(ESR) model that accounts for selection bias was used in impact assessment. This was further expanded with the generalized propensity score (GPS) approach to evaluate the effects of level of market participation on the response of the outcome variables. Results from ESR shows that demographic, institutional, socio-economic, and market factors affect participation decision and welfare of the farm households. Overall, Moringa market participation have a positive and significant impact on rural farmers welfare, with substantial differencial impacts between groups. Results from GPS, also shows the same as the welfare of the households has increased with the level of Moringa market participation. Policies aimed at reducing the transaction costs of accessing markets, promoting the tree via different medias, working on rural institution capacity building, encouraging and assisting Moringa associations, designing appropriate support from different stakeholders, encouraging market linkages among diverse market players, and providing farmers with the chance of attending basic education are critical to the improvement of household welfare.

scholarly journals Evaluating the Impacts of Smallholder Farmer’s Participation in Modern Agricultural Value Chain Tactics for Facilitating Poverty Alleviation—A Case Study of Kiwifruit Industry in Shaanxi, China

Agriculture ◽  
2021 ◽  
Vol 11 (5) ◽  
pp. 462
Author(s):  
Hongyu Wang ◽  
Xiaolei Wang ◽  
Apurbo Sarkar ◽  
Lu Qian
Keyword(s):  
Value Chain ◽  
Rural Areas ◽  
Poverty Alleviation ◽  
Poverty Reduction ◽  
Smallholder Farmers ◽  
Multidimensional Poverty ◽  
Well Being ◽  
Reduction Degree ◽  
Poverty Level ◽  
Storage Technology

Market-based initiatives like agriculture value chain (AVC) are becoming progressively pervasive to support smallholder rural farmers and assist them in entering larger market interventions and providing a pathway of enhancing their socioeconomic well-being. Moreover, it may also foster staggering effects towards the post-era poverty alleviation in rural areas and possessed a significant theoretical and practical influence for modern agricultural development. The prime objective of the study is to explore the effects of smallholder farmers’ participation in the agricultural value chain for availing rural development and poverty alleviation. Specifically, we have crafted the assessment employing pre-production (improved fertilizers usage), in-production (modern preservation technology), and post-production (supply chain) participation and interventions of smallholder farmers. The empirical data has been collected from a micro survey dataset of 623 kiwifruit farmers from July to September in Shaanxi, China. We have employed propensity score matching (PSM), probit, and OLS models to explore the multidimensional poverty reduction impact and heterogeneity of farmers’ participation in the agricultural value chain. The results show that the total number of poor farmers who have experienced one-dimensional and two-dimensional poverty is relatively high (66.3%). We also find that farmers’ participation in agricultural value chain activities has a significant poverty reduction effect. The multidimensional poverty level of farmers using improved fertilizer, organizational acquisition, and using storage technology (compared with non-participating farmers) decreased by 30.1%, 46.5%, and 25.0%, respectively. The multidimensional poverty reduction degree of male farmers using improved fertilizer and participating in the organizational acquisition is greater than that of women. The multidimensional poverty reduction degree of female farmers using storage and fresh-keeping technology has a greater impact than the males using storage and improved storage technology. Government should widely promote the value chain in the form of pre-harvest, production, and post-harvest technology. The public–private partnership should also be strengthened for availing innovative technologies and infrastructure development.

scholarly journals Credit Constraint and Rural Household Welfare in the Mezam Division of the North-West Region of Cameroon

2021 ◽  
Vol 13 (11) ◽  
pp. 5964
Author(s):  
Louis Atamja ◽  
Sungjoon Yoo
Keyword(s):  
Regression Model ◽  
Rural Household ◽  
Household Welfare ◽  
Switching Regression ◽  
Probit Regression ◽  
Credit Constraint ◽  
Endogenous Switching Regression ◽  
North West ◽  
The North ◽  
West Region

The purpose of this study is to examine the effect of the rural household’s head and household characteristics on credit accessibility. This study also seeks to investigate how credit constraint affects rural household welfare in the Mezam division of the North-West region of Cameroon. Using data from a household survey questionnaire, we found that 36.88% of the households were credit-constrained, while 63.13% were unconstrained. A probit regression model was used to examine the determinants of households’ credit access, while an endogenous switching regression model was used to analyze the impact of credit constraint on household welfare. The results from the probit regression model indicate the importance of the farmer’s or trader’s organization membership, occupation, and savings to the household’s likelihood of being credit-constrained. On the other hand, a prediction from the endogenous switching regression model confirms that households with access to credit have a better standard of welfare than a constrained household. From the results, it is necessary for the government to subsidize microfinance institutions, so that they can take on the risk of offering credit to rural households.

Does the Contract Type Matter? Impact of Marketing and Production Contracts on Cashew Farmers’ Farm Performance in Ghana

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Caroline Dubbert ◽  
Awudu Abdulai
Keyword(s):  
Driving Forces ◽  
Smallholder Farmers ◽  
Spot Markets ◽  
Switching Regression ◽  
Farm Productivity ◽  
Production Contracts ◽  
Marketing Contracts ◽  
On Farm ◽  
The Impact ◽  
Substantial Heterogeneity

Abstract Many studies show that participation in contract farming has positive impacts on farm productivity and incomes. Most of the literature, however, does not take into account that contracts vary in their specifications, making empirical evidence scarce on the diverse impacts of different types of contracts. In this study, we investigate the driving forces of participation in marketing and production contracts, relative to spot markets. We also study the extent to which different contract types add additional benefits to smallholder farmers, using recent survey data of 389 cashew farmers in Ghana. To account for selection bias arising from observed and unobserved factors, we apply a multinomial endogenous switching regression method and implement a counterfactual analysis. The empirical results demonstrate that farmers who participate in production contracts obtain significantly higher cashew yields, cashew net revenues, and are more food secure compared to spot market farmers. We also find substantial heterogeneity in the impact of marketing and production contracts across scale of operation. Small sized farms that participate in production contracts tend to benefit the most. Marketing contracts, however, do not appear to benefit cashew farmers.

scholarly journals Increasing smallholder farmers’ market participation through technology adoption in rural Timor‐Leste

2021 ◽  
Author(s):  
Sonia Akter ◽  
Namrata Chindarkar ◽  
William Erskine ◽  
Luc Spyckerelle ◽  
Julie Imron ◽  
...  
Keyword(s):  
Technology Adoption ◽  
Smallholder Farmers ◽  
Market Participation ◽  
Farmers Market ◽  
Timor Leste

scholarly journals The Impact of Cooperative Membership on Fish Farm Households’ Income: The Case of Ghana

2021 ◽  
Vol 13 (3) ◽  
pp. 1059
Author(s):  
Martinson Ankrah Twumasi ◽  
Yuansheng Jiang ◽  
Bismark Addai ◽  
Zhao Ding ◽  
Abbas Ali Chandio ◽  
...  
Keyword(s):  
Peer Influence ◽  
Household Income ◽  
Sample Selection ◽  
Institutional Arrangement ◽  
Fish Farm ◽  
Farm Income ◽  
Switching Regression ◽  
Farm Work ◽  
Household Heads ◽  
The Impact

The emergence of agricultural cooperatives is extensively viewed as a necessary institutional arrangement that can help farmers in developing countries overcome the constraints that impede them from improving sustainable agricultural production and acquiring new marketing opportunities. Therefore, this study examines the determinants of cooperative membership and its impact on fish farm household income, using data collected from two regions in Ghana. An endogenous switching regression (ESR) model is utilized to address the potential sample selection bias issue. The results show that household heads’ decisions to join cooperatives are affected by their access to credit, off-farm work, education level, and peer influence. Cooperative membership can increase both household and farm income by 28.54% and 34.75%, respectively. Moreover, we show that different groups of households’ cooperative impacts on farm and household income are heterogeneous. Our findings highlight the importance of cooperative patronization and provide implications that can improve households’ welfare.

scholarly journals Does smallholder farmers’ awareness of Sustainable Development Goal 2 improve household food security in the Northern Region of Ghana?

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Franklin Nantui Mabe ◽  
Eliasu Mumuni ◽  
Nashiru Sulemana
Keyword(s):  
Sustainable Development ◽  
Food Security ◽  
Smallholder Farmers ◽  
Northern Region ◽  
Household Food Security ◽  
Switching Regression ◽  
Sustainable Development Goal ◽  
Endogenous Switching Regression ◽  
Development Goal ◽  
Household Food

Abstract Background Sustainable Development Goal 2 aims at ending hunger, achieving food security, improving nutrition and promoting sustainable agriculture. Whilst some smallholder farmers are aware of this goal, others are not. The question that arises is whether or not awareness translates into food security. Therefore, this study assessed whether or not smallholder farmers’ awareness of Sustainable Development Goal 2 improves household food security in the Northern Region of Ghana. Methods The study used cross-sectional primary data collected from two districts and two municipalities in the region. An endogenous switching regression treatment effects model with ordered outcome was used to estimate the effects of smallholder farmers’ awareness of Sustainable Development Goal 2 on household food insecurity level. Results The age of household head, distance of households to the regional capital, membership of farmer-based organizations, access to e-extension, education, and ownership of radio are the key drivers of farmers’ awareness of Sustainable Development Goal 2. The results from the endogenous switching regression treatment effects model with ordered outcome showed that households who are aware of the second goal are more food secure than their counterparts. Conclusions It is therefore prudent for stakeholders promoting and championing Sustainable Development Goals to educate farmers on goal 2 as their awareness of the goal is critical to achieving food security.

scholarly journals Mobile Money, Smallholder Farmers, and Household Welfare in Kenya

PLoS ONE ◽  
2014 ◽  
Vol 9 (10) ◽  
pp. e109804 ◽  
Author(s):  
Enoch M. Kikulwe ◽  
Elisabeth Fischer ◽  
Matin Qaim
Keyword(s):  
Smallholder Farmers ◽  
Household Welfare ◽  
Mobile Money
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