scholarly journals Does agricultural cooperative membership help reduce the overuse of chemical fertilizers and pesticides? Evidence from rural China

Author(s):  
Tongshan Liu ◽  
Gang Wu

Abstract The overuse of chemical fertilizers and pesticides (CFPs) has negatively impacted the environment and human health. It is an urgent issue that should be addressed. In this study, we investigate whether agricultural cooperatives can serve as an institutional arrangement that helps reduce the consumption of CFPs, using the data of 2012 family farms from the Ministry of Agriculture and Rural Affairs of China. Various approaches, including instrumental variable based two-stage residual inclusion approach (2SRI), endogenous switching probit (ESP) model, and endogenous switching regression (ESR) model, are utilized to help address the endogeneity issues of the cooperative membership variable. The results show that agricultural cooperative membership significantly increases the probability of reducing fertilizers and pesticides of the family farms and improves net return per yuan CFPs. Our findings highlight the importance of promoting the development of agricultural cooperatives to support green agricultural production in China.

2021 ◽  
Vol 2021 ◽  
pp. 1-12
Author(s):  
Zhineng Hu ◽  
Qiong Feng ◽  
Jing Ma ◽  
Shuangyi Zheng

Agricultural cooperatives have been found to effectively alleviate poverty in developing countries because of their specific socioeconomic functions that allow poor households to overcome marketing and production constraints. However, cooperative evaluations are inevitably influenced by other poverty alleviation measures and rarely consider the characteristics of specific ethnic groups. Using cross-sectional surveys in Southwest China and employing propensity score matching (PSM) and endogenous switching regression (ESR) models, this paper analyzed the participation of poor households in New-type Agricultural Cooperatives (NACs) in ethnic areas and assessed the income impacts of NAC membership by eliminating unobserved biases and group heterogeneity. This study detected heterogeneous policy perceptions and behavioral differences between the member and nonmember groups, and the PSM and ESR model results indicated that, overall, participation in the NACs had a positive effect on household income. The ESR model was found to be more plausible as it was able to reveal the significant income gaps under a counterfactual inference framework. Local policymakers need to focus on the policy perception and behavioral and earning capability differences between groups and increase the balanced policy implementation.


2019 ◽  
Vol 46 (5) ◽  
pp. 614-630 ◽  
Author(s):  
Solomon Bizuayehu Wassie ◽  
Hitoshi Kusakari ◽  
Sumimoto Masahiro

Purpose Using a recent rural farm household survey, the purpose of this paper is to investigate inclusiveness and effectiveness of agricultural cooperatives in Ethiopia. Design/methodology/approach The study employs a logit model to examine inclusiveness and an endogenous switching regression (ESR) model to evaluate the effectiveness of agricultural cooperatives. Findings The results show that agricultural cooperatives are less inclusive of land-poor and illiterate households. On the other hand, the estimated results indicate that cooperatives effectively improved agricultural performance and welfare of its member households – i.e. membership in cooperatives increases yield and income by 1.37 quintal/hectare and 1,804 birr, respectively. Moreover, the result shows that marketing cooperatives effectively increased marketed surplus of their members by 34 percent. Research limitations/implications The study has important implications regarding the ways to improve the effectiveness and/or inclusiveness of agricultural cooperatives. Originality/value While accounting for the collective behavior of cooperatives, this study uses multiple outcome variables in examining the effectiveness of cooperatives in Ethiopia. Furthermore, this paper employs the ESR model and accounts for potential problems in estimating impact using non-experimental data.


Agriculture ◽  
2021 ◽  
Vol 11 (9) ◽  
pp. 881
Author(s):  
Da Fang ◽  
Yan Guo

This paper focuses on the impact of a new rural land reform, the Separation of Three Rights Reform, on changes in China’s agricultural production organizations. We illustrate the impact of market and nonmarket mechanisms on allocating agricultural production factors under the new rural land market transition through a land system and factor allocation model. Based on the expansion paths of different types of factors in the model, we classify the development of Chinese agricultural production entities into “extensional expansion,” “labor-intensive expansion,” “land-intensive expansion,” and “exit of agricultural production.” These agricultural production paths correspond to agricultural enterprises, family farms, agricultural cooperatives, and small farmers’ exit. Further, empirical and economic geography analysis results show that the interaction of market and nonmarket mechanisms is the main drive that induces the current diversified organizations in rural China. Thus, this paper provides a comprehensive explanation of changing patterns of an agricultural production organization under the transition of the rural land market.


2019 ◽  
Vol 11 (7) ◽  
pp. 1935 ◽  
Author(s):  
Liqiong Lin ◽  
Weizhuo Wang ◽  
Christopher Gan ◽  
David A. Cohen ◽  
Quang T.T Nguyen

This paper investigates the effects of rural households’ demographic characteristics on formal credit constraint, and explores the relationship between informal and formal lending in rural China. Using 2013 China’s Household Finance survey data, the authors apply probit regression models to investigate the effects of demographic factors on formal credit constraint and the household’s decision to borrow from informal credit sources. In addition, the endogenous switching regression model is applied to evaluate the impact of credit constraint on the welfare of rural farm households. The empirical evidence confirms that age, family size, annual household nonagricultural income, level of education, and history of informal borrowing have significant influence over credit constraint. Moreover, annual household nonagricultural income, the presence of children, borrowing from social networks and monthly communication expenses significantly impact rural households’ decision to utilise informal borrowing. Results from the endogenous switching regression model suggest that credit constraint by formal credit sources has no impact on household consumption.


2019 ◽  
Vol 11 (11) ◽  
pp. 3221 ◽  
Author(s):  
Liqiong Lin ◽  
Weizhuo Wang ◽  
Christopher Gan ◽  
Quang T. T. Nguyen

This study investigates the effect of demographic factors on formal and informal borrowing households in rural Fujian Province. The study tests whether credit constraint affects rural farmers’ welfare in the studied region, using a probit regression and endogenous switching regression model to analyse data collected in 2017 from 960 farm households. Analysis shows that age, poverty, household size, and farmland size operate to constrain credit in formal borrowing. Results also indicate that level of education, farm land size and age have significant impacts on rural household borrowing from informal sources. The results from the endogenous switching model approach suggest that credit constraint does have a significant impact on rural farmers’ consumption and welfare in Fujian province.


2018 ◽  
Vol 13 (1) ◽  
Author(s):  
Reza Hendriyantore

The effort to put good governance in development in Indonesia is basically not new. Since the Reformation, the transformation of closed government into an open government (inclusive) has begun to be pursued. Highlighting the conflicts in the land sector that tend to strengthen lately, there are some issues that have intensified conflicts in the field, such as the lack of guaranteed land rights in various legal and policy products. In this paper, a descriptive method is considered important in identifying the applicable issue and methodological framework for addressing governance issues in Indonesia. To reduce such agrarian conflicts between farmers and the government, and as an effort to increase farmers' income, all farmers are incorporated into agricultural cooperatives. Agricultural cooperatives are structured down to the National Level. Thus, farmers participate in good access to the marketing of agricultural produce.Keywords:good governance, agrarian conflict, agricultural cooperative


2021 ◽  
Vol 13 (3) ◽  
pp. 1059
Author(s):  
Martinson Ankrah Twumasi ◽  
Yuansheng Jiang ◽  
Bismark Addai ◽  
Zhao Ding ◽  
Abbas Ali Chandio ◽  
...  

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.


2021 ◽  
Vol 9 (3) ◽  
pp. 462
Author(s):  
Roni Mustofa ◽  
Dyah Aring Hepiana Lestari ◽  
Muhammad Irfan Affandi

This study aims to analyze the economic benefits, income of rice farming, allocation of credit usage and analyze the factors affecting the chances of the smoothness rate of return at Seandanan Agricultural Cooperatives. The research is conducted at Seandanan Agricultural Cooperative in Pesawaran Regency, Lampung Province, which is determined intentionally.  The research data were taken in July 2019.  This study uses a case study method.  Respondents in this study are 70 rice farmers member of Seandanan Agricultural Cooperative. The data analysis method use descriptive qualitative and quantitative analyses. The results showed that the economic benefits received by members of cooperative in one year is IDR1,711,312.47 and in high category. The average income of rice farming received by members of the Seandanan Agricultural Cooperative in one year has been classified as high, in the amount over cash costs and over total costs, respectively, of IDR17,308,552.78 and IDR16,416,268.56.  Allocation of credit of cooperative membersconsistd of 58.85% for productive activities and the rest, 41.15% for consumptive activities.  Factors that affect the chances of the smoothness rate of credit return by rice farmers members of Seandanan Agricultural Cooperative are the education level of farmers and the allocation of productive credit usage.Key words: agricultural cooperatives, consumptive, credit, and productive


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