scholarly journals Impact of Participation in Contract Farming on Smallholder Farmers’ Income and Food Security in Rural Benin: PSM and LATE Parameter Combined

2020 ◽  
Vol 12 (3) ◽  
pp. 901 ◽  
Author(s):  
Odountan Ambaliou Olounlade ◽  
Gu-Cheng Li ◽  
Sènakpon E. Haroll Kokoye ◽  
François Vihôdé Dossouhoui ◽  
Kuassi Auxence Aristide Akpa ◽  
...  
Keyword(s):  
Food Security ◽  
Food Consumption ◽  
Large Scale ◽  
Smallholder Farmers ◽  
Average Treatment Effect ◽  
Farm Income ◽  
Security Level ◽  
Negative Consequences ◽  
Contract Farming ◽  
The Impact

Investigated in this work is the impact of contract farming participation on smallholder farmers’ income and food security in rice crop production in Northern Benin using 400 randomly selected rice farmer households. Unlike previous studies, we corrected for both observed and unobserved biases by combining propensity score matching (PSM) and the local average treatment effect parameter (LATE). The results showed significant negative consequences of partaking in rice contract farming. We found evidence of significant negative effects on rice production income at a 1% level. The more the rice farmers join in contract farming, the lower the farm income became. Decreased food consumption was also a result of contract farming participation for potential participants by a score of 60.64, placing their households at the food security status level of poor food consumption because the quantity and nutritional quality of the food consumed were inadequate. Contract farming is, therefore, not a reasonable policy instrument that can help farmers increase their income and improve their food security level in the Alibori Department, Benin if farmers do not diversify their crops. The necessary resources and economic environment are not yet in place to allow contract farming to take full advantage of its potential benefits. To prevent the wasting of scarce public resources, expanding contract farming would not be appropriate in marginal areas with markets and other infrastructure. Additional measures are needed for contract farming to be profitable for contracting actors and to ensure sustainability and the large-scale participation of farmers.

Does contract farming improve rice farmers' food security? Empirical evidence from Ghana

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Reuben Jagri Binpori ◽  
Dadson Awunyo-Vitor ◽  
Camillus Abawiera Wongnaa
Keyword(s):  
Food Security ◽  
Market Access ◽  
Positive Impact ◽  
Smallholder Farmers ◽  
Contract Farming ◽  
Data Set ◽  
Content Type ◽  
Rice Farmers ◽  
Food Security Status ◽  
The Impact

PurposeIn order to improve access to resources for smallholder farmers, efforts are being made to promote contract farming in Ghana. This is seen as a strategy to increase agricultural productivity of farmers, give better market access and guarantee adequate supply of raw materials to agro-based industries. However, the challenge is whether contract farming leads to improvement in food security status of farmers. The study therefore seeks to explore to what extent farmers' food security status is influenced by their participation in contract farming activities.Design/methodology/approachUsing Cragg's double-hurdle model to analyse participation in contract farming, the authors control for selection bias using propensity score matching applied to a data set of 336 observations to examine the impact of contract farming on the food security levels of rice farmers in Ghana.FindingsThe results of this study show that yield of paddy and the wealth of the farmer are the main factors that influence the quantity of paddy rice to be contracted in contract farming arrangements. This study also finds that participation in contract farming will increase food security by 109%. In conclusion, contract farming has a significant positive impact on the farmers' food security status.Originality/valueAgricultural policies and rural development initiatives supporting the promotion and expansion of contract farming should be pursued to persuade more farmers to produce under contract farming agreements.

scholarly journals Does microcredit use helps farmers win battle against food insecurity: evidence from Jimma zone of Southwest Ethiopia

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Amanuel Berhanu ◽  
Abayineh Amare ◽  
Birki Gurmessa ◽  
Yadeta Bekele ◽  
Tamiru Chalchisa
Keyword(s):  
Food Security ◽  
Propensity Score ◽  
Propensity Score Matching ◽  
Smallholder Farmers ◽  
Labour Force ◽  
Household Food Security ◽  
Farm Income ◽  
Household Food ◽  
Jimma Zone ◽  
The Impact

Abstract Background Lack of access to credit precludes smallholder farmers from making investment that generates greater level of income, consumption and wealth. To reverse this limit, Oromia Credit and Saving Share Company has been providing microcredit for rural households for the last two decades in the study area. Yet, there is limited knowledge on the impact of this microcredit service on rural household food security in Jimma zone. Therefore, this research aims at generating location-specific data on the impact of microcredit utilization on household food security in the study area. A multistage sampling procedure was employed to select 360 sample households. Data were generated through household survey, focus group discussion and key informant interview. Both descriptive and econometric data analysis techniques (binary logit model and Propensity score matching) were used. Results The results reveal that educational level, family size; land size and non/off-farm income of the households influenced microcredit utilization positively, whereas livestock ownership and farm income negatively influenced it. The analysis of food security status indicate that large proportion of households are food secure. The Propensity score matching result expose that microcredit utilization has generated a positive and significant impact on household food security. Conclusions Efforts towards scaling out services of microcredit institutions should target improving financial literacy of the rural poor and their current financial need on the basis of other resources such as land and livestock they owned with the ultimate goal of ensuring household food security. It is also imperative to realize the labour force capacity of the households in the process of expanding credit service.

scholarly journals Impact of a Contract Farming Scheme on Income, Food Security, and Nutrition among Maize Farmers in North Western, Nigeria

2021 ◽  
Author(s):  
Ibrahim Hussaini Yusuf ◽  
Garba Sakinatu Umar ◽  
Wahab Munir Jamiu
Keyword(s):  
Food Security ◽  
Simple Random Sampling ◽  
Study Data ◽  
Average Treatment Effect ◽  
Contract Farming ◽  
Maize Production ◽  
Average Treatment ◽  
Total Labor ◽  
Food Security And Nutrition ◽  
The Impact

Background: The study examined the impact of a contract farming scheme on the farmers’ income, food security, and nutrition. Methods: Simple random sampling was used to select 100 respondents for the study. Data were analyzed using descriptive and inferential statistics as well the Propensity Score Matching technique. Results: The major determinants of participation in contract farming included commercialization index, distance from the collection center, and total labor available in the household. The average treatment effect on the treated, the average effect of the treatment, and the average treatment on the untreated shows that contract farming will enhance the income from Maize production by ₦50234.8 ($131.79)/hectare, ₦37170.8 ($97.53)/hectare, and ₦28809.8 ($75.59)/hectare respectively. Conclusion: Contract farming participation can affect farming households negatively if food security concerns are not considered into the contract farming agreements.

scholarly journals Impact of high yielding wheat varieties adoption on farm income of smallholder farmers in Ethiopia

2019 ◽  
Vol 7 (1) ◽  
pp. 45-59
Author(s):  
Regasa D. Wake ◽  
Degye G. Habteyesus
Keyword(s):  
Smallholder Farmers ◽  
Average Treatment Effect ◽  
Farm Income ◽  
Control Groups ◽  
Wheat Varieties ◽  
Cross Sectional ◽  
The Government ◽  
Livestock Productivity ◽  
On Farm ◽  
The Impact

The objective of this study was to assess impact of adoption of high yielding wheat varieties on farm income in Mao-Komo district of Benishangul-Gumuz, Ethiopia. The study used cross-sectional data collected from sample of 174 farm households selected through two-stage stratified random sampling techniques. Descriptive statistics and econometric models were used to analyze the data. Propensity score matching (PSM) applied to analyze the impact of adoption on farm income. The result of the PSM estimation showed that adoption of high yielding wheat varieties has significant impact on farm income of treated households as compared to the control groups. The treated households had earned farm income of about 21452 Ethiopian Birr per year while the untreated smallholders earned farm income of only 11141 Ethiopian Birr. The average treatment effect on the treated (ATT) of farm income of adopters is greater than non-adopters that has brought about 9 % increases in farm income of smallholders. The findings suggest that the government and stakeholders should need to focus on improving farm land and livestock productivity, strengthening the provision of education, and frequency of extension visits, encouraging participation in non-farm activities, creating reliable information and awareness towards farmers’ perceptions, and improving infrastructures in the area. Finally, further support of high yielding wheat varieties adoption should be given due attention for its impact on farm income generation of smallholders. 

scholarly journals Impact of agricultural commercialization on household food security among smallholder farmers in Zhombe North Rural District, Zimbabwe

2021 ◽  
Vol 2 (2) ◽  
Author(s):  
Pamela Madududu ◽  
Willy-Marcel Ndayitwayeko ◽  
Emmanuel Mwakiwa ◽  
Jacqueline Mutambara
Keyword(s):  
Food Security ◽  
Smallholder Farmers ◽  
Average Treatment Effect ◽  
Rural District ◽  
Household Food Security ◽  
Market Participation ◽  
Cross Sectional ◽  
Household Food ◽  
Output Market ◽  
The Impact

Agricultural commercialization is one of the proposed strategies to alleviate the problem of food insecurity in Africa. This paper contributes to the debate on the impact of agricultural commercialization on household food security by assessing the impact of agricultural commercialization on household food security. Cross-sectional data for the 2017/18 farming season was collected from 165 smallholder farmer households in Zhombe North Rural District in Zimbabwe. A propensity score matching model was used for data analysis. Crop output market participation share (COMPS) and crop input market participation share (CIMPS) were jointly used as a proxy of agricultural commercialization of a household. Findings indicated that agricultural commercialization had a positive significant average treatment effect on the treated (ATT) of 5.25 modified food consumption scores on households’ food security. The paper recommends the promotion of agricultural commercialization as a strategy to improve household food security.

scholarly journals Farmers’ Perceptions of Commercial Insect-Based Feed for Sustainable Livestock Production in Kenya

2021 ◽  
Vol 13 (10) ◽  
pp. 5359
Author(s):  
Afrika Onguko Okello ◽  
Jonathan Makau Nzuma ◽  
David Jakinda Otieno ◽  
Michael Kidoido ◽  
Chrysantus Mbi Tanga
Keyword(s):  
Food Systems ◽  
Large Scale ◽  
Principal Component ◽  
Farm Income ◽  
Purchase Decisions ◽  
Wealth Status ◽  
Feed Formulation ◽  
Alternative Protein ◽  
Livestock Products ◽  
The Impact

The utilization of insect-based feeds (IBF) as an alternative protein source is increasingly gaining momentum worldwide owing to recent concerns over the impact of food systems on the environment. However, its large-scale adoption will depend on farmers’ acceptance of its key qualities. This study evaluates farmer’s perceptions of commercial IBF products and assesses the factors that would influence its adoption. It employs principal component analysis (PCA) to develop perception indices that are subsequently used in multiple regression analysis of survey data collected from a sample of 310 farmers. Over 90% of the farmers were ready and willing to use IBF. The PCA identified feed performance, social acceptability of the use of insects in feed formulation, feed versatility and marketability of livestock products reared on IBF as the key attributes that would inform farmers’ purchase decisions. Awareness of IBF attributes, group membership, off-farm income, wealth status and education significantly influenced farmers’ perceptions of IBF. Interventions such as experimental demonstrations that increase farmers’ technical knowledge on the productivity of livestock fed on IBF are crucial to reducing farmers’ uncertainties towards acceptability of IBF. Public partnerships with resource-endowed farmers and farmer groups are recommended to improve knowledge sharing on IBF.

scholarly journals Smallholder Farmers’ Challenges of Coping with COVID-19 Containments: Insights from two food regions in Indonesia

2021 ◽  
Vol 21 (06) ◽  
pp. 18223-18244
Author(s):  
Silke Stöber ◽  
◽  
K Adinata ◽  
T Ramba ◽  
N Paganini ◽  
...  
Keyword(s):  
Food Security ◽  
Large Scale ◽  
Fruits And Vegetables ◽  
Smallholder Farmers ◽  
Observational Research ◽  
Food Groups ◽  
Social Distancing ◽  
Limited Mobility ◽  
Female Farmers ◽  
Price Spikes

The COVID-19 pandemic has forced governments around the world to impose containment measures to prevent the rapid spread of the corona virus. The Indonesian government implemented “large-scale social restrictions,” which have impacted farming and farmers’ food security. Farmers are both producers and consumers of food and, therefore, have been facing new challenges due to transport restrictions, price spikes for inputs, price drops for their produce, or conditions which aggravated cooperation, such as social distancing. This study aims at analysing the challenges of the containments from a smallholder farmer perspective and examining farmers’ coping potential. A digital survey with 323 farmers has been designed as comparative observational research in Toraja, South Sulawesi, and selected regions of Java. The Bonferroni Multiple Comparison Test was used to test for significance regarding socio-economic factors and space. A logistic regression model extracted determinants for crisis coping. Results reveal, that female farmers worry more about COVID-19 outbreak compared to men at a significant level. In contrast, male farmers, particularly in Java, are more concerned about social restrictions due to limited mobility. Food price spikes were reported in both regions, with sharp increases for fish, fruits, and vegetables in Java, for staples in Toraja, and for meat and sugar in both regions. Food groups, that trade through agents and brokers or are transported longer distances were affected most due to their complex and long supply chains that were disrupted during the restrictions. In Java, farmers face multiple shocks, of which climate change was reported even more often than the pandemic related shocks. Not being able to help each other on the farm due to social distancing is a significant concern of farmers in Toraja. As a result of food market disturbances, farmers began to grow and eat more vegetables and fruits. In conclusion, food security for farmers slightly decreased due to affordability, and market disruptions already point to long-term income losses. The study team recommends to promote smallholders’ healthy food production, value addition and direct end-consumer linkages to build back better their livelihoods post-COVID-19.

A Behavioural Explanation of Smallholder Entrepreneurship with Empirical Evidence from KwaZulu-Natal, South Africa

2021 ◽  
Author(s):  
Fortunate Nosisa Zaca ◽  
Edilegnaw Wale ◽  
Unity Chipfupa
Keyword(s):  
Psychological Capital ◽  
Positive Impact ◽  
Smallholder Farmers ◽  
Farm Income ◽  
Tobit Regression ◽  
Entrepreneurial Spirit ◽  
Kwazulu Natal ◽  
Social Grant ◽  
On Farm ◽  
The Impact

Abstract This study aimed to investigate the impact of social grant dependence on on-farm entrepreneurial spirit of smallholders. A sample of 175 farmers was obtained from two communities in KwaZulu-Natal. The study employed Principal Components Analysis and Tobit regression. The entrepreneurial spirit indices were constructed from revealed preference-based questions. The study found a positive relationship between the social grant and on-farm entrepreneurial spirit. The positive impact on rural household farming activities implies that the prevailing low entrepreneurial levels among farmers are not the result of social grant dependence but lack of opportunity and other resource constraints. However, to remain effective, policy should ensure that the grant money benefits (directly/indirectly) the intended beneficiary and their households. The other factors found to be associated with on-farm entrepreneurship include age of the farmer, gender, psychological capital, access to training, access to education, access to land, inadequate farming assets, water insecurity, extension, off-farm income and group membership. The study also recommends the need for strategies that improve psychological capital and thus enhance positive on-farm entrepreneurial behaviour among smallholder farmers. Addressing institutional and farming constraints related to access to resources and services (land, credit, extension, and water) and collective action will positively contribute to on-farm entrepreneurship.

Can Organic Agriculture Feed the Smallholders? Experience from Rural Bangladesh

2021 ◽  
Vol 31 (1) ◽  
pp. 91-107
Author(s):  
M. A. Sarker ◽  
M. Hoque ◽  
A. H. Chowdhury ◽  
Z. Ferdous
Keyword(s):  
Food Security ◽  
Organic Agriculture ◽  
Smallholder Farmers ◽  
Farm Size ◽  
Household Food Security ◽  
Farm Income ◽  
Base Line ◽  
Project Staff ◽  
Household Food ◽  
Safe Food

This study empirically tests the benefit of the smallholders from organic farming in Bangladesh through their improved food security which is realised from their increased productivity and farm income. The respondent smallholders were picked up from two districts of Bangladesh namely Mymensingh and Bogra. The respondents (80) were the beneficiaries of the organic agriculture promotion project of Bangladesh Agricultural University. Three years data were collected by the project staff and were crosschecked with the base line. Findings of the study explored that before joining with the project extreme majority (93%) of the small farmers were involved in rice mono-culture and more than half (67%) of them were food deficit. The study also revealed that at the initial year of joining organic agriculture project their farm productivity was 10–12% lesser and it increased continually in the successive years. In some cases, it crossed the yield compared to conventional farming. The findings of the study showed that 100% of the farmers have followed crop diversification with high value vegetables and spices along with rice. Due to adoption of organic practices, the cost of production of the smallholders has declined from 27% to 36% and additionally they enjoy 10% to 15% premium prices which have enhanced their farm income significantly. The study shows that 62.5% of the smallholder farmers had attained household food security due to adoption of organic agriculture. Thus, adoption of organic agriculture effectively increased smallholders’ access to surplus safe food. However, the study also explored that farm size, extension media contact, access to assured market and access to institutional support are the most important factors in improving smallholders’ household food security through participation in organic agriculture programme. Thus, it can be concluded that organic agriculture can feed the smallholders in a better way.

scholarly journals The Impact of Using Small-Scale Irrigation Motor Pumps on Farmers’ Household Incomes in Ethiopia: A Quasi-Experimental Approach

2020 ◽  
Vol 12 (19) ◽  
pp. 8142
Author(s):  
Wubamlak Ayichew Workneh ◽  
Jun Takada ◽  
Shusuke Matsushita
Keyword(s):  
Rural Areas ◽  
Large Scale ◽  
Irrigation System ◽  
Poverty Rate ◽  
Average Treatment Effect ◽  
Small Scale ◽  
Growth Data ◽  
Canal Irrigation ◽  
The Impact ◽  
Small Scale Irrigation

Sectoral economic growth data in Ethiopia show that the agriculture sector has the lowest growth, which is caused by frequent drought and inefficient technologies, among other factors. As a result, the productivities of land and labor, as well as the income of small-scale farm households, are very low, and rural areas have a relatively high poverty rate. A quasi-experiment was applied to understand the impact of using small-scale irrigation motor pumps on farmers’ livelihood improvement. Specifically, a survey was conducted in 2019 on a sample of 92 small-scale irrigation motor pump and canal irrigation users as the treatment and control groups. The weighted propensity score matching method was applied to eliminate initial differences and adjust sampling proportions across the groups. Based on the average treatment effect on the treated estimation results, we cannot state that the mean income difference in small-scale irrigation motor pump users and canal irrigation system users is different from zero. This indicates that countries with little capital to invest in large-scale irrigation projects can introduce household-level small-scale irrigation motor pumps to improve farmers’ incomes.

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