scholarly journals Is change worth it? The effects of adopting modern agricultural inputs on household welfare in Rwanda

2021 ◽  
Vol 16 (3) ◽  
pp. 216-236
Author(s):  
Aimable Nsabimana ◽  
Keyword(s):  
Market Access ◽  
Driving Forces ◽  
Farm Income ◽  
Household Welfare ◽  
Switching Regression ◽  
Adoption Decision ◽  
Advisory Services ◽  
Effective Dissemination ◽  
Farm Credit ◽  
Household Farm

This study investigates the driving factors that influence farmers’ decisions to adopt modern agricultural inputs (MAI) and how this affects farm household welfare in rural Rwanda. To account for heterogeneity in the MAI adoption decision and unobservable farm and household attributes, we estimate an endogenous switching regression (ESR) model. The findings reveal that size of land endowment, access to farm credit and awareness of farm advisory services are the main driving forces behind MAI adoption. The analysis further shows that MAI adoption increases household farm income, farm yield and equivalised consumption per capita. This implies that adopting MAI is the most consistent and potentially best pathway to reduce poverty among rural farmers. The study hence suggests that policymakers should align the effective dissemination of MAI information and farm advisory services, strengthen farm credit systems and improve market access – most crucially at affordable prices – among small-farmers throughout Rwanda.

Credit constraints and their impact on farm household welfare

2016 ◽  
Vol 43 (8) ◽  
pp. 782-803 ◽  
Author(s):  
Minh Chau Tran ◽  
Christopher E.C. Gan ◽  
Baiding Hu
Keyword(s):  
Transaction Cost ◽  
Credit Constraints ◽  
Credit Rationing ◽  
Farm Households ◽  
Farm Income ◽  
Farm Household ◽  
Household Welfare ◽  
Switching Regression ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to identify factors affecting formal credit constraint status of rural farm households in Vietnam’s North Central Coast (NCC) region. Design/methodology/approach – Using the direct elicitation method (DEM), the authors consider both internal and external credit rationing. Findings – Empirical evidences confirm the importance of household head’s age, gender and education to household’s likelihood of being credit constrained. In addition, households who have advantages in farm land size, labour resources and non-farm income are less likely to be credit constrained. Poor households are observed to remain restricted by formal credit institutions. Results from the endogenous switching regression model suggest that credit constraints negatively impact household’s consumption per capita and informal credit can act as a substitute to mitigate the negative influence of formal credit constraints. Research limitations/implications – One limitation arises from the usage of the DEM to identify credit constrained households. The method cannot detect effective and ineffective constraints. Another limitation is the inability of cross-section data to capture long-term impacts of credit constraints on household welfare. Finally, causes of credit constraints from the lender’s view cannot be observed. Practical implications – The results suggest that it is necessary to enhance the credit allocation regime to reduce the transaction cost and provide target households with sufficient credit. It should be emphasized that high transaction cost and the mismatch between credit demand and supply stemming from information asymmetry. The government can help formal financial institutions to reduce information cost by encouraging the active role of social organizations such as Women Unions, Youth Unions and Veteran Unions in bridging rural farm households with formal lenders. Originality/value – There are limited studies focusing on determinants of credit constraints and their impacts on rural farm households. To the best of the knowledge, there is no study evaluating the impact of credit constraints on rural farm household welfare particularly in Vietnam. In addition, the studies related to credit constraints only considered full quantity rationing (households applied for the loan but were rejected), omitting the case of partly quantity rationing (loan obtained by the borrowers is less than their demand) and self-rationing.

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 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 The Impact of Agricultural Technologies on Poverty and Vulnerability of Smallholders in Ethiopia: A Panel Data Analysis

2020 ◽  
Vol 147 (2) ◽  
pp. 517-544 ◽  
Author(s):  
Wubneshe Dessalegn Biru ◽  
Manfred Zeller ◽  
Tim K. Loos
Keyword(s):  
Panel Data ◽  
Unobserved Heterogeneity ◽  
Panel Data Analysis ◽  
Probit Model ◽  
Special Focus ◽  
Switching Regression ◽  
Agricultural Technologies ◽  
Adoption Decision ◽  
Vulnerable Households ◽  
The Impact

AbstractMany studies evaluating the impact of adoption on welfare focused on adoption of a single technology giving little attention on the complementarity/substitutability among agricultural technologies. Yet, smallholders commonly adopt several complementary technologies at a time and their adoption decision is best characterized by multivariate models. This paper, therefore, examines the impact of multiple complementary technologies adoption on consumption, poverty and vulnerability of smallholders in Ethiopia. The study used a balanced panel data obtained from a survey of 390 farm households collected in 2012, 2014 and 2016. A two stage multinomial endogenous switching regression model combined with the Mundlak approach and balanced panel data is employed to account for unobserved heterogeneity for the adoption decision and differences in household and farm characteristics. An ordered probit model is used to analyze the impact on poverty and vulnerability. We find that the adoption of improved technologies increases consumption expenditure significantly and the greatest impact is attained when farmers combine multiple complementary technologies. Similarly, the likelihood of households to remain poor or vulnerable decreased with the adoption of different complementary technologies. We therefore conclude that the adoption of multiple complementary technologies has substantial dynamic benefits that improve the welfare of smallholders in the study area, and given the observed low level of adoption rates, we suggest that much more intervention is warranted, with a special focus on poorer and vulnerable households, to ensure smallholders get support to improve their input use.

Farm and lender structural change: implications for federal credit

2017 ◽  
Vol 77 (1) ◽  
pp. 78-94 ◽  
Author(s):  
Charles B. Dodson ◽  
Bruce L. Ahrendsen
Keyword(s):  
Land Tenure ◽  
Commodity Price ◽  
Farm Size ◽  
Farm Income ◽  
Service Agency ◽  
Credit System ◽  
Content Type ◽  
Farm Credit ◽  
Size Groups ◽  
Guaranteed Loans

Purpose The purpose of this paper is to examine changes in the structures of US farms and lenders and identify prospective implications for federal credit. Design/methodology/approach Data from US farm operations for 1996-2014 were adjusted to 2014 values using commodity price indices. Farm size groups were constructed by value of farm production to analyze changes in farm numbers, production, assets, debt, leverage, liquidity, profitability, land tenure, commodity type, contract production, organization type, and use of Farm Service Agency (FSA) direct and guaranteed loans by farm size. Bank, Farm Credit System (FCS), and FSA data from 1996 to 2015 were adjusted to 2014 values. Lender size groups were constructed to analyze changes in bank and association numbers, farm loans, and use of FSA guaranteed loans by lender size. Findings The greatest consolidation has been by farms with over $2 million in production. More farm debt is held by large, complex organizations, frequently with multiple operators, more variable income, and greater reliance on production contracts and operating and nonreal estate credit. Large farms have greater leverage, are more profitable, and have a larger share of household income from the farm. Banks and FCS institutions are fewer and larger, yet smaller institutions use FSA guarantees to a greater extent. Larger farms tend to be more reliant on both direct and guaranteed FSA loans and are likely to become more dependent on FSA credit. Originality/value Changing farm and lender structure together with softening farm income may require FSA farm loan program changes to meet any increase in loan demand. Policy alternatives are provided to meet changing demand for farm credit.

scholarly journals Estimation of the Effect of Cassava Commercialization on Different Household Income Measurements in Kilifi County, Kenya

2020 ◽  
Vol 13 (1) ◽  
pp. 44
Author(s):  
Florence Opondo ◽  
George Owuor ◽  
Patience Mshenga ◽  
Andre Louw ◽  
Daniel Jordan
Keyword(s):  
Household Income ◽  
Household Head ◽  
Value Added ◽  
Household Survey ◽  
Climatic Conditions ◽  
Farm Income ◽  
Switching Regression ◽  
Development Discourse ◽  
Per Capita ◽  
Cassava Crop

The transformation of agricultural production from subsistence to commercially oriented outcomes is a topical matter in the rural and socio-economic development discourse. Cassava crop is being promoted for commercialization because of its tolerance to harsh climatic conditions experienced in arid and semi-arid areas. Furthermore, there is high potential for the tuber crop to improve household income. In Kenya, a number of interventions have been directed towards commercializing cassava. The effect of commercialization on household income has not been established. Distinct from other studies, this study estimated the effect of cassava commercialization on three different income measures namely per capita, annual and per acre revenue. A household survey was conducted in Kilifi County in Kenya where 200 respondents were randomly selected. Data was collected using a structured questionnaire. A two-stage endogenous switching regression model was fitted to determine the effect of commercialization on the different income measures. The proportion of households that commercialized was 69% while the remaining 31% did not. The study found that majority of the households marketed low value-added cassava products. The results reveal that farmers who engaged in cassava commercialization enjoyed relatively more income than their counterparts. Off-farm income, age of the household head and distance to market had a negative significant influence in all the income estimates. Group membership was only significant for the per acre income while household size was negative and statistically significant in both per acre and per capita incomes. Findings point out the importance of promoting policies that will enhance cassava commercialization.

scholarly journals ANALISIS STRUKTUR DAN DISTRIBUSI PENDAPATAN RUMAH TANGGA SERTA TINGKAT KESEJAHTERAAN ANGGOTA KOPERASI SERBA USAHA PETERNAK MOTIVASI DOA IKHTIAR TAWAKKAL (KSUP MDIT) DI KECAMATAN GISTING KABUPATEN TANGGAMUS

2018 ◽  
Vol 6 (1) ◽  
pp. 95
Author(s):  
Fikri Syahputra ◽  
Dyah Aring Hepiana Lestari ◽  
Fembriarti Erry Prasmatiwi
Keyword(s):  
Income Distribution ◽  
Household Income ◽  
Secondary Data ◽  
Primary Data ◽  
Farm Income ◽  
Household Welfare ◽  
Distribution Analysis ◽  
On Farm ◽  
Positive Effect

This study aims to analyze the household income’s structure and distribution, and the household welfare level among cooperatives members, in addition to analyze factors that affected the household welfare of cooperative members. This research employed case study method.  The data was collected from September to October 2016.  The research respondents were 55 people who were all members of KSUP MDIT.  The data was consisted of primary and secondary data. Primary data was obtained by observation and interview; while secondary data was obtained  from the agencies and literatures associated with the study.  The data was analyzed by income analysis, income distribution analysis, welfare analysis and binnary logistic regression analysis. The result showed that the biggest member of cooperative member's household income structure in the latest year was non livestock earnings of On Farm followed by non farm income, goat business income and off farm income.  Distribution of household member income of cooperatives were in low inequality. Based on Socio Metrix indicator, 70.91% cooperative members’ households were included in prosperous category and the remaining 29.09% were not prosperous and old variables of education, length of membership, and household income have a positive effect on welfare level.Key words: distribution income, prosperity of members, income

scholarly journals Analysis of Arable Farmers Agroforestry Practices in Bokkos Local Government Area, Plateau State, Nigeria

2021 ◽  
Vol 8 (2) ◽  
pp. 161-170
Author(s):  
Onuwa G.C ◽  
Adepoju A.O ◽  
Mailumo S.S
Keyword(s):  
Crop Production ◽  
Negative Impact ◽  
Soil Improvement ◽  
Sustainable Land Use ◽  
Farm Income ◽  
Extension Services ◽  
Adoption Decision ◽  
Home Gardening ◽  
Agroforestry Adoption ◽  
Agroforestry Practices

The need to increase arable crop production to keep pace with food demands for a growing population without degrading ecosystems can only be achieved through adoption of agroforestry. Agroforestry practices help to achieve food security, biodiversity, conservation and land sustainability. The 94 famers were chosen using a multistage sampling process. Descriptive and inferential statistics were used to analyze the data. Most (74%) of respondents practiced home gardening. The significant benefits derived from agroforestry were; food/fruits (97%) and soil improvement/conservation (88%). The mean adoption index was 0.27. The log-likelihood obtained from Tobit was 67.92 indicating that the independent variables significantly explained the variation in the farmer’s adoption decision. Educational level (β=0.426) and farm experience (β=0.597) were both positive and statistically significant at ρ˂0.05; farm income (β=0.568) was significant at ρ˂0.01, and extension contact (β=-0.887, ρ˂0.01) was negative and had a negative impact on agroforestry adoption. The constraints affecting the practice of agroforestry among arable farmers were; poor policies, inadequate extension services, insufficient improved tree species among others. The study recommends intensification of extension services and provision of incentives to farmers to promote agroforestry adoption to achieve increased food production and sustainable land-use systems.

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