Economies of diversification and stochastic dominance analysis in French mixed sheep farms

Farm diversification is mainly driven by risk mitigation effects and economic gains related to complementarities between production activities. By combining these two aspects, we investigate diversification economies in a sample of French mixed sheep farming systems and rank these systems using stochastic dominance criteria. Partially diversified systems (Sheep-Grass, Sheep-Crop, Sheep-Landless) and fully diversified systems (Sheep-Grass-Crop-Landless) were evaluated. We find a high degree of diversification diseconomies in the sheep farming systems considered. The results also indicate that the fully diversified system is driven by its risk-reducing effects (including downside risk exposure) and that Sheep-Crop is the dominant system in terms of risk-adjusted returns.

Farm diversification efforts, (open) innovation networks and performance: what is the connection?

PurposeBased on farm diversification's conventional and unconventional nature, the study intends to discriminate different profiles of farm diversification businesses. Furthermore, this study analyses the links between farm diversification efforts, (open) innovation networks as well as the environmental performance (EP) and financial performance (FP) of farms.Design/methodology/approachA questionnaire was administered through personal interviews with 160 fresh fruit farmers in an inland Portuguese region. Linear regression, latent class analysis (LCA) and multinomial logistic regression were used.FindingsThere are significant differences between the levels of diversification, performance and participation in (open) innovation networks of the three classes of farmers discriminated. Different types of diversification efforts and (open) innovation networks influence EP and FP, while FP and R&D projects are associated with the likelihood of being part of a farm diversification class. Moreover, this study shows that innovation networks, promoted by specialized agricultural advisors and R&D projects, are important forms of open innovation in the agricultural sector.Research limitations/implicationsThe study contributes to understanding the agricultural sector's diversification efforts and (open) innovation networks and their association with EP and FP. The conventional or unconventional nature of farm diversification was self-reported.Practical implicationsEuropean and local institutions are advised to develop more R&D programs directed to farmers, including environmental and financial issues, besides comprising agricultural and non-agricultural diversification.Originality/valueThis study provides new insights to understand the association between diversification efforts, (open) innovation networks and agricultural businesses' performance.

Highlighting the Drivers of Italian Diversified Farms Efficiency: A Two-Stage DEA-Panel Tobit Analysis

Farm diversification is an important phenomenon in agricultural systems and rural development in Europe, pursuing economic, social and environmental goals. For the sustainability of diversified farms, it is important to analyse some drivers affecting farm efficiency, for instance, socio-economic, technical and policy drivers. The efficiency performance of a panel of Italian farms practising other gainful activities in the period 2012–2017 was investigated and regressed against the drivers that mostly affects farm performances. FADN data and a two-step approach were used. An output-oriented Data Envelopment Analysis was applied; in the second step, efficiency scores were used as a dependent variable in a panel Tobit regression analysis used to determine differences in the significance of drivers. Social, economic, technical and policy drivers were considered as explanatory variables. Results show margins for improving farms performances. The incidence of the output from other gainful activities has been proven to positively affect farms efficiencies, while intermediate costs are the most negatively impacting factor. As regards policy variables and implications, the significance of localization in mountain disadvantaged territories further supports the relevance of EU subsidies in less-favoured areas. Managerial implications in terms of technical, structural and economic indicators can be drawn from study findings.

On- and Off-Farm Diversification and Travel Time to Markets: Linkages to Food Security in Rural Ethiopia

Food insecurity persists in large parts of Ethiopia. Recent literature suggests that both on-farm and off-farm diversification, as well as access to agricultural markets, may help improve household dietary diversity scores (HDDS) as an indicator for food and nutrition security. While the HDDS is frequently used, a diversity score for the production side has rarely been applied at a comparable level of (dis-)aggregation. Employing socio-economic data collected covering 400 Ethiopian smallholder farmers, this study investigates how the travel time to markets, non-farm income, and on-farm production diversity associate with household food and nutrition security. Findings suggest that production diversity and higher non-farm income are linked to more diverse diets. With longer travel time to markets, food consumption is less varied. Production diversity and increased market participation do not appear to be mutually exclusive, and thus, should be considered equally when developing policy interventions.

Effectiveness of non-farm diversification on rural household income – evidence and policy implications from India

Purpose Doubling farming households’ income through occupational diversification to the non-farm sector has been advocated to be of paramount importance in an agrarian economy such as India. The purpose of this paper is to analyse the effects of non-farm activities on rural household incomes in four different Indian states by using a propensity score matching technique and developing an endogenous switching model. Design/methodology/approach The research is based on secondary data taken from four quinquennial rounds of employment and unemployment surveys conducted by the National Sample Survey Organization. Findings The matching results indicate a maximum monthly rise in per capita income of Rs. 60 in Gujarat and a minimum increase of Rs. 18 in Rajasthan among rural households employed in the non-farm sector as compared to the farm sector. The findings confirm that rural non-farm structural diversification cannot be viewed as a blueprint for increasing rural household incomes in different states. Further, it suggests the need to segmenting the different states on the basis of agricultural development for increasing rural incomes. Research limitations/implications The study argues that Indian states with a strongly developed farm sector i.e. Gujarat and Punjab are not ideally suited to undergo structural changes in their economic pursuit. The estimates suggest that the transition of rural households from farm to non-farm-sector activities is a very weak strategy in agriculturally developed states of Gujarat and Punjab, whereas non-farm diversification becomes a pivotal strategy for increasing rural household incomes in less agriculturally developed states such as Rajasthan and Uttar Pradesh. A contrasting point that arises from these evidence is that although diversification to the non-farm sector leads to higher income, but the resultant figures are very scanty. Originality/value The present study contributes to the existing literature by providing evidence and policy implications on rural non-farm diversification in India and its impact on the rural household income. The study can help the policymakers in framing policies aiming at increasing the income of the rural household through the structural transition of the rural economy.

Household Resilience to Food and Nutrition Insecurity in Central America and the Caribbean

Latin American and Caribbean countries, affected mainly by extreme climatic events, are heterogeneous in farming practices and the relevance of critical determinants of resilience. This paper fills the knowledge gap and informs on the application of the Resilience Index Measurement and Analysis version II (RIMA-II) for estimating Resilience on Food and Nutrition Security Indicators (FNSI) in five vulnerable countries in Central America and the Caribbean: Costa Rica, El Salvador, Guatemala, Honduras, and the Dominican Republic. Already-collected information on food consumption and social and economic dimensions, depicting key determinants or “pillars” as defined by RIMA-II methodology, is the basis for developing several models on FNSI. These findings are baselines for subnational territories and country-specific inputs for monitoring and enhancing Food and Nutrition Security Indicators. This paper fills three critical gaps in the literature on resilience. It presents cross-country data-driven evidence, highlighting consistencies and discrepancies by analyzing data on otherwise unexplored Latin American and Caribbean countries. It suggests the country-specific approach of resilience measurement for heterogeneous contexts. In addition, it provides policy indications to support the role of farm diversification in promoting household resilience.

Catastrophic Risks Management via Livelihood Diversification From Flood-prone Areas of Punjab, Pakistan

Agricultural lower productivity regardless of significant agricultural policy measures is considered major issue in mostly developing countries like Pakistan. These policies first and foremost focused on-farm development whereas the rich aspect of off-farm diversification is mostly overlooked. In mitigating climate change unpleasant impacts and dipping hunger, small farmers’ livelihood diversification performs considerable role. This study aimed to investigate the diversification of livelihood to managing catastrophic risks in rural farmers of Punjab, Pakistan. This research work used the data of 398 flood prone households from two higher risk flood prone districts of Punjab and employed logistic regression model for empirical estimation of the study. In managing catastrophic risks, majority of respondents almost 57% put into practice off-farm diversification of livelihood strategies whereas 44.5% adopted on-farm livelihood diversification strategies. Empirical estimates of logistic model illustrated as demographic, socioeconomic, risk perception and institutional characteristics considerably affect the farmers’ preference of diversification of livelihood. Results also highlighted the accessibility of inadequate labour force, poor roads and market infrastructure, be short of credit access, inadequate institutional support, restricted training and skills, limited natural resources and climate uncertainties and risks are some significant constraints in adopting the livelihood diversification in the study area. This research work advocated the necessitate for forcefully adoption the policies of climate change such as getting better services access, focus training initiatives, improved infrastructure and increasing institutional assistance. State based adoption of accurate policy measures and suitable deliberation so as to promote livelihood diversification as a part of enhancing national jobs to get better numerous livelihoods and save lives, as small farmers’ livelihood possibly will improve.

MODELLING ON-FARM DIVERSIFICATION THROUGH PORTFOLIO OPTIMIZATION AND GOAL PROGRAMMING: A CASE STUDY FROM BOLIVIA

Modern Portfolio Theory provides a theoretical framework for agricultural risk reduction. Powerful yet accessible tools have been developed to optimize scarce capital/labor allocation to increase returns and reduce correlated risks via diversification. Such tools are used to assess rural livelihood diversification induced by an incentive-based program for watershed conservation piloted between 2003 and 2011 in a context of rural poverty in Bolivia. The tools assembled and tested in this study may provide low-cost diagnostics to improve implementers’ understanding of risks and returns in a specific rural context. Comparing alternative portfolio frontiers may represent a useful and transformative tool to understand socio-ecological systems such as watersheds, facilitating regime shifts that benefit ecosystem services and livelihoods.

Farming Systems Changes in the Urban Shadow: A Mixed Approach Based on Statistical Analysis and Expert Surveys

Due to the growth of the “urban shadow”, farming systems in metropolitan areas (MAs) are characterized by specific environmental, economic, and social pressures. Urbanization pressure and its related threats, as well as the opportunities resulting from a convenient location close to consumers’ markets, cause rapid farming systems changes. The present study provides a quali-quantitative overview of change in farming systems in selected Polish metropolitan areas. Various statistical methods were applied to analyze changes in farming systems. First, farming system changes were characterized for the study area by the exploratory factor analysis. In addition, experts’ opinions (qualitative data) on changes in farming systems until 2027 are presented. The research conducted showed that there are a few main patterns in changes to/adaptations of farming systems: Horizontal growth of farms, farmland concentration, process of specialization (horticulture, orchards), trajectories towards more multifunctional farming practices (off-farm diversification, as well as “deepening” and “broadening” strategies), reduction of livestock farming, deintensification and farmland abandonment. Those processes vary in space, and they are only partially explained in terms of distance to the core city (location). Experts forecast that the identified trends will continue, paying attention to the growing importance of multifunctional agriculture and the intensification of recessive processes, including farmland abandonment and excessive deintensification of production. According to the experts surveyed, most farmers will continue to apply traditional development strategies, which will be ineffective without the possibility of increasing the area of farms.