{"title":"Technical and environmental inefficiency measurement in agriculture using a flexible by‐production stochastic frontier model","authors":"Ioannis Skevas","doi":"10.1111/1477-9552.12619","DOIUrl":"https://doi.org/10.1111/1477-9552.12619","url":null,"abstract":"In light of the urgent need for farms to mitigate greenhouse gas emissions while maintaining economic viability, this paper analyses technical and environmental inefficiencies and their determinants based on a flexible multi‐equation by‐production stochastic frontier model, which accounts for the stochastic dependence between good and bad outputs via a copula function. An empirical application to Dutch dairy farms illustrates the distortions in the inefficiency scores and in the estimates of their determinants that occur when the dependence between good and bad outputs is ignored. The empirical results indicate a strong positive dependence between the good output (milk) and the bad output (methane emissions), which is particularly pronounced in the upper tail of the distribution. Notably, farms exhibit high efficiency in maximising their good output and minimising their bad output. Subsidies are negatively related to good output inefficiency but positively related to bad output inefficiency, while stock density exhibits a negative association with inefficiencies in both outputs. Disregarding output dependence leads to distortions in inefficiency estimates, particularly affecting the estimates for their determinants.","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"11 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-11-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142610208","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The economic potential for area‐yield crop insurance: An application to maize in Ghana","authors":"Ashish Shenoy, Mira Korb","doi":"10.1111/1477-9552.12618","DOIUrl":"https://doi.org/10.1111/1477-9552.12618","url":null,"abstract":"Rainfall index insurance can enable farm households to manage production risk, but demand in developing countries remains low at market prices, in part because the insurance trigger may not correlate well with individual farm losses. Area‐yield crop insurance, which links payouts to average yield in a geographic zone, attempts to increase demand by more accurately targeting insurance payouts to production shortfalls. However, shifting from an exogenous weather‐based to an endogenous yield‐based index introduces concerns of asymmetric information, which can lead to market failures that constrain supply from providers. These features are inversely related: larger insurance zones inhibit index manipulation, but average yield is less informative about any individual plot. We quantify this tradeoff for maize in Ghana using a spatial yield model calibrated to match observed production. Insurers must demarcate zones of no more than 5000 farmers for area‐yield insurance to outperform weather insurance. The framework presented in this paper allows assessment of the relationship between index performance and asymmetric information in new crop insurance products.","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"132 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-10-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142536598","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Commercialisation, exogenous shocks and nutrition: Evidence from smallholder farmers in Bangladesh","authors":"Jaweriah Hazrana, Ashok K. Mishra","doi":"10.1111/1477-9552.12616","DOIUrl":"https://doi.org/10.1111/1477-9552.12616","url":null,"abstract":"This study empirically analyses the effect of agricultural commercialisation on food spending and nutrition outcomes in Bangladesh. We examine whether exposure to exogenous climate shocks moderates these relationships. We construct individual‐level nutrition measures and time‐varying climate extremes using nationally representative panel data. To address endogeneity concerns, we use an instrument variable approach. Results show that commercialisation leads to an improvement in the broad nutritional profile of individuals. However, the commercialisation–nutrition linkage is weaker for households exposed to frequent climate shocks than those in climate‐resilient areas. Importantly, climate shocks dampen the positive nutritional impacts of commercialisation and exacerbate existing inequalities in the nutritional status within the households. Women and girls appear disproportionately vulnerable to the nutrition‐weakening effects of weather stresses in commercialised agricultural households. This highlights twin policy challenges: strengthening smallholders' resilience to escalating climate risks alongside promoting gender‐equitable, nutrition‐sensitive agricultural commercialisation.","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"96 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-10-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142490648","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Adoption of agronomic practices and their impact on crop yield and income: An analysis for black gram and green gram in India","authors":"Poornima Varma, Julius Manda","doi":"10.1111/1477-9552.12617","DOIUrl":"https://doi.org/10.1111/1477-9552.12617","url":null,"abstract":"Black gram and green gram are important pulse crops in India, but their production has faced fluctuations and stagnancy in yields over the last few decades. The Government of India has implemented several measures to enhance crop yield, including recommending and promoting the adoption of crop‐specific agronomic practices. However, there is limited empirical evidence on the determinants of the adoption of these practices and their impact on yield and income. In this context, this study analyses the determinants of the adoption of climate and plant management practices among black gram and green gram farmers and their impact on yield, crop revenue and net income across four major crop‐producing Indian states using a multinomial endogenous treatment effects model. Our analysis shows that information, contact with government extension services and access to off‐farm activities are crucial in adopting climate and plant management practices. The results strengthen the view that the adoption of knowledge‐intensive practices happens via formal information sources and plot‐level demonstrations. In addition, the results indicate that farmers who experience frequent crop loss exhibit an aversion towards adopting climate and plant management practices. While adopting these practices had a positive impact on crop yield and crop revenue, the impact on net income was observed only in the case of climate management.","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"44 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-10-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142489481","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"From informal farmland rental to market‐oriented transactions: Do China's Land Transfer Service Centers help?","authors":"Pengfei Fan, Ashok K. Mishra, Shuyi Feng, Min Su","doi":"10.1111/1477-9552.12615","DOIUrl":"https://doi.org/10.1111/1477-9552.12615","url":null,"abstract":"Farmland rental markets are important in production agriculture. Informal farmland rental markets have taken root in Chinese agriculture. However, farmland rental markets need to be transparent for increased efficiency and smooth functioning. This study uses three waves of nationally representative panel data and a difference‐in‐differences framework to examine the effect of China's Land Transfer Service Centers (LTSCs) on market‐oriented farmland transfers. The result indicates that LTSCs enhance farmland transfer marketisation, encouraging landowners to rent their land to large‐scale operators, engage in fixed‐term contracts and charge pecuniary rents. However, the LTSCs' “discrimination” against smallholders may limit their impact on the overall market. Additionally, LTSCs have weaker effects in villages with large clans and stronger effects in villages with bank outlets. The results illustrate the potential value of intermediary service organisations (ISOs) in land rental markets.","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"20 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-09-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142328699","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Farmers' cooperation to improve water quality under scientific uncertainty: A lab‐in‐the‐field experiment","authors":"Simone Angioloni, Simone Cerroni","doi":"10.1111/1477-9552.12614","DOIUrl":"https://doi.org/10.1111/1477-9552.12614","url":null,"abstract":"Cooperation amongst natural resource users is key to manage ecosystems sustainably and achieve environmental goals proposed by policy and regulations. This paper focuses on the impact that livestock farming can have on the quality of a water body and investigates farmers' willingness to cooperate to preserve water quality under two different sources of uncertainty and four different degrees of uncertainty. The first source relates to the level of water quality that must be guaranteed in a river catchment to avoid irreversible deterioration of aquatic ecosystems (threshold uncertainty, i.e. with catastrophic consequences). The second source relates to the financial losses that farmers will experience in the long run if they fail to cooperate (impact uncertainty). To this end, a lab‐in‐the‐field experiment was conducted with livestock farmers of Northern Ireland. A local public good game with threshold uncertainty was framed around an agri‐environmental scheme designed to create ungrazed buffer zones for water quality preservation. Results indicate that uncertainty generally hampers farmers' cooperation and the provision of information geared to reduce uncertainty enhances it. Impact uncertainty has a milder negative impact on cooperation than threshold uncertainty. Risk preferences and probability weighting do not influence cooperation, while loss aversion has an influence on cooperation.","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"22 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-09-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142328748","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Effects and mechanisms of armed conflict on agricultural production: Spatial evidence from terrorist violence in Burkina Faso","authors":"Wendata A. Kafando, Takeshi Sakurai","doi":"10.1111/1477-9552.12613","DOIUrl":"https://doi.org/10.1111/1477-9552.12613","url":null,"abstract":"Extensive studies have been conducted on the link between armed conflict and agricultural production. However, the underlying mechanisms remain underexplored. A better understanding of these mechanisms could unpack the subsequent effects of conflict‐induced food and welfare shortages, as well as identify promising policy interventions. We study the effects of terrorist violence on household agricultural production in Burkina Faso and explore the underlying mechanisms. To achieve this, we combine nationally representative five‐year panel data on plots and households with spatial conflict data. Our analysis reveals negative and significant effects of terrorist violence on agricultural productivity and total output. Despite reducing cereal crop output, increased intensity of terrorist violence is significantly associated with higher production of cash crops, which require fewer inputs in Burkina Faso. Further investigations uncover that the decline in household agricultural productivity results from a significant decrease in the number of farming plots, land size, and short‐term production investments, including chemical fertilisers and pesticides. These findings remain robust across various alternative empirical specifications and measures of violence, offering insights that can help policymakers faced with similarly scaled armed conflict. For instance, ensuring a secure environment and providing reliable access to essential production inputs, such as chemical fertilisers and pesticides, can help support conflict‐affected household agricultural production during and after the violence periods.","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"1 1","pages":""},"PeriodicalIF":3.4,"publicationDate":"2024-08-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141895692","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Agricultural commodity market response to Russia's withdrawal from the grain deal","authors":"Sandro Steinbach, Yasin Yildirim","doi":"10.1111/1477-9552.12611","DOIUrl":"10.1111/1477-9552.12611","url":null,"abstract":"<p>This paper assesses the response of agricultural commodity markets to Russia's withdrawal from the Black Sea Grain Initiative (BSGI). Employing daily commodity-level data and event study methods, we analyse the impact on seven agricultural commodities and four key market metrics, including futures prices, historical and implied volatility, and speculative pressure. Our findings show a statistically insignificant increase of 1.1% in agricultural futures prices within the first seven trading days following the BSGI termination. In the following days, futures prices began to decline, eventually returning to levels below those observed before the withdrawal, a pattern further underscored by our implied volatility analysis. While there is no evidence of heightened speculation, we find some evidence for treatment differences across agricultural commodities. These findings suggest that traders did not believe in the likelihood of a blockade of Black Sea grain shipments.</p>","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"75 3","pages":"1004-1016"},"PeriodicalIF":3.4,"publicationDate":"2024-07-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141726299","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The effect of price and assortment of local products on store performance: An agent-based modelling approach","authors":"Houtian Ge, Miguel I. Gómez, Timothy J. Richards","doi":"10.1111/1477-9552.12612","DOIUrl":"10.1111/1477-9552.12612","url":null,"abstract":"<p>Retail distribution is essential for the growth of markets for local food. While online direct-to-consumer and local food hubs are becoming more sophisticated, the largest market for local foods remains the traditional intermediation (retailing) sector. We develop an agent-based model to simulate the expansion, growth and profitability of retailers offering local foods across a landscape populated by consumers and competing retailers. We design a series of experiments to examine how changes in prices and assortment that include local and non-local options in the fresh produce category impact store market share and profitability. We validate the model, and conduct our experiments, using household fresh produce expenditures data from a retail food-delivery business in the Mid-Atlantic region of the US. We find that retailers offering a larger assortment of local foods are able to sustain higher basket-average retail prices and exhibit higher long-run profits in comparison to retailers that do not carry local options. These results underscore the importance of local foods in a food retailer's price and assortment strategy. The key implication is that retailers need to be conscious not only of the breadth but also of the quality of their assortment in their pricing strategies.</p>","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"75 3","pages":"981-1003"},"PeriodicalIF":3.4,"publicationDate":"2024-07-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/1477-9552.12612","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141584510","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Paolo Nota, Daniele Curzi, Oliver Ken Haase, Alessandro Olper
{"title":"The impact of heat waves on food industry productivity: Firm-level evidence from Italy","authors":"Paolo Nota, Daniele Curzi, Oliver Ken Haase, Alessandro Olper","doi":"10.1111/1477-9552.12608","DOIUrl":"10.1111/1477-9552.12608","url":null,"abstract":"<p>This paper investigates the impact of heat waves on the productivity of the Italian food industry. Using daily weather and firm-level data for the 2004–2019 period, we show that a heat wave causes, on average, a reduction in Total Factor Productivity (TFP) of about 3.2%. Smaller firms are more severely affected, with a reduction of approximately 7%, revealing unequal impacts within the same country and sector. The reduction in TFP can be partially attributed to lower workers' productivity, with labour input increased in order to compensate for productivity loss. The estimated effect is heterogeneous across subsectors, with some well-known Italian products (e.g., wine production) more severely affected by heat waves. These findings have significant policy implications due to the expected increase in the frequency of heat waves caused by climate change, and are particularly important in the case of the Italian food industry, which is mainly composed of small firms. The paper highlights the need to investigate further the impacts of heat stress on the entire food system, as most of the literature has predominantly focused on the agricultural sector.</p>","PeriodicalId":14994,"journal":{"name":"Journal of Agricultural Economics","volume":"75 3","pages":"914-930"},"PeriodicalIF":3.4,"publicationDate":"2024-07-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141566020","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}