Labor saving innovations are essential to increase agricultural productivity, but they might also increase inequality through displacing labor. Empirical evidence on such labor displacements is limited. This study uses representative data at local and national scales to analyze labor market effects of the expansion of oil palm among smallholder farmers in Indonesia. Oil palm is labor-saving in the sense that it requires much less labor per unit of land than alternative crops.
Classical innovation adoption models implicitly assume homogenous information flow across farmers, which is often not realistic. As a result, selection bias in adoption parameters may occur. We focus on tissue culture (TC) banana technology that was introduced in Kenya more than 10 years ago. Up till now, adoption rates have remained relatively low.
Most micro-level studies on the impact of agricultural technologies build on cross-section data, which can lead to unreliable impact estimates. Here, we use panel data covering two time periods to estimate the impact of tissue culture (TC) banana technology in the Kenyan small farm sector. TC banana is an interesting case, because previous impact studies showed mixed results. We combine propensity score matching with a difference-in-difference estimator to control for selection bias and account for temporal impact variability.
We look at the trade-off between smallholder cocoa intensification and the ecosystem in Indonesia and investigate the determinants of environmental efficiency in cocoa production. In our analysis, we apply a distance output function that includes cocoa production and the abundance of native rainforest plants as outputs. Our data set, based on a household and environment survey conducted in 2015, allows us to analyze 208 cocoa producers with both measured and self-reported data. We find that the intensification of cocoa farms results in higher ecosystem degradation.
In the existing literature, the effects of contract farming on household welfare were examined with mixed results. Most studies looked at single contract types. This paper contributes to the literature by comparing two types of contracts – simple marketing contracts and resource- providing contracts – in the Ghanaian oil palm sector. We investigate the effects of both contracts on farm income, as well as spillovers on other household income sources. We use survey data collected with an innovative sampling design and a control function approach to address possible issues of endogeneity.
Supermarkets and high-value exports are currently gaining ground in the agri-food systems of many developing countries. While recent research has analyzed income effects in the small farm sector, impacts on farming efficiency have hardly been studied. Using a survey of Kenyan vegetable growers and a stochastic frontier approach, we show that participation in supermarket channels increases mean technical efficiency by 19%. This gain is bigger at lower levels of efficiency, suggesting the potential for positive income distribution effects.
Enhancing the diversity of agricultural production systems is increasingly recognized as a potential
means to sustainably provide diversified food for rural communities in developing countries, hence
ensuring their nutritional security. However, empirical evidences connecting farm production
diversity and farm-households’ dietary diversity are scarce. Using comprehensive datasets of
market-oriented smallholder farm households from Indonesia and Kenya, and subsistence farmers
Smallholder farmers in developing countries often suffer from high risk and limited market access. Contract farming may improve the situation under certain conditions. Several studies analyzed effects of contracts on smallholder productivity and income with mixed results. Most existing studies focused on one particular contract scheme. Contract characteristics rarely differ within one scheme, so little is known about how different contract characteristics may influence the benefits for smallholders.
Policy brief No. 2. The majority of the world’s poor are smallholder farmers in developing countries. These smallhol- ders face several obstacles that limit their produc- tivity and profits, such that their incomes remain low. Institutional changes in the agricultural value chains are required to reduce poverty rates among smallholder farmers, and to stimulate agricultural growth.
Strategic management (STM) is recognized as an important element for firms’ success; however, small firms, especially in agribusiness, have widely been overlooked because it is often thought that a systematic STM is exclusively for large corporate firms. Firms engage in STM practices such as environmental analysis, formulation of mission and vision statements, strategic planning, implementation, evaluation, etc., regardless of their size.