13 pages, In Ghana, groundwater, accessed through wells and boreholes, is generally unregulated and may be contaminated with pollutants including excess nitrates from agricultural chemical fertilizers. Yet, studies estimating how clean groundwater is valued are not available in Ghana. In addition, some research suggests that the pre-experiment information provided to survey respondents affects their valuation of an identical outcome. This paper estimates smallholder farmers’ preferences for groundwater protection using pre-experiment information focused on one of two outcomes: environment or health. The double-bounded contingent valuation (DBCV) approach is used to estimate willingness to pay (WTP) to protect groundwater quality. The estimation accounts for shift and anchoring effects, which are common issues with the DBCV method. The mean WTP from the health (environmental) information subsample is about US$19 (US$17) per acre, and the values are significantly different between the information conditions. The findings shed light on the importance of using precise information in eliciting WTP in a developing country setting.
22 pages, The UK exited the EU on 31 January 2020, with a transition period agreed as part of the Withdrawal Agreement. During this transition period the UK and the EU will decide on their future trading relationship. No matter what form this relationship takes, there will be disturbances to agri-food markets. This study analyses four different scenarios with increasing barriers to trade, ranging from a very close relationship similar to the European Economic Area to a distant relationship in which the UK and EU trade on Most Favoured Nation terms, using the EU focused global agricultural sector model CAPRI. In the UK, food prices will increase in all scenarios, making consumers in the UK the biggest losers. Only in a free trade agreement scenario does the UK show an unambiguous positive net welfare gain in just the agri-food sector. In the case of the European Economic Area scenario, which assumes continued access to the single market, the net welfare impact would depend on the size of the UK’s continued contribution to the EU. In the EU, declining food prices would benefit consumers but the sum of the loss in farmers’ incomes and the UK’s EU CAP contribution would be much greater than the consumer’s gain. These impacts in agricultural markets under different future trade arrangements will also be influenced by the UK’s agricultural policy changes in direct payments as well as by possible further UK trade liberalisation after the end of the transition period.
Green, D.A.G. (author), Ng'ong'ola, D.H. (author), and Green: Senior Lecturer, University of Wales; Ng'ong'ola: Senior Lecturer, Agricultural Economics, University of Malawi
Format:
Journal article
Publication Date:
1992
Location:
Agricultural Communications Documentation Center, Funk Library, University of Illinois Box: 93 Document Number: C06978
INTERPAKS, Considers the importance of farm management in ensuring compatibility of extension content with the motives and constraints of individual peasant farmers. Emphasizes the need for a modicum of farm management expertise in the communication of innovation from extension agent to farmer but questions the suitability of advanced farm management techniques for this purpose. It is argued that, if the potential contribution of farm management is to be realized, there is a need for an intermediate and appropriate farm management technology.
25 pages, n many countries farmers face pressure to adopt practices to promote sustainability and resilience while ensuring efficient business management to produce food and other agricultural products at reasonable cost. Given a policy context in which voluntary action is preferred over government regulation, understanding farmers’ motivation to embrace recommended practices has become a major subject for research. Increasingly, this endeavour is guided by the theory of planned behaviour, a reasoned action approach (Fishbein and Ajzen, 2010). We provide a brief overview of the theory of planned behaviour and an elaboration of good practices in the assessment of the theory’s constructs. We systematically review 124 applications of the theory to farmer behaviour on a number of specific review criteria. Based on observations of improper use, we consider theoretical and methodological issues and provide recommendations for research design and data analysis.
31pgs, This article aims at investigating the impact of financial supports from agricultural policy on farm-size dynamics. Since not all farms may behave alike, a non-stationary mixed-Markov chain modelling (M-MCM) approach is applied to capture unobserved heterogeneity in the movements of farms across economic size (ES) classes. A multinomial logit specification is used for transition probabilities and the parameters are estimated by the maximum likelihood method and the Expectation-Maximisation (EM) algorithm. An empirical application to an unbalanced panel from 2000 to 2018 shows that French farming consists of ‘almost stayers’, with a high probability of remaining in the same ES class over time, and ‘likely movers’, which present a higher probability of a change in size. The results also show that the impact of subsidies and other economic factors depends greatly on the type that a farm belongs to. These findings confirm that individual characteristics of farmers may be relevant for policy efficiency and more attention should thus be paid to unobserved farm heterogeneity in both policy design and the assessment of their impacts on farm-size dynamics.
22 pages, Many stated preference studies have shown that individuals’ attitudes play an important role in explaining their behaviour and helping to disentangle preference heterogeneity. When responses to attitudinal questions are introduced into discrete choice models, a suitable approach that corrects for potential endogeneity must be adopted. We use a discrete choice experiment to analyse the preferences of residents regarding the use of agri-environmental practices in the peri-urban area of Milan (Italy). A detailed analysis of these preferences is relevant for policymakers as farmers on the peri-urban fringe are often asked to provide environmental services to urban-dwellers. We apply a latent class model that we extend to include indicators of individuals’ attitudes towards the relationship between agriculture and the environment. Besides the application of the control function approach to deal with endogeneity, our main contribution is the use of a refutability test to check the exogeneity of the instruments in the agri-environmental setting. Our results show that attitudinal indicators help to disentangle the preference heterogeneity and that the respondents’ willingness-to-pay distribution differs according to the indicators’ values.
24 pages, We present a systematic review of the extensive body of research on farmer risk preference measurement across Europe. We capture the methodological developments over time and discuss remaining challenges and potential areas for further research. Given the constantly evolving policy environment in Europe, and increasing climate-change related risks and uncertainties, there is large value to be gained from enhancing our understanding of this fundamental aspect of farmers’ decision-making processes and consequent actions.
20 pages, To achieve social sustainability, there is a need to incorporate social metrics of farmers’ well- being into agricultural monitoring systems. We contribute to the operationalisation of the measurement of farmers’ well- being by determining how farm- level factors influence farmers’ satisfaction with their work and quality of life. Using a data sample of 1099 farms that are part of the Farm Accountancy Data Network (FADN) in nine European countries, we tested a set of hypotheses related to work satisfaction and life quality perception based on a structural equation model. Satisfaction with on- farm work has a significant and substantial influence on satisfaction with quality of life. Farm- level aspects, such as working time, age of assets, financial situation of the farm and community engagement, significantly influenced farmers’ satisfaction with farming, but their joint effect explained less than one- fifth of the satisfaction. The results suggest that agricultural information systems intended to monitor and compare sustainability progress on farms would benefit from the integration of a metric measuring social concerns from the farmers’ point of view
