New Economics Papers
on Agricultural Economics
Issue of 2010‒01‒10
eighteen papers chosen by



  1. Policy Options for Rice and Corn Farmers in the Face of Seasonal Climate Variability By Reyes, Celia M; Domingo, Sonny N.; Gonzales, Kathrina G.; Mina, Christian D.
  2. Crop Insurance: Security for Farmers and Agricultural Stakeholders in the Face of Seasonal Climate Variability By Reyes, Celia M; Domingo, Sonny N.
  3. Agricultural Diversification and the Fruits and Vegetables Subsector: Policy Issues and Development Constraints in the Philippines By Briones, Roehlano M.
  4. Are irrigation rehabilitation projects good for poor farmers in Peru ? By Datar, Gayatri; Del Carpio, Ximena V.
  5. Twenty years of land reforms in Central and Eastern Europe: state of play and outlook By Céline Bignebat; Laure Latruffe
  6. Transition to Organic Tea Production in the Thai Nguyen Province, Vietnam: Economic and Environmental Impacts By Nghia Dai Tran
  7. Is Organic Tea the Best Brew? - An Assessment of Options for Vietnamese Tea Production By Nghia Dai Tran
  8. Contract Farming in Thailand: A View from the Farm By Isabelle Delforge
  9. Incorporating Regional Rice Production Models in Rice Importation Simulation Model: a Stochastic Programming Approach By Reyes, Celia M; de Guzman, Rosalina G.; Mina, Christian D.; Crean, Jason; Parton, Kevin
  10. The Limits of Intellectual Property Rights: Lessons from the Spread of Illegal Transgenic Cotton Seeds in India By Bharat Ramaswami
  11. A Cost-Benefit Framework for the Assessment of Non-Tariff Measures in Agro-Food Trade By van Tongeren, Frank; Beghin, John C.; Marette, Stephan
  12. Estimation of the Food Poverty Line By Albert, Jose Ramon G.; Molano, Wilma
  13. Environmental and production cost impacts of no-till: estimates from observed behavior By Marita Laukkanen; NAUGES Céline
  14. Eastern Europe and the former Soviet Union since the fall of the Berlin Wall: Review of the changes in the environment and natural resources By Markandya, Anil; Chou, Wan Jung
  15. Economic assessment of an insect pollinator decline: A general equilibrium analysis By Nicola Gallai; Jean-Michel Salles; Charles Figuières; Bernard E. Vaissière
  16. CONSUMER PREFERENCES AS DRIVERS OF THE COMMON BEAN TRADE IN TANZANIA: A MARKETING PERSPECTIVE By Fulgence J. Mishili
  17. Nonlinear Price Transmission in Wheat Export Prices By Ghoshray, Atanu
  18. Willingness to Pay for Marine Turtle Conservation in Asia: A Cross-Country Perspective By Jin Jiangjun; Rodelio Subade; Orapan Nabangchang; Truong Dang Thuy; Anabeth L. Indab

  1. By: Reyes, Celia M; Domingo, Sonny N.; Gonzales, Kathrina G.; Mina, Christian D.
    Abstract: <p>In the face of seasonal climate variability, the smallholder farmers, particularly those in rural communities, are among the most adversely affected. As a way to address this, together with concern on low productivity, the Philippine government has been implementing a range of risk management programs for farmers and other agricultural stakeholders. Based on key informant surveys and focus group discussions with rice and corn farmers conducted in key producing areas, however, farmers reported that they still have limited options in terms of changing their production decisions in response to seasonal climate forecasts (SCFs). Among the risk mitigation tools available, the following emerged as most preferred by farmers: localized climate information, accessible credit, crop insurance, and special assistance programs such as irrigation and seeds provision.</p> <p>This paper tackles these programs in detail and then discusses the challenges besetting these programs. The paper also presents some policy options which could enhance the delivery of these agricultural services in pursuit of improved productivity and welfare in target farming communities in the country.</p>
    Keywords: irrigation, seasonal climate forecast (SCF), risk management programs, localized climate information, agricultural credit, crop insurance, seeds subsidy
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2009-11&r=agr
  2. By: Reyes, Celia M; Domingo, Sonny N.
    Abstract: Crop insurance is a risk management tool designed to even out agricultural risks and address the consequences of natural disasters to make losses more bearable, especially to the marginalized farmers. In the Philippines, the Philippine Crop Insurance Corporation (PCIC) implements and manages the government program on agricultural insurance. This paper provides a comprehensive review of the crop insurance program in the Philippines--its history, operationalization, performance, and a number of challenges. Some of the identified constraints in operating the program are high overhead cost, need for larger investment fund, and question of sustainability. The results of secondary data assessment and key informant interviews revealed that PCIC has captured only a small segment of its target clientele, particularly the subsistence farmers, due to logistical and marketing constraints. Moreover, farmer dependence on informal credit, particularly in rural farming communities, seems to have also created a nonviable setting for a crop insurance program.
    Keywords: seasonal climate forecast (SCF), agricultural credit, crop insurance, Philippine Crop Insurance Corporation (PCIC)
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2009-12&r=agr
  3. By: Briones, Roehlano M.
    Abstract: <p>Fruits and vegetables comprise a large and dynamic subsector within Philippine agriculture. However, the country’s agricultural development strategy continues to emphasize traditional crops. Evidence points to a significant role for fruits and vegetables in agricultural diversification and rural development. They represent a significant set of “high-value” activities, some of which are produced within organized supply chains. As the economy develops, fruits and vegetables should become increasingly important, both as a share in agricultural output and in the food basket. Diversification could be propoor as it may raise incomes of smallholders and workers.</p> <p>There are clear benefits to both producers and consumers from the expansion of the subsector; fruits and vegetables output has indeed grown more rapidly than agriculture as a whole. However, there remain impediments in reallocating resources to the high-value crops. Agribusiness supply chains have arisen to overcome some of these obstacles, though these chains may be inadvertently promoting inequitable and unsustainable patterns to agricultural growth.</p> <p>Despite numerous policies and programs to overcome these impediments and promote agricultural growth and diversification, constraints to development persist. These include: resource degradation; weak protection and tradability of land rights; distortionary policies in favor of traditional crops; geographic dispersion, inadequate marketing and logistics infrastructure; failure to realize scale economies in marketing; and inadequate supply of producer services such as agricultural credit, technology innovation, and technical assistance to smallholders. Policy change and institutional reforms are essential for the fruits and vegetables subsector to realize its potential for agricultural diversification and rural development.</p>
    Keywords: agriculture sector, agricultural diversification, fruits subsector, vegetables subsector, agricultural policy, development constraints
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2009-02&r=agr
  4. By: Datar, Gayatri; Del Carpio, Ximena V.
    Abstract: This paper analyzes changes in agricultural production and economic welfare of farmers in rural Peru resulting from a large irrigation infrastructure rehabilitation project. The analysis uses a ten-year district panel and a spatial regression discontinuity approach to measure the causal effect of the intervention. While general impacts are modest, the analysis shows that the project is progressive--poor farmers consistently benefit more than non-poor farmers. Farmers living in districts with a rehabilitated irrigation site experience positive labor dynamics, in terms of income and agricultural jobs. Poor farmers increase their total income by more than $220 per year compared with the control group, while rich farmers do not experience such an income gain. The results also show crop specialization patterns in the economic status of farm households; poorer farm households increase their production of staple crops, such as beans and potatoes, while non-poor beneficiary farmers cultivate more industrial crops. Findings from this evaluation have important implications for pro-poor policy design in the agricultural sector.
    Keywords: Rural Poverty Reduction,Regional Economic Development,Crops&Crop Management Systems,Labor Policies
    Date: 2009–12–09
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:5154&r=agr
  5. By: Céline Bignebat; Laure Latruffe
    Abstract: The purpose of this article is to gain a perspective on the land reforms in the Central and Eastern European countries to show the extent to which the structure of agricultural production left by the socialist period has influenced the restructuring dynamics. In this context, the observed dual agricultural structure is seen as the result of a sticking point exacerbated by the agricultural transition’s land component.
    Keywords: transition, land reforms, property rights, initial situation
    JEL: Q15 D23 P32
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:rae:wpaper:200919&r=agr
  6. By: Nghia Dai Tran (Department of Natural Resources and Environmental Management, University of Hawaii)
    Abstract: This study from Vietnam shows that a switch from conventional to organic tea productions would bring real environmental, health and economic benefits for the country's farmers and its society as a whole. In particular, the amount of agrochemical residue and waste produced by tea production would be reduced. Farmers would also be able to enjoy a better livelihood as they could command a premium price for their organic tea products. The study therefore recommends that organic tea production is the best method for farmers to adopt. The study finds that there are a number of technical and economic challenges that confront farmers making the switch to organic production. It therefore highlights the fact that clean tea production (which has a less strict environmental management regime) can offer an interim approach that still brings higher quality standards and profitability for tea growers. There are a number of ways in which the government can promote clean tea and organic tea production. Support from governmental agencies and NGOs in the form of technical training and on-farm monitoring is vital. The government can also create a market mechanism to guarantee a premium price for organic tea products.
    Keywords: Organic tea, Vietnam
    Date: 2009–06
    URL: http://d.repec.org/n?u=RePEc:eep:report:rr2009062&r=agr
  7. By: Nghia Dai Tran (Department of Natural Resources and Environmental Management, University of Hawaii)
    Abstract: This study from Vietnam shows that a switch from conventional to organic tea productions would bring real environmental, health and economic benefits for the country's farmers and its society as a whole. In particular the amount of agrochemical residue and waste produced by tea production would be reduced. Farmers would also be able to enjoy a better livelihood as they could command a premium price for their organic tea products. The study therefore recommends that organic tea production is the best method for farmers to adopt.
    Keywords: Organic tea, Vietnam
    Date: 2009–06
    URL: http://d.repec.org/n?u=RePEc:eep:pbrief:pb2009062&r=agr
  8. By: Isabelle Delforge
    Abstract: The study presents an initial assessment of the situation and to raise the main issues in terms of farmers’ and workers’ rights. It is part of a long term process involving farmer movements, trade unions, NGOs and international organisations aimed at developing strategies by which both contract and independent farmers can improve their bargaining power and living conditions. [FGS OP No. 2].
    Keywords: farmers, worker's right, NGO, developing strategies, living conditions, farming, thailand, contract farming, farms, asia,
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ess:wpaper:id:2340&r=agr
  9. By: Reyes, Celia M; de Guzman, Rosalina G.; Mina, Christian D.; Crean, Jason; Parton, Kevin
    Abstract: <p>In the Philippines, importation has remained as one of the most feasible options for the government to meet the growing demand for rice. It is thus imperative for the government to develop a strategy that would ensure adequate supply and minimum importation costs. One of the critical factors in import decisionmaking is rice production. The Inter-Agency Committee on Rice and Corn (IACRC), where the National Food Authority (NFA) and Bureau of Agricultural Statistics (BAS) are members, decides on importation when there is an impending production shortfall in the coming season. However, because Philippine agriculture is vulnerable to extreme climate events and climate change is believed to further intensify the effects of seasonal climate variability, rice production forecast is becoming more uncertain. Inaccurate production forecasts could lead to incorrect volume and ill-timing of rice imports, which in turn could result in either a waste of resources for the government or a burden to consumers. Contraction of rice imports in the early 1990s, ill-timing of imports in 1995, and overimportation in 1998 illustrate how inaccurate forecasts of volume and timing of rice importation, especially during El Niño and La Niña years, could result in substantial economic costs such as higher rice prices due to rice shortages, higher storage costs, among others.</p> <p>This paper evaluates the significance of SCF information, among other things, in rice policy decisions of the government, particularly on importation. It presents an alternative method of forecasting the level of rice production through regional rice production models. The rice production models systematically incorporate SCF and could be used in support of the current practice of forecasting rice production based on planting intentions. The paper also demonstrates how SCF, together with these production estimates, could be incorporated in the rice import decisions of the government through the Rice Importation Simulation (RIS) model, which was developed using a Discrete Stochastic Programming (DSP) modelling approach. The RIS model, which recommends a set of optimal rice import strategies, could serve as guide for the government in its rice import decisions in the face of seasonal climate variability and could be used in estimating the potential value of SCF.</p>
    Keywords: Bureau of Agricultural Statistics (BAS), El Niño, La Niña, rice, seasonal climate forecast (SCF), National Food Authority (NFA), importation, production models, Discrete Stochastic Programming (DSP), Inter-Agency Committee on Rice and Corn (IACRC)
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2009-28&r=agr
  10. By: Bharat Ramaswami
    Abstract: This paper examines these difficulties of regulation in the context of spread of unapproved transgenic Bt cotton seeds in India. This paper also examines the impact of the cultivation of approved and unapproved seeds on farmers and also examines the farmers' valuation of Bt seeds.
    Keywords: Gujarat, cotton seeds, India, bt seeds, cultivation, seeds, regulation, farmers, Intellectual propoerty rights, transgenic, institutions, transgenic crops, developing countries, hybrids, labour intensive, Andhra Pradesh
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:ess:wpaper:id:2331&r=agr
  11. By: van Tongeren, Frank; Beghin, John C.; Marette, Stephan
    Abstract: This report develops a conceptual framework for the assessment of costs and benefits associated with non-tariff measures that allows an evidence-based comparative assessment of alternative regulatory approaches. It was prepared by Frank van Tongeren (OECD Secretariat), John Beghin (Iowa State University), and Stéphan Marette (INRA).
    Keywords: Information and product quality; standardization and compatibility, economics of regulation, agriculture in international trade, trade policy; international trade organisations.
    Date: 2009–12–14
    URL: http://d.repec.org/n?u=RePEc:isu:genres:13146&r=agr
  12. By: Albert, Jose Ramon G.; Molano, Wilma
    Abstract: To monitor changes in absolute poverty across time, it is crucial to ensure that the established poverty line is a fixed standard of living that represents the minimum standard required by an individual to fulfill his or her basic food and nonfood needs. Typically, the food (component of the) poverty line is set with the cost of basic needs method, which entails determining the price of some nutritional benchmark through an artifice. In the Philippines, the official food poverty line is estimated at urban and rural areas of each province by using a one-day food menu as the artifice. These menus satisfy energy, and other nutrient requirements. We review the issues raised on this methodology, including the nutritional benchmarks, and propose an alternative approach for estimating the food poverty line using a representative food basket (and some spatial price indices to adjust for differences in cost of living). The proposed methodology addresses issues on consistency raised against the current official approach for setting food poverty lines.
    Keywords: absolute poverty line, food poverty line, menu, basket, spatial price index, consistency
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2009-14&r=agr
  13. By: Marita Laukkanen; NAUGES Céline
    Date: 2009–12
    URL: http://d.repec.org/n?u=RePEc:ler:wpaper:09.28.304&r=agr
  14. By: Markandya, Anil; Chou, Wan Jung
    Abstract: This paper reviews the environmental record of the transition countries of Eastern Europe and Central Asia since the fall of the Berlin Wall, with a focus on areas of key concern to public policy at the present time. With the impacts of environment on public health being given the highest priority, we examined several associated health indicators at the national level, as well as looking at important environmental issues at the local level. In this respect, we focus on environmental problems related to air and water quality, land contamination, and solid waste management. Despite showing a highly differentiated performance across the region, the results suggest that inadequate environmental management seen in several of the transition countries in the past 20 years has put people’s health and livelihood under huge threats. Moreover, this paper looks at the development of policy responses and resources, i.e. environmental expenditures, in these countries, during the process of transiting from centrally planned economies to market-based one. Similarly, we identify various degrees of progress across the region. The findings reinforce the need for better coherence between national environmental expenditure and international environmental assistance, as well as the actual enforcement of national regulations and international agreements in those non-EU transition countries.
    Keywords: transition countries; environmental issues; public health; land contamination; air pollution; water pollution; policy; environmental expenditure
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:eid:wpaper:21/09&r=agr
  15. By: Nicola Gallai; Jean-Michel Salles; Charles Figuières; Bernard E. Vaissière
    Abstract: Insect pollination service is widely used in agriculture. This pollination service contributes significantly to the total economic value of crop production and can be valued this way. A better economic valuation is be to assess the welfare loss resulting from insect pollinator decline, this welfare loss being the sum of producer and consumer surplus variation. In this study, we assess the impact of insect pollinators on the social welfare within a general equilibrium analysis. What would be the consequences of a production loss due to an insect pollinator decline considering the adaptation of the overall economy and more particularly considering the possible spillovers on others markets? How are changes in profits distributed between producers of pollinated goods and other producers? These two questions will be studied within two alternative scenarios for the distribution of property rights over the firms: the case where agents possess and equal share of the productive sector (the egalitarian ownership structure) and the case where each agent possess one firm (the polarized ownership structure). For each scenario, we considered two states of the economy. In the first state, agent and firms are homogeneous. In the second state, firms are heterogeneous. The social welfare is a function of the profile of consumers' utilities weighted by a ratio expressing the social preferences. We will analyze and measure the variation of the social welfare after the insect pollinator decline. Under the egalitarian ownership structure, we found that an insect pollinator decline will cause a social welfare loss. However this loss is reduced by the possibility of agents to consume the good, for which production does not depends on insect pollination. This result no longer holds when the distribution of the property right of firms is heterogeneous between agents. In this case the owner of the firm that does not produce insect pollination dependent good, would experience a gain in utility. As a result, the social welfare could increase after a pollinator decline. This social welfare gain would raise if production function of the firm of the non agricultural sector would be more efficient than the agricultural one.
    Date: 2009–12
    URL: http://d.repec.org/n?u=RePEc:lam:wpaper:09-17&r=agr
  16. By: Fulgence J. Mishili (Anna A. Temu; Joan Fulton; J. Lowenberg-DeBoer)
    Abstract: The objective of this study was to determine the impact of bean grain quality characteristics on market price. The data was collected from retail markets in Tanzania. Hedonic pricing provides a statistical estimate of premiums and discounts. Implications for development of bean markets include: i) extension agents should identify cost-effective ways to educate producers on targeting urban market niches based on consumer preferences for varieties, ii) breeding for bruchid resistant beans and use of appropriate storage technologies would alleviate the problems of storage damage, and iii) requiring a portfolio of grain quality characteristics to fit consumer preferences in local markets.
    Keywords: Beans, markets, consumer preferences, hedonic, storage, Tanzania
    JEL: D12 Q13
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:pae:wpaper:09-02&r=agr
  17. By: Ghoshray, Atanu
    Abstract: This paper attempts to model the price relationship between the major exporters of wheat. The motivation of such research is to reveal whether prices are integrated and whether potential nonlinearities in price adjustment exist. Given the perception that transactions costs may be highly variable in the wheat market, the paper aims to test for the presence of cointegration in the presence of smooth transition adjustment. The results conclude that the further the prices deviate from each other, the larger will be the arbitrage and substitution that will drive the prices close to each other. However, the results suggest that the arbitrage will be limited as the various wheat prices employed in this study may be linked to highly variable transactions costs or some other form of imperfect competition.
    Keywords: Cointegration; ESTAR; Wheat; Price Adjustment
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:eid:wpaper:11/09&r=agr
  18. By: Jin Jiangjun; Rodelio Subade; Orapan Nabangchang (Sukhothai Thammatirat Open University); Truong Dang Thuy; Anabeth L. Indab (Resources, Environment and Economics Center for Studies (REECS))
    Abstract: Marine turtles are important, not only for their economic and intrinsic value, but because an adequate population of marine turtles is often an indicator of healthy marine ecosystem. Of the seven species of marine turtles, four are critically endangered, while two are in the next-highest risk category.
    Keywords: Willingness to pay
    Date: 2009–05
    URL: http://d.repec.org/n?u=RePEc:eep:pbrief:pb2009052&r=agr

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