Download or read book Rent Dispersion in the US Agricultural Insurance Industry written by Smith, Vincent H. and published by Intl Food Policy Res Inst. This book was released on 2016-05-20 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: A central, but inadequately explored issue with respect to subsidized crop insurance programs concerns the costs of delivering insurance coverage to farmers. This study examines that issue in the context of the heavily subsidized US crop insurance program which has often been put forward as a model for agricultural insurance programs in other countries. US Government programs often rely on private firms to deliver income transfers or services, which then establish their own rent-seeking lobbies, which are shared with input suppliers. This rent dispersion process is examined in the context of the U.S. agricultural insurance industry, which receives as much as one third of the annual subsidies that support the federal crop insurance program. We find that as total payments to insurance companies increased between 2001 and 2009, an increasingly large share of the agricultural insurance industry’s rents accrued to insurance agents, although in markets where insurance companies possessed some oligopsony power, agent payments are smaller. The findings also suggest that the insurance industry (companies and independent agents) would almost surely provide the same service for substantially less than the gross revenues from the subsidies and underwriting gains they received.

Download or read book Agricultural Policy in Disarray written by Vincent H. Smith and published by Rowman & Littlefield. This book was released on 2018-12-13 with total page 310 pages. Available in PDF, EPUB and Kindle. Book excerpt: Agricultural Policy in Disarray provides fascinating, detailed, and contemporary evidence of how rent-seeking by small, well-organized interest groups results in government policies that do little good and much harm.

Download or read book Implications of Slowing Growth in Emerging Market Economies for Hunger and Poverty in Rural Areas of Developing Countries written by Laborde Debucquet, David and published by Intl Food Policy Res Inst. This book was released on 2016-09-06 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past 25 years, economic growth rates in many developing countries have outpaced those in industrialized countries, and per capita incomes of these two groups of countries have started to converge. Growth in developing countries contributed to a dramatic drop—from 37 percent to 13 percent—in the global extreme poverty rate between 1990 and 201. However, the global economic outlook has deteriorated recently. This paper examines the impact of the actual and projected slowdown in the world economy since 2012 on the poor and on the potential for achievement of the Sustainable Development Goals (SDGs). It builds on the changes between 2012 and late 2015 in the International Monetary Fund’s World Economic Outlook projections to provide the basic slowdown scenario. It then uses a global model to assess the impacts of lower rates of productivity growth and consequent lower savings and investment on key price and income variables. The productivity shocks are passed directly to the production activities included in household microsimulation models for almost 300,000 households. These households are also affected by the modeled changes in prices and wages. Simulations allow us to assess the impacts of the slowdown on the real household incomes of the poor, and hence on the poverty rate. The results suggest that the poorest countries will see the greatest slowdown in poverty reduction, with over 5 percent of their population projected to remain below the poverty line. Overall 38 million fewer people will leave extreme poverty compared to earlier projections. Farm households are at particular risk in middle-income countries, with over 1.5 percent more of the farming population potentially not escaping extreme poverty in these countries. By 2030, average extreme poverty in rural areas is now projected to be about 7.5 percent, rather than 7.1 percent. While substantial poverty reduction is still expected between now and 2030, a strong focus on policies for poverty reduction will be vital to achieving the first SDG goal of eliminating poverty.

Download or read book Making pulses affordable again written by Joshi, Pramod Kumar and published by Intl Food Policy Res Inst. This book was released on 2016-09-15 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: Rising prices and declining consumption of pulses cause concern in terms of both nutrition and food inflation in India. This paper outlines policy strategies to increase the availability of pulses at affordable prices in India and also points out limitations of some of the most common recommendations for achieving these objectives. There seems to be no option but to increase domestic production of pulses in India. The global supply of pulses is limited compared with India’s needs, and sizable imports by India are bound to increase world prices. Domestic production of pulses in India is most likely piecewise inelastic, meaning that small price increases do not translate into a significant supply response. Because farmers face both production and marketing risks, they increase pulse area and intensify production only when there is a large increase in expected prices that covers the risk premium. Droughts, too, are a major risk for pulses. Access to one or two protective irrigations during the growing season can possibly lead to sizable increases in pulse production and reduce the production risk. The har khet ko paani (assured irrigation) initiative under the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) program should give priority to pulse-producing areas. The minimum support price (MSP) for pulses, without direct government procurement, helps traders more than farmers because it acts as a focal point for tacit collusion among traders. Farmers will benefit from the MSP only if it is raised substantially from its current levels. The increase in farmgate prices due to a higher MSP will not necessarily lead to an increase in the retail price of pulses because much of the wedge between farmgate prices and consumer prices is traders’ margin. Including subsidized pulses in public distribution systems can save households some money, but it has only a small effect on total consumption of pulses and almost no effect on total protein intake. We suggest, as more potent solutions, investing in research and extension for pulses, aggregating pulse growers into farmer producer organizations, and paying pulse growers or pulse-growing areas for the ecosystem services offered by pulses.

Download or read book Adoption of food safety measures among Nepalese milk producers written by Kumar, Anjani and published by Intl Food Policy Res Inst. This book was released on 2016-09-15 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Food safety is the most vital component of food security. One option to ensure food safety is through enhancing compliance at the farm level. This study investigates the status, estimates the cost, identifies the determinants, and assesses the impact of compliance with food safety measures in milk production in Nepal. The study is based on cross-section primary data collected at the farm level from six districts of Nepal. These districts are known for milk production and capture the geographical and institutional diversity of milk production in the country. The study shows that the status of compliance with food safety measures at the dairy farm level is not very encouraging. The intensity with which food safety practices are adopted shows wide inter- and intra-district variations. This intensity depicts a positive relationship to herd size. The additional cost of compliance with food milk safety measures reveals an inverse relationship with herd size. The factors associated with the adoption of food safety measures are caste, number of children and elderly people in a family, household labor size, herd size, access to information, inspection for conformity with the safety and quality standards in dairy farming, perception of households about food safety assistance provided by milk buyers, and market outlet types. We also provide evidence of the impact of food safety measures on farm-gate prices and farmers’ profitability.

Download or read book United States agricultural policy written by Glauber, Joseph W. and published by Intl Food Policy Res Inst. This book was released on 2016-07-20 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the development of US agricultural policy and considers how it has affected US consumers and producers, as well as how US programs affect foreign producers and consumers within the context of the United States’ obligations under the World Trade Organization. Throughout its history, the United States has supported the farm sector through a myriad of policies affecting prices, production, and farm incomes. Although many of the policies put in place during the New Deal legislation in the 1930s were seen as temporary at the time, most have persisted in one form or another to the present day. And while many would argue that the form and function of today’s agricultural programs are less distortionary than before, the level of support provided to the sector is several billion dollars annually.

Download or read book Linking smallholder farmers to commercial markets written by Ebata, Ayako and published by Intl Food Policy Res Inst. This book was released on 2016-07-01 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Access to modern commercialization channels is key for smallholder farmers to be able to move away from subsistence farming and overcome poverty. However, achieving that goal is challenging for smallholders given their lack of appropriate managerial practices, production technology and infrastructure. This paper examines the effect of receiving training in two different entrepreneurial practices designed to link farmers to commercial markets: one direct aimed at the individual and farmer-association level and another indirect focused at the community level. We exploit an extensive panel dataset of staple bean farmers in Nicaragua who participated in a program run by a nongovernmental organization between 2007–2012. We find that the two market-linkage training activities had opposite effects on the commercialization of beans, especially on the intensive margin or volume of sales. While receiving direct training on entrepreneurial practices is positively associated with sales in commercial markets, training on municipality engagement (ME) activities is negatively associated. The market-linkage activities mainly affected entrant farmers as opposed to those already participating in commercial markets. We further find varying effects of the ME activities by plot size and leadership position. Additional results show that training activities that appear to work for bean producers do not necessarily work for other crop producers, and vice versa.

Download or read book A farm level perspective of the policy challenges for export diversification in Malawi written by Johnson, Michael E. and published by Intl Food Policy Res Inst. This book was released on 2016-08-26 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: The primary goal of the study is to investigate the potential to expand oilseeds, specifically soybeans,as an alternative commercialcrop to tobacco among Malawian farmers. A principal motivation for undertaking the study at the microeconomic level is to determine, in a theoretically consistent fashion, the type of policy and economic environment under which farmers begin to shift more of their scarce resources to oilseed production.The study aims to provide recommendations to a growing demand among policy makers and development partners for a greater diversification of exports and crop production systems of the majority smallholder farmers in Malawi. Using representative farm models, the study examinesthe potential for expanding production of soybeans among typical smallholder farming systems in Malawi. The results will help guide future policies and investments targeted at promoting greater crop diversification and incomes, in order to reduce poverty and malnutrition in Malawi. Given the amount of labor and land resources allocated to maize production for food security purposes, we also consider the policy challenges that emerge for crop diversification as a result

Download or read book A dynamic spatial model of agricultural price transmission written by Goundan, Anatole and published by Intl Food Policy Res Inst. This book was released on 2016-06-09 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Spatial interactions are essential drivers of price transmission mechanisms and may significantly affect any food’s policy outcomes. However, spatial aspects seem to be generally overlooked when analyzing price transmission. This paper attempts to fill this gap by highlighting the usefulness of spatial interaction and models for market integration analysis. A spatial dynamic panel datamodel is presented and applied to Niger’s millet market. Empirical results show that (1) the millet market is partly integrated, (2) locally traded commodities (millet and sorghum) are linked by a cross-commodity price transmission, (3) most imported cereals prices, which for Niger is maize and rice, did not affect the millet market, and (4) no cross-regions price transmissionoccurred for the millet market.

Download or read book The economic value of seasonal forecasts stochastic economywide analysis for East Africa written by Rodrigues, Joao and published by Intl Food Policy Res Inst. This book was released on 2016-08-05 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is growing interest within the climate change and development community in using seasonal forecast information to reduce the losses to agriculture resulting from climate variability, especially within food-insecure countries. However, forecast systems are expensive to establish and maintain, and therefore gauging the potential economic return to investments in forecast systems is crucial. Most studies that evaluate seasonal forecasts focus on developed countries and/or overlook agriculture’s economywide linkages. Yet forecasts may be more valuable in developing regions such as East Africa, where climate is variable and agriculture has macroeconomic importance. We use computable general equilibrium and process-based crop models to estimate the potential economywide value of national seasonal forecast systems in Kenya, Malawi, Mozambique, Tanzania, and Zambia. Stochastic seasonal simulations produce value distributions for forecasts of varying accuracy and varying levels of farm coverage. A timely and accurate forecast adopted by all farmers generates average regional income gains of US$113 million per year. Gains are much higher during extreme climate events and are generally pro-poor. The forecast value falls when forecast skill and farm coverage decline. National economic and trading structures, including the importance of agricultural exports, are found to be major determinants of forecast value. Economywide approaches are therefore needed to complement farm-level analysis when evaluating forecast systems in low-income agrarian economies.

Download or read book Agricultural Inputs Policy Under Macroeconomic Uncertainty written by Resnick, Danielle and published by Intl Food Policy Res Inst. This book was released on 2016-08-26 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: Ghana’s Fertilizer Subsidy Programme (GFSP) was initiated in 2008 in response to the global food and fuel price crisis. Although initially intended to be a temporary measure that became increasingly expensive as Ghana’s macroeconomy deteriorated, farmers, civil society organizations, and politicians began to expect the subsidy on an annual basis. This paper applies the kaleidoscope model for agricultur and food security policy change to the case of GFSP. In doing so, it uses a variety of analytical tools to highlight how many of the weak outcomes of GFSP can be attributed to the nature of the broader policy process that has surrounded GFSP as well as the underlying political and institutional context in which policy making occurs in Ghana. Based on semi-structured interviews conducted with knowledgeable stakeholders spanning the government, donor, civil society, and research communities, the paper identifies the bottlenecks that need to be addressed if the program is to be more effective in the future.

Download or read book World Agricultural Resources and Food Security written by Andrew Schmitz and published by Emerald Group Publishing. This book was released on 2017-07-26 with total page 325 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume analyzes food security issues such as agricultural policy, global agricultural trade, international agricultural research and development, biotechnology, climate change, food waste, and nutrition guidelines.

Download or read book Global and regional pulse economies written by Joshi, Pramod Kumar and published by Intl Food Policy Res Inst. This book was released on 2016-07-22 with total page 149 pages. Available in PDF, EPUB and Kindle. Book excerpt: The pulse sector is undergoing dynamic changes globally and in several regions and countries to meet the challenge of growing demand in the face of sluggish production growth. Realizing the importance of pulses in the human diet, 2016 has been declared the International Year of Pulses (IYP). This report captures the dynamics of the pulse sector during the last three decades. The examination of pulse supply, demand, uses, trade, prices, and outlook would help researchers and policy makers make more informed decisions related to the sector. Pulse-based food is an important source of dietary protein and essential minerals, particularly for the vegetarian population. At the global level, the average share of pulses is only 5 percent of the total protein consumption but their contribution in several developing countries range between 10 and 40 percent. To meet the growing demand and raise their per capita availability, countries made efforts to increase production and explore trade opportunities to augment domestic supply. Overall between 1980 and 2013, pulses production at the global level grew at an annual rate of 1.3 percent but there were, however, two phases of pulses production at the global level. While there was almost a period of stagnation in production of pulses during the1990s, production has sharply increased since 2005. The bulk of the increase in production came from developing countries where both area and yield growth (from a low base) contributed to the production. For developed countries—where production also grew—the center of production shifted from Europe to North America and Oceania. For developing countries, two new centers of production emerged in Eastern Africa and Southeastern Asia (Myanmar).

Download or read book Can labor market imperfections explain changes in the inverse farm size productivity relationship written by Deininger, Klaus and published by Intl Food Policy Res Inst. This book was released on 2016-06-24 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: To understand whether and how inverse relationship between farm size and productivity changes when labor market performance improves, we use large national farm panel from India covering a quarter-century (1982, 1999, 2008) to show that the inverserelationship weakened significantly over time, despite an increase in the dispersion of farm sizes. A key reason was the substitution of capital for labor in response to nonagricultural labor demand. In addition, family labor wasmore efficient than hired labor in the 1982–1999 period, but not during the 1999–2008period.In line with labor market imperfections as a key factor, separability of labor supply and demand decisions cannot be rejected in the second period,except in villages with very low nonagricultural labor demand.

Download or read book Market integration and price transmission in Tajikistan s wheat markets written by Ilyasov, Jarilkasin and published by Intl Food Policy Res Inst. This book was released on 2016-08-05 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: The extent of market integration and transmission of food price shocks is a major determinant of price stability and overall food security, particularly in developing countries. Few studies have examined these issues for countries in Central Asia, however. This paper aims to fill this gap by examining wheat market integration and price transmission in Tajikistan, the most food-insecure country in Central Asia. In particular, in this study we measure how well wheat market prices in Tajikistan are integrated with international and regional markets, as well as domestically with each other. Subsequently, we assess the nature of price transmission between these markets. Using horizontal price transmission analysis and asymmetric price relationships, a.k.a. rockets and feathers, we demonstrate how prices change in peripheral food-shortage markets compared to markets located in zones with abundant local production.

Download or read book The distribution of power and household behavior written by Wouterse, Fleur Stephanie and published by Intl Food Policy Res Inst. This book was released on 2016-08-12 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Niger is a landlocked Sahelian country, two-thirds of which is in the Sahara desert. Although only one-eighth of the land considered arable, more than 90 percent of Niger’s labor force is employed in agriculture, which is predominantly subsistence oriented. Food security remains a major challenge in rural areas of Niger, and gender is a significant basis for the inequality among household members with respect to access to land. Access to land, which is a measure of the income-earning potential of an individual, is an important determinant of the distribution of bargaining power within the household. Because households may not act in a unitary manner when making decisions, the power of individuals within the household to exert their own preferences may determine welfare outcomes, such as spending on nutritious foods or healthcare. In this paper, we use new data for Niger and regression analyses to assess the importance of the intrahousehold distribution of power for the behavior of rural households. Our results reveal that men are significantly more empowered than women in rural households in Niger and that social protection programs such as water, sanitation, and hygiene (WASH) and food-for-training contribute significantly to the empowerment of women. Our findings also point to the validity of the collective approach to modeling household behavior, as the distribution of power was shown to affect household behavior. In particular, we found that an increase in power in favor of the adult female significantly increases expenditures on healthcare and reduces spending on vices (cigarettes and alcohol).

Download or read book Perceived land tenure security and rural transformation written by Ghebru, Hosaena and published by Intl Food Policy Res Inst. This book was released on 2016-07-29 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Tenure security is believed to be critical in spurring agricultural investment and productivity. Yet what improves or impedes tenure security is still poorly understood. Using household- and plot-level data from Ghana, this study analyzes the main factors associated with farmers’ perceived tenure security. Individually, farmers perceive greater tenure security on plots acquired via purchase or inheritance than on land allocated by traditional authorities. Collectively, however, perceived tenure security lessens in communities with more active land markets and economic vibrancy. Migrant households and women in polygamous households feel less secure about their tenure, while farmers with political connections are more confident about their tenure security.