eng
Faculty of Economics and Management of the Slovak Agricultural University in Nitra and the Association of Agricultural Economists in Slovakia
Review of Agricultural and Applied Economics
1336-9261
2019-11-01
22
2
3
9
10.15414/raae.2019.22.02.03-09
1111-1
article
ECONOMETRICS OF ENVIRONMENTAL VALUATION: THE BAYESIAN INFERENCES ON WILLINGNESS TO PAY ESTIMATIONS
Inibehe George UKPONG
This study applied the Bayesian approach to estimate people’s willingness to pay (WTP) for mitigation of environmental hazards in oil producing areas in Nigeria. The Bayesian approach enabled estimation of the mixed logit model employing the normal and log-normal distributions of WTP parameters. The model estimate indicating a negative WTP values for the status quo (STAQUO) attribute suggests that people in oil producing areas in Nigeria do not like the current welfare situation and environmental condition which are characterised by environmental problems, affecting adequate use of resources and ecosystem services. The results also show a comparatively higher WTP for food safety (FOODSAF), poverty rate (POVERTY) and unemployment rate (UNEMP) respectively, suggesting people’s desire for mitigation of undesirable livelihood (welfare) impacts of resource exploitation. On the other hand, the results also indicate positive WTP coefficients for land and water pollution from oil spills (SPILL), gas flaring (GFLARE) and land occupied by oil and gas pipelines (LOCC), suggesting that majority of the people are in support of mitigation strategies or policy change that would ensure significant reduction in environmental pollution, gas flaring, and land-take by oil and gas companies. Oil and gas companies are encouraged to ensure mitigation of environmental and livelihood impacts of the crude oil and gas extraction, including reduction in gas flaring, based on environmental laws and global best drilling practices. The study further recommends application of the willingness to pay approach as an important strategy for assessing the values of environmental resources and the impact of resource use.
https://roaae.org/wp-content/uploads/RAAE_2_2019_Ukpong.pdf
Environmental valuation
Bayesian approach
willingness-to-pay
choice experiment
Nigeria
eng
Faculty of Economics and Management of the Slovak Agricultural University in Nitra and the Association of Agricultural Economists in Slovakia
Review of Agricultural and Applied Economics
1336-9261
2019-11-01
22
2
10
17
10.15414/raae.2019.22.02.10-17
1111-1
article
TECHNICAL, ALLOCATIVE AND ECONOMIC EFFICIENCIES OF SMALL-SCALE SESAME FARMERS: THE CASE OF WEST GONDAR ZONE, ETHIOPIA
Adugna GELA
Jema HAJI
Mengistu KETEMA
Hebtemariam ABATE
In Ethiopia, sesame is mainly cultivated as a cash crop, important source of foreign exchange and income for many smallholders. Thus, improvement in production efficiency of sesame is crucial for Ethiopian economy and for smallholder farmer’s livelihood. Socioeconomic, demographic and institutional factors were collected from randomly selected 385 sample households using multi-stage sampling techniques and interviewed using semi-structured questionnaire. The Cobb-Douglas stochastic frontier production function result shows that all input variables except land was positive and significant effect on sesame production efficiency. Labour inputs have the highest elasticity, followed by sesame seed, pesticides/herbicides and fertilizer accordingly. The model result shows that across all mean technical, allocative, and economic efficiencies estimates are 72, 49 and 35 percent respectively, implies that a substantial level of inefficiency in sesame production. Improvement of production efficiency requires availability of enough labour particularly during harvesting because of its shattering problem. Therefore, the local and regional government needs to devise mechanisms for hired labour availability in the area. Moreover, the econometric model result indicates that sesame production efficiency was positively and significantly influenced by age, education level, livestock ownership, association membership, off/non-farm income, extension contact, credit access, mobile phone ownership and training participation. The key policy implication therefore is that promoting farmer’s cooperatives, address farmers in formal and informal education programs, enhancing farmer’s access to financial resources through providing easy and affordable credit services, strengthen the extension services in terms of promoting livestock and crop production improving technologies are crucial.
https://roaae.org/wp-content/uploads/RAAE_2_2019_Gela_et_al.pdf
technical
allocative
economic efficiencies
double-hurdle
PSM models
eng
Faculty of Economics and Management of the Slovak Agricultural University in Nitra and the Association of Agricultural Economists in Slovakia
Review of Agricultural and Applied Economics
1336-9261
2019-11-01
22
2
18
25
10.15414/raae.2019.22.02.18-25
1111-1
article
LAND DEALS AND SMALL-SCALE INTENSIVE FARMING DECISIONS
Prince NKETIAH
Michael AYAMGA
Franklin N. MABE
The upsurge of land deals in Northern Ghana is a concern to many stakeholders. In order to reduce the effects of land deals on livelihoods, farmers resort to adopting semi-intensive, intensive or low intensive farming systems. Using a multinomial logit model, this study assessed how land deals influence the decision of a farm household to choose any of the farming regimes. Factors that influence farmers’ decision to choose intensive as against semi-intensive methods of farming are farm size, awareness of land grabbing, intension of cultivating part of grabbed land, number of adults, household expenditure, location, remittances and land grabbed investment type. On the other hand, households’ engagement in low intensive as compared to semi-intensive methods of farming are influenced by age, fallowing period, education, remittances, and household expenditure. Land deals must be accompanied by efforts to diversify livelihoods of smallholder farmers away from land-based systems. This would require skills training for rural peasant farmers to enable them take up emerging livelihood opportunities. In order to safeguard the interests and livelihood of rural peasants, agricultural investment programmes must make community-investor partnership a key condition for gaining access to government and donor incentives.
https://roaae.org/wp-content/uploads/RAAE_2_2019_Nketiah_et_al.pdf
Land deals
semi-intensive
intensive
low intensive system
eng
Faculty of Economics and Management of the Slovak Agricultural University in Nitra and the Association of Agricultural Economists in Slovakia
Review of Agricultural and Applied Economics
1336-9261
2019-11-01
22
2
26
32
10.15414/raae.2019.22.02.26-32
1111-1
article
DOES FARMER GROUP MEMBERSHIP ENHANCE TECHNOLOGY ADOPTION? EMPIRICAL EVIDENCE FROM TOLON DISTRICT OF GHANA
Hajaratu AHMED
Benjamin Tetteh ANANG
The low adoption of improved technologies by farmers has been identified as one of the major factors affecting agricultural production and food security in many developing countries including Ghana. Farmer-based organizations have been identified as important channels for information and technology dissemination to farmers. The effect of these groups on farmers’ adoption decisions has important implications for agricultural production and food security in many developing countries. This study therefore sought to examine the effect of farmer group membership on improved variety adoption by smallholder maize farmers in the Tolon District of Ghana using cross-sectional data from a sample of 160 farmers. A recursive bivariate probit (RBP) model was used to estimate the effect of group membership on adoption. The results indicate that membership in farmer groups is associated with lower adoption of improved maize varieties, which is contrary to generally held view that farmer groups promote adoption by farmers. Adoption is higher for the married and farmers with access to agricultural extension but decreases with size of herd size and cultivated land. The results underscore challenges confronting farmer-based organizations such as increasing politicization, decreasing effectiveness, and lack of support from both public and private institutions. Incentivizing farmer groups, including the apex body responsible for supervision of these groups will enhance effectiveness of farmer groups.
https://roaae.org/wp-content/uploads/RAAE_2_2019_Ahmed_Anang.pdf
Adoption
farmer-based organization
productivity
recursive bivariate probit model
Tolon district
eng
Faculty of Economics and Management of the Slovak Agricultural University in Nitra and the Association of Agricultural Economists in Slovakia
Review of Agricultural and Applied Economics
1336-9261
2019-11-01
22
2
33
45
10.15414/raae.2019.22.02.33-45
1111-1
article
INCOME IMPACT OF PASTORALIST WOMEN PARTICIPATION IN ALOE VERA SOAP PRODUCTION IN SOUTHERN ETHIOPIA
Dida Golicha NURA
Sisay DEBEBE
Commercial opportunity for indigenous Aloe Vera products appear to be increasing as there is a sustained demand from international as well as African market with high participation of women. However, its income impact on the livelihood of household is not yet addressed. Therefore, this study evaluated the income impact of pastoralist women participation in Aloe Vera soap production in Yabello district, Borana zone of Oromia, Ethiopia. Both primary and secondary data were collected from 200 sample households using semi-structured questionnaire. To analyse the data both descriptive and inferential statistics and Propensity Score Matching model were applied. The Propensity Score Matching was applied the required matching processes, covariate balancing and sensitivity analysis tests. The result shows that participation of women in Aloe Vera soap production has insignificant result with impact on household income. However, the propensity score matching also indicates average treatment effect on treated income is 45.693 Birr. Result of sensitivity analysis further shows that the estimated effects are insensitive to unobserved selection bias within gamma level used. Thus, Aloe Vera soap production should be encouraged for the pastoralist social wellbeing.
https://roaae.org/wp-content/uploads/RAAE_2_2019_Nura_Debebe.pdf
Aloe Vera Soap production
Propensity Score Matching
Yabello
Southern Ethiopia
eng
Faculty of Economics and Management of the Slovak Agricultural University in Nitra and the Association of Agricultural Economists in Slovakia
Review of Agricultural and Applied Economics
1336-9261
2019-11-01
22
2
46
54
10.15414/raae.2019.22.02.46-54
1111-1
article
THE IMPACT OF SUPPORT POLICIES ON TECHNICAL EFFICIENCY OF FARMS IN KOSOVO
Anera ALISHANI
The effects of support policies on technical efficiency are not clear and are very complex because the results may be either positive or negative. The effects can be positive if the money received will serve as an incentive to innovate or to switch to new technologies or can have a negative effect if the money received increase the income of the farms and as a result prefer to have more leisure time. Given the theoretical uncertainty of the impact of supporting policies on efficiency, productivity and added value, the aim of this paper is to address this issue empirically. This paper contributes to the literature for the case of Kosovo by fulfilling the following objectives (i) to measure technical efficiency of farms in Kosovo and (ii) to identify the effect of subsidies by employing a stochastic output distance function and an inefficiency effect model as the one proposed by Battese and Coelli (1995). Parametric stochastic frontier approach was employed to estimate technical efficiency and to determine the effect of exogenous variables on technical efficiency through one-step approach. The share of total subsidies to total output (%) was used as proxy for policy variable and a set of farm characteristics as exogenous variables. We used FADN of Kosovo data provided by MAFRED for 2014. The results suggest that on average a farm in Kosovo produced 15.7% of the maximum output, while the rest of the potential output was lost due to technical inefficiency. Subsidies had negative effect on technical efficiency, however insignificant.
https://roaae.org/wp-content/uploads/RAAE_2_2019_Alishani.pdf
farm performance
technical efficiency
SFA
subsidies
Kosovo
eng
Faculty of Economics and Management of the Slovak Agricultural University in Nitra and the Association of Agricultural Economists in Slovakia
Review of Agricultural and Applied Economics
1336-9261
2019-11-01
22
2
55
70
10.15414/raae.2019.22.02.55-70
1111-1
article
DETERMINANTS OF RURAL HOUSEHOLD SAVINGS BEHAVIOUR: THE CASE OF TOMATO FARMERS IN GHANA
Daniel AIDOO-MENSAH
Much as savings plays an important role in economic development process, it has been neglected very much in favour of credit in rural communities particularly in developing countries. Against this backdrop the study sought to determine tomato farmers’ capacity to save and also to examine the determinants of savings among this group of farmers in three regions of Ghana namely Ashanti, Brong Ahafo and Upper East regions. Data was collected with the aid of structured questionnaire. Descriptive statistics and Ordinary Least Squares (OLS), were used to analyse the data. Empirical results based on four models of the savings functions advocated by Keynes, Klein and Landau showed the marginal propensity to save (MPS) of the respondents to be 0.88 (88%), indicating a relatively high levels of savings among the respondents. This runs counter to Keynes’ assertion that the equalization of income distribution increases aggregate consumption, and hence, reduces savings. The study also established the hypothesis of non-linearity between savings and income among the respondents. This implies that due to lack of permanent income sources among rural dwellers, they tend to consume less of their income in order to save more for the “rainy day”. The results of the study have demonstrated that rural households particularly tomato farmers have the capacity to save which is indicated by their relatively high marginal propensity to save of 88%. This finding makes a convincing case for financial intermediaries to extend the needed financial services to rural households.
https://roaae.org/wp-content/uploads/RAAE_2_2019_Aidoo_Mensah.pdf
Savings
Marginal propensity
Tomato farmers
Income
Ghana
eng
Faculty of Economics and Management of the Slovak Agricultural University in Nitra and the Association of Agricultural Economists in Slovakia
Review of Agricultural and Applied Economics
1336-9261
2019-11-01
22
2
71
80
10.15414/raae.2019.22.02.71-80
1111-1
article
FOOD PRODUCTION AND CONSUMPTION IN THE HIGHLANDS OF ETHIOPIA: THE MISSING LINK IN FOOD SYSTEMS
Wuletaw MEKURIA
Kindu MEKONNEN
Taye MELESE
This paper attempted the nexus of food production and consumption, and determinants of food consumption in Gudo Beret watershed, central highlands of Ethiopia. The study used cross-sectional data collected from 211 randomly selected households through interview. Descriptive statistics and linear regression were the key analytical techniques. Results revealed that households produced a gross yield of 1.5 ton and a net food supply of 1.1 ton per household which was equivalent to 274 kg of grain per adult per annum. The average food demand per capita was 323.8 kg per adult. It implies food production was inadequate for food consumption. Sex of household head being male, livestock holding, inorganic fertilizer, total land size, and market distance affected household food consumption positively whereas household size had negative impacts on household food energy. One of the current themes of the food systems is balancing food production and consumption. The government of Ethiopia should deliberate population policy with the intention that the rising population need to have adequate subsistence. In addition, women empowerment can enable them access to and control over food resources.
https://roaae.org/wp-content/uploads/RAAE_2_2019_Mekuria_et_al.pdf
Crop production
food energy
grains
Ethiopia
households
eng
Faculty of Economics and Management of the Slovak Agricultural University in Nitra and the Association of Agricultural Economists in Slovakia
Review of Agricultural and Applied Economics
1336-9261
2019-11-01
22
2
81
87
10.15414/raae.2019.22.02.81-87
1111-1
article
EFFECTS OF IRRIGATION TECHNOLOGY ADOPTION ON FARMS PERFORMANCE IN ALGERIA: A STOCHASTIC FRONTIER PRODUCTION FUNCTION APPROACH
Amine OULMANE
Amine M. BENMEHAIA
The aim of this study is to evaluate the performance of water-saving technologies (WST) through an investigation of its effect at the farm level. Indeed, the study attempts to estimate the economic value of WST use in Algerian farming, through the comparison of some farm performance indicators between WST adopters, drip irrigation system as a WST, and farmers practicing gravity irrigation as a traditional system. A cross-section data from a survey is conducted in an irrigated perimeter situated in the north-eastern Algeria (Jijel region) encompassing 106 small horticultural farms (including 60 pepper producers and 46 tomato producers). First, the study compares some performance indicators between the two groups of farms. Second, a stochastic production frontier model is used to estimate the productivity gain generated by the WST adoption. Main results show that water consumption, gross margin, and water productivity are statistically significant between the two groups of farms. The average water productivity differential between WST users and non-users is 29% and 25% for tomato and pepper, respectively. The regression model has shown that increasing the WST use by 1% help to increase water productivity of the region by 0.20% for pepper production and 0.11% for tomato production. The findings of this study confirm the hypothesis that WST economize on water quantity, positively affects crop yield and can enhance water productivity.
https://roaae.org/wp-content/uploads/RAAE_2_2019_Oulmane_Benmehaia.pdf
water-saving technologies
stochastic production function
irrigation
water productivity
Algeria
eng
Faculty of Economics and Management of the Slovak Agricultural University in Nitra and the Association of Agricultural Economists in Slovakia
Review of Agricultural and Applied Economics
1336-9261
2019-11-01
22
2
88
95
10.15414/raae.2019.22.02.88-95
1111-1
article
DETERMINANTS OF TECHNICAL EFFICIENCY OF COTTON FARMERS IN TOGO
Essossinam ALI
Komi Tchotoubai KPAKPABIA
Cotton is a cash crop that occupies an important place in Togolese economy. However, a downward trend in productivity has been observed over the last twenty years, but the reasons are not well known. The purpose of this article is to determine the level of technical efficiency of cotton producers and analyse its determinants. The stochastic frontier analysis was adopted and data collected from 150 cotton producers in five regions in Togo was used. The results show that the average technical efficiency of cotton producers is 48.33%. It is therefore possible to increase the level of cotton production to 51.67% using the available resources. The factors that affect the technical inefficiency of farmers include the use of herbicides, the education level and the nature of the soil. In order to increase the productivity of cotton, policy should target on the capacity building of the producers by an effective support of the extension agents in order to ensure the follow-up of the technical itineraries.
https://roaae.org/wp-content/uploads/RAAE_2_2019_Ali_Kpakpabia.pdf
agriculture
technical efficiency
cotton
Togo
eng
Faculty of Economics and Management of the Slovak Agricultural University in Nitra and the Association of Agricultural Economists in Slovakia
Review of Agricultural and Applied Economics
1336-9261
2019-11-01
22
2
96
105
10.15414/raae.2019.22.02.96-105
1111-1
article
DETERMINANTS OF SMALLHOLDER FRUIT COMMERCIALIZATION: EVIDENCE FROM SOUTHWEST ETHIOPIA
Guta REGASA
Rijalu NEGASH
Adugna ENEYEW
Diriba BANE
The aim of the study was to identify determinants of smallholder fruit commercialization in southwest Ethiopia. To get the sampled respondents multi-stage sampling techniques were used and in view of that, three districts were selected purposively from Jimma zone by selecting eight kebeles randomly. At the end, total of 240 sample households were randomly selected from these kebeles. To answer the research questions and objective of the study both qualitative and quantitative data were collected from primary and secondary sources. The primary data were collected from fruit producers as sampled households, agricultural experts, local leaders and other subject matter specialists on various aspects of commercializing fruits. Primary data were collected from the respondents using a pre-testing questionnaires, structured interview schedule and closed and open-ended questionnaires by well-trained enumerators closely supervised by the researchers. Secondary data were previous research findings and reports collected from kebeles, districts, agricultural offices, ministry of trade, trade and revenue offices. Moreover, qualitative data were collected through discussions with different agents by using focus group discussion and key informant interviews. The collected data were analysed using descriptive statistics (frequency, percentage, average mean, standard deviation, chi square and t-test) and econometric model (Probit model) to analyse determinant factors affecting smallholder’s participation decision in marketing of fruits. From the result, age of household heads, household family size, access to transport services, off-farm activities, access to extension services, distance to market, improved fruit seeds and perishability of fruit were significantly affecting smallholder farmer’s participation decision in commercialization of fruits. Therefore, to overcome the investigated problems strong commitment and reformation should be done by stakeholders including farmers, extension agents, researchers, policy makers.
https://roaae.org/wp-content/uploads/RAAE_2_2019_Regasa_et_al.pdf
fruit producers
commercialization
probit model
Ethiopia
eng
Faculty of Economics and Management of the Slovak Agricultural University in Nitra and the Association of Agricultural Economists in Slovakia
Review of Agricultural and Applied Economics
1336-9261
2019-11-01
22
2
106
111
10.15414/raae.2019.22.02.106-111
1111-1
article
FARMERS RISK ATTITUDES, LOCATIONS AND DECISIONS TO ADOPT IMPROVED RICE VARIETIES IN OGUN STATE NIGERIA
Omotuyole Isiaka AMBALI
Farmers’ willingness to taking risky decisions has important economic implications. However, while such attitudes have been previously examined, the relationship between farmers’ risk attitudes and locations has not attracted research attention. This study examined the relationship between rice farmers’ risk attitudes and locations, as well as the correlation between farmers’ risk attitudes and past investment decisions (adoption of improved rice technology). The study utilized survey and experimental data collected across the four agricultural zones in Ogun State Nigeria. The data were descriptively analysed using frequency tables, histogram, principal component and correlation analyses. The results showed that most sampled farmers avoid taking risky prospects, with those located in the rural agricultural zones tend to avoid risk taking than their counterparts in other locations. More importantly, rice farmers’ risk attitudes negatively correlated with adoption decisions. This correlation evidently confirmed spatial relationship in risk attitudes and farmers’ pattern of adoption. Similar patterns of adoption and risk attitudes suggest spatial heterogeneity which have consequences on farmers’ investment decisions, income and wealth accumulation.
https://roaae.org/wp-content/uploads/RAAE_2_2019_Ambali.pdf
agricultural zones
investment decisions
rice farmers
risk attitudes