Search

In low potential agricultural areas like the Honduran hillsides characterized by soil degradation and erosion, organic agriculture can provide a means to break the downward spiral of resource degradation and poverty. We use original survey data to analyze the factors influencing the decision to convert to organic agriculture. Previous studies have emphasized the role of spatial patterns in the diffusion and adoption of agricultural technologies in general and organic agriculture in particular. These spatial patterns can result from a variety of underlying factors. In this article we test various potential explanations, including the availability of information in the farmer's neighborhood, social conformity concerns and perceived positive external effects of the adoption decision, in a spatially explicit adoption model. We find that farmers who believe to act in accordance with their neighbors' expectations and with greater availability of information in their neighborhood network are more likely to adopt organic agriculture. Furthermore, perceived positive productivity spillovers to neighboring plots decrease the probability of adoption. We discuss the implications of our findings for the dissemination of sustainable agricultural technologies in low-potential agricultural areas in developing countries.

In low potential agricultural areas like the Honduran hillsides characterized by soil degradation and erosion, organic agriculture can provide a means to break the downward spiral of resource degradation and poverty. We use original survey data to analyze the factors influencing the decision to convert to organic agriculture. Previous studies have emphasized the role of spatial patterns in the diffusion and adoption of agricultural technologies in general and organic agriculture in particular. These spatial patterns can result from a variety of underlying factors. In this article we test various potential explanations, including the availability of information in the farmer's neighborhood, social conformity concerns and perceived positive external effects of the adoption decision, in a spatially explicit adoption model. We find that farmers who believe to act in accordance with their neighbors' expectations and with greater availability of information in their neighborhood network are more likely to adopt organic agriculture. Furthermore, perceived positive productivity spillovers to neighboring plots decrease the probability of adoption. We discuss the implications of our findings for the dissemination of sustainable agricultural technologies in low-potential agricultural areas in developing countries.

International audience

Specialization and commercialization of agricultural production is seen as a key to lift small-scale farmers in developing countries out of poverty. While participation in high-value markets has been shown to be beneficial for farmers, especially the smallest and least endowed farmers are often excluded from these markets due to high transaction costs. In this context, marketing traditional food crops poses an important income alternative. The present study aims to contribute to the scarce literature on traditional food crops by analyzing the factors influencing (a) the households' decision to participate in the finger millet market and (b) the selling prices obtained by the household. A special focus of our analysis lies on the role of gender and collective action. Based on household data from 270 finger millet producers, a probit model on market participation and a linear regression model on the selling price are estimated. Results show that participation in a finger millet group positively influences the decision to market finger millet. While female household members who do not participate in a group are disadvantaged in terms of selling prices, there is no gender effect on selling prices if a female household member participates in a finger millet group.

This article investigates commitment in cooperative marketing relationships. Sideselling by members poses a serious threat to the viability of cooperatives, since services provided to members have to be financed through collective sales. We develop a model that demonstrates how the size of the producer determines the degree of individual commitment under the provision of public and private collective goods. Based on survey data from cooperatively organized coffee farmers in Costa Rica, we find that smaller and larger farmers are more committed, while medium-sized farmers side-sell a larger share of their produce to private buyers. Some broader implications for collective marketing relationships are discussed., Paper removed April 2013 at the request of the author.

International audience

A steep decline in coffee prices at the producer level led to considerable pressure for farmers in Costa Rica and producer countries all over the world. One possible reaction was moving to specialty markets, where price pressure was perceived to be lower. We use original survey data from 2002/03 and 2003/04 to analyze the factors influencing efficiency levels of conventional and specialty coffee farmers. Controlling for selectivity bias, we find that technical efficiency in the two subsamples is influenced by both identical and divergent factors. Among the former, additional income activities increase efficiency. Among the divergent factors, experience, bookkeeping, and the number of adult household members are found to have a significant impact in the specialty coffee model. In the case of conventional coffee farmers, membership in cooperatives leads to higher farm-level efficiency. Based on the results, we derive policy recommendations to improve farmers' production performance and ability to cope with the effects of the coffee crisis. These policy measures include the provision of extension services with respect to accounting methods, the creation of income opportunities in rural areas, and the support of farmer-owned cooperatives.

Conservation agriculture is often perceived to provide “win-win” outcomes for farmers leading to reduced erosion and off-site sedimentation, as well as improved soil fertility and productivity. However, adoption rates for conservation agriculture in many regions of the world remain below expected levels. This paper looks at the effect of organic markets in providing incentives for farmers to adopt soil conservation practices. Farmer-based organizations may link farmers to these markets by helping them overcome information deficiencies with respect to production standards and consumer preferences. Based on original survey data from 241 small-scale farm households in Honduras, we find that both participation in organic markets and farmer-based groups have positive effects on the number of soil conservation practices adopted on the farm. The results indicate that besides supply-oriented policy measures, such as the provision of technical assistance and extension, demand-related factors are likely to play an important role in sustainable soil management. Demand-oriented policy measures can include support for labeling initiatives and consumer education to facilitate value-added product differentiation and market segmentation.

Conservation agriculture is often perceived to provide “win-win” outcomes for farmers leading to reduced erosion and off-site sedimentation, as well as improved soil fertility and productivity. However, adoption rates for conservation agriculture in many regions of the world remain below expected levels. This paper looks at the effect of organic markets in providing incentives for farmers to adopt soil conservation practices based on the willingness of consumers to pay a price premium for the use of sustainable production technologies. Farmer-based organizations may help farmers overcome information deficiencies with respect to production processes as well as consumer preferences. Based on original survey data from 241 small-scale farm households in Honduras, we find that both participation in organic markets as well as in farmer-based groups have positive effects on the number of soil conservation practices adopted on the farm. The results indicate that besides supply-oriented policy measures, such as the provision of technical assistance and extension, demand-related factors are likely to play an important role in sustainable soil management. Demand-oriented policy measures can include support for labeling initiatives and consumer education to facilitate value-added product differentiation and market segmentation.

As a result of considerable oversupply of green coffee on the international market, world coffee prices dropped to their lowest levels in 30 years giving rise to the most severe crisis experienced by the coffee sector. In many countries, coffee prices did not cover the average cost of production causing widespread financial and social hardships among producers. Economic losses and the lack of viable income alternatives forced many farmers to abandon their coffee plantations and migrate to urban areas in search of employment. Overall, the effects of the crisis pose serious threats to the prospects for sustainable rural development. In the face of this situation, policymakers and development practitioners have shown their willingness to assist farmers in improving their production performance and thus their ability to cope with the crisis. To avoid wasting scarce resources, policy actions must be carefully tailored to the needs of farmers. On this account, the paper presents a diligent investigation of the factors that determine farmers' technical efficiency in coffee production. As inefficiency in production results in a failure to maximize profits at the farm level, increases in productive efficiency enhance the competitiveness of coffee production and could help farmers to confront the adverse economic conditions caused by the coffee crisis. An empirical evaluation of the factors determining efficiency is critical to identify the constraints faced by farmers in the specific situation and to derive adequate policy measures. The empirical analysis is based on a sample of 216 households that were randomly chosen from within two of the main coffee regions in Costa Rica. A standardized questionnaire was administered to households to collect data on coffee production as well as on the socio-economic characteristics of household members. The information collected partly includes recall data covering the production periods 2003/04 and 2002/03. Given its favorable natural conditions, Costa Rica has a competitive advantage with respect to the production of high-quality coffee. In the face of the crisis, the country has put emphasis on exploring that potential, motivating farmers to adjust their production to the requirements of specialty markets. The specialty segment, including high-quality and sustainable coffee, has been attributed major importance in providing farmers with a sustainable alternative to conventional coffee markets. The household sample used for the empirical analysis includes both farmers producing in the specialty segment as well as in the conventional segment. In order to analyze farmers' production performance, a stochastic frontier model is estimated and the effects of a range of farm-specific variables on technical efficiency are determined simultaneously. Given that farmers in the sample use different sets of technologies, two different production frontiers are estimated for farmers cultivating conventional and specialty coffee, respectively. As these sub-samples are unlikely to represent unbiased representations of the population, the ignorance of self-selection bias will produce inconsistent estimates. Following Heckman (1979) and Lee (1978), an inverse Milli's ratio is included in the models to control for self-selection bias. The inverse Milli's ratio is derived from a pooled probit model, which is used to estimate the probability that a farmer chooses to grow specialty coffee. Whereas previous studies have estimated technical efficiency separately for two sub-samples of farmers using different production technologies, the present work explicitly controls for the selection bias that can result from splitting the original sample and that has been neglected in former studies. The probit model indicates that the probability of participation in the specialty segment increases with the farmer's experience in coffee cultivation, education and access to specialized extension service as well as with the size of the farmland. Furthermore, membership in a coffee cooperative has a positive impact on participation. The inverse Milli's ratio that is then included in the stochastic frontier analysis proves to be significant indicating that self-selection is present. Average output of specialty coffee farmers is larger than it would be if all farmers were cultivating specialty coffee. Likewise, average output of conventional farmers is smaller than it would be if all farmers were using the respective technology. This underscores the need for taking possible selectivity bias into account. Controlling for selection bias, the two frontier models identify several factors that determine efficiency levels of farmers. In both models, the effect of other income-generating activities on efficiency is positive, which is likely to be a result of better access to liquidity and information of those farmers who have additional income sources. In the case of specialty farmers, efficiency increases if farmers keep book of their activities and expenditures. Furthermore, efficiency decreases with farm size. This might be interpreted as an advantage of small-scale farms in the cultivation of specialty coffee, although it has to be kept in mind that overall, smaller farmers are less likely to participate in specialty coffee cultivation. In the case of conventional farmers, model results reveal that membership in cooperatives significantly contributes to the achievement of technical efficiency at the farm level. The results of the empirical analysis stress the importance of actively involving small-scale farmers, who are otherwise easily excluded from new market developments. The study suggests that once they are able to overcome the barriers that prevent their participation, small-scale farmers can successfully compete in the specialty segment. Further policy recommendations derived from the empirical results include the provision of extension services, the support of coffee cooperatives, and the diversification of the rural economy., Replaced with revised version of paper 07/12/07.

Historically low prices in the conventional coffee market have caused financial and social hardship among coffee farmers. In the face of this crisis, specialty markets have attracted the attention of the international donor community. These market segments have shown consistent growth over the last decade and exhibit price premiums in international markets. Therefore, if higher prices are passed on to farmers, access to specialty markets could help to alleviate the crisis brought on by low prices in the conventional sector. The present study attempts to identify the factors that determine farmers' participation in specialized markets and whether participation in these markets leads to higher prices for farmers. A two-stage model is used to analyze farmers' marketing decisions and their effect on the prices received. This procedure allows us to control for the endogeneity bias introduced by the marketing choice. Our results indicate that farmers participating in the specialty coffee segment do in fact receive higher prices than those participating in conventional channels. Additionally, we find that participation in cooperatives has a positive impact on the probability that a farmer chooses to grow specialty coffee and analogously the prices that they receive. Based on these results it seems that efforts to increase participation in the specialty coffee segment and in cooperatives would help to lessen some of the hardships brought on by low prices in the conventional coffee sector.

Land-use transitions can enhance the livelihoods of smallholder farmers but potential economic-ecological trade-offs remain poorly understood. Here, we present an interdisciplinary study of the environmental, social and economic consequences of land-use transitions in a tropical smallholder landscape on Sumatra, Indonesia. We find widespread biodiversity-profit trade-offs resulting from land-use transitions from forest and agroforestry systems to rubber and oil palm monocultures, for 26,894 aboveground and belowground species and whole-ecosystem multidiversity. Despite variation between ecosystem functions, profit gains come at the expense of ecosystem multifunctionality, indicating far-reaching ecosystem deterioration. We identify landscape compositions that can mitigate trade-offs under optimal land-use allocation but also show that intensive monocultures always lead to higher profits. These findings suggest that, to reduce losses in biodiversity and ecosystem functioning, changes in economic incentive structures through well-designed policies are urgently needed.

In low potential agricultural areas like the Honduran hillsides characterized by soil degradation and erosion, organic agriculture can provide a means to break the downward spiral of resource degradation and poverty. We use original survey data to analyze the factors influencing the decision to convert to organic agriculture. Previous studies have emphasized the role of spatial patterns in the diffusion and adoption of agricultural technologies in general and organic agriculture in particular. These spatial patterns can result from a variety of underlying factors. In this article we test various potential explanations, including the availability of information in the farmer's neighborhood, social conformity concerns and perceived positive external effects of the adoption decision, in a spatially explicit adoption model. We find that farmers who believe to act in accordance with their neighbors' expectations and with greater availability of information in their neighborhood network are more likely to adopt organic agriculture. Furthermore, perceived positive productivity spillovers to neighboring plots decrease the probability of adoption. We discuss the implications of our findings for the dissemination of sustainable agricultural technologies in low-potential agricultural areas in developing countries.