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This paper investigates the role of farm diversification for dietary diversity of households in smallholder agriculture. We use the Living Standards Measurement Study – Integrated Surveys on Agriculture (LSMS-ISA) dataset of the World Bank from Ethiopia and Tanzania. The results of the study show that farm diversification contributes to dietary diversity of farm households. Furthermore, we show that the effects of farm diversification and proportion of purchased food on the dietary diversity of the household significantly varies across families who are in food poverty, and the food secure families. Rural development efforts towards diversified farming systems can contribute to improve the food security and dietary diversity of farm households, especially if targeted towards nutritionally rich food production schemes.

This paper investigates the implication of the cost of risk exposure on farm diversification, farm insurance premium payment and investment behavior in agriculture using an extensive Farm Accountancy Data Network (FADN) panel data of arable farms and weather data from 1989 to 2009 from France and Germany. For this purpose, we develop a two stage empirical model. First, we estimate the full profit moments distribution using the major inputs of production with quadratic function. Following this, we estimate the major responses of farmers for exposure to risk (farm diversification, investment decisions and purchase of insurance) via three-stage least squares (3SLS) estimation procedure. Our empirical analysis confirms that risk exposure measured with variance and skewness of farm profit can significantly influence the level of farm diversification, insurance premium payment and farm investment and disinvestment in arable farms in both countries. As these strategies seem not to be completely substitutable, this evidence can be used to support the discussion of improving the availability of market based instruments to strengthen the adaptive capacity of farms in the developing world. We do find an evidence that farms can see disinvestment as a response to extreme shock and risk exposure at least in a short run. Improving the adaptive capacity of farms might not only secure them pervasive impacts of risk exposure, but also can influence their investment and disinvestment behavior.

This paper explores the implication of the rural non-farm employment and waged agricultural employment for income and risk mitigation of agricultural households in Ethiopia. We use a nationally representative panel dataset, and employ endogenous switching mixed multinomial logit model. After we control the selection bias that can arise from employment selection in rural households stemming both from observed and unobserved characteristics, we do find an evidence that the non-farm sector improves the income of the agricultural households, and serve as risk mitigation tool in rural Ethiopia. Combining the non-farm sector with hiring labor for agricultural activities at times of labor shortage increases the variance and contributes to positive skewness of income. Finally, we suggest that the rural non-farm sector could serve as a key development pathway for improving livelihood in the predominantly smallholder production system in Ethiopia.

Using a moment based approach, introduced by Antle for producers’ risk behavior elicitation, we develop an empirical model to evaluate the implication of risk preferences on farm level diversification. For the purpose, we use a household level panel data of years 2004 and 2009 from Ethiopia. The estimation is done in two stages; the first one for the elicitation of risk aversion behavior of farm households and the second one, for the inclusion of the first estimate on the factors that determine the level of on-farm diversification. To control for endogeneity problem in the estimation of diversification equation, we use efficient two stage least squares technique. We find that farmers with higher level of relative risk premium will more likely opt for more on-farm diversification. The engagement of farm households to off and non-farm income generating activities could likely reduce the on-farm diversification level. These could be due to the fact that households with income from off and non-farm activities use this income as a safety net and go for specialized farms.

This paper systematically investigates the role of the quality of rural employment on agricultural production efficiency in developing countries, taking Ethiopia and Tanzania as cases. We use data of the Living Standards Measurement Study-Integrated Surveys on Agriculture (LSMS-ISA) collected in 2011. In the analysis, an output-oriented distance function approach that accounts for different technological, demographic, socio-economic, institutional and quality of rural employment indicators is applied. The findings of the analysis support the idea that the quality of rural employment could be seen as an effective element of rural development policies and strategies in sub-Saharan Africa. Better integration of quality rural employment aspects (creation of jobs, improving quality of jobs, promoting public employment programs etc.) contribute to improve technical efficiency in agricultural production.

Using a moment based approach, introduced by Antle for producers’ risk behavior elicitation, we develop an empirical model to evaluate the implication of risk preferences on farm portfolio decisions. With a comprehensive household level panel data of rounds of 2004 and 2009, we estimate risk aversion behavior of farm households in uncertain climate and market imperfections. To solve the problem of endogeneity, the risk parameter is instrumented in a two stage maximum likelihood estimation technique, and used as a determinant of the level of farm level diversification. We find that farmers with higher level of relative risk premium will more likely opt for diversified farms. The engagement of farm households to off and non-farm income generating activities could likely reduce the on-farm diversification level. On-farm diversification and engagement in off-farm and non-farm activities can be considered as substitutable risk mitigation strategies

Promoting decent rural employment, by creating new jobs in rural areas and upgrading the existing ones, could be one of the most efficient pathways to reduce rural poverty. This paper systematically investigates the role of decent rural employment on agricultural production efficiency in sub-Saharan African countries, taking Ethiopia and Tanzania as case countries. The analysis applies an output-oriented distance function approach with an estimation procedure that accounts for different technological, demographic, socio-economic, institutional and decent rural employment indicators. Data of the most recent round of Living Standards Measurement Study-Integrated Surveys on Agriculture (LSMS-ISA) for the two countries are used, and a set of indicators are derived to proxy core dimensions of decent rural employment. The findings of our analysis support the idea that integrating decent rural employment aspects in rural development policies and strategies can contribute to improve agricultural production efficiency in sub-Saharan Africa.

Institutional food buyers in the U.S. are increasingly demanding food products that are safe, traceable, healthier, local/regional, or sustainably produced and supplied. These markets consist of schools, universities, hospitals, charities, correction facilities, clubs and other similar organizations that buy goods and services to meet demands of their end-customers (students, patients, prisoners, etc.). These institutions comprise a large portion of the U.S. population. In 2008, the total number of children and adults enrolled in schools throughout the country - from nursery school to college - was estimated at 75.5 million (i.e., 18.7 million in colleges and 56.8 million in schools). This amounts to more than one-fourth of the U.S. population age three and older (U.S. Census Bureau, 2009). About 29 million children are participating each month in the National School Lunch Program (NSLP). The NSLP, established by the 1946 national School Lunch Act, has the goals of providing school children access to nutritious foods and creating markets for food producers. In the latter case, the school food program serves as an outlet for commodities that are assumed to be in surplus by the USDA. The NSLP functions through an entitlement program, in which participating schools receive cash reimbursements based on family income level of participating students (Allen and Hinrichs, 2007). The schools are entitled to use the cash reimbursements to order and purchase commodities through the USDA commodity program. Most of these commodities are meat, cheese, fruit and vegetable products that mainly come in processed form. One of the growing concerns about the USDA commodity program is about its perceived impacts on child nutrition and health. In the last few years these concerns have led to increased attempts to make changes in school food programs and nutritional makeups. Schools are increasingly demanding food products that are safe, sustainable and come from known local and regional suppliers or producers. One of the key challenges in this transformation process is finding the right product and appropriate supply chain that can assume a wide range of responsibilities to meet demand. The present paper explores the responsiveness of the conventional food supply chain (primarily food manufacturers, distributors and wholesalers) in the produce, dairy, bread and poultry sectors to meet school districts’ desired food purchasing and procurement changes. The study is part of a large research project that focuses on the Getachew Abate Kassa 321 transformation of food purchasing and procurement practices in large urban school districts (i.e., school districts with more than 40,000 students). Specific objectives are to (1) learn manufacturers’ and wholesalers’ (hereafter food suppliers) perceptions about specific demands by the school districts, (2) assess logistical requirements and product development activities and challenges while establishing a business case to meet demand as perceived by the food suppliers, and (3) identify other related supply chain issues to transform school food procurement and purchasing practices.

The paper examines relationships and linkages between the conventional supply chain actors (wholesalers and retailers) and local food producers based on a study conducted in Southeast Michigan. A case study approach was employed to examine chain actors’ operations and to explore their roles, experiences and perceptions about local foods. Semi-structured interviews were conducted with the owners and managers of eleven retailers and six wholesalers. The study found differences in local food perceptions, buying experiences and perceived benefits and risks associated with local food sourcing activities. The study also identified some competition between local independent food retailers and alternative market outlets. The major implication of the findings is that producers need to provide additional market services and develop trust-based relationships with their buyers to create better market access for local foods.

This paper is part of a series of reports of the activities conducted under a grant from the Fund for Rural America, U.S. Department of Agriculture. Funds for the grant entitled "Enhancing Rural Economies Through Comprehensive Extension, Research & Partnering Approaches Using Multi-County Clusters in Michigan With Application to National Rural Settings" were received by Michigan State University's Department of Agricultural Economics in March, 1998. The major goal of the grant is to increase economic development activity in four clusters of rural counties in Michigan through the utilization of the resources of the Michigan State University Extension Service, Michigan Agricultural Experiment Station, and other resources of Michigan State University. Various local, state, and federal public partners as well as the private sector are co-sponsors of projects in the counties. This paper focuses on E-commerce issues and applications for small businesses and communities providing information on recent developments of E-commerce businesses and approaches to successes in Internet marketing. Details of the paper rely on materials used for E-commerce training programs co-sponsored by the project, responses from businesses participated in the training and review of available digital economic and business literature that highlights key elements and benefits of E-commerce to small businesses.

This paper is part of a series of reports of the activities conducted under a grant from the Fund for Rural America, U.S. Department of Agriculture. Funds for the grant entitled "Enhancing Rural Economies Through Comprehensive Extension, Research & Partnering Approaches Using Multi-County Clusters in Michigan With Application to National Rural Settings" were received by Michigan State University's Department of Agricultural Economics in March, 1998. The major goal of the grant is to increase economic development activity in four clusters of rural counties in Michigan through the utilization of the resources of the Michigan State University Extension Service, Michigan Agricultural Experiment Station, and other resources of Michigan State University. Various local, state, and federal public partners as well as the private sector are co-sponsors of projects in the counties. This paper focuses on Business Retention and Expansion (BR&E) programs that have been conducted in the Western Upper Peninsula (WUP) of Michigan. The paper highlights and assesses major achievements and performances of the programs with respect to identifying issues, problems, and opportunities impacting the local economies. The data include information from BR&E visitation programs supported by the project and two other surveys in the WUP region.