Agricultural Policy and Farmer Behavior

A special issue of Agriculture (ISSN 2077-0472). This special issue belongs to the section "Agricultural Economics, Policies and Rural Management".

Deadline for manuscript submissions: closed (15 July 2021) | Viewed by 39126

Special Issue Editors


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Guest Editor
Department of Agricultural & Resource Economics, University of California, Berkeley, CA 510341, USA
Interests: global agriculture and food policy

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Guest Editor
Department of Agricultural Economics, Pontificia Universidad Católica de Chile,Vicuña Mackenna, 4860 Macul, Santiago, Chile
Interests: agricultural policy; rural development; political economy; production economics; welfare economics

Special Issue Information

Agricultural policy is a complex web of interventions, covering output markets, input markets, trade, public good investments, renewable and exhaustible natural resources, the regulation of externalities, education, and the marketing and distribution of food products. In many countries, these interventions have resulted in large fiscal expenditures, in large farm product surpluses, in consequences for the environment, and benefits to special interests that are often highly concentrated. In some instances, such policies have resulted in spectacular productivity increases, and in other instances, they have led to stagnation and poverty. In this Special Issue, leading scholars explore the various ways in which agricultural policies might influence farm behavior and the consequences of those policies for agricultural productivity, the food supply chain, farm and rural household welfare, the use of farm inputs and labor, and environmental sustainability.

Prof. Gordon Rausser
Prof. WIlliam Foster
Guest Editors

Manuscript Submission Information

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Keywords

  1. A catalogue of policies:
    1. Interventions to support farmer income:
      1. Border protection;
      2. Subsidies;
      3. Supply restrictions.
    2. R&D;
    3. Infrastructure (irrigation, rural electrification, road networks, telephony, etc.);
    4. Human capital investments;
    5. Other regulations and policies (food safety, invasive species, biofuels, etc., what more?);
    6. Complementarities between different policies.
  2. Farm policy and the supply response:
    1. Farm-level input decisions;
    2. Scale economies;
    3. Composition of production;
    4. The implications for productivity;
    5. The aggregate supply of commodities;
    6. Short-run and long-run farmer decisions and the promise of government support.
  3. Farm policy and rural incomes:
    1. Do some farm households depend on farm subsidies and other policies?
    2. Policy effects on specialization or diversification of household income sources;
    3. Can we rank policies by their efficiency at raising farmer incomes or promoting rural development? (The Gardner question);
  4. Farm policy and farm labor:
    1. The response of household labor decisions;
    2. The effects of policy on migration: internal and foreign.
  5. Policy and risk management in agriculture: lessons learned and forgotten:
    1. How has taxpayer-subsidized crop insurance altered production decisions:
      1. Have subsidies decreased diversification and other moral hazard effects;
      2. Government insurance and farm scale.
    2. Government crop insurance as disguised subsidy and the ways farmers and others might game the system.
  6. Farm policy and unintended consequences:
    1. “Slippage” and other consequences of people taking advantage of incentive structures;
    2. Gaming the system: why policy makers and bureaucrats can never anticipate all the ways a plan can backfire;
    3. Smart versus nonsmart policies: taking into account farmer responses.
  7. The history of the evolution of agricultural policies in the developed world.
  8. Lessons from 75 years of development economics: agricultural policies and farm household welfare.
  9. The role of agricultural policy in the alleviation of poverty.
  10. Farm policy, farmer response, and environmental consequences.
  11. Are food and nutrition policies farm policies?

Published Papers (10 papers)

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Research

20 pages, 2653 KiB  
Article
Impacts of China’s Minimum Grain Procurement Price Program on Agrochemical Use: A Household-Level Analysis
by Min Su, Nico Heerink, Peter Oosterveer, Tao Tan and Shuyi Feng
Agriculture 2021, 11(10), 910; https://0-doi-org.brum.beds.ac.uk/10.3390/agriculture11100910 - 23 Sep 2021
Cited by 4 | Viewed by 5154
Abstract
China’s minimum grain procurement price program aims to boost grain production and ensure food self-sufficiency. It may also affect the already very high levels of chemical fertilizer and pesticides consumption, but little is known about these potential side-effects. In this paper, we apply [...] Read more.
China’s minimum grain procurement price program aims to boost grain production and ensure food self-sufficiency. It may also affect the already very high levels of chemical fertilizer and pesticides consumption, but little is known about these potential side-effects. In this paper, we apply panel data regression techniques to a large rural household-level data set for the period 1997–2010 to examine whether and how the minimum grain procurement price program affected households’ agrochemical use. We find that the minimum grain procurement price program negatively affected both chemical fertilizer and pesticides use, with pesticides use being more responsive than the use of fertilizer. The higher wheat and rice prices that resulted from the program stimulated the use of agrochemicals, but they also stimulated area expansion which contributed to lower agrochemical use per unit of land. These counteracting indirect effects were overshadowed by the large negative direct effect of the minimum procurement price of rice on the use of fertilizer and pesticides. Full article
(This article belongs to the Special Issue Agricultural Policy and Farmer Behavior)
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21 pages, 1902 KiB  
Article
Farmer Decision-Making on the Concept of Coexistence: A Comparative Analysis between Organic and Biotech Farmers in the Philippines
by Clarisse Mendoza Gonzalvo, Wilson Jr. Florendo Aala and Keshav Lall Maharjan
Agriculture 2021, 11(9), 857; https://0-doi-org.brum.beds.ac.uk/10.3390/agriculture11090857 - 08 Sep 2021
Cited by 5 | Viewed by 8535
Abstract
Farmer perspectives are relevant for understanding agricultural issues and formulating policies. In this study, we conducted a cross-sectional survey on 70 Filipino farmers (i.e., 35 organic and 35 biotech) to understand farmers’ perspectives regarding coexisting farming methods. Internal response variables were tested to [...] Read more.
Farmer perspectives are relevant for understanding agricultural issues and formulating policies. In this study, we conducted a cross-sectional survey on 70 Filipino farmers (i.e., 35 organic and 35 biotech) to understand farmers’ perspectives regarding coexisting farming methods. Internal response variables were tested to verify the type of decision-making processes being undertaken by biotech and organic farmers. Our results showed that a non-linear decision-making process, similar to the Stimulus–Organism–Response Model, was present for both farmer groups. The study also found that biotech farmers were more influenced by internal factors (e.g., consumer resources) than organic farmers, who rely more on external influences (e.g., culture and social interactions), in connection to their coexistence perspective. The presence of “maverick executives” within the organic farmers gives traction to the notion that coexistence can help empower farmers in choosing what farming method is most suitable to their needs. Our data can also provide insights to policymakers in terms of surveying farmer perspectives to balance farmer needs, primarily in yield and income security, with the national agricultural agenda centered on environmental conservation. Thus, farmer perspectives should be considered alongside ongoing studies and debates on coexistence. Full article
(This article belongs to the Special Issue Agricultural Policy and Farmer Behavior)
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17 pages, 287 KiB  
Article
Pesticide Policies and Farm Behavior: The Introduction of Regulations for Integrated Pest Management
by Valborg Kvakkestad, Åsmund Lægreid Steiro and Arild Vatn
Agriculture 2021, 11(9), 828; https://0-doi-org.brum.beds.ac.uk/10.3390/agriculture11090828 - 30 Aug 2021
Cited by 7 | Viewed by 3304
Abstract
Integrated pest management (IPM) was introduced in the 1960s as a response to increasing pesticide use and has since evolved from being understood mainly as an economic issue to also including environmental and human health considerations. The EU has made IPM mandatory for [...] Read more.
Integrated pest management (IPM) was introduced in the 1960s as a response to increasing pesticide use and has since evolved from being understood mainly as an economic issue to also including environmental and human health considerations. The EU has made IPM mandatory for all farmers through the Sustainable Use of Pesticides Directive (SUD). Using a mixed-methods approach, this paper examines how Norwegian cereal farmers have responded to this requirement. The qualitative results show that most farmers have an understanding of IPM that goes beyond economic considerations only. The quantitative results display that farmers’ intrinsic motivation for IPM changed after introduction of the SUD. There is increased emphasis on using methods other than spraying, producing grain without traces of pesticides, and preventing pesticide resistance. Farmers’ self-reported knowledge of IPM increased, and 41% of farmers stated that they use IPM to a greater extent than before the SUD was introduced. These results demonstrate that mandatory IPM requirements have been a successful strategy for increasing farmers use of IPM in Norway. Clearer IPM provisions and increased intrinsic motivation for IPM among farmers will, however, be important to reduce the risks from pesticides further. Full article
(This article belongs to the Special Issue Agricultural Policy and Farmer Behavior)
15 pages, 1472 KiB  
Article
Can Trust Motivate Farmers to Purchase Natural Disaster Insurance? Evidence from Earthquake-Stricken Areas of Sichuan, China
by Xueling Bao, Fengwan Zhang, Xin Deng and Dingde Xu
Agriculture 2021, 11(8), 783; https://0-doi-org.brum.beds.ac.uk/10.3390/agriculture11080783 - 17 Aug 2021
Cited by 14 | Viewed by 2641
Abstract
Natural disasters cause great losses of property and life in many areas of China. However, rural residents do not always insure themselves against these losses. Measuring the correlation between trust and farmers’ behavior related to the purchasing of natural disaster insurance is of [...] Read more.
Natural disasters cause great losses of property and life in many areas of China. However, rural residents do not always insure themselves against these losses. Measuring the correlation between trust and farmers’ behavior related to the purchasing of natural disaster insurance is of great significance to the implementation of natural disaster insurance pilot programs and insurance systems in China. This article analyzes data from a survey of 327 households in four districts and counties of Sichuan Province, China, that were affected by the Wenchuan and Lushan earthquakes. According to the relevant theories of trust, trust was divided into three dimensions: authority trust, collective trust, and relationship trust. Then a technology acceptance model was built, and PLS-SEM was used to comprehensively analyze the correlation between different dimensions of trust and farmers’ insurance purchase behavior. The results show that (1) only relationship trust was directly and significantly positively correlated with insurance purchasing behavior. Although there was no direct significant correlation between authoritative trust or collective trust and buying behavior, relationship trust was found to indirectly affect buying behavior. (2) Younger farmers and those with higher incomes are more likely to buy disaster insurance if they live in a disaster-threat zone, have experienced disasters, and are risk averse. We then discuss the correlations between farmers’ trust and natural disaster insurance purchasing in areas threatened by earthquake disasters. This provides a policy inspiration for the promotion of disaster insurance and the construction of insurance systems in China. Full article
(This article belongs to the Special Issue Agricultural Policy and Farmer Behavior)
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10 pages, 1261 KiB  
Article
Profit Efficiency of Rice Farms in Wet-Season Lowlands in Champhone District, Savannakhet Province, Lao PDR
by Sengphachan Khounthikoumane, Jae Bong Chang and Yoonsuk Lee
Agriculture 2021, 11(7), 657; https://0-doi-org.brum.beds.ac.uk/10.3390/agriculture11070657 - 12 Jul 2021
Cited by 2 | Viewed by 3352
Abstract
This study analyzed factors affecting profit efficiency of rice farms in wet-season lowlands in the Champhone District of Savannakhet Province in the Lao People’s Democratic Republic based on a farmer’s decision to maximize profits. The profit efficiency approach has an advantage in that [...] Read more.
This study analyzed factors affecting profit efficiency of rice farms in wet-season lowlands in the Champhone District of Savannakhet Province in the Lao People’s Democratic Republic based on a farmer’s decision to maximize profits. The profit efficiency approach has an advantage in that it provides insights into both inputs and outputs. To analyze profit efficiency, the stochastic production frontier model with assumptions about the time period and types of inputs was applied in the study. The study found similar results to previous studies related to efficiency measurements using a stochastic frontier analysis. Rice production and selling prices have positive signs with respect to the rate of return; however, costs of labor, seed, irrigation, fertilizers, and maintenance have negative signs with respect to the rate of revenue. However, the results from the inefficiency model showed the different role of education. The previous studies found that education level did not play an important role in improving rice productivity in Laos, however, the present study found that education level played a significant role in increasing profits. Full article
(This article belongs to the Special Issue Agricultural Policy and Farmer Behavior)
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18 pages, 1374 KiB  
Article
Regulation of Agricultural Trade and Its Implications in the Reform of the CAP. The Continental Products Case Study
by Francisco J. Castellano-Álvarez, Francisco M. Parejo-Moruno, J. Francisco Rangel-Preciado and Esteban Cruz-Hidalgo
Agriculture 2021, 11(7), 633; https://0-doi-org.brum.beds.ac.uk/10.3390/agriculture11070633 - 07 Jul 2021
Cited by 6 | Viewed by 2935
Abstract
The evolution of the Common Agricultural Policy (CAP) has been conditioned by a number of factors. Among them is the so-called external aspect of the CAP on which this work focuses, being the main objective to analyze the relationship between the evolution of [...] Read more.
The evolution of the Common Agricultural Policy (CAP) has been conditioned by a number of factors. Among them is the so-called external aspect of the CAP on which this work focuses, being the main objective to analyze the relationship between the evolution of the CAP and the negotiations leading to the liberalization of international agricultural trade, which were held within the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO). In the same way, we also consider the consequences for European agricultural foreign trade derived from the commitments assumed by the European Union (EU) in those two negotiating forums. To achieve these objectives, this research proposes two working lines: first, a literature review for better understanding how international agricultural trade has been regulated since the end of the Second World War to the present, and second, a research effort to know the possible implications that said regulation have had for the evolution of European agricultural foreign trade. In this latter case, the issue is addressed through an empirical analysis using two of the main specialized statistical databases in international trade: EUROSTAT and COMTRADE. The results of the research show that, as the changes introduced by the CAP reforms have been consolidated (based on the trade commitments assumed by the EU), there has been a gradual decrease in the share of European exports in the international markets for continental products. Full article
(This article belongs to the Special Issue Agricultural Policy and Farmer Behavior)
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15 pages, 278 KiB  
Article
Adoption of Improved Mungbean Production Technologies in Selected East African Countries
by Frank Mmbando, Emmanuel Mbeyagala, Papias Binagwa, Rael Karimi, Hellen Opie, Justus Ochieng, Tarcisius Mutuoki and Ramakrishnan Madhavan Nair
Agriculture 2021, 11(6), 528; https://0-doi-org.brum.beds.ac.uk/10.3390/agriculture11060528 - 07 Jun 2021
Cited by 9 | Viewed by 2088
Abstract
This study analyzes the factors that influence the probability and extent of the adoption of mungbean production technologies in Tanzania, Kenya and Uganda, using multivariate probit and Poisson regression models. The results show that the probability and extent of the adoption of mungbean [...] Read more.
This study analyzes the factors that influence the probability and extent of the adoption of mungbean production technologies in Tanzania, Kenya and Uganda, using multivariate probit and Poisson regression models. The results show that the probability and extent of the adoption of mungbean production technologies are influenced by gender of the household, household size, farm size, livestock size, household assets, access to extension services and access to credit. The study suggests that policy interventions that aimed at targeting women farmers, increasing household asset and information dissemination, such as field demonstrations and training programs, are crucial in enhancing technology adoption among smallholder farmers. Full article
(This article belongs to the Special Issue Agricultural Policy and Farmer Behavior)
19 pages, 1052 KiB  
Article
Livelihood Adaptation of Rural Households under Livelihood Stress: Evidence from Sichuan Province, China
by Xue Yang, Shili Guo, Xin Deng and Dingde Xu
Agriculture 2021, 11(6), 506; https://0-doi-org.brum.beds.ac.uk/10.3390/agriculture11060506 - 30 May 2021
Cited by 19 | Viewed by 3875
Abstract
The welfare of many poor and low-income rural households is vulnerable to earthquakes and secondary geological disasters. The academic literature, however, pays little attention to the livelihood pressure, adaptability, and livelihood strategies of these households. Based on the survey data of 327 rural [...] Read more.
The welfare of many poor and low-income rural households is vulnerable to earthquakes and secondary geological disasters. The academic literature, however, pays little attention to the livelihood pressure, adaptability, and livelihood strategies of these households. Based on the survey data of 327 rural households in the Wenchuan and Lushan earthquake-stricken areas in the Sichuan Province, the livelihood pressure, adaptability, and livelihood strategy characteristics of rural households were analyzed, and the disordered multi-classification logistic regression model was constructed to explore the correlation between the above-mentioned variables. The results show that: (1) Rural households face the greatest economic pressure and the least social pressure; rural households have the strongest adaptability in social capital and the lowest adaptability in financial capital. The proportion of rural households that chose the aid livelihood strategy was the highest, while the proportion of rural households that chose the adjustment livelihood strategy was the lowest. (2) Compared with the expanded livelihood strategy, (a) When the health pressure is higher, the rural households are more inclined to choose the expanded livelihood strategy, followed by the contractive livelihood strategy and, finally, the aid livelihood strategies; (b), the higher the physical capital, the more often the rural households tend to choose the expanded livelihood strategy compared to the adjustment livelihood strategy; (c), The higher the financial capital of farm households, the more they prefer contractive livelihood strategies compared to the expanded livelihood strategy and (d), compared with the aid livelihood strategy, rural households with greater economic pressure are more inclined to choose the expanded livelihood strategy.This study can provide a reference for the establishment of relevant policies related to the adaptation capacity of rural households in the earthquake hazard zone. Full article
(This article belongs to the Special Issue Agricultural Policy and Farmer Behavior)
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14 pages, 450 KiB  
Article
Regional Differences in Benefits from the EU Common Agricultural Policy in Poland and Their Policy Implications
by Ewa Kiryluk-Dryjska and Agnieszka Baer-Nawrocka
Agriculture 2021, 11(4), 288; https://0-doi-org.brum.beds.ac.uk/10.3390/agriculture11040288 - 27 Mar 2021
Cited by 7 | Viewed by 2539
Abstract
Although the beneficial impact of Common Agricultural Policy (CAP) on the stabilization on farming income is undisputable, the distribution of benefits derived from the CAP between operators and regions gives rise to some controversy. The objective of this paper was to estimate regional [...] Read more.
Although the beneficial impact of Common Agricultural Policy (CAP) on the stabilization on farming income is undisputable, the distribution of benefits derived from the CAP between operators and regions gives rise to some controversy. The objective of this paper was to estimate regional differences in the benefits derived from the Common Agricultural Policy in Poland based on the partial equilibrium model of the European Union (EU) agricultural sector with simulated interventions. The expectations of farmers from different regions of Poland were represented as a non-cooperative game to define vectors of change in the agricultural policy. The theory of moves was applied to set the game between different groups of farmers. Our results demonstrate that both the 1st and the 2nd pillars of the CAP were more profitable to farmers from regions with a more advantageous agrarian structure and a higher agricultural potential compared to their peers from the regions with a fragmented agriculture. However, considering long-term development objectives of the Polish agriculture, the theory of moves outcome argues against compensating for these differences by increasing redistributive payments to farmers in less favorable regions. To prevent widening of regional differences and ensure the social and economic development of rural areas in regions with less favorable agrarian structures where agriculture is currently unable to compete, it would be critical to enhance conditions for alternative types of economic activities. Full article
(This article belongs to the Special Issue Agricultural Policy and Farmer Behavior)
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18 pages, 1053 KiB  
Article
Does Income Inequality Impair Health? Evidence from Rural China
by Wencong Cai, Yuanjie Deng, Qiangqiang Zhang, Haiyu Yang and Xuexi Huo
Agriculture 2021, 11(3), 203; https://0-doi-org.brum.beds.ac.uk/10.3390/agriculture11030203 - 02 Mar 2021
Cited by 10 | Viewed by 2318
Abstract
In the context of the Healthy China strategy and the targeted poverty alleviation policy, based on the survey data of 1710 apple planters in Shandong, Yunnan, Shaanxi, and Gansu provinces, we selected the Probit model and the mediating effect test model to analyze [...] Read more.
In the context of the Healthy China strategy and the targeted poverty alleviation policy, based on the survey data of 1710 apple planters in Shandong, Yunnan, Shaanxi, and Gansu provinces, we selected the Probit model and the mediating effect test model to analyze the impact of income inequality on the self-rated health of farmers in this paper. The main results are as follows: First, income inequality within villages and townships had a significant negative impact on self-rated health, with both showing inverted U-shaped relationships, while income inequality within counties had no significant impact on self-rated health. Second, income inequality can impact the health of farmers, in terms of tobacco and alcohol behaviors, social trust, and sense of relative deprivation, where the mediating effect ratio of these three factors combined accounted for 32.4% of the total effect. Furthermore, the effect of income inequality on health was heterogeneous among different income groups, where the negative impact of income inequality on the self-rated health of the high-income group was less than that of the low-income group, indicating that an increase in income inequality serves to aggravate the degree of health inequality. Therefore, the government should adopt differentiated policies to improve the health of farmers. In rural areas with high income inequality, the government should focus on increasing the income of low-income groups, guide them to develop a healthy lifestyle, improve their social trust, and reduce their sense of relative deprivation. In rural areas where incomes are generally low, the government should first guide qualified farmers to become rich, then encourage others to become rich later. Full article
(This article belongs to the Special Issue Agricultural Policy and Farmer Behavior)
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