Joint market participation choices of smallholder farmers and households’ welfare: evidence from Senegal
PurposeThere is much evidence in the literature showing the benefits of input market participation on farmers’ welfare. The same is true for participation in marketing. However, there are very few studies on the expected benefit of input market participation and marketing. This study fills this gap by examining the issue in the Senegalese context for food and cash crops.Design/methodology/approachThe authors estimate a multinomial endogenous switching regression using a highly detailed 2017 agricultural survey in Senegal. They first identify factors that shape farmers’ decision to participate in the input market and marketing and then assess the impact of market participation choices on farmers’ profits.FindingsThe results show that the most profitable market participation regime depends on the crop under consideration. For food crops, joint participation in markets maximizes profit per hectare, while for groundnuts, the main cash crop in Senegal, participation in the input market is not necessary to maximize farm profit.Research limitations/implicationsUsing panel data would improve the quality of estimations (time-variant effects) and help to consider the role of risk in output and input markets.Originality/valueThis paper helps to characterize different profiles of farmers based on their market participation and crop choices and provide policymakers with recommendations for maximizing farmers’ profit.
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45
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- Jan 26, 2021
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Produce to eat or sell: Panel data structural equation modeling of market participation and food dietary diversity in Zambia
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23
- 10.1016/j.joule.2023.05.014
- Jun 1, 2023
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The role of electricity market design for energy storage in cost-efficient decarbonization
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29
- 10.1016/j.ijepes.2021.107423
- Aug 2, 2021
- International Journal of Electrical Power and Energy Systems
Research on an optimization model for wind power and thermal power participating in two-level power market transactions
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1
- 10.11648/j.eco.20211002.11
- Jan 1, 2021
- Economics
Multipurpose cooperatives are often seen as key institutional intervention in enhancing farmers’ access to markets, as one form of institution that fulfill exchange and co-ordination functions in an economy. This study Presented multipurpose cooperatives member participation in agricultural input marketing and associated factors at kersa woreda, Oromia Regional State, Ethiopia. Two-stage sampling procedures were used in this study. Primary data were collected through key informant interview, focus group discussions and personal observations while secondary data were collected through review of related literatures and different reports. Binary logit model was used to analyze quantitative data. Twelve independent variables were hypothesized and five of them positively influencing agricultural input marketing of multipurpose cooperative member’s participation. The result showed that 66.36% of cooperative members were participants in agricultural input marketing where as 33.64% were non-participants. The binary logit model result showed that age, education, landholding, change in standard of living due to joining of cooperative, membership in other cooperatives other than Multipurpose Cooperatives has influence agricultural input marketing of multipurpose cooperative member positively and significantly while the other two variables determined negatively and significantly. In conclusion, multipurpose cooperative members who are nearer to their office tend to more participate in marketing activity of agricultural input marketing than those who are far from their office. Therefore, the government has to facilitate road accessibility and District Cooperative promotion Agency has to give attention to address and support those who have no proximity to their office.
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2
- 10.1016/j.landusepol.2024.107307
- Aug 16, 2024
- Land Use Policy
Participation in land rental and labor markets and agricultural economic performance of banana farmers in China
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12
- 10.1186/s40100-022-00210-1
- Feb 9, 2022
- Agricultural and Food Economics
This paper examines the relationship between participation in nonfarm activity and participation in markets by farm households in Ghana. The study used data from the Ghana Living Standards Survey Round 6 and employed the endogenous switching probit model which accounts for selection bias from observed and unobserved factors. The results reveal that infrastructural variables such as roads, means of transport, markets and banks are important determinants of nonfarm work engagement and participation in crop market. We also find a positive and significant effect of nonfarm work participation on the probability of selling crops. The conclusion is that farmers’ engagement in nonfarm activities boosts decisions to enter crop markets in Ghana. The results of the study imply that for agricultural development in Ghana and other countries with similar characteristics, agricultural policies should incorporate strategies that enhance opportunities in the nonfarm sector as that will translate to enhanced producer market participation.
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1
- 10.1007/s40847-024-00364-2
- Jul 30, 2024
- Journal of Social and Economic Development
Similar to other fragile poor countries, the majority of the rural population in Afghanistan depend directly or indirectly on small-scale farming for their livelihoods, and poor infrastructure and other barriers restrict access to markets and services, making improving access to local input markets a significant challenge for policymakers aiming to increase productivity. This paper offers empirical evidence addressing two important issues for smallholder participation in input markets: are rural markets incomplete or failing and how do transaction costs affect participation in factor markets? Pooled cross-sectional data from three waves of nationally representative surveys between 2011 and 2016 with a sample of nearly 21,000 households are used. The analysis first tests and rejects the separability hypothesis that household production and consumption decisions are independent which can be interpreted as evidence of market failures. A control function approach with instrumental variables to address endogeneity is employed to estimate household input market participation decisions. Ownership of or access to information and communication technology and transport equipment are used as proxies for transaction costs. Results confirm that lower transaction costs increase input market participation and expenditure on inputs by farm households. Additionally, households with better access to roads and district or provincial market centres have higher market participation and expenditure on input. Reducing transaction costs plays an important role in input use, potentially increasing productivity and incomes.
- Preprint Article
1
- 10.22004/ag.econ.96168
- Sep 1, 2010
- RePEc: Research Papers in Economics
Most studies on smallholder market participation decisions analyze crop or livestock market participation separately. However, in mixed crop-livestock farming systems, smallholders’ participation decisions in crop and livestock markets may not be separate as a household’s position in one market may be influenced by its position in the other. Where there is limited income from off-farm and/or non-farm activities, household cash requirements for crop production or household consumption are usually met by selling livestock. Similarly, livestock purchase is usually financed by income from crop sales. However, to what extent the position in one market influences the other is still not well explored in the literature. The aim of this paper is to investigate the interactions of crop and livestock output market participation of smallholders, by analyzing the determinants of household market participation positions in both commodities simultaneously. Household level data collected in 2009 from 1075 sample households in ten districts of the four major regions of Ethiopia is used for the analyses. Using simultaneous equation models, we test whether the position of being a net seller in crop market is affected by the position of being a net buyer in the livestock market, and vice versa. Results show that the decision to be a net buyer in crop market is associated positively with the decision to be a net seller in livestock market. Similarly, the decision to be a net seller in crop market is associated positively with the decision to be a net buyer in livestock market. This implies that crop purchase is financed by livestock sale and excess income from crop sale is saved in the form of livestock asset. Thus, policies/strategies enhancing smallholders’ participation in crop and livestock markets in mixed crop-livestock system should pay attention to the production and marketing of both commodities simultaneously.
- Research Article
- 10.1108/igdr-06-2025-0102
- Nov 19, 2025
- Indian Growth and Development Review
Purpose This study aims to understand the relationship between extension services, crop types and farmers’ market participation in India. It further explores the factors influencing farmers’ choice of market and the role of extension service in shaping their decision of market participation. Design/methodology/approach The multivariate logistic regression and probit model are used to understand factors influencing the farmers’ choice of market participation. Findings This study finds that the major crop selling takes place through the non-regulated markets. This highlights the crucial role of non-regulated spaces in the Indian agricultural marketing system, in spite of their shortcomings. The same pattern can be observed across all crop categories, indicating that institutional market mechanisms are either inaccessible or inefficient for the majority of the farmers. The study further reveals that the private extension services have emerged as a key and widely relied upon source of market-related information. The results show that farm households mainly rely on private extension services for agriculture-related advice. The logistic regression shows that demographic, farm and institutional variables also significantly influence farmers’ choice of market channels. The findings offer managerial implications by advocating for a dual market approach that improves transparency in non-regulated markets while addressing their inherent inefficiencies. This study also advocates for the strengthening of extension services to enhance farmer participation. Originality/value This study uniquely links extension services and crop choices to farmers’ market participation, offering fresh evidence from India’s unit-level data of the latest round (77th round, 2018–19) of the National Sample Survey on agricultural households in India.
- Research Article
8
- 10.11648/j.ajaf.20190704.13
- Jan 1, 2019
- American Journal of Agriculture and Forestry
The majority of farmers in Ethiopia are smallholder farmers. However, smallholder farmers Participation in markets remain low due to range of resource constraints such as capital, inputs and technology and their exposure to risk. Therefore, this paper was aimed to review different literature determinants of smaller holder farmers’ market participation and outlet choice decision in Ethiopia based on desk review method. The review reveals that demographic and socio-economic factors, institutional factors, market factors, technological factors, transaction cost and risk were determinants of smallholder farmers’ market participation decision in Ethiopia. On other hand, the determinants of smallholder farmers’ market outlet decision also reviewed. Accordingly, household characteristics, transaction costs, product characteristics, household asset and trusts on buyers were determinants smallholder farmers’ market outlet choice in Ethiopia. Therefore, government and concerned bodies should improve rural infrastructure, smallholder farm productivity through technology, market information, promotion of farmer associations to enhance market participation and outlet choice small holder farmers in Ethiopia.
- Research Article
6
- 10.1109/tpwrs.2022.3189592
- May 1, 2023
- IEEE Transactions on Power Systems
Nodal price separations in Day-Ahead (DA) market caused by transmission congestion create congestion charges/surplus that are reallocated to the market participants through the financial transmission right (FTR) auction. From a market participant's viewpoint, these two markets are interrelated because the revenue of market participant in FTR auction is determined based on the day-ahead locational marginal prices. Furthermore, virtual transactions which are designed to improve price convergence between the day-ahead and real-time markets can directly impact day-ahead prices. This impact through virtual transactions may be utilized by a market participant to increase its FTR value and improve its overall strategy in participating in both FTR auction and day-ahead market. To this end, this paper is the first attempt to reveal this tactic in literature and proposes an offer strategy framework for a price-maker generating company participating in both FTR auction and day-ahead market with the consideration of virtual bidding. First, the possibility of FTR value manipulation is conceptually demonstrated by placing virtual bids in the day-ahead market. Second, a two-stage bi-level offering strategy model is formulated for strategic GenCos, which is further converted to a single level optimization problem by using Karush-Kuhn-Tucker conditions and strong duality theory. Numerical tests on a 5-bus system and IEEE reliability test system (RTS) demonstrate the effectiveness and applicability of the proposed approach.
- Research Article
- 10.62154/ajasfr.2025.021.01013
- Nov 17, 2025
- African Journal of Agricultural Science and Food Research
This empirical study was carried out to determine cultivar choice and market participation among smallholder Pearl-Millet farmers in Jigawa State, Nigeria. Primary data were used for the study, and this was obtained using a multistage sampling technique. Structured questionnaires were used to capture responses from pearl millet farmers in the study area. A sample of 296 was selected for the study. The data were analyzed using descriptive statistics, multinomial Logit Regression, market participation index and double hurdle model. The findings revealed that the respondents were literate with a mean age of 39 years, and mostly married; 52.36% of the farmers had household sizes between 1 and 8 persons. Majority (81.42%) of the farmers had between 2-17 years’ experience in pearl millet farming. The result of the MNL shows that age, marital status, household size, farming experience, education and extension visit were found to influence cultivar choices of pearl millet at different significant probabilities. There is a low level (27%) of farmers’ market participation in the study area. Market information, non-farm income and cultivar choice were the factors found to influence the decision to participate in pearl millet marketing. Meanwhile, market information and contact with extension agents were found to influence the extent of farmer participation in pearl millet marketing in the study area. The study concludes a low level of market participation among smallholder pearl millet farmers in the study area. Therefore, the study recommends that improving their access to market information through organized extension services will enhance their market participation.
- Research Article
33
- 10.1017/s1355770x12000277
- Jul 11, 2012
- Environment and Development Economics
This paper examines determinants of output and input market participation. It employs propensity score matching techniques to evaluate the impact of market participation on pigeonpea diversity and household welfare, using cross-sectional data of 333 households from Kenya. Results show that input and output market participation decisions are quite distinct. Output market participation is influenced by household demographics, farm size and radio ownership, while input market participation is determined by farm size, bicycle ownership and access to a salaried income. The findings reveal a positive and significant impact of output market participation on pigeonpea diversity, while input market participation had a negative and significant impact on diversity. The results indicate that output market participants have significantly higher food security status than non-participants, in line with the general findings of the literature. However, no significant impact is found between indicators of household welfare and input market participation.
- Research Article
- 10.70133/bjae.2024.488
- Jul 26, 2025
- The Bangladesh Journal of Agricultural Economics
In Bangladesh, cattle farming provides sustainable livelihoods and food security to the rural communities, but selling in markets is key to making farming profitable. This study intended to examine the socio-demographic profile of beef cattle farmers and the key factors among transaction costs that affect market participation decisions of beef cattle farmers in wetland areas. Primary data were collected from four upazilas namely Nikli, Itna, Mithamain, and Ashtagram from Kishoreganj district, which included a total of 120 respondents, using semi-structured interview schedule. Descriptive statistics and multinomial logistic regression (MNL) analyzed socio-demographic profiles and transaction cost factors influencing beef cattle farmers’ market participation in wetland areas. Most respondents were male, middle-aged (36–50 years), lacked formal education, relied on agriculture for income, and had no legal agreements. MNL results showed higher transport costs, labor costs, and longer distances reduce district market participation due to farmers’ preference for affordability and convenience. Conversely, higher transport costs and distances increase terminal market participation, as farmers prioritize better prices and larger markets, though higher shed costs decrease participation due to sensitivity to operational expenses. This study provides valuable insights for policymakers to develop interventions that promote sustainable development and improve the well-being of cattle farmers in wetland areas.
- Research Article
1
- 10.3389/fsufs.2022.900625
- Jul 13, 2022
- Frontiers in Sustainable Food Systems
Childhood undernutrition, particularly stunting, wasting, and micronutrient deficiencies, remains a major health concern in rural Vietnam. While literature suggests leveraging agriculture to improve child nutrition via agricultural diversification, market engagement, and women's empowerment, very few studies have empirically explored how smallholder vegetable production can influence household nutrition. This paper examines the association of household-level vegetable diversity, market access, and market participation with nutrition outcome measures of children in smallholder households. We use a cross-sectional household dataset, collected in 2016 in northwest Vietnam, covering 234 children aged 6–60 months. We estimate and compare the results of regression models using three-stage least squares (3SLS), ordinary least squares (OLS), logistic regression, and seemingly unrelated regression (SUR), to explore variations in six nutrition outcome measures: height-for-age z-score (HAZ), weight-for-height z-score (WHZ), weight-for-age z-score (WAZ), stunting, wasting, and underweight. Our results suggest smallholder vegetable production has a significant indirect association with children's nutrition status via market participation. Market participation is an important factor in improving girls' HAZ and WHZ, and in reducing the probability of boys being stunted and underweight. The additional income from selling vegetables allows households to purchase nutritious food, which is likely to have a positive impact on children's nutrition outcomes.
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