The Power of Unity: Collective Action and Smallholder Agricultural Performance in West Africa

A stable farmland tenure can optimize farmers’ allocation of production factors and then determine the income level and structure of farmers. In recent years, the reform of China’s farmland tenure system had been making efforts to strengthen the stability of farmland tenures. Will the farmland tenure security restrict agricultural development? Based on the data of the 2018 China Labor Dynamics Survey (CLDS), this paper empirically analyzes the impact of farmland tenure stability on rural household income and its mechanism. The results showed that the stability of land rights increased the per capita total income, wage income and agricultural productive income of farmers significantly. The stability of the farmland tenure significantly increased the income of rural households in plain areas and the income of rural households in villages with highly mechanied; additionally, employment opportunities increased significantly. The mechanism analysis showed that the stability of the farmland tenure had a significant positive effect on the total income of farmers by promoting the division of labor and agricultural investment. On this basis, this paper puts forward measures such as strictly controlling the readjustment of agricultural land, improving the rural labor market and financial market, and guiding nonplain areas to develop tertiary industry according to local conditions.

Purpose The purpose of this paper is to decompose income inequality across various household income components and to estimate the marginal effects of changes in each of the income components on overall income inequality in Ghana. Design/methodology/approach Data were collected from the fifth and sixth rounds of the Ghana Living Standards Surveys. Gini coefficient was estimated and decomposed across structured income components. The marginal effects were obtained by computing the partial derivatives of the Gini coefficient with respect to a percentage change in a particular income source. Findings The results suggest that, in general, income inequality has increased marginally over the years (Gini coefficient of 0.66 in 2013 and 0.62 in 2006). Inequality was, however, higher in urban areas than in rural areas in 2013 with the reverse observed in 2006. The income component decomposition analysis suggests that wage employment income dominated household income in both rural and urban areas, even though the magnitude was higher in urban areas. Farm income was only dominant in rural communities in 2006. Self-employment and remittance income had consistent inequality reducing effects on total household income distribution. Originality/value The study goes beyond inequality studies in Ghana to estimate the marginal effect of income components on inequality. Such decomposition will allow for effective policy targeting in a resource-constrained developing country like Ghana.

The primary purpose of this study was to determine the influence of selected demographic characteristics and animal production measures on the income of private farmers in the Ukraine. A proportional random sample was drawn from the three Oblasts selected for inclusion in the study based on the total number of private farmers in the accessible population. This sample included 250 farmers from each of the two larger Oblasts and 150 from the smaller Oblast. These farmers were selected for personal interviews by raion specialists. A survey was designed to collect necessary information. Raion specialists received a one-day training session to learn personal interview techniques. Most of the farmers, (83.4%) had a degree of technical college or above, and the average age of farmers was 45.8. Swine was the animal commodity that was included on the largest number of private farms (33.5%), and milk cows accounted for the largest portion of the farmers’ annual income (4089.94 Hryvnia - ₴). Three factors contributed significantly to a model explaining the total income of private farmers in the Ukraine. These factors included Milk Cow production, Swine production, and Educational level of the farmer. Further research is needed to examine the animal production on a broader scale particularly in the other regions of the country and with emphasis on the economies of size in the different animal commodities. Given the importance of the educational level in total income of farmers, programs should be designed to enable farmers to pursue higher levels of education.

Although outgrower scheme facilitates farmers’ collective action in agri-food value chain market participation, evidence of its impacts on farm performance and welfare is still limited. We examine the determinants and impact of outgrower scheme collective market participation on farm performance and household welfare in northern Ghana, using a multinomial endogenous switching regression (MESR) model to account for selectivity bias. The empirical findings show that participants in collective input and output markets as well as the joint markets outperform nonparticipants in terms of farm performance (commercialization and net farm income) and household expenditure, with the highest gains associated with joint market participation. We also observed that factors such as gender, age, extension service, credit, transaction cost, and awareness of outgrower scheme significantly influence farmers’ inclusion in group marketing. The findings suggest that policies that facilitate farmers’ access to agricultural inputs and output markets in collective action should be implemented through public–private partnerships to enhance farm performance and the livelihood of farmers.

The objective of this study was to investigate the impact of foreign direct investment (FDI) on income inequality in Ghana, by examining the effect of FDI flow, FDI stock and FDI per capita on income inequality in Ghana. The study adopted the quantitative and descriptive research design to analyse annual time series data on the dependent and independent variables spanning twenty-seven (27) years from 1996 to 2022. The ordinary least square and seemingly unrelated regression techniques were used for data analysis. The study revealed that FDI flow, FDI stock and FDI per capita had a statistically significant positive effect on income inequality. The study thus recommended that the government of Ghana should intensify its efforts to carefully develop and implement progressive and attractive policies that can induce more investment from foreign multinationals, thereby increasing the stock of external capital inflows that can be channeled into the most value generating sectors of the country to eliminate production inefficiencies and boost domestic output that can increase income inequality. Additionally, the government of Ghana through the appropriate agencies can improve the enforcement of its regulatory policies to ensure that multinational firms and the general activities of foreign investors consistently provide fair and commensurate wages to Ghanaian workers, in order to promote the beneficial effects that FDI has on reducing income inequality in Ghana. MNCs must therefore provide the same value of remuneration for the same level of skills-quality and demand that workers in other economies would receive. This will eliminate wage differentials, transition low-wage earners into higher income status and thus reduce income inequality.

Income inequality of tribal households in Bangladesh: A decomposition analysis

Intercropping food crops in oil palm plantations is a popular practice among oil palm farmers in Nigeria. However, farmers are not guided by economic rationale for the choice of food crops and oil palm. The study there for generated optimal farm plans in the dynamic decision environment of the farmers using a recursive linear programming model for oil palm/food crops enterprise combinations in Edo and Delta States of Nigeria. The model integrates technical and economic constraints with farmers’ objectives. The seven crop combinations identified were Oil palm/plantain (OP),Oilpalm/cocoyam(OC),Oilpalm/cassava/maize(OCAM),Oilpalm/cassava/cocoyam(OCAC),Oilpalm/p lantain/cocoyam(OPC),Oilpalm/maize/cocoyam(OMC)andOilpalm/plantain/cocoyam /maize (OPCM). Four situations: Resource Endowment of the Farmers (REFs), No Capital Borrowing and No Labour Hiring (NCLH), Labour Hiring (LH), Capital Borrowing and Labour Hiring (CBLH) were the variations in the plans. With the present REFs, optimal farm plan gave a farm income of N89,590 from 1.06 hectares OC with the use of Average Annual Quarterly Labour (AAQL) of 39 mandays and Average Annual CapitalRequirement (AACR) of N67,880. The NCLH gave a total farm income of N77,885.3 from 1.15 hectares in the first year made up of 0.500ha of OC and 0.654ha of OMC using AAQL of 79 mandays and AACR of N150,561.The farm income increased by an average of 69.8% yearly in 5 years. The LH only, gave a total farm income of N423,255.7 from 1.4 hectares made up of 0.43ha of OC and 0.93ha of OMC using AAQL of 75 mandays and AACR of N150,561.The total farm income increased by an average of 69% yearly in 5 years .The CBLH from the first year gave a farm income of N101,335 from 4.06 hectares made up of 1.55 ha of OC and 2.51 ha of OMC using AAQL of 30.73 mandays and AACR of N569,508.The total farm income increased by an average of 112% yearly in 5 years. Oilpalm/cocoyam entered as a basic activity within the 5 years developed plans. Capital borrowing and labour hiring are essential prerequisites for faster acreage development. Consequently, the alternative farm plans developed will incorporate intercropping as an improved substitute to the existing mixed cropping practices. Intercropping of food crops in oil palm is profitable with potentials for growth if land is increased and capital is reinvested.

The impacts of extension contact on income of farmers have been examined with a view to evaluate the agricultural extension services in Bangladesh. The scope of the study was ten villages of Gazipur of Bangladesh. The objective of the study is to identify the effect of extension contact on crop income, livestock income, fisheries income, miscellaneous income, total agricultural income, nonagricultural income and total income of farmers. The sample of the study consists of 1000 farmers. Data came from field survey and multistage random sampling technique was used for the collection of data. The results indicated that the impacts of extension contact coefficients on crop income, nonagricultural income are positive and significant. However, the impacts of extension contact coefficients are not significant in the cases of livestock, fisheries, miscellaneous and agricultural incomes. But it does not mean that agricultural extension has no reward in Bangladesh. The sample data indicates that the impact of extension contact on total income of farmers is positive and significant. The study concludes that agricultural extension is necessary to raise the income of farmers.

ABSTRACT: We used the data of the China Labor-force Dynamics Survey 2014 to examine the effects of livelihood capitals which include natural, material, human, financial, and social capitals on total household income, per capita income, agricultural income, wage income, operational income, and property income inequality among rural households in China. Results showed that different kinds of livelihood capitals have different effects on different types of rural households’ income. Specifically; (1) although, the area of cultivated land reduces agricultural income inequality, it increases per capita income inequality. (2) Forest land area enlarges per capita income inequality and total household income inequality. (3) Tractor variable reduces inequality in agricultural income and total household income. (4) While reducing the property income inequality, education variable enlarges the wage income inequality, the per capita income inequality and the total household income inequality. (5) Book variable reduces property income inequality. (6) Loan variable increases inequality in agricultural incomes. (7) Party variable reduces the agricultural income inequality. (8) Although, the internet variable increases agricultural income inequality, and property income inequality, it reduces wage income inequality, operational income inequality, per capita income, and total household income inequality.

This study aims to determine the income of cucumber farmers in Bentek Village, to determine the efficiency in running cucumber farming in Bentek Village, and to find out the obstacles or obstacles faced by farmers in cucumber farming in Bentek Village. The research was conducted in Bentek Village, Gangga District, North Lombok Regency. Determination of the research area is done by purposive sampling. A total of 30 cucumber farmers in Bentek Village were used as samples in this study by means of a census. The variables measured in this study were the total income of farmers, efficiency in cucumber farming and the obstacles faced by farmers in cucumber farming. In accordance with the first objective, namely knowing the income of farmers in cucumber farming, an analysis of costs and income was carried out. Then to find out the problems faced by farmers, in taking an inventory of existing problems and obstacles, a descriptive analysis was carried out. The results showed: First, the total income of farmers in cucumber farming in Bentek Village, Gangga District, North Lombok Regency is Rp. 43,202,902 /Ha or Rp. 7,099,677 /LGG. Second, the efficiency of cucumber farming in Bentek Village, Gangga District, North Lombok Regency is 1.75, meaning that every one rupiah allocated to this cucumber farming will bring a profit of 75 rupiah. Third, the constraints faced by farmers are pest and disease attack as much as 86.67%, purity standard 96.67%, and erratic weather 73.33%.

PurposeThe study examines the impact of fiscal policy shocks on economic growth and income inequality in Ghana. This has become necessary because of the interdependence between growth and income inequality and the role fiscal policy plays in this relationship in the development process of a country. Thus, a study that investigates how government expenditure shock and tax revenue shock influence the relationship between economic growth and income inequality could assist policymakers to adopt the best policy mix to ensure income equity and sustained economic growth in Ghana.Design/methodology/approachIt employs sacrifice ratio from structural VAR model using quarterly time series data from 1996 to 2019 on Ghana.FindingsOur results show that government expenditure shock impacts economic growth, exchange rate and education positively and significantly in the long run. Also, tax revenue shock has a positive impact on income inequality, economic growth and education. The findings further show that there exists a trade-off between economic growth and income inequality in the long run.Originality/valueThe relationships between fiscal policy shocks, economic growth and income inequality have been extensively discussed among scholars. Understanding how these three macroeconomic variables are determined and their interrelationships are crucial for policymakers. This is because fiscal policy aids in both economic growth and income inequality. In the empirical literature, the emphasis has been on independently estimating the growth effects of fiscal policy or the distribution effects of fiscal policy, leaving out the existence of possible trade-off between economic growth and income inequality following a fiscal shock. To the best of our knowledge, no empirical study has been done on Ghana to empirically examine the trade-off between economic growth and income inequality as we do in this paper.

In June 2006, the African Heads of State made a declaration to support increase in use of fertilizers in the farming systems of sub-Saharan Africa from the present average of about 8 kg ha–1 to about 50 kg ha–1. One route to attain this goal is to engender regional joint fertilizer procurement to reduce farm gate price and increase fertilizer demand and use. A review of fertilizer use in Africa has shown that structural changes in fertilizer procurement can reduce farm gate price by 11–18%. Using an average of these figures (15%), this study compares the effect of structural changes in fertilizer market (reducing farm gate price by 15%) on total fertilizer demand, total farm income, and additional farm income with the base situation (using FAO data) under three own fertilizer price elasticity of demand scenarios (low –0.38; medium –1.43; and high –2.24) for 11 sub-Saharan Africa countries. Data were analyzed using Microsoft Excel. Result shows that compared with the base level, structural change in fertilizer procurement arrangement (reducing farm gate price by 15%) led to 6% additional farm income (US $125 million) under low elasticity; 22% (US $472 million) under medium elasticity; and 34% (US $730 million) under high elasticity. Switching from one scenario to another indicates the potential to further increase farm income from 20 to 32%. The chapter concludes with the support for structural interventions that reduce farm gate price of fertilizers and other inputs. Such interventions increase farmer productivity, total production, and total farm income and lead to improved livelihoods.

PurposeThis paper examines the nexus between input credit access, farm performance and food nutrition in Ghana.Design/methodology/approachUsing a random sample of 239 smallholder rice farmers, we utilized the endogenous switching regression model to address the self-selection issue and estimate the impact of input credit access on farm performance and food nutrition and further analyze the heterogenous impacts.FindingsThe results show that socioeconomic (age, education, sex, off-farm activity and farm size), institutional (extension contact and farmer-based organizations) characteristics and location variable significantly influence the decision to access input credit. After adjusting for both observed and unobserved factors, our findings reveal that access to input credit significantly improves rice yield, net profit and food nutrition of smallholder rice farmers in Ghana. Furthermore, results reveal that the effects of input credit access on rice yield, net profit and food nutrition are heterogeneous and subject to farmers’ propensity to access input credit. Specifically, we find that those with a higher inclination to access input credit experience larger positive impacts, indicating a positive selection process.Research limitations/implicationsAccess to agricultural input credit is essential for the adoption of modern and climate-smart technologies in agricultural production. However, the persistent lack of access to input credit hampers agricultural productivity and constrains investment in farm input resources in Sub-Saharan Africa. Our study calls for proper targeting of input credit interventions to incentivize the uptake of farm input credit such as improved seeds and fertilizers to improve overall crop production and achieve food security.Originality/valueThe study utilized rigorous econometric methods to analyze the impact of input credit access on smallholder rice farmers' farm performance and food nutrition in Ghana. The findings provide valuable guidance for policymakers and future research on agricultural development in Ghana.

Purpose – The purpose of this paper is to identify the structure of household income and examine the effects of non-farm incomes on the income distribution of farm households in a relatively developed rural area of the Malaysian rice bowl. Design/methodology/approach – The non-farm incomes were disaggregated into different components to determine the contribution of each income source to total household income and overall inequality. The income distribution and decomposition was examined using the Gini decomposition method. Findings – It was found that almost 71 percent of the households in the sample had at least one source of non-farm income. On average, non-farm incomes contributed about 33 percent to total household income. Non-farm wage employment was the dominant source of non-farm income, accounting for almost 26 percent of overall household income. The farm incomes, especially the paddy incomes were found to be the inequality-decreasing income source. The study also confirmed the proposition that the non-farm incomes were the inequality-increasing income source as they contributed up to 35 percent of the overall income inequality. Originality/value – Previous studies have found that non-farm incomes have different effects on income inequality of rural communities, especially those in the rice granary areas situated in less developed states of Malaysia, where poverty is still a problem. This study is significant because it identifies the effect of certain incomes on the overall income inequality among farm households in the granary areas located in a relatively developed rural area. The studied areas are characterized by an intensive paddy production and a rapid development in business and industrial activities, and hence, providing non-farm employment opportunities to the rural farmers. Therefore, this study shows the income structure and how farm and non-farm incomes affect the overall income distribution of the paddy farmers.

A survey research was conducted to assess the performance of Praganna Irrigation Project with respect to farm income and employment in Dang district of Nepal. Simple random sampling was used to select 60 beneficiaries and 30 non-beneficiaries as sampling units to comprise a sample size of 90. Representatives of WUGs and officials of PIP were interviewed through checklists. Altogether there were 75 WUGs, which are responsible for distribution of irrigation water equitably and collection of irrigation charges effectively. A comparative study was made between the beneficiaries and nonbeneficiaries under PIP. The total farm assets of beneficiaries were estimated at NRs. 1,150,975 and differed significantly with the non-beneficiaries with total farm assets of NRs. 875,185. A significant difference was observed between on farm income of beneficiaries (NRs.183,260) and non– beneficiaries (NRs. 31,453). The net farm income of the beneficiaries and non-beneficiaries were estimated at NRs. 79,993 and NRs. 13,077 respectively and the difference were significant among the categories of respondents. The total farm income was significantly affected by landholding, total variable cost, cropping intensity, and employment in case of beneficiaries whereas only employment significantly affected total farm income in case of non-beneficiaries. Gini coefficients for gross household and gross farm income were calculated at 0.37 and 0.44 respectively for beneficiaries and 0.44 and 0.27 respectively for non-beneficiaries. So, there existed inequality in distribution of gross household and gross farm incomes within both categories. The study also indicated the huge potentiality of PIP for increasing farm income in the command area of PIP.