AbstractPoor health conditions of livestock cause sizeable losses for many farmers in the Global South. Veterinary services, including vaccinations, could help but often fail to reach farmers under typical smallholder conditions. Here, we examine how the provision of a vaccine against East Coast Fever (ECF)—a tick‐borne disease affecting cattle in Africa—can be designed to reduce typical adoption barriers. Using data from a choice experiment with dairy farmers in Kenya, we evaluate farmers' preferences and willingness to pay for various institutional innovations in vaccine delivery, such as a stronger role of dairy cooperatives, new payment modalities with a check‐off system, vaccination at farmers' homestead, and bundling vaccinations with discounts for livestock insurance. Our data reveal that farmers' awareness of the ECF vaccine is limited and adoption rates are low, largely due to institutional constraints. Results from mixed logit and latent class models suggest that suitable institutional innovations—tailored to farmers' heterogeneous conditions—could significantly increase adoption. This general finding likely also holds for other veterinary technologies and services in the Global South.

AbstractInput subsidy programmes (ISPs) remain a popular but contentious policy tool to promote agricultural intensification, food security and poverty reduction across Africa. Although previous studies have explored the impact of ISPs on various smallholder outcomes, no studies have analysed the impact of recent ISPs on pest management. This is particularly important given the increasing pest challenges due to climate change and the recent surge in pesticide use in low‐income countries and its associated negative consequences for human and environmental health. Thus, this study assessed the effects of ISPs on smallholder adoption of sustainable pest management practices, using data from 1048 smallholder maize plots across major maize‐producing zones of Zambia and a control function regression approach. We find consistent evidence that input subsidy receipt is negatively associated with smallholders' adoption of environmentally friendly and sustainable pest management strategies. Participation in the Zambia ISP (particularly the flexible e‐voucher system) encourages synthetic pesticide use, at the expense of sustainable practices. We also find that farmers consider synthetic pesticides and biopesticides as substitutes and are more likely to adopt sustainable pest management when they have tenure security and access to financial resources. Given the human and environmental health consequences associated with synthetic pesticide use, it would be important to leverage input subsidy schemes to promote the adoption of safer and more sustainable alternatives to synthetic pesticides. Beyond input subsidies, policies that improve tenure security and financial access for smallholders can promote the adoption of sustainable pest management practices.

AbstractThis paper analyses the potential impacts of a hypothetical implementation of the Income Stabilisation Tool (IST) in France for the field crops sector. The IST is a risk management tool available within the 2014–2020 Common Agricultural Policy (CAP) to support farmers facing a severe drop in their incomes. This analysis was conducted using a farm‐level model relying on expected utility theory and based on positive mathematical programming with risk. The model was applied to a sample of 1375 field crop farms in France derived from Farm Accountancy Data Network (FADN) data. Simulation results show that the uptake rate of the tool is relatively low, less than 37% in all scenarios. It is strongly dependent on CAP public support and on how much premium farmers have to pay. Highest uptake rates are observed in farms specialising in Other Field Crops, such as potatoes, pulses and sugar beet, and farms located in regions highly exposed to climatic risks. Previous experience with insurance favours the acceptance of the IST. Model results also show that the IST improves adopters' income and reduces income inequality. However, its impacts on crop diversity, measured by the Shannon index, are negative.

AbstractIncome comparisons between farm and non‐farm households play a crucial role in many aspects of farm policy. Using household income data from tax returns of all Norwegian taxpayers in the period 2006–2015 we study these income differences. We find that the unconditional mean income is higher for farm households, but with important differences depending on the comparison group considered. We also find that the income difference is reduced when we control for differences in the personal characteristics of the different non‐farm comparison sub‐groups. This finding implies that income comparison using unconditional means, as frequently done in agricultural policy making, is potentially misleading. We also show that the income effect of personal characteristics is not the same for different comparison sub‐groups, as has been assumed in previous studies of income disparities. Differences in personal characteristics, and the income effect of those characteristics, therefore need to be accounted for if income comparisons between farmers and non‐farmers are to inform farm support policies.

AbstractModern communication technologies make information more easily and quickly accessible, leading to more transparent and competitive markets. Based on a theoretical model, this paper provides new empirical evidence on the potential impact of online search intensity on asymmetric cost pass‐through. Prices often move as ‘rockets and feathers’: they rise quickly in response to cost increases and they fall slowly in response to cost reductions. A panel threshold error correction model is applied to weekly producer and retail prices of chicken and mutton in Iran. The results suggest that the volume of online searches is associated with a more complete and less asymmetric cost pass‐through from farmgate to retail prices. Thus, online platforms and search engines have the potential to increase competition by bringing prices closer together and reducing profit margins.

AbstractGeographical indications (GIs) aim to protect the names of specific high‐quality products (food and wine) to preserve and promote the uniqueness linked to their geographical origin and traditional know‐how. EU and extra‐EU countries register domestic products with GIs. This study disentangles the effects of such registrations on the quality of imports using country‐level product import data for the fruit, vegetable, coffee, tea, and spice sectors. Our results show that the registration of domestic products as GIs enhances the quality of imported goods only if the importing country has a lower level of quality of domestic production. The introduction of GIs into high‐quality domestic markets can discourage import quality upgrades. This is because domestic producers may prefer to compete for quality rather than price, and imported goods represent a less expensive alternative to high‐quality national goods for consumers. Conversely, in countries where domestic product quality is lower, the introduction of GIs may enhance import quality upgrading because the diffusion of GIs induces domestic consumers to become more demanding in terms of quality for foreign products.

AbstractWe examine the evolution of productivity and markups in US food and beverage manufacturing from 1959 through 2018. We account for non‐Hicks‐neutral (labour‐augmenting) productivity changes and compare markups with those in general manufacturing using the same dataset and model. We also compare our results with those of the increasingly popular De Loecker and Warzynski (2012, American Economic Review, 102, 2437) method, which does not account for non‐Hicks‐neutral productivity growth. Empirical results show that productivity growth in the food and beverage sector has been relatively slow and driven with equal intensity by Hicks‐neutral and labour‐augmenting productivity gains. General manufacturing shows higher productivity growth that is mostly labour‐augmenting, with markups comparable to those of food manufacturing. We find that accounting for labour‐augmenting productivity produces more moderate markup estimates than the De Loecker and Warzynski (2012) method. We also find no evidence of markups rising in either food manufacturing or general manufacturing in the last 20 years, in contrast to much of the recent economic literature.

AbstractThe agglomeration bonus (AB) has been advocated as an incentive mechanism to boost spatially coordinated conservation efforts, where such coordination is thought to be beneficial to achieving biodiversity or other ecological outcomes. Specifically, an AB is paid to individual landholders if their conserved habitats are spatially connected to the conserved habitats of adjacent neighbours. This paper employs a series of controlled lab experiments with agriculture students to investigate the performance of AB in budget‐constrained discriminatory‐price auctions across different landscape types. We focus on the spatial correlation of opportunity costs and environmental benefits as one potentially important aspect of the landscape. We set up a stylised agricultural landscape where the conservation agency aims to connect fragmented wildlife habitats by incentivising farmers to enrol land in a conservation programme. We investigate the effects of an AB in landscapes where opportunity costs and environmental benefits are uncorrelated, negatively correlated or positively correlated over space. We found that the benefits of an AB in improving landscape‐scale environmental outcomes were significant in the positive correlation landscape. However, the AB resulted in worse outcomes in the uncorrelated and negative landscapes.