Agricultural Investment Research Articles

A system readiness approach to support the packaging and scaling of innovation bundles for farming systems transformation

CONTEXTA newly established ‘systemic approach to technology packaging’ for improved scaling has emerged in the literature. This approach suggests that core transformative innovations can be scaled more effectively through scaling readiness, which helps identify complementary innovations that support and facilitate the scalability of the core innovation. Since these packaging approaches start with single core innovations, we propose that they can benefit from the broader literature on sustainable agricultural systems transformation and readiness. OBJECTIVEThe objective of this paper is to advocate for a more comprehensive packaging of innovations for sustainable agricultural system transformations by better understanding gaps in the agricultural system – and its capacity for change. This approach provides a stronger rationale for the selection of relevant innovations to be packaged together. We introduce the concept of agricultural ‘system readiness’ as a possible framework for guiding such bundles. METHODSThe paper begins with a comprehensive literature review that identifies the current gaps in tools and methods to guide system transformation. It also focuses on the specific literature on innovation packaging for scaling, and builds on the gaps of existing approaches as a rationale for introducing the concept of system readiness (mostly used in infrastructure engineering), and adapting it to agricultural science. We also use illustrative hypothetical examples from mixed crop-livestock systems in the drylands to show how two approaches – ‘packaging for scaling’ and ‘packaging for transformation’ – can lead to different innovation packages. RESULTS AND CONCLUSIONSThe concept of system readiness is introduced, defined and advocated. We show that it can help identify performance gaps in agricultural systems and guide better planning for system strengthening and integration. We conclude with possible complementarities between the two approaches of scaling and system readiness. SIGNIFICANCEThe agricultural system readiness approach, as outlined in this paper, would be particularly beneficial for agricultural research-for-development, as well as other agricultural investment programs that seek to identify strategies for fostering sustainable transition in farming systems. Such programs would typically entail complexity-aware theories of change that focus on stimulating sustainable transformation pathways related to key target areas, such as agroecology, sustainable intensification, and system integration (e.g., crop-livestock integration and integrated pest management). The system readiness approach can support such programs through the identification, prioritization, targeting, and empowerment of the most significant (and transformative) system components by identifying respective innovations to be packaged.

The role of rural circular migration in shaping weather risk management for smallholder farmers in India, Nepal, and Bangladesh

Circular migration, defined as migration where migrants return to their original home area, has become an increasingly important component of rural livelihoods and can significantly impact the risk management strategies of smallholder agricultural households in the face of climate change. To unpack the associations between climate change, migration decisions, and agricultural outcomes for smallholder agricultural households, we use an embedded mixed methods approach that uses quantitative data from a structured household survey from over 2,000 rural households in Nepal, India, and Bangladesh, along with qualitative data from interviews and focus group discussions. We use these data to identify the influence of socio-economic, climate, and weather factors on long (≥12 months) and short-term (<12 months) migration decisions and the impacts of migration on risk management strategies in agriculture. Our research shows that the drivers and effects of migration differ based on migration characteristics, including the length of time a family member migrates and whether the destination is domestic or international. We find that households with limited resources, such as constrained irrigation access, use short-term migration to cope with weather variability, whereas long-term migration is generally undertaken by wealthier households motivated to improve long-term economic outcomes. Considering the impacts of migration on risk management, we find that short-term migration of household members results in increased investment in agriculture, such as increasing inputs and adopting new varieties. In contrast, long-term and international migration is associated with disinvestments in agriculture, such as reduced cropped area and inputs. Our results highlight the importance of migration in shaping agricultural management practices amidst the challenges of climate change.

Revitalization of the Nepalese Agriculture Sector for Economic Prosperity: Gap Analysis between Agricultural GDP and Investment Trends

This study explores the paradox of the decreasing contribution of agriculture to GDP despite rising investments in the sector, conducting a gap analysis between agricultural GDP and investment trends. The anticipated outcome of increased agricultural investment is enhanced productivity and a corresponding rise in GDP share. However, this study identifies a significant mismatch between investment trends and agricultural output, revealing discrepancies that require attention. By analyzing relevant data, the research highlights the troubling trend of diminishing agricultural GDP contribution alongside increasing imports, emphasizing the urgent need for sectoral revitalization to foster economic prosperity. The paper argues that the current economic environment presents substantial challenges to agricultural revitalization and stresses the necessity of improved coordination and cooperation among stakeholders.

Public Agricultural Spending on Cowpea and Soybean Yields in Cameroon: Implications for Productivity and Sustainable Development

This study examines the impact of public agricultural spending on cowpea and soybean yields in Cameroon from 2000 to 2024, using time series data and Ordinary Least Squares (OLS) analysis. The results indicate that public agricultural spending, land use, agricultural labour, and fertilizer use explain 82% and 96% of the variation in soybean and cowpea yields, respectively. Findings reveal a positive and significant relationship between agricultural labour and yields for both crops, highlighting the importance of labour-intensive farming practices. Additionally, increased public agricultural spending significantly enhances cowpea yields, emphasizing the critical role of government investment in agriculture. Conversely, a 30% decrease in public spending would likely reduce yields due to diminished access to essential inputs and services. The study underscores the need for sustained public support and efficient labour use to boost agricultural productivity in Cameroon.&amp;nbsp;Copyright© 2024 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.

THE MAIN DIRECTIONS OF INCREASING INVESTMENT ACTIVITY IN AGRICULTURE OF THE REPUBLIC OF KARAKALPAKSTAN

Agriculture plays a pivotal role in the economy of the Republic of Karakalpakstan, yet it faces significant challenges that hinder investment activity. This article explores the main directions for enhancing agricultural investment in the region, emphasizing the importance of financial incentives, infrastructure development, technological innovation, and public-private partnerships. By examining the current state of agricultural investment and identifying barriers to growth, the article proposes targeted strategies to attract both domestic and foreign investments. Ultimately, increasing investment activity is essential for improving productivity, ensuring food security, and fostering economic resilience in the region.

Government Expenditure On Manufacturing, Infrastructure, Agriculture Components, And The Level Of Economic Growth In Kenya 1985-2021

There is often contention and discussion regarding the optimal way to allocate public funds to different expenditure components and how they promote economic growth. Government spending has several importance; it raises aggregate demand, and increases employment levels. This eventually spurs a country's economic growth. Public expenditure also helps provide public goods due to market failures and economic exploitation. Public goods such as infrastructure (roads, bridges, airports), education, healthcare, and security are essential for economic growth. Public expenditure also improves the macroeconomy supply side, enhancing economic growth. In addition, the government can offer subsidies to sectors that might require financial assistance for their operations or expansion, which stimulates investment, promotes innovation, increases capital expenditure, and then job creation, which leads to economic growth. It also helps to redistribute income and promote social welfare. The study's main objective was to establish the effect of various public expenditure components on Kenya's economic growth. The specific objectives were to scrutinize the effect of the manufacturing component of government spending on Kenyan economic growth, assess the effect of the infrastructure component of government spending on Kenyan economic growth, and scrutinize the effect of the agricultural component of government spending on Kenyan economic growth. The study adopted a nonexperimental longitudinal research design. Secondary time series data between 1985 and 2021 from Economic Surveys, Statistical Abstracts, Economic reports, and public expenditure reports of the government of Kenya was sed. The study conducted the stationary test, cointegration, and causality test on the data and employed the Vector Error Correction Model in data analysis. The results showed that public expenditure's manufacturing and agricultural components had a positive impact on Kenyan economic growth, while infrastructure had a negative impact in the long run. Manufacturing drives industrialization, which leads to economies of scale, technological advancements, and more efficient production methods. This conforms to endogenous growth theory. Agricultural investment helps sustain economic growth by supporting rural development, reducing poverty, and improving food security. The structural transformation theory suggests that as agricultural productivity improves, resources (e.g., labor and capital) are freed up to be employed in other, more productive sectors. The results of infrastructure negatively impacting economic growth align with fiscal sustainability theory, which states that infrastructure spending may eventually become unsustainable if it leads to persistent fiscal deficits. Governments might need to increase taxes or cut spending in other productive areas (e.g., social services and education), which could dampen economic growth in the long term. Overall, the outcome showed that government spending and potential Kenyan economic expansion are correlated through a sustained relationship. This is evidenced by the R squared, which is at 0.8975. This implies that public expenditure explains 89.75% of the variations in GDP. The study recommends that the government choose the critical area of infrastructure component to invest in. In the long run, the findings showed that infrastructure spending negatively impacts economic growth, which could suggest inefficiencies or corruption in the allocation or execution of infrastructure projects. However, poor infrastructure planning, corruption, cost overruns, or investments in non-productive or underutilized projects could explain the negative long-term impact. The Kenyan government should invest more in the manufacturing sector in areas like agro-processing, the textile industry, pharmaceuticals, healthcare products, automotive assembly, and parts manufacturing, which helps to reduce imports that tend to be high in Kenya. With the agricultural component having a positive effect on Kenyan economic expansion, the state could invest in agriculture sector's areas like Irrigation and Water Management, Sustainable Agriculture, Climate Resilience crops, Agricultural Research and Extension Services, High-Value Crops, agro-processing, and Value Addition

Government Expenditure and Economic Growth of Nepal

Purpose: This study aims to analyze the relationship between various categories of government expenditure and economic growth in Nepal. The purpose is to understand how these defense, health, agriculture and education expenditures influence economic performance and offer insights for more effective resource allocation.Methods: This research used a combination of descriptive and causal research designs, using secondary data sourced from published reports. Data from 1976 to 2022 AD were selected for its comprehensive data availability and analyzed.Results: The findings reveal that defense expenditure has a negative and significant association with economic growth, suggesting that high levels of defense spending are detrimental to economic development. Conversely, health and education expenditures show positive and significant relationships with economic growth, highlighting the importance of investing in human capital for fostering sustainable development. Agriculture expenditure, although positively related to economic growth, is statistically insignificant, indicating the need for policy refinements to enhance its impact. Conclusion: The study underscores the necessity for strategic reallocation of government resources. Reducing defense expenditures and increasing investments in health, education and agriculture are essential for promoting robust and sustainable economic growth.

IMPORTANCE OF PUBLIC FUNDS AND DEBT CAPITAL IN FINANCING INVESTMENTS IN POLISH AGRICULTURE IN 2004-2022

The article assesses the importance of public funds and debt capital in financing investment outlays in agriculture in Poland in 2004-2022. The analysis used statistical data on inputs of production factors in agriculture, in particular investment outlays, as well as budget expenditure on agriculture, farmers’ credit indebtedness and leasing of agricultural machinery. The analysis included both nominal values and values adjusted for the CPI index. It has been shown that capital expenditure in agriculture increased in the years 2004-2022, including nominal and real investment expenditure. During the period under study, the importance of public funds, from the national budget and European funds, in financing agriculture increased. This also applied to investments in agricultural farms. In 2004-2019, a dynamic increase in investment outlays financed in the form of bank loans and leasing could also be observed. A positive correlation was demonstrated between investment expenditure in agriculture and the level of budget expenditure on agriculture and farmers’ credit indebtedness. In the last years of the period under review, i.e. 2020-2022, a decrease in the share of external capitals in the form of long-term bank loans and leasing in financing fixed assets in agriculture was observed.

Aspirations and weather shocks: Evidence from rural Zambia

AbstractAspirations defined as future‐oriented desires or ambitions, can determine agricultural investments and rural development. Aspirations are shaped by people's social, cultural, and physical environment and can be affected by external factors such as natural disasters. This article addresses the question of how weather shocks can influence individual and community aspirations. Using primary panel data from two survey rounds before and during a major drought in Zambia, we show that such extreme weather events can be associated with adverse impacts on individual aspirations. Further exploratory analyses suggest that aspirations towards assets that are particularly vulnerable to droughts are affected most. We do not find any significant effects of drought on community aspirations.

The impact of the Russian-Ukrainian War on the food security of the Kingdom of Saudi Arabia

The economic and social impact of the Russian-Ukrainian war was the focus of this study, which aimed to assess its effect on the food security of the Kingdom of Saudi Arabia. To achieve its objectives, the study utilized published data, food security index measures, and standard economic analysis. The findings revealed that the Kingdom's food security environment index increased from 58.1% in 2012 to 69.9% in 2022, indicating moderate food security throughout this period. The index was lower than the estimated counterpart for the rest of the Gulf Cooperation Council countries but exceeded the global average (113 countries) by 12.38% in 2022. Furthermore, the study demonstrated that a 10% increase in the estimated food production index and real per capita income led to a 2.72% and 6.55% increase in the food security index, respectively. Conversely, a 10% rise in the estimated consumer price index for foodstuffs resulted in a 1.74% decrease in the food security index. Despite the challenges posed by the Russian-Ukrainian war, the food security index is projected to improve for the Kingdom of Saudi Arabia, expected to increase from 72.4% in 2024 to 75.6% in 2030, attributed to the country's policy of investing in agriculture abroad and focusing on local agricultural investments such as vertical expansion, protected agriculture, and agricultural practices. This strategic approach ensures high-quality produce and facilitates significant financial surpluses, enhancing the country's capacity to import goods from overseas.

PUBLIC EXPENDITURE AND AGRICULTURAL DEVELOPMENT: INSIGHTS FROM KARNATAKA

This study examines public expenditure on agriculture in Karnataka from 1990 to 2023, highlighting trends and patterns in spending. It reveals that while Karnataka’s total expenditure on agriculture has increased significantly, the focus remains predominantly on revenue expenditure rather than capital expenditure. This contrasts with national trends, where there's a gradual shift towards more balanced spending. The Compound Annual Growth Rate (CAGR) for Karnataka shows significant variability, including a recent decline, while other states like Maharashtra exhibit higher and more stable growth rates. The analysis includes a comparative review with other Indian states, showing Karnataka's strong emphasis on operational costs and lower capital investment compared to states with larger agricultural sectors. This study underscores the need for a more balanced approach in agricultural investment to support long-term growth and development. KEY WORDS: Public Expenditure, Agriculture, Revenue Expenditure and Capital Expenditure

Possibilities of Changes in Energy Intensity of Production Depending on the Scale of Farm Investments in a Polish Region

The purpose of this paper was to analyze the possibility of changes in energy intensity of production in the context of farm investment scale. The empirical section relies on unpublished FADN microdata. The study answers the question of whether investments and fixed capital growth can contribute to improvements in environmental performance of agricultural production. As it turns out, the group of farms with the greatest amount of investments saw an increase in energy consumption costs, though at a much slower rate than growth in production value. As a result, there was a drop in energy intensity of production, defined as the ratio between energy costs and production value. These findings corroborate the hypothesis advanced in this study, namely that upon reaching a sufficiently large amount of investments, farms can become capable of reducing the energy intensity of their production activity. Hence, higher levels of capital productivity are attained when the farms invest in more energy-efficient fixed assets. Conclusions cannot be universal, as the analysis involved a portion of selected farms. However, the research indicates a trend in the study of energy intensity of production depending on the scale of investment and the validity of the investment comprehensiveness approach. These conclusions provide a basis for recommendations for an agricultural policy which should include support for investments that are large and comprehensive (in relation to the farm’s assets) and go beyond the simple renewal of assets. Therefore, in its investment-oriented measures, the agricultural policy should take the innovativeness (including energy efficiency) criterion into account.

The Implementation of Green Credit Program from Macro to Micro in India: Economic, Environmental, and Social Impact

This research explores the Green Credit Program (GCP) in India, an innovative financial mechanism designed to foster sustainable development while addressing pressing economic, environmental, and social challenges. Launched by the Ministry of Environment, Forest and Climate Change (MoEFCC), the GCP aims to incentivize environmentally beneficial activities, promoting investments in renewable energy, afforestation, sustainable agriculture, and other green projects. This study assesses the program's economic, environmental, and social impacts through a mixed-methods approach, combining econometric analysis and case studies. The findings suggest that the GCP contributes to India's GDP, significantly reduces greenhouse gas (GHG) emissions, and enhances social welfare, although it faces regulatory and financial challenges. The research also advocates for integrating parallel sustainability programs for greater efficiency.

371 Applying precision rangeland grazing management systems in western South Dakota

Abstract Western rangelands represent approximately 58% of the total arable land in the U.S. and are used primarily for cow-calf production, which has the largest greenhouse gas (GHG) emission footprint of all beef production phases. Further, beef production sustainability concerns involve climate mitigation (reducing GHG output) and adaptation (climate-resilient soil-plant-animals). Precision livestock farming (PLF) may help address sustainability concerns by providing innovative solutions and new opportunities for extensive rangeland production. The use of precision measurement and management tools with precision system models can connect measurement data to inform management capabilities. For example, real-time individual weighing and remote sensing (precision measurement tools) can be used to inform and implement dynamic rotational grazing management using virtual fencing technology (precision management; Menendez et al., 2022, 2023). Recent USDA investment in climate-smart agriculture (CSA) commodities has provided over $3 billion in funding to implement practices to reduce GHG emissions in agriculture production, for which PLF may be one approach to accomplish these goals. The overall purpose is to develop commodities produced using NRCS climate-smart practices (e.g., prescribed grazing, 528) and document reductions to provide market opportunities associated with inset GHG. Currently, South Dakota State University is leading two simultaneous programs, which include precision ranching (virtual fencing, precision weighing, and GHG evaluation) and a beef and bison CSA program (GHG evaluation; 7 producer-owned research ranches, representing more than 1.09 million ha). The scale of the CSA program has revealed that current PLF research has only been a prelude to providing the precision tools necessary to successfully implement CSA practices and document their impact through monitoring, measuring, reporting, and verification (MMRV). This presentation will include rangeland grazing case studies that cover the application of virtual fencing, animal location, behavior tracking, remote sensing, precision weighing, feeding, supplementation, and enteric emissions and soil moisture monitoring on extensive rangelands. Case studies will include an overview of big data processing and precision system model development methods. Increasing awareness of available PLF tools for optimizing grazing management, animal performance, productivity, and associated challenges (maintenance, costs) is essential for meeting livestock and sustainability goals. PLF and data-driven approaches aid in the creation of scalable, cost-effective MMRV protocols and models (soil carbon and enteric GHG) for extensive rangelands (20 to 70,000 ha areas) that allow producers to realize potential CSA market incentives. Further, MMRV will likely help guide management decisions by identifying CSA strategies that build climate-resilient landscapes for sustainable livestock production and other environmental synergies (soil microbiome, bird and insect habit, water retention).

The reality of agricultural investment in algeria and its role in achieving food security: an analytical study of the wheat market in Algeria (2016-2022)

Food security has become a primary concern for both developing and developed nations alike, as it is fundamentally linked to achieving national sovereignty and stability. Algeria, like many other countries, is actively striving to attain robust food security indicators, leveraging its abundant resources. Consequently, this research paper aims to illuminate the concept of food security and the pivotal role of the wheat market in its realization, while delving into its multifaceted dimensions. To achieve this objective, we have conducted an analytical study of Algeria's domestic wheat market spanning from 2016 to 2022. Our analysis encompassed production, wheat imports, consumption. Despite Algeria's diverse climate and vast land area, our findings reveal a persistent economic dependency on wheat imports. This reliance is attributed to the encroachment of urban areas on agricultural lands, coupled with inefficient domestic agricultural policies and outdated equipment that fails to keep pace with technological advancements.

The Role of Procedural Fairness: Land Titling Programs and Agricultural Investment in China

This study examines the moderating role of procedural fairness between land titling programs and agricultural investment. We constructed a theoretical model that introduces perceived security of land tenure and procedural fairness into the traditional “property rights-investment incentives” analytical framework. Moreover, we empirically analyze the impact of land titling and its procedural fairness on agricultural investment using data from the “Thousands of People, Hundreds of Villages” survey held in 2018 among 9596 households in China. The empirical analyses were conducted by using the ordinary least squares (OLS), probit, and instrumental variable methods. Our analysis showed that land titling in China significantly promotes agricultural investment by farm households and that procedural fairness has a significant positive moderating role in the investment incentive effect of land titling as well as significantly improving the institutional credibility of land titling and enhancing farmers’ perceived land tenure security.

Large-scale agricultural investments, employment opportunities and communal conflict

Large-scale agricultural investments, employment opportunities and communal conflict

The impact of banking credit and agricultural investments on the performance efficiency of the agricultural sector in Egypt

The impact of banking credit and agricultural investments on the performance efficiency of the agricultural sector in Egypt

Optimal Exploitation Strategies of Sustainable Utilization of Egypt's Fossil Groundwater Reserves

Groundwater-dependent areas in Egypt are being reclaimed as a result of the impending food crisis. Thus, the national project for land reclamation aims to turn vast tracts of desert land into productive agricultural land. Even while this kind of rural development is desperately needed, relying solely on fossil groundwater sources is a dangerous course of action. Therefore, it is crucial to use these groundwater resources quite carefully. Selecting a safe pumping schedule to prevent aquifer depletion and/or seawater intrusion is just one of the goals. However, using groundwater simulation models based on optimal approaches would introduce exploitation plans that, at the same time, guarantee the aquifers' sufficiency for continued development and maximize the agricultural investment. Thus, a groundwater flow model was generated using the FEFLOW software to explore the Moghra aquifer’s potential for extensive rural development. The maximum pumping regime that coincides with the regulation rule that was set by the MWRI for the next 100 years has been concluded. There is a potential for sustainable exploitation of this water resource to irrigate a total area of 85,715 acres (34,687 ha). The resulting drawdown is expected to reach 95.4 m. Furthermore, a few mitigating techniques are suggested as efficient ways to stop or impede the saltwater intrusion, such as the installation of subterranean barriers and brackish water scavenger wells. Without a doubt, the intended findings would serve as the foundation for wise local water management choices that might strike a balance between the socioeconomic welfare of our nation and environmental preservation. The outcomes of the project can be used by decision making and stakeholder to achieve sustainable water resources management in the new lands for reclamation projects in the northwestern of Nile Delta, Egypt.

Detectable use of ENSO information on crop production in Southern Africa

People have known that El Niño events are associated with low rainfall in Southern Africa for a century, and seasonal rainfall forecasts are now available in agricultural advisories for farmers. While there is abundant theory as to how farmers might (or should) use seasonal rainfall information on their farms, little is known about whether this information has been widely used or has had widespread benefit. In this study, we use subnational data on cropping area and yield to see if we can detect any macro-level patterns in agricultural choices or outcomes that are related to knowledge of the El Niño Southern Oscillation or seasonal forecast information in Southern Africa. We find that in Lesotho and parts of South Africa, planted area of maize and sorghum is reduced when there is a dry start to the season and an El Niño event is apparent at the time of planting. Similarly, we find that in both Lesotho and most provinces of South Africa, drought years associated with El Niño have worse yields than drought years that are not associated with El Niño (controlling for rainfall). This association could indicate that people are discouraged during El Niño years by the potential for drought, and they might be reducing cropping area, reducing agricultural investments, or turning to other income-generating activities. We are unable to detect a relationship between yields and the accuracy of seasonal rainfall forecasts, therefore we are unable to observe any additional yield benefit when more accurate seasonal forecast information is available.