Agricultural Assets Research Articles

Determinants of Microfinance Demand (Evidence from Chiredzi Smallholder Resettled Sugarcane Farmers in Zimbabwe)

Despite the MFI insurgency, agricultural financing remains critically low, even though microcredit is widely accepted as both a substitute and compliment to formal credit. Zimbabwe is an agro-based economy and very little is known about the determinants of microcredit demand and microcredit size in smallholder resettled sugarcane farmers. Research is concentrated in short-term agriculture activities. Thus, this study aims to fill the unattended gap in lagged returns agriculture activities such as sugarcane production which takes at least a year to mature, hence, the greater need for agriculture financing alternatives such as microfinance. The study examined the determinants of both microcredit demand and loan size (magnitude of microcredit participation) by smallholder resettled A2 sugarcane farmers in Chiredzi. Primary data from 370 smallholder resettled sugarcane farmers (214 borrower participants and 156 non-borrower participants) were used. Probit and Tobit regression models were used for data analysis in STATA. Operational costs, interest rate, grace period, and land size significantly affect both the demand for microcredit and microcredit size, while education, household farming assets, extension services, and payback period significantly affect microfinance demand, and risk attitude/perception additionally determine microcredit size. Special microfinance schemes best suitable for the agriculture sector and crop/plant-specific agriculture financing schemes, currency, and macroeconomic stability are the major policy recommendations.

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.

Impact of short- and long-term factors on the growth of gross agricultural products in Azerbaijan: ARDL analysis

Purpose. The main purpose of this research is to assess the factors affecting the gross agricultural products in Azerbaijan in the short and long term. Methodology / approach. This study uses an Autoregressive Distributional Lag (ARDL) model to analyse the relationship between gross agricultural output and total government expenditure on agriculture, the volume of credit used in agriculture, direct investment in fixed assets in agriculture, and the country’s net agricultural exports. In our study, unlike most existing research, the variables are integrated in the second order, which increases the importance of this study. Results. The results of the study indicate that, despite the “crowding in” effect created by the state budget expenditures as the main factor in the short term, the effect on the growth of gross agricultural products in the long term is not so important. Credit resources and net exports have a negative effect in this relationship. In the long term, investment in fixed capital is a crucial factor in the growth of production. In general, the positive balance of net exports is a “mirror” reflection of investments, especially innovation-oriented investments. Considering that the predominance of imports in the total demand for agricultural products significantly reduces the multiplier effect that can occur in the field in general, it minimises the multiplier effect of the total expenditure. From this point of view, foreign investments can play an important role in creating a positive balance in the trade balance of agriculture. Originality / scientific novelty. The scientific value of the research is the selection of main factors as direct contributions to the growth of the gross agricultural products and their effects. Through the ARDL program, we determined what factors are short-term and which are long-term, and we analysed the causes and consequences of these dependencies and put forward relevant proposals. Practical value / implications. The practical value of the research lies in the given proposals that can directly affect the net export of agricultural products and create positive changes in its balance. Because, massive investments, especially foreign investments, can modernise the rural economy in a short period of time and, accordingly, not only increase the competitiveness of its products in foreign markets, but also raise the level of self-sufficiency.

A model proposal for sustainable Nevşehir local cuisine

Local cuisine is a valuable cultural-gastronomical asset for any tourism destination as well as local people. In order not to lose this asset, it is vital to manage the changes triggered by climate change and transmitted through agriculture. Climate change is likely to impact different regions at different levels; thus, some regions have to be ready to challenge a harsher situation. Nevşehir is a Central Anatolian province which is likely to suffer from quite harsh impacts of climate change and its local cuisine is prone to many risks unless an effective plan which considers the relevant issues is executed. With this end in view, representatives of 5 key institutions were interviewed. Beside climate issues, the interviewees note other relevant matters such as economy, ethics, and consumer and producer awareness issues. After a conceptual model draft, this study proposes a conceptual and a practical model for a more sustainable Nevşehir local cuisine. Focusing on sustainability, the final practical model developed is based on climate change issues, agriculture, local cuisine, and their close relationships as well as the factors reminded by interviewed representatives. Main risks associated with climate change include drought, decrease in agricultural efficiency, related quality issues in products and agricultural assets such as soil, and – at the extreme end – a global food crisis. Despite this negative outlook, the province has also some advantages such as resistant native plant and animal species, potential for renewable energy, and slow city possibilities. Proposed recommendations for a more sustainable local cuisine focus on managing change, preserving authenticity, taking the advantage of strengths, increasing efficiency, and climate change mitigation efforts. Final part of the study includes a discussion and some possible future research themes.

The market reactions for deferred compliance of IAS 41: an analysis of the agriculture sector in Indonesia

Research aims: This study aims to investigate the market reaction of post-IAS 41 implementation in Indonesia. IAS 41 Agriculture requires companies to measure biological assets at fair value, which will increase asset values and profit in the first year of its implementation. The increase in the asset values can have a favorable impact on companies’ share prices as fair value was not applied in Indonesia prior to the adoption of IAS 41. In addition, this study analyzes the disclosure compliance of IAS 41 in the interim reports during the implementation year.Design/Methodology/Approach: This study used non-parametric statistics, precisely the Wilcoxon Signed Rank Test and content analysis of financial statement disclosure about IAS 41 Agriculture. The sample of the study comprised 27 Indonesian companies with agriculture assets during the first year of the implementation of IAS 41. Research findings: The results of this study suggest no significant difference in market abnormal return after the first annual financial statements post-IAS 41 implementation were released in the first quarter of 2018. The results also indicate that at least 50% of the 27 sample companies did not use fair value for their biological assets in their first quarter of interim report during the implementation year. The use of fair value was only observed in the last quarter of 2018, as most companies made an effort to apply fair value. The late implementation of fair value in IAS 41 may explain the insignificance of the market's abnormal return reaction in the first quarter of the adoption year when the financial reports were released.Practitioner/Policy implication: The adoption of the new standard requires companies to comply with it right in the first quarter of the implementation year. The capital market regulator should impose stricter requirements for listed companies to apply the new standard starting with the first quarter of financial reports.Research limitation/Implication: The limitations of this study concern the observation period used for calculating abnormal returns, which did not conclude a ‘pure’ market reaction, and the sample of this research was limited to three industries: agriculture, basic chemicals, and consumer goods.

Investment development path for developed economies: Is agriculture different?

Abstract Literature reports that developed countries are expected to be in stage IV or V (high economic development) in the investment development path (IDP). Knowing the IDP stage of a country shows the cross-border attractiveness of the economy, the circuitousness of firms expanding beyond the home border, and an indication for the formulation of appropriate economic policies. As this theoretical proposition is based on the total economy, we investigated the plausibility of this theory for the agricultural sector in developed countries. Using the generalised least squares estimator, we employed data on 26 developed countries from 1990 to 2021. We found that developed countries’ agriculture is in the first phase of stage V. This is consistent with the theoretical background for developed countries regarding the total economy and demonstrates how the IDP theory for industrialised countries’ overall economies and their agricultural systems are compatible. Agricultural multinationals in developed countries must continue to get globalised through a more interlocking network of trans-border supportive arrangements such as production and market sharing. Moreover, additional acquisition of farm assets and development of the same would balance place-bound assets, leading to further fluctuation of the net outward foreign direct investment and creating smaller transient amplitudes of the curve.

Relationship between capital accumulation and production growth in the interpretation of the R. Solow's model of economic growth

The study of economic growth factors is of greatest interest in modern economic science. The level of economic development is the key to solving social problems and improving the quality of life of the population. This study examines the impact of capital accumulation on economic growth. The author uses a neoclassical approach to the analysis of economic growth factors. Capital accumulation in the main sectors of the economy – mining, manufacturing, agriculture – is considered as a factor indicator. The main hypothesis of the study is that currently, the accumulation of fixed capital in important sectors of the Russian economy is not enough to significantly increase labor productivity and subsequent economic growth. This requires not only a qualitative, but also a quantitative assessment of the capital accumulation factor. Based on the results of the study, conclusions of practical importance were drawn. Firstly, an increase in capital per 1 worker by 1% leads to an increase in labor productivity by more than 1%, that is, the growth in labor productivity outpaces the growth in capital per 1 worker. Consequently, the capital-labor ratio can be considered as an important factor of economic growth. Secondly, a negative factor should be considered the lag in the pace of production renewal from the pace of withdrawal of fixed assets in industry and agriculture in some regions of Russia, which dictates the need to implement special programs in certain regions of Russia to intensify the development of manufacturing and agriculture. Thirdly, increasing the rate of capital growth per 1 worker for higher growth of labor productivity is advisable only in the manufacturing industry and agriculture, which is associated with the currently lower rates of capital growth per 1 worker in these industries compared to the mining industry.

The “dreaded” daughter-in-law in Australian farm business succession

Egalitarian gender norms and legislative rights to property may be a threat to the successful intergenerational transfer of the family farm. This article examines how the land holding generation perceives the role of daughters-in-law in reproducing the family farm. We examine the site of farm succession and intergenerational transfer. We draw on interviews with 22 farm succession professionals. Our analysis demonstrates the land holding generation see the financial reproduction of the Australian family farm as reliant on women's off-farm work and the biological, social and cultural reproduction of the family farm is reliant on women's role adherence to traditional gender norms. This creates tensions within family farms that the landholding generation aim to resolve through legal protections of the farm asset against a claim by the daughter-in-law and by discursively punishing role digression. Given the reliance of Australian family farms on women's labour contributions, these actions may threaten rather than ensure the continuity of family farming.

Empowering Local Economy Through Identification and Development of Agricultural Assets in Barbaran Village

Empowering Local Economy Through Identification and Development of Agricultural Assets in Barbaran Village

Mathematical analysis of a real time dynamical system: Interaction between Agricultural Variables

In this study, we are interested in the investigation and analysis of a mathematical model for the growth of normal agricultural biomass. The model is divided into four compartments as normal Agricultural assets, auxiliary Agricultural assets, Industrial assets, and Ecospherical assets. We applied the Laplace Decomposition Method to obtain approximate solutions in the form of infinite series and numerical justification was performed on the model parameter values with the aid of Maple 18 software. We studied the effect of varying the growth rate of normal agriculture on the yield of agricultural assets and mathematical analyses of the model equation to its uniqueness and stability of equilibrium are carried out. From the results, it was observed that the yield of normal Agricultural assets decreases due to the decrease in the growth rate coefficient of normal agriculture from 10 % to 90 % and the yield of normal Agricultural assets increases due to the increase in the growth rate coefficient of normal agriculture from 110 % to 190 %. We observed a loss in biodiversity when the growth rate coefficients of normal agriculture decreased from 90 %, 20 %, and 10 %, and a biodiversity gain was observed due to the increase of the growth rate coefficients of normal Agriculture from 110 % to 190 %.

Rural households’ resilience to the adverse impacts of climate variability and food insecurity in the North-eastern highlands of Ethiopia

Climate variability and food insecurity shocks frequently affect the livelihood of rural households. Therefore, understanding the fundamentals of resilience is essential for enhancing the capabilities of vulnerable households. The objective of this study was to analyze rural households' resilience to the adverse impacts of climate variability and food insecurity in the North-eastern highlands of Ethiopia. Based on a cross-sectional survey, both probability and non-probability sampling procedures were employed to select sample respondents, key informants and focus group discussants. Principal Component Analysis (PCA), one-way ANOVA and linear regression modeling were used to analyze the data. The results indicated that perceptions of climatic variability, agricultural assets, adaptive capacity and income and food access are the four resilience dimensions with the largest contribution to households’ resilience. Likewise, social capital and access to basic services were the next positive contributors. However, agricultural technology adoption and social safety nets were insignificant contributors. Moreover, households living in the Meher livelihood zone/LHZ/were highly resilient followed by ABB and Meher-belg. On the other hand, respondents in the SWS, CHV and Belg LHZs were less resilient. Male-headed households, household heads with formal education and married households were found to be more resilient than their counterparts. The study found that 50.4 % of the respondents were non-resilient and 45.5 % were highly resilient. In conclusion, the adverse impacts of climate-related hazards associated with the existing food insecurity have deteriorated the resilience capacity of rural households by which they became highly vulnerable and could be easily exposed to shocks. The study suggested that unless well-planned intervention is implemented many households might quickly lose their resilience status to worse even by a very little shock. Moreover, enhancing capability aspects should be the primary goal of any interventions aimed at increasing households' resilience in drought-prone areas in general and the study area in particular.

Nutritional Value, Therapeutic Effects, Phytochemistry, and Toxicology of Lepisanthes fruticosa: A Review.

The multifaceted benefits of Lepisanthes fruticosa position it is not only as a promising agricultural commodity but also as a versatile resource with implications for health, biodiversity, and economic growth. Lepisanthes fruticosa has a rich history of traditional use for treating various ailments such as fever and diarrhea. Beyond its traditional uses, the plant's antioxidant properties suggest potential applications in combating oxidative stress-related conditions. Its antihyperglycemic properties indicate promise in managing elevated blood sugar levels, while its antibacterial and antiviral attributes hint at potential applications in infectious disease control. Furthermore, the plant's anticancer properties add to its appeal as a valuable resource in the realm of medical research. The plant also exhibits considerable potential in addressing a range of health concerns, including non-communicable diseases and infections, antidiarrheal, and antiviral properties. In essence, Lepisanthes fruticose emerges as more than just an agricultural asset. Its unique combination of nutritional richness, health benefits, and economic viability underscores its potential to become a valuable asset both locally and on the global stage. In this current review, we are discussed about the ethnopharmacology, nutritional value, therapeutic effects, phytochemistry, and toxicology of Lepisanthes fruticose.

Optimizing Agricultural Asset Sharing: Enhancing Efficiency and Collaboration ,

This study endeavors to explore the dimensions of asset sharing within India's agricultural sector, specifically focusing on the utilization of facilities and equipment. Given the backdrop of a burgeoning population juxtaposed with diminishing land resources, the imperative for efficient resource allocation emerges as paramount. Through an exhaustive examination of existing literature coupled with an in-depth analysis of pertinent case studies, this research aims to assess the prevalence of asset sharing practices, discern their motivating factors, and elucidate the attendant advantages and impediments. The inquiry encompasses a spectrum of asset sharing modalities, spanning from informal agreements among marginal farmers to structured cooperative endeavors. Furthermore, the investigation scrutinizes the influence of technological innovations and governmental policies in either catalyzing or impeding initiatives aimed at asset sharing. By illuminating the current landscape and identifying potential pathways for enhancement, this paper seeks to make substantive contributions towards bolstering productivity, sustainability, and resilience within India's agricultural milieu. Keywords: asset sharing, agriculture sector, resource utilization, technological interventions, productivity enhancement, sustainability, Indian agricultural landscape.

Volatility spillovers and hedging strategies between impact investing and agricultural commodities

We examine spillover and hedging among impact investing and agricultural commodities. Results demonstrate that impact investing is a prominent spillover transmitter during both calm conditions and crises, while agricultural commodities are typically receivers. Analysis indicates that hedging effectiveness is enhanced by portfolios containing impact investing and agricultural products, with this more so during crises. Additionally, analysis reveals that irrespective of position on the risk aversion spectrum, investors gain utility substantially by including impact investing and agricultural assets, even considering transaction costs. These findings add to the extant literature and offer practical implications for investors, fund managers, and policymakers regarding risk management perspectives and portfolio diversification.

Vessel intrusion interception utilising unmanned surface vehicles for offshore wind farm asset protection

Remotely located offshore wind farms (OWFs) are usually in unmanned operation, and are severely at risk from accidental or deliberate man-made damages, such as cable faults caused by vessel anchoring. In this work, a proactive alarming and interception method utilising unmanned surface vehicles (USV) is proposed to prevent suspect vessels from intruding OWF areas and damaging the assets. More specifically, the vessel intrusion interception system keeps monitoring the motion of surrounding vessels and assessing their potential intrusive risks. When a suspect intruder is identified, USV will be automatically deployed to proactively intercept the target vessel with an alarming and expelling system. In particular, a risk assessment model based on the analytic hierarchy process (AHP) and entropy weight method (EWM) is established to predict the potential intrusive risk, and an improved fast marching square (FMS) algorithm is designed for USV path planning to guarantee dynamic and reliable vessel interception. In order to verify the effectiveness of the proposed method, case studies have been conducted for the Zhejiang Jiaxing 2 OWF with authentic vessel traffic data. Results indicate that the proposed risk assessment model based on AHP-EMW is able to correctly predict the potential intrusion risk in various scenarios, and the improved FMS path planning algorithm with multi-objective optimisation is capable of providing both efficient and safe trajectories for USV interception.

Computational and Mathematical Modeling of Agricultural Assets

Computational and Mathematical Modeling of Agricultural Assets

Assam Flood and Financial Loss in Agricultural Production: A Study on Mitigation Strategy Adopted by the Farmers of Dhemaji District

Background: Assam is considered as a flood prone state, as this natural disaster creates devastating situation almost every year. The study was conducted in Dhemaji district of Assam which is in the list of highly flood hazard index. The district was selected to know the impact of flood on financial loss for agricultural production and to study the mitigation strategy adopted by the flood affected farmers in the district. Methods: For that a multistage random sampling technique was adopted to select flood affected farmers from the district. Financial loss for agricultural production due to flood was estimated by calculating financial loss for crop loss, agricultural asset loss and livestock loss for the study area. Flood situation and Non flood situation was compared while going for calculation of financial loss for crop due to flood. Henry Garret ranking technique was adopted to rank the problems face by the farmers. Result: The result reflected that net return from crop production was recorded to be less (Group I 1032.44Rs/ha and Group II 3830.99 Rs/ha) in flood situation than the non-flood situation (Group I 7051.30 Rs/ha and Group II 8330.08 Rs/ha).Total financial loss due to crop loss, asset loss and livestock loss was found to be high for size group II farmers (Rs 39094.33) then the size group I (Rs 36643.40). Majority of the respondents (79.17 per cent) preferred migration as the best coping mechanism to protect them from flood loss.

Impact of adoption of climate-smart agriculture on food security in the tropical moist montane ecosystem: The case of Geshy watershed, Southwest Ethiopia

The traditional rain-fed agriculture system of Ethiopia is suffering from climate change impacts and extremes. It must be improved to feed the growing population and create a resilient society. Climate-smart agriculture (CSA) is currently promoted as an approach intended to increase sustainable agricultural productivity, enhance household resilience, and reduce greenhouse gas emissions. This study was, therefore, undertaken to examine how food security can be improved by the adoption of multiple climate-smart agriculture (CSA) practices of smallholder farmers in a moist tropical montane ecosystem of Southwest Ethiopia. Data was collected from 384 purposively selected households through cross-sectional study design using a semi-structured questionnaire. Eight Focus group discussions and fifteen key informant interviews were also conducted to check the reliability of the survey data collected. In the study area, a total of eighteen CSA practices, adopted by farmers, were identified. Using principal component analysis, these practices were further grouped into five packages and a multinomial endogenous switching regression model was used to link these packages to the food security status. The findings revealed a great variation in the proportion of households using CSA practices where 92.3 % were using crop management practices whereas 11.2 % were using soil and water conservation practices. The study found that the maximum effect of CSA adoption on food security was by farmers who adopted all the five category CSA technologies. Households that adopted this package were more food secure by 41.2 % in terms of per capita annual food expenditure, 39.8% in terms of Household Food Insecurity Access Scale (HFIAS), and 12.1% in terms of Household Food Consumption Score (HFCS) than the non-adopters. The adoption of this group of practices was further influenced positively by farm size, gender, and productive farm asset values. Using CSA practices in combinations and to a relatively larger extent can potentially solve food security problems. Motivating farmers by providing income-generating activities and discouraging land fragmentation through public education is essential. This in turn improves CSA adoption and initiates production assets investment that can absorb climate change risks.

Livestock Wealth: crowd farming for wealth creation

Learning outcomes Upon completion of this case study, students should be able to apply lessons learned in core readings, analysis and discussion to a specific case study dealing with a current, real-world situation, specifically: critically assess Livestock Wealth’s case facts and present and justify their point of view – based on attentive reading, critical analysis and engagement – about the company; use a range of strategic tools such as strengths, weaknesses, opportunities and threats analysis, PESTLE analysis and the Ansoff matrix to thoroughly evaluate Livestock Wealth’s internal and external business environment for developing strategic options for business growth and improvements to marketing strategy; use strategic thinking to develop a range of creative solutions to guide the company’s business growth and improvements to marketing strategy; and assess their own growth and development in terms of personal preparation and organisation, collaboration, critical thinking, decision-making skills, participation and problem-solving. Case overview/synopsis By February 2022, Ntuthuko Shezi, the founder and chief executive officer of Livestock Wealth, had turned his idea of “crowd farming”, which enables anyone to invest in living farm assets and earn a profit at harvest, into a full-fledged business that was creating wealth for both investors and farmers. Underpinning this case study is Shezi’s vision of an African continent where there is “no ground that is not planted with something of value”, local economies are created in those areas, communities are wealthy, there is abundance, there is money for children to attend school and ultimately where “cows (and agricultural produce in general) are seen as money”. Shezi had grown up in a rural area with grandparents who owned a couple of cows, realizing that the cows were the bedrock of the family’s finances. Describing his business, he says, “Cattle are like a walking bank, and we see ourselves as the bank of the future, where every person who owns a cow can access financial services through Livestock Wealth, just like it has always been in Africa.” This case study describes the two key decisions that Shezi needed to make – what direction to take in terms of business growth and how to improve his marketing strategy (with a limited budget) to attract sufficient investment into Livestock Wealth to make his dreams a reality. Complexity academic level This case study is suitable for use for a post-graduate diploma in business, master of business administration or master’s in management. Supplementary materials Teaching notes are available for educators only. Subject code CSS 11: Strategy.

The nexus of women’s empowerment and sustainable agricultural practices in developing countries: a case of Pakistani women farmers

The adoption of sustainable agricultural practices at the farm level is essential for lowering greenhouse gas emissions and creating sustainable food systems. This study explored the nexus of women’s empowerment in agriculture and the adoption of sustainable agricultural practices in Pakistan. A face-to-face survey using multistage simple random and purposive sampling techniques was used to collect the data from 384 Pakistani women farmers. A partial least-squares structural equation model was used to analyze the data. The findings indicated that empowering women in agricultural asset control (β = 0.38, p < 0.01) positively influences the adoption of sustainable agricultural practices on farms. Similarly, women’s empowerment in decision-making (β = 0.41, p < 0.01) also significantly affects the adoption of sustainable agricultural practices. Moreover, women’s empowerment in legal rights (β = 0.14, p < 0.01), productivity and skills (β = 0.15, p < 0.01), and information and communication technology (β = 0.19, p = 0.02) significantly increases farm-level adoption of sustainable agricultural practices.