Farm Business Research Articles

Agricultural transformation in the digital age: Digital inclusive finance and the development of new agricultural business entities

Agricultural transformation in the digital age: Digital inclusive finance and the development of new agricultural business entities

Borich needs assessment model to evaluate training needs of smallholder farmers in Zambia

Abstract The human capital theory states that individuals, such as smallholder farmers, can improve their skills through training and education to increase their future productivity and value in the marketplace and ultimately ensure food security. However, it is crucial to determine the gap in their skill set to allow for custom training programs. Against this backdrop, we employ the Borich needs assessment model to a dataset of 252 randomly selected smallholder farmers belonging to the Mulimi Farmer Scheme in Zambia to determine their training needs. Of these farmers, 35% had access to extension services and received technical farming support. However, only 30% of them attended some form of training in the past, mainly focusing on technical training. The biggest training need highlighted by the farmers was technical training, followed by farm business management training. Based on the Borich needs assessment model results, we recommend prioritizing the following areas for training: farm resource management, developing a business plan, and farm record keeping. However, considering the farmer’s diverse educational backgrounds and prior knowledge, we suggest tailoring the training approach to meet their specific needs.

Digital Strategy, Digital Leadership, Organizational Agility, and Digital Transformation for Agricultural Business Sustainability: A Human Resource Management Review

Digitalization has brought a transformation approach from all aspects. Various literatures state that agricultural digitalization is a necessity followed by aspects of human resource management for business sustainability. Various empirical evidence states that business continuity in the digital era is greatly influenced by various factors, including digital strategy, digital leadership, organizational agility, and digital transformation. The study aims to present empirical evidence regarding the practice and/or factors of digital strategy, digital leadership, organizational agility, and digital transformation by comparing the case of agricultural business sustainability and business sustainability in the context of human resource management practices. Using a systematic literature review approach involving 59 journals, consisting of 19 journals concerning the topic of agricultural business sustainability, and 40 journals in the context of human resource management. The journals as secondary sources are limited to the latest international research journals, namely publications between 2020-2024. The results of the analysis found that discussions on digital strategy, digital leadership, organizational agility, and digital transformation for agricultural business sustainability began to be carried out in 2023, and there is a possibility of increasing in the coming years. The future study agenda to produce theoretical building is an investigation into the role of digital leadership in creating scenarios for the development and sustainability of agricultural businesses. The second finding is that from the perspective of human resource management, the reconstruction of theoretical evidence of digital strategy, digital leadership, organizational agility, and digital transformation for business sustainability still needs to be explored further. The theoretical contribution is that for the sustainability of agricultural businesses, the role of digital leadership needs further proof of business transformation and sustainability. A review of human resource management practices is also needed because organizational agility with digital strategies is not enough to explain digital transformation. As a practical contribution, companies must adapt early on to transform their businesses with a digital approach, because the era of digital technology requires digitalization. There is already a lot of evidence of a company failing and experiencing severe decline due to ignoring digital transformation. Keywords: Agricultural business, business sustainability, digital strategy, digital leadership, organizational agility, digital transformation, human resource management.

Dynamic Capabilities, Flexibility and Competitive Performance Practices Based on IT; Comparison of Public Organizations and Agricultural Businesses

The study examines the necessity of information technology (IT)-based transformation across various sectors in the context of Industry 4.0 and Society 5.0, highlighting the critical role of human resource management in public organizations and the essential nature of business digitalization. Through a systematic literature review of 37 recent journals, the findings reveal that dynamic capabilities and IT flexibility are more prevalent in agricultural businesses compared to public organizations. The implications suggest that public organizations should enhance IT governance to improve dynamic capacity focused on human resources, promoting flexibility in IT use. For agricultural businesses, prioritizing the development of IT capacity and enhancing the perceptions and behaviors of farmers and extension workers is crucial for fostering competitiveness. This will optimize the agricultural supply chain and support effective digitalization. Public sector improvement implications: a) Improved IT governance, is public organizations should focus on strengthening their IT governance structures to enhance dynamic capacity, particularly related to human resource management; and b) Improved flexibility is ensuring that IT use in these organizations adheres to flexibility principles will be critical to adapting to changing needs. Agriculture business focus implications: a) Improved capacity is agricultural stakeholders should prioritize improving their IT capacity; b) Improved perceptions and behaviors is improving the perceptions and behaviors of farmers and extension workers is critical to developing dynamic IT capabilities and business flexibility; and c) Effective digitalization, this effort is critical to optimizing the agricultural supply chain and ensuring the success of the digital transformation of agricultural practices.

Integration of Cocoa and Cattle Towards Production and Creation Body Weight of Cattle

Cocoa is one of the main plantation crops in North Kolaka, Southeast Sulawesi, and is a strategic plantation commodity that tends to be important for the national economy because it provides employment, a source of foreign exchange, and a source of income for farmers. Manure is a waste product from livestock manure, one of which is cattle, which can be used to add nutrients and improve the physical and biological properties of soil. Integrated agriculture (crop-livestock integration) is an agricultural system characterized by the interrelationship between crop and livestock components in a farming business or an area. This study was conducted to determine the effect of manure on cocoa crop production, and to find out that feed made from cocoa fruit peel waste can increase the body weight of cattle. To find out how cattle manure and cattle feed using cocoa shell waste can be integrated in increasing cocoa production and increasing body weight in cattle. Based on the results of the research conducted, it was found that the cattle manure treatment showed the best results for each parameter observed in cocoa production, while in the cattle parameter, the provision of additional cocoa peel feed gave the highest results.

The Role of Financial Literacy on Investment Decisions in Supporting Agricultural Development: What is the Future Agenda?

Financial literacy is recognized as a useful tool for making financial decisions. The better a person's literacy, the better their financial management including in making investment decisions, including farmers. This study aims to uncover a future agenda to investigate the role of financial literacy in shaping investment decisions for farmers which is very useful in business development and agricultural development in general. The next goal is to present empirical evidence as an agenda for further investigation into human resource management practices. They use a literature review study approach with a systematic review paradigm. Involving around 38 major journals that discuss financial literacy and investment decisions in the agricultural sector, supported by other journals that discuss resource management practices. The analysis results show that the study analyzes the role of financial literacy in shaping investment decisions for farmers and agricultural development in 16 countries, spread across Asia, Africa, and Europe. The agenda for discussing future research that interests researchers is focused on four things. First, factors that influence/drive investment decisions. Second, factors that shape financial literacy in agricultural business development. Third, household finances. Fourth, is the level of financial literacy. Specifically, human resource management practices that need to be further proven are regarding financial literacy, cognitive bias, and emotional bias in reflecting investment decision-making. Theoretical implications are that financial literacy has been proven to contribute to shaping the knowledge of the community (farmers and business actors) when making investment decisions. To strengthen this, further evidence is needed, along with factors that influence (including barriers) financial literacy. Farmer households are the most frequently suggested subjects. Practical implications are that the Government and other parties involved in financing agricultural businesses must participate in providing scenarios and infrastructure (technology and innovation) to support financial literacy for farmers and the general public. Keywords: Financial literacy, decision making, investment, farmers, farmer household, human resource management, review, future agenda.

Impact of physical climate risks on agricultural firms’ bankruptcy: evidence from France, Italy, Portugal and Spain from 2016 to 2019

Abstract Frequent and long-lasting extreme climate events can impact business-related natural capital, severely affecting production and resulting in losses for agricultural firms. Physical climate effects are material dependencies for agricultural businesses and may severely affect their performance and compromise their survival. This study’s aim is to analyze the comprehensive effect of climate change factors on agricultural firm bankruptcies in a European geographical area that is especially susceptible to climate change. Employing a panel of 15 036 agricultural firms, we analyze the effects of adverse climatic conditions in the firm’s headquarters area using logit regressions, an instrumental variable ordinary least squares model, and the gradient-boosting ensemble method. We find that bankruptcy is conditioned upon extreme weather events, indicating that climate change’s physical impacts on firm resources already materially affect the agricultural sector’s resilience and survival. Specifically, abnormally high temperatures, precipitation, and the incidence of fires are significant factors that contribute to bankruptcy or insolvency. Furthermore, a “fire weather” index comprising high temperatures, drought, and wind, combined with fire occurrence, intensifies the bankruptcy risk of agricultural businesses.

Key Performance Indicators as Predictors of Enterprise Gross Margin in English and Welsh Suckler Beef and Sheep Farms

A large proportion of the lowest annual farm profits in the United Kingdom in recent years comes from lowland and Less Favoured Area (LFA) beef and sheep farms. Benchmarking the performance of a business through routine data collection can provide the information needed to make changes to enterprise management and performance. Key performance indicators (KPIs) are globally recognised measures that can provide farmers with this capability. However, it is largely unknown if there are specific KPIs relating to livestock production that have a significant effect on financial performance. The aim of this study was to determine whether KPIs could be used as predictors of financial performance (gross margin, GM), on suckler beef and sheep farms in England and Wales. This was completed using data from the Farm Business Survey (FBS), which is the largest stratified financial survey of its kind in the UK. Following data extraction, multiple linear regression models were developed for four enterprise types: LFA suckler beef, lowland suckler beef, LFA ewe and lowland ewe. Several KPIs were significantly associated with gross margin per head in all enterprise types. KPIs that were positively associated with GM were measures of livestock productivity, which were lambs per breeding stock and calves per cow. The increased expenditure on concentrate feed had a significantly negative association within all enterprise types, except for LFA suckler beef enterprises, where cow mortality had the greatest significantly negative association. This is the first study to demonstrate the influence livestock production KPIs have on the financial performance of suckler beef and sheep enterprises in both England and Wales, highlighting the importance of routine data collection and benchmarking.

Analysis of the Impact of Reservoir Development on the Availability of Water for Paddy Farming in Sanjai Village, East Sinjai District, Sinjai Regency

Water supply which is a resource that must be sufficient in paddy farming. Reservoirs are civil construction buildings in the field of hydrology that are used to hold water so that it does not go straight to the sea, so that it can be used to improve the availability of water supply to paddy fields that cannot be reached by technical irrigation. The purpose of this study was to differentiating between the effects on water availability, farmer productivity, and economic impacts of the construction of the reservoir on the community. This study was conducted in Sanjai Village, East Sinjai District, Sinjai Regency. A total of 55 respondents of this study were farmers whose paddy fields used water from the reservoir and planted paddy as the main commodity of their farming. The method used to analyse the data was descriptive analysis and paired sample mean different test. The results of the study showed that the effect of reservoirs on water availability in addition to increasing farmer productivity can also reduce the risk of agricultural business due to drought and increase opportunities for farming, especially during the dry season. In addition, the construction of the reservoir has affected the availability of water in Sanjai Village, which was experienced by farmers after the construction of the reservoir, as well as a decrease in the intensity of floods and droughts, the smooth supply of water for the needs of farmers in farming in paddy fields so that the availability of water for farming in paddy fields is more sufficient after the construction of the reservoir and the impact after the development of the reservoir, from an economic point of view, the community was increasing production and productivity. It can be concluded that the construction of the reservoir has been achieved and the function of the reservoir for farmers was very useful and can also change cropping patterns as well as improve crop cultivation.

Perception of Ecosystem Services Provided by the Primary Sector in Floodplains: A Study of Sardinia

Agriculture, livestock, and forestry are crucial in mitigating hydrogeological risks, such as floods, particularly severe in the Mediterranean region. Still, the ecosystem services (ESs) provided by these activities are often undervalued. However, to assign them an economic value and ensure their effective incorporation into decision-making processes and territorial planning, they must first be recognized, appreciated, and deemed necessary by society. Despite several studies on ESs in the primary sector, research on agroecosystem flood regulation is limited, leaving key aspects unaddressed for decision-makers. No previous studies explicitly address the evaluation of ESs provided by agriculture, livestock, and forestry businesses in hydrogeological risky environments, especially in flood-prone areas. This study investigates the perception of the ESs provided by the above activities, focusing on those furnished in areas subject to hydrogeological instability. It also focuses on Sardinia (Italy), which is highly susceptible to hydrogeological instability. Through a quantitative survey of 270 residents and non-residents, the research provides evidence of society’s perception of the above ESs. Supporting ESs obtain greater appreciation in crop activities, particularly concerning the preservation of pollinating insects, soil fertility, biodiversity, and water quality. Among the regulatory Ess, appreciation is most prominent in fire risk management and flood risk regulation. Similar arguments can be made for livestock activities. Forestry activities are perceived as key players in managing flood risk, landslide risk, soil erosion, and climate change. The Multiple Correspondence Analysis indicates that appreciating one ES often leads to the recognition of others. Additionally, a set of Logit Regressions showed that while age and gender do not influence ESs perception, education level and awareness of climate change-related emergencies play a significant role. Those findings support more informed decision-making and fostering sustainable practices in areas at risk of hydrogeological disasters and lead to several important implications for practitioners, academics, and policymakers.

The Formation of New Quality Productivity of Agriculture Under the Perspectives of Digitalization and Innovation: A Dynamic Qualitative Comparative Analysis Based on the “Technology-Organization-Environment” Framework

The formation and development of new quality productivity of agriculture can effectively promote agricultural sustainability and modernization. In order to explore the multiple paths of the formation of new quality productivity of agriculture, using the panel data of 30 provincial levels in China from 2012 to 2021, based on the “technology-organization-environment” framework and dynamic QCA method, this paper explores how seven factors such as agricultural technology innovation, digital infrastructure, innovation policy support, the formation of e-commerce industry, marketization level, green finance, and rural culture modernization interact to promote the formation of new quality productivity of agriculture. The findings reveal that none of the above seven factors can promote the formation of new quality productivity of agriculture, and agricultural technological innovation and digital infrastructure are becoming more and more important to the formation of new quality productivity of agriculture over time. The high new quality productivity of agriculture formation models can be categorized into four types: TOE empowers new business model development-driven, government–market–culture triple-driven, market-oriented efficient transformation of technological achievements-driven, and deep integration of agricultural technological innovation and emerging agricultural business models-driven. The configurational results exhibit significant regional effects, with diverse pathways for the formation of new quality productivity of agriculture across different provinces.

Inland water transportation attributes and marketing performance of micro-businesses

The study explored inland water transportation attributes (cost, safety, security, multiple taxation, and climate change) and marketing performance of micro agricultural businesses in Cross River State. Cross-sectional survey research design and structured questionnaire were used for the study. The population of the study was micro agricultural businesses and 160 owners of micro agricultural businesses constituted the sample size. Multiple linear regression analysis was used to test the hypotheses of the study. The findings revealed that transportation cost, safety, security and climate change had significant positive effects on the marketing performance of micro agricultural businesses, while multiple taxation was significantly negative. Therefore, the study recommended that regulators of inland water transportation channels should make transportation fares more affordable, provide more safety accessories, security architecture in the waterways to be consistently reviewed and improved in order to guard against and eliminate potential threats, multiple and disproportional tax rates levied on micro agricultural businesses should be made fairer and more closely proportional to the volume of merchandise they carry in order to shore up the performance of these businesses.

Generational Renewal of and Support for Agricultural Businesses to Achieve Vision 2030 in Namibia—A Focus on Social Protection

With six years left before realising Vision 2030 plans, Namibia finds itself with the current generation, that is, young people (youth) not interested/un-motivated to take up agriculture as a form of income-generating activity. Scientific literature is lacking in this area in Namibia, yet there is an argument that social protection (SP) programmes in agriculture are important to help increase agricultural output among the youth and in turn, sustainable food security and reduction in unemployment. Using the theory of market failure, this article sets out to identify challenges experienced by the youth in Namibia in participating in agriculture and discuss how coupling agriculture with SP could contribute to agricultural transformation. A qualitative methodological approach was employed as this approach helps with understanding how people think and act and, in this case, how the youth perceive the agricultural sector. It is found that a lack of infrastructure, income uncertainty, lack of farming protection and access to land deter the youth from participating in agriculture with some categorising farming as ‘not a job’. For agricultural transformation to come about, an enabling environment needs to be created to realise Vision 2030. This study contributes to the literature on proposed solutions in creating an enabling environment for those aspiring to go into agriculture as per the aspiration of the current policies and programmes.

Pelatihan Pengembangan Desain Bangunan dan Manajemen Pengelolaan pada Peternakan Kambing di Kota Semarang

This community service aims to improve the quality of goat farming in Semarang City, especially at Ciliwung Farm. This activity focuses on two main aspects, namely building design development training and management training. Building design training emphasizes designing pens that meet goat health, comfort and productivity standards. Aspects such as ventilation, lighting, materials and cage layout are the main focus in this training. Meanwhile, management training is aimed at improving farmers' skills in managing the sales and marketing of goat products. Training materials cover marketing strategies, product development and financial management. It is hoped that through this activity, farmers at Ciliwung Farm can improve the quality of their products, expand their marketing network, and ultimately increase their income. The results of this community service show an increase in the knowledge and skills of breeders in designing good pens and managing goat farming businesses more effectively.

Factors Influencing the Youths’ Interest on Agricultural Entrepreneurship in Nawalparasi District, Nepal

Due to inclement climate and political unrest, there was large scale emigration and the main source of income for the Nepalese people has begun to diminish. To evaluate the effects of elements that affect young people’s interest in starting an agricultural business and to look into the connections between these factors and that desire was the main goal. The study was carried out by using a descriptive survey research design, with 100 young people from the Nawalparasi District, as respondents. Everyone who responded, agreed that acceptance, attitude, and knowledge were the things that motivated young people to start their own agriculture businesses. Attitudes and acceptances greatly influenced the interest of young individuals in agricultural entrepreneurship. The influence of education on young people’s enthusiasm towards starting their own businesses was insignificant, according to the study.

Kelayakan Usaha Tani Bawang Merah pada Lahan Marginal Berpasir di M-25 Agro, Kecamatan Banguntapan, Kabupaten Bantul, Provinsi Yogyakarta

The utilization of marginal sandy land for shallot (Allium cepa var. ascalonicum L.) cultivation has promising economic value and the potential to increase national food production. This study aims to analyze the feasibility of shallot farming on marginal sandy land at M-25 Agro, located in Sampangan Village, Banguntapan District, Bantul Regency, Yogyakarta Province, using the Revenue Cost Ratio (R/C Ratio) analysis approach to demonstrate that the business is viable and profitable. The results of the study show that the total cost incurred for shallot production on an area of 5000 m² at M-25 Agro reached IDR 16,658,333, while the total revenue generated amounted to IDR 100,000,000. With an R/C Ratio calculation of 6.00, this study concludes that the shallot farming business on the marginal sandy land is highly profitable and feasible to continue.

Feasibility Analysis of Tilapia Farming in the Maju Bersama Fisheries Group, Central Papua Province

This study aims to determine the feasibility level of tilapia farming undertaken by the Maju Bersama Fisheries Group in Bomomani Village, Mapia District, Dogiyai Regency, Central Papua Province. The research method employed is a survey approach, using questionnaires and interviews with respondents, namely fish farmers engaged in tilapia farming. This study was conducted over one month, from October to November 2024. The respondents of the study were members of the Maju Bersama Fisheries Group in Bomomani Village, Mapia District, Dogiyai Regency, Central Papua Province. The results show that the fixed costs incurred for cultivating 6,000 tilapia in earthen ponds over one production cycle amount to IDR 10,200,000, variable costs to IDR 10,200,000, and total costs to IDR 37,300,000. Revenue reaches IDR 64,275,000, resulting in a profit of IDR 26,975,000. The Cost Ratio is 1.7, indicating that the tilapia farming business is efficient, as evidenced by an R/C ratio value greater than 1.

Community Social Capital and Farmer Development: Key Drivers of Welfare and Business Productivity in Farmer Groups

Community Social Capital and farmer characteristic development are seen as important factors that can influence farmer welfare and farming productivity in farmer groups. This study aims to analyze the influence of Community Social Capital and farmer characteristic development on farmer group welfare and business productivity. This study uses a quantitative method with a survey approach, with 35 respondents who are members of farmer groups in Dayun District, Riau Province. Data were collected using a questionnaire that includes the variables Community Social Capital, farmer welfare, farmer characteristic development, and farming productivity. Data analysis was carried out using path analysis through Structural Equation Modeling-Partial Least Square (SEM-PLS). The results showed that Community Social Capital and farmer characteristic development have a significant positive influence on farmer welfare and farming productivity in farmer groups. This indicates that increasing community social capital and developing farmer characteristics, such as knowledge, skills, and innovation, can contribute to improving welfare and agricultural production. This study highlights the importance of the role of Community Social Capital and the development of farmer characteristics in improving welfare and productivity of farming businesses.

Fostering poverty reduction through ultra-microfinance interventions for agricultural MSES in Indonesia: The role of business size and gender

Studies on the role of gender, family businesses, and non-family businesses in examining financial management practices, particularly in developing countries, have been largely overlooked. This research, based on the collaboration between Positive Accounting Theory (PAT) and Agency Theory, aims to explore the intervention of microfinance in micro and small agricultural enterprises (MSEs). Using a quantitative approach, the study employs the Structural Equation Model Partial Least Square (SEM-PLS) method with a sample size of 656 respondents, comprising ultra-micro and small business actors in the agricultural sector in Indonesia. The findings indicate that for micro-sized businesses, entrepreneurial success mediates the relationship between microfinance and subjective wellbeing, while in small-sized businesses, poverty reduction and entrepreneurial success fully mediate the relationship between ultra-microfinance and subjective wellbeing. Ultra-microfinance assists business owners in enhancing their financial resource capacity more easily. On the other hand, microfinance not only provides financial access but also offers training and mentorship programs, helping business owners achieve long-term success. The study also reveals that gender does not mediate the relationship between microfinance and subjective wellbeing. Gender inequality in accessing resources, differences in decision-making participation, and social norms that still limit women's roles in economic activities within the agricultural sector are contributing factors. The implication of this study is to provide insights for decision-makers in the agricultural MSME sector to enhance subjective wellbeing. It is hoped that poverty alleviation programs through microfinance initiatives, such as PNPM, can be optimally absorbed and have a positive impact on empowering business owners to reduce structural poverty, especially in the key sector of agricultural businesses.

PENATAAN JENIS TANAMAN BERBASIS HOME GARDEN UNTUK MENDUKUNG KELESTARIAN SUMBER PAKAN TRIGONA DI DESA BUKIT JANGKRIK

The Trigona honey bee farming business has rapidly developed in Bukit Jangkrik Village due to its simple cultivation and maintenance techniques. The success of this cultivation heavily depends on the availability of feed sources throughout the year, which are generally obtained from home garden-based yards. Unfortunately, the community's knowledge about the types of nectar, pollen, and resin-producing plants as food sources is still lacking, so their feeding needs have not yet been met. In order to support the sustainability of Trigona's food sources, PGRI Mahadewa University Indonesia is conducting community service activities by creating a demonstration plot of an agroforestry-based home garden model. This model combines annual fruit-bearing plants such as Durian, Matoa, Kelengkeng, Mangga, Murbei, Jeruk, Anggur, and Jambu biji, with flowering plants that produce nectar, pollen, and resin throughout the season, such as Matahari, Air Mata Pengantin, Asoka, and Kastuba. The results of the activities show the success of this demonstration plot in providing a sustainable food source, thanks to the strategic and potential arrangement of plant types. In conclusion, this agroforestry-based home garden model serves as a practical solution that not only supports the sustainability of Trigona bee cultivation but also involves the community in maintaining the local ecosystem through the planting of multifunctional plants.