Distress Sale Research Articles

Assessing the Effects of Drought on Livestock Farming Livelihoods in Western Odisha: A Study of Drought and Non Drought Years

The irregular climatic variation, which is causing drought, flood, cyclone, etc., across the globe is increasingly affecting the livestock rearing leading to great distress to livestock farmers financially, socially and economically during the above periods [1,2]. Drought is a recurring phenomenon in Western Odisha, posing significant threats to the livelihoods of livestock farmers. This study investigates the effects of drought on the livelihoods of livestock farmers in the region, exploring the socio-economic and environmental implications. A mixed-methods approach was employed, combining surveys, interviews, and focus group discussions with 72 livestock farmers. Results show that drought leads to reduced livestock productivity, decreased income, and diminished food security. Farmers' coping strategies, such as distress sales of assets and migration, exacerbate their vulnerability. The study highlights the need for drought-specific livestock management practices, improved access to credit and insurance, and enhanced extension services to support climate-resilient livelihoods. The study further revealed that animal rearing in the drought affected areas provides a sense of food security, social status and ability to meet the expenses in social rituals. By understanding the impact of drought on livestock farmers' livelihoods, this research aims to inform targeted interventions to enhance their resilience and adaptive capacity. Therefore, the Government of Odisha may initiate serious efforts to promote animal husbandry activities in these districts to support the farmers to negate the adverse impact of drought and to check the distress migration from these districts during the drought period. Policy recommendations include integrating livestock support into drought relief programs and promoting water harvesting and conservation practices.

Turmeric Cultivation in Erode District: An Analysis of Farmer Constraints

Turmeric farming is a key agricultural activity in the Erode District of Tamil Nadu, contributing significantly to the region's economy. However, farmers in this area face a myriad of constraints that hinder their productivity and economic stability. This study investigates the specific challenges encountered by turmeric growers, focusing on technical, economic, marketing, storage, and general constraints. In terms of production, consumption, and exports, India leads the world in turmeric usage. India is estimated to produce 11.7 lakh metric tonnes of turmeric in 2022–2023. Telangana, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Madhya Pradesh, and West Bengal are the main states in India that produce turmeric. In Tamil Nadu, 96,000 metric tons of turmeric are grown around 20,000 hectares. An ex-post facto research design was employed, with Kodumudi Block selected due to its prominence in turmeric cultivation in Erode district. A proportionate random sampling technique was used to select 120 respondents from five villages: Vengampur, Punjai Kollanali, Unjalur, Kollathupalayam, and Kodumudi. The inclusion of an interview schedule as the data collection tool adds depth to the study, as it allows for a structured approach to gathering information directly from the respondents, ensuring the reliability and validity of the findings. The data that were gathered was compiled and subjected to suitable statistical analysis like cumulative frequency method, percentage analysis and ranking method. The findings reveal that the most critical issues include high fluctuations in market prices, pest and disease outbreaks, inadequate storage facilities, and a lack of technical guidance. Economic challenges such as high input costs, difficulty in securing loans, and insufficient subsidies further exacerbate the situation. Marketing constraints, including poor transportation infrastructure and the absence of regulated markets, force farmers into distress sales. General issues like labor shortages and inadequate irrigation facilities add to the farmer burdens. To address these challenges, the study suggests implementing efficient irrigation systems, promoting integrated pest management (IPM) programs, establishing community-based storage facilities, and strengthening farmer cooperatives to enhance their bargaining power. Additionally, introducing government-backed procurement systems with minimum support prices (MSP) and improving access to financial services are recommended as the solutions. By tackling these constraints, the study aims to enhance the sustainability and profitability of turmeric farming in Erode District, ensuring a stable livelihood for the farmers.

Training need assessment of women members in selected farmer producer organizations (FPOs) of Karnataka

Agriculture sector provides gainful employment and livelihood for majority of the population and contributes significantly to the national income and in India it accounts for 17.60 per cent of it’s Gross Domestic Product (GDP). Indian agricultural sector facing several challenges like small and fragmented land-holdings, climate change, diversification due to rapid urbanization, inadequate market and storage facilities, unorganized sector, lack of credit facilities and low knowledge on supply chain management and business plans. Hence the study was conducted in Karnataka during the year of 2022- 23. Study was carried out in three Farmer Producer Organizations (FPOs) from Karnataka have been selected. A total of 90 women members constitute the sample size. Data was collected through interview schedule and analyzed through mean scores and index percentage. Study concludes that, highest index score 81.11 was observed for training on skills for marketing of products at large scale and business skills and ranked I. Whereas, highest index score in personal constraint, expressed by majority of the women members was, they were unable to manage time between household work and FPO work with index score of (86.66) and it ranked I. With regard to marketing majority expressed that, price fluctuation every year and distress sale as a constraint with index score 81.11 and ranked I. Great majority (93.33) of FPO members expressed that, high initial share capital/membership charge in FPOs as a constraint and ranked I in administration. With respect to services and benefits more than half (56.66) of the respondents expressed that, non- availability of custom hiring services at FPO as a constrain and ranked I. Study results also indicated that great majority (93.33) of FPO members suggested that, they want proper guidance towards packaging, grading, branding, processing and marketing especially for value added products should be given by FPOs for better participation.

A Study to Assess Occupational Stress among the Farmers of Mahbubnagar District of Telangana, India

Aim: The main aim of the study was to analyze the occupational stress of the farmers.
 Study Design: The study followed Ex post facto research design.
 Place and Duration of study: The current study was carried out purposively in Mahbubnagar district of Telangana during the year 2020-21 because the farmers of Mahbubnagar district are far behind in terms of scientific knowledge of agriculture and the productivity of the crops is being constant despite the huge developments in the technology interventions in the country.
 Methodology: The purposive sampling technique was administered and one mandal namely Midjil was selected because most of farmers grow cotton and are far behind the technological interventions and data was collected from a randomly drawn sample of 170 respondents by personal interview method through structured interview schedule.
 Results: The results of the study revealed that 70.59% respondents were having medium level of overall occupational stress followed by high stress (15.29%) and low stress level (14.12%) with high level financial stress (68.82%), medium level of weather stress (57.64%), medium level of work overload stress (70.00%), medium level of other people as stress (74.11%), medium level of farming hassles stress (64.70%).
 Conclusion: It was concluded to focus on the occupational stress while promoting appropriate strategies with training programmes, demonstrations, develop and regulate policies like minimum support price, and provide subsidies on inputs, provision for storage facilities to avoid distress sale etc. from the state government.

INSOLVENCY AND BANKRUPTCY CODE: A STUDY OF INDIAN BANKS WITH REFERENCE TO ALTMAN Z SCORE

The implementation of the Insolvency and Bankruptcy Code 2016, which has been carried out in phases since August 5, 2016, was instituted with the aim of revamping the antiquated and intricate corporate insolvency regulations in India. This legislative measure was designed to tackle the pervasive issue of non-performing loans, which has had far-reaching consequences for the banking industry and the availability of credit within the broader economy. However, the unusual and surprising actions taken by the Reserve Bank of India, the central bank of India, to list delinquent borrowers and instruct banks to commence insolvency procedures against them, demonstrate a remarkable level of speed and determination. One notable illustration is the case of Essar Steel, which has encountered a default on loans amounting to around $6.9 billion and is presently undergoing a distressed sale in accordance with the Code. In light of the proactive implementation of the Code by Indian banks, as mandated by the Reserve Bank, and the commendable quality of available assets, it becomes imperative for foreign debt and equity investors to have a comprehensive understanding of the Code, along with the attendant obstacles and prospects it presents. The current investigation employed the Altman-Z score model to forecast the level of safety exhibited by banks in India with respect to potential insolvency and bankruptcy. The banks that were chosen for this study were picked based on specific criteria. The analysis conducted to assess the safety of these banks relied on information that was published in their respective Annual Reports. The research indicates that a significant proportion of Indian banks exhibit a higher level of safety in relation to insolvency and bankruptcy. The Altman-Z score analysis revealed that the performance of banks in India was strong during the first eight years of the study period. However, notable variations were observed during the latter two years of the study period. It is recommended that bank management proactively address these substantial disparities to minimise the risk of insolvency and bankruptcy. KEY WORDS: Banking Governance, Banking Regulation, Banking Sustainability

Agricultural Credit- Flow, Constraint and Linkage with Distress Sale

Agricultural Credit- Flow, Constraint and Linkage with Distress Sale

A farmer-centric agricultural decision support system for market dynamics in a volatile agricultural supply chain

PurposeIn a volatile agricultural postharvest market, producers require more personalized information about market dynamics for informed decisions on the marketed surplus. However, this adaptive strategy fails to benefit them if the selection of a computational price predictive model to disseminate information on the market outlook is not efficient, and the associated risk of perishability, and storage cost factor are not assumed against the seemingly favourable market behaviour. Consequently, the decision of whether to store or sell at the time of crop harvest is a perennial dilemma to solve. With the intent of addressing this challenge for agricultural producers, the study is focused on designing an agricultural decision support system (ADSS) to suggest a favourable marketing strategy to crop producers.Design/methodology/approachThe present study is guided by an eclectic theoretical perspective from supply chain literature that included agency theory, transaction cost theory, organizational information processing theory and opportunity cost theory in revenue risk management. The paper models a structured iterative algorithmic framework that leverages the forecasting capacity of different time series and machine learning models, considering the effect of influencing factors on agricultural price movement for better forecasting predictability against market variability or dynamics. It also attempts to formulate an integrated risk management framework for effective sales planning decisions that factors in the associated costs of storage, rental and physical loss until the surplus is held for expected returns.FindingsEmpirical demonstration of the model was simulated on the dynamic markets of tomatoes, onions and potatoes in a north Indian region. The study results endorse that farmer-centric post-harvest information intelligence assists crop producers in the strategic sales planning of their produce, and also vigorously promotes that the effectiveness of decision making is contingent upon the selection of the best predictive model for every future market event.Practical implicationsAs a policy implication, the proposed ADSS addresses the pressing need for a robust marketing support system for the socio-economic welfare of farming communities grappling with distress sales, and low remunerative returns.Originality/valueBased on the extant literature studied, there is no such study that pays personalized attention to agricultural producers, enabling them to make a profitable sales decision against the volatile post-harvest market scenario. The present research is an attempt to fill that gap with the scope of addressing crop producer's ubiquitous dilemma of whether to sell or store at the time of harvesting. Besides, an eclectic and iterative style of predictive modelling has also a limited implication in the agricultural supply chain based on the literature; however, it is found to be a more efficient practice to function in a dynamic market outlook.

Saffron geographies of exclusion: The Disturbed Areas Act of Gujarat

This article elucidates the discursive, spatial and procedural mechanisms by which residential segregation and ghettoisation based on religion in Ahmedabad is reproduced and reinforced. It studies the application of the Disturbed Areas Act of Gujarat, a 1986 law ostensibly intended to curb spatial segregation based on religion by preventing the distress sale of property in ‘disturbed areas’ affected by sectarian violence. However, this law is being used for precisely opposite ends and as a tool of ‘ethnocratic urban planning’ to advance the Hindu right’s goal of separate and hierarchical nations based on religion and to actively ‘Hinduise’ urban space. Current practices of the law enable the state to police boundaries between Muslim areas and adjoining Hindu localities, sealing their porosity and preventing the formation of mixed areas by restricting property transfers. The article uses semi-structured interviews, mapping techniques, participant observation and official data as sources of evidence. It maps ‘disturbed areas’ in Ahmedabad for the first time and presents previously unpublished data on applications for property transfers between persons of different religions under the Act. The article argues that ethnocratic planning combines with a range of other vectors, such as targeted anti-Muslim violence, the hindrance of justice and reconciliation thereafter and the persistent vilification of minorities, to produce saffron geographies of exclusion in Ahmedabad. These saffron geographies of exclusion are grids of Hinduised spaces cleansed of Muslim presence that embody the ascendancy of the ideology of Hindutva over the city and simultaneously create Muslim ghettos.

Emotional Distress, Psychological Distress, and Hopelessness in School Teachers During COVID-19 Pandemic

Corona virus a high transmittable diseases which is became a global health threat, has drastic negative psychological impact on human mental health. Aim of the study was to investigate hopelessness, emotional distress, and psychological distress in school teachers during corona virus pandemic. A sample of hundred was taken from different private and government schools of Peshawar which is equally divided to male (n = 50), and female (n = 50). Beck hopelessness scale, perceived emotional distress inventory, and Kessler Psychological Distress Scale were administered to analyze the result. Result of the study shows positive correlation between emotional distress, and psychological distress, negative correlation between hopelessness and emotional distress, and hopelessness and psychological distress. Result also revealed significant difference between male and female scores and shows that male scored higher on Beck Hopelessness Scale, female scored higher on Perceived Emotional Distress Inventory and on Kessler Psychological Distress Sale.

Credit, land and survival work in rural Cambodia: Rethinking rural autonomy through a feminist lens

AbstractThis article explores the trajectory of three rural, precarious Cambodian women as they deploy land as a means of undertaking survival work in Cambodia. Using a gendered lens vis‐à‐vis the concept of autonomy, this article rethinks distress sales of land and collateralized land for microfinance borrowing as forms of everyday autonomy. By highlighting women's central role in undertaking social reproductive labour to reproduce the rural household, these acts of distress land sale and debt‐taking are understood as forms of ‘survival work’, acts that ensure the day‐to‐day survival of the household and form the basis for broader projects of autonomy. Although we remain ambivalent about the long‐term prospects for resistance through credit‐taking in particular, we ultimately highlight the need for greater attention to variegated oppositional agency in the path to autonomy to understand the gendered labour of everyday survival in rural life.

Information and Communication Technologies for Marketing of Horticultural Crops in India

In most developing countries, including India, agriculture is moving away from traditional self sufficiency goals (subsistence) to commercialization. In this changing scenario, an efficient marketing system is central to future growth of the sector. Horticultural crops are highly vulnerable to market fluctuations. Problems due to perishable nature of the crop are compounded by lack of storage facilities, weak infrastructure, and poor transport. This often leads to market glut and distress sale at low paying outlets. In the context of developing countries, it has been suggested that Information and Communication Technologies (ICTs) can play a significant positive role by improving arbitrage and reducing information asymmetries. The Market Information Centre (MIC) in Kerala was established to provide vital market information to the state’s fruit and vegetable cultivators. This paper describes the use of price information provided by MIC to banana cultivators for making market transactions. The study was conducted in Wayanad district of Kerala, India. Data was collected using structured schedule and in depth interviews. Information on price realized by the farmers was collected from both users and non users of information provided by MIC centres.

A mathematical description of evaporative cooling potential for perishables storage in India

Post-harvest losses of fruit and vegetables in India, estimated to be around 30 %, can cause major economic disaster for smallholder farmers. A significant part of these losses occur due to lack of appropriate cold storage facilities, high temperatures, and low RH of ambient air especially during summer months. The high capital required and lack of uninterrupted power supply makes it difficult for farmers to build cold stores and existing cold storages are not distributed equitably and do not have sufficient capacity to serve India's 100 million smallholder farmers. One cooling option is the relatively inexpensive evaporatively cooled (EC) storage, which was designed to enable farmers to avert distress sale and get a fair price for produce. An EC storage, termed the Pusa EC room, was built using novel construction materials including fabric walls and insulative blocks and evaluated year-round over a period of 5 years (2017–2021) using respiratory and senescence responses of amaranth (Amaranthus spp.) to storage temperatures. Wetting of the fabric walls yielded cooling of the structure interior during the daytime, but not at nighttime. As a result of lowered temperatures, storage life was predicted to be nearly doubled relative to storage at ambient temperatures during the warm and dry spring and summer weeks, however it was not improved appreciably when the ambient temperature declined and RH increased during late summer, fall, and winter. The estimated daily reduction in respired CO2 for the leafy amaranth, used here as a model plant, was governed by a simple mathematical expression using wet bulb depression of temperature relative to ambient. The predictive equation can be applied to any plant material for which the metabolic response to temperature is defined and permits convenient estimation of the benefits of evaporative cooling, potentially anywhere on the globe. This relationship was used for predicting storage-life improvement for many cities of major climate zones in India using data retrieved from website https://en.climate-data.org. EC room benefits were projected to be highest for warmer, drier climates, as would be expected; however, regional climate classifications were not always found to be a good guide for siting EC rooms due to local and microclimate variability.

Growth Performance and Profitability of Rice Production in India: An Assertive Analysis

This study assessed the growth trends and instability in area, production and productivity of rice in major rice growing states during the period 2001-02 to 2018-19. The study revealed that compound growth rate of area under rice was almost constant in the country during last two decades, while it was fluctuating across the states. However, growth rates of production and productivity was found positive and significant. Instability in area under rice was less as compared to production and productivity. Although production of rice has increased due to innovations and adoption of new farm technologies, but a greater instability in production, indicated the influence of irregular monsoon on production during the study period. Many of the States registered negative profitability in rice cultivation and farmers get handful returns only when the farm business income was calculated. To provide better protection to the farmers through restriction on purchasing rice below MSP or government may adopt proper mechanism to stop distress sale of farm produces particularly rice.

Life of Tribals during COVID-19 times

This paper, drawing on secondary sources and extensive fieldwork, grapples with the implications of lockdown for the tribal economy of Odisha. .Minor forest produce (MFP) is a critical component of the tribal economy in Odisha. COVID-19 and subsequent mitigation measures such as lockdown and restriction on movement coincided with the peak season for gathering of MFP. Lockdown, by disrupting collection and trading of MFP, has severely affected the livelihood base of the tribal people and other forest dwellers. Governments at the Centre and state have taken up several measures to deal with this difficult situation. Governments exempted work under Mahatma Gandhi National Rural Employment Act (MGNREGA) and collection of MFP during the second phase of lockdown. However, distress sale of MFP and loss of income have emerged as major concerns due to delay in policy decisions. Reverse migration of laborers to tribal villages poses the new challenge to state’s preparedness. At a broader level, the current crisis situation reminds us to seriously think in the direction of implementing tribal rights over forest and forest produce.

Empowering Growth in Pakistan?

The SDGs’ commitment to inclusive growth reflects an increasing international concern with the inclusiveness of macro-economic development. Yet, although research underscores that economic growth is not gender-neutral, gender dimensions remain a footnote to these debates. This article explores the connection between growth performance and gender inequalities in the case of Pakistan. The country’s macro-economic performance has been characterised as a case of ‘growth without development’. More specifically, severe gender inequalities and women’s marginalisation in international comparison have persisted even in phases of high GDP growth. This paradoxical situation offers a fertile context for the analysis of how empowering macro-economic growth has been and can be for women. We investigate how empowering growth has been for women in Pakistan by exploring aggregate data on sectoral growth and gendered employment. Our analysis does not suggest the straightforward win–win for growth and women’s empowerment espoused in Pakistan’s national policy vision. Rather, we find that women’s employment is precarious—women are largely viewed as secondary earners engaging in distress sale of labour.

Does Minimum Support Price Have Long-Run Associations and Short-Run Interplays with Yield Rates and Quantities of Outputs? A Study on Food and Non-food Grains in India

Indian agricultural practices in most instances are nature dependent; notwithstanding, it contributes a huge amount to the nation’s gross domestic product and in providing food security to the masses. The government’s announcements of minimum support prices (MSPs) for the crops work as insurance for the farmers from distress sales in the times of bumper crops as well as from nature’s shocks. In the recent past, a new agricultural bill has been passed by both houses of the Indian Parliament which constitutes a major source of concern on the MSP. Under this backdrop, the present study investigates through an endogenous growth model incorporating MSP as the public policy variable and empirical analysis whether MSP has long-run relations with yield rates and total quantity of production of different food and non-food crops for 1983–2019. Using a unit root test, cointegration test and causality test under structural break, it concludes that MSP and yield rates, and MSP and outputs of the selected crops have long-run relations under different break points with temporary deviations from the equilibrium path. Further, there are certain crops like pulses and groundnuts where MSP makes a cause to yield rates and, on the other hand, there are the crops like jute and cotton where MSP makes a cause to quantity of production. Thus, it is recommended that the Government of India should revisit the new agricultural bill and make necessary amendments for the overall benefits of the farmers and the economy as a whole. JEL Classification: Q180; O4; C22

Foot and Mouth Disease (FMD) incidence in cattle and buffaloes and its associated farm-level economic costs in endemic India

The study investigated the important epidemiological parameters and farm-level economic costs of FMD incidence in cattle and buffaloes during 2013−14 to 2015−16 in various states of India. Multistage random sampling procedure was adopted for the primary survey and data was collected through face-to-face personal interview from 18,609 cattle and buffalo rearing farm households from 123 districts across twelve states and one Union Territory. Besides epidemiological parameters, different farm-level direct and indirect loss associated with FMD was assessed at disaggregated level (states) by employing deterministic mathematical models. Highest number of affected villages and disease incidence was observed in non- FMD control programme (FMD-CP) implemented Madhya Pradesh and Assam states, respectively whereas negligible incidence was in FMD-CP implemented Punjab state. The disease incidence was high during 2013−14 and declined during 2014−15 and 2015−16, respectively implied severe incidence scenario (2013−14) succeeded by moderate (2014−15) and mild (2015−16) scenarios. The crossbred and high productive animals were severely affected than local breeds whereas on sexwise and agewise comparison revealed higher incidence in females and adult animals. During severe incidence scenario, milk loss/animal ranged from USD 6.87–47.44, 18.42–125.88, 16.33–91.43, and 27.17–123.62; mortality loss/animal ranged from USD 32.61–804.27, 30.76–577.7, 65.36–502.2, and 188.04–413.7; distress sale loss/animal ranged from USD 3.22–188.63, 64.34–519.3, 214.47–341.8, and 209.11–450.3; and opportunity cost of labour/animal from USD 5.49–54.29, 5.49–67.78; 7.95–31.37 and 9.83–72.38 in indigenous cattle, crossbred cattle, local and improved buffalo, respectively. The estimated draught power loss/animal varied from USD 39.46–142.94 with least being in Madhya Pradesh and highest in Assam states whereas the median treatment cost/animal was USD 9.18 and USD 27.07 in indigenous cattle and upgraded buffaloes, respectively. The total farm-level economic loss projected due to FMD in cattle and buffaloes in India was USD 3159 million (INR 221,110 million), USD 270 million (INR 18,910 million) and USD 152 million (INR 10,610 million), respectively during the severe, moderate and mild incidence scenarios at 2015−16 constant prices. The loss varied across the states, and in severe incidence scenario, the country might lose USD 3.2 billion/year and hence, the bi-annual vaccination schedule need to be strictly implemented in all the states. Besides timely vaccination coverage, managing unabated animal movement, educating and motivating the farmers to vaccinate their animals might reduce the incidence and consequential losses to various stakeholders in endemic states like India.

Conditional cash transfers and embedded extension: A mechanism to restore and promote adoption of improved goat shelters in emergency recovery

Reconstruction of damaged goat shelters was a key need for communities in the Gorkha district, which was the epicenter of the earthquake in 2015, as lack of shelters led to distress sale of goats and reduction in herd size. Additionally, existing shelters caused diseases in goats due to poor ventilation and hygiene features. Drawing on its global experience and expertise in livelihoods, cash, and markets especially in emergency situations, CRS supported conditional cash transfers, provided in two tranches (upon beneficiary choice and construction completion), along with extension (group orientations, mentoring) focused on shelter design principles, to help poor households critically depending on income from goats reconstruct hygienic goat shelters. CRS promoted two simple, cost-effective design principles while facilitating the reconstruction of goat shelters, i.e., a raised platform and provision for ventilation. A study was undertaken to assess the effectiveness of conditional cash transfers combined with a targeted extension on the adoption of improved goat shelter principles by earthquake-affected households, through 100% visual verifications, household surveys, focus group discussions (FGD) with beneficiaries and non-beneficiaries, and key informant interviews with stakeholders. The study reported that 99% of beneficiaries adopted the hygienic shelter principles promoted by the project based on the conditionality. Beneficiaries co-invested on an average of $80–100 in addition to the $100 received from the project. A 20–30% increase in herd size among most beneficiaries was reported after the reconstruction of goat shelters due to the availability of safe space. The study showed strong ownership by the beneficiaries which was evident from the maintenance and up-keeping of the goat shelters. Households, who had not received cash from the project, have also started adopting the design principles mainly due to the low-cost and simple nature of the design principles. Which project has provided them with flexibility in using the material of their choice based on the local context.

The Determinants of Racial Disparities in Housing Returns

We identify the existence of a racial gap in housing returns that is an order of magnitude larger than disparities arising from housing costs alone. The returns gap is driven almost entirely by differences in distressed home sales (i.e. foreclosures and short sales). Black and Hispanic homeowners are both more likely to experience a distressed sale and to live in neighborhoods where distressed sales carry larger foreclosure discounts. Higher rates of distressed sales among minorities are driven by pre-existing differences in economic stability and neighborhood sorting. Black and Hispanic homeowners are more likely to default in response to increases in monthly payments, consistent with racial differences in liquid wealth holdings playing a key role in creating the observed disparities. We use quasi-experimental variation in the receipt of mortgage modifications to show that policies that encourage lenders to modify loans when homeowners can no longer afford their mortgages can mitigate gaps in housing returns, particularly if they are targeted towards minority homeowners or neighborhoods.

Determinants of distress sales of farmland in rural Kenya

ABSTRACT Kenyan households, as in many rural areas in developing countries, suffer frequently from effects of shocks. Yet, they have limited access to effective coping strategies. Vulnerable households end up resorting to ineffective coping strategies such as distressed sales of farmland. Distress land sales limit household productive capacity and increase vulnerability to future shocks, thus entrenching poverty. Using a nationally representative data collected in two waves, we examine the circumstances under which rural households in Kenya sell farmland following shocks. We find that specific shock characteristics, household characteristics and the household social and physical environments are associated with distress sales of farmland. The likelihood of selling farmland was higher for idiosyncratic shocks and those that resulted in higher monetary and material losses. The likelihood of engaging in distress land sales was also higher in households with older heads, with more land holding, where land markets existed and in households that depended on social safety nets. The likelihood of distress sales was however lower in households with more educated heads, more livestock value and access to all-weather roads. These findings are thereafter discussed in the Kenyan context, and policy suggestions are offered for building rural households’ resilience to shocks.