Farm Heterogeneity Research Articles

Aging, land fragmentation, and banana farmers' adoption of biopesticides in China.

Encouraging farmers to adopt biopesticides is a crucial strategy for protecting the ecological environment and achieving sustainable agricultural development. This study utilizes data from a micro-survey of 454 banana farmers from Hainan Province of China and employs a logit model to analyze the effects of aging, land fragmentation, and their interactions on farmers' adoption of biopesticides, as well as the heterogeneity of farmers in different household life cycles. The findings reveal that aging and land fragmentation both hinder biopesticide adoption, with farmers experiencing higher levels of aging and more fragmented land holdings being less likely to utilize biopesticides in banana production. Mechanism analysis uncovers an interaction effect between aging and land fragmentation that hampers biopesticide adoption. Furthermore, the effects of aging, land fragmentation, and their interaction on biopesticide adoption behavior vary across farmers in different family life cycles. Specifically, aging negatively affects biopesticide adoption behavior for farmers in support households, while land fragmentation negatively influences farmers in dependency and burden households. The interaction between aging and land fragmentation adversely affects farmers in burden households. Our findings highlight the importance of aging agricultural labor and land fragmentation to promote green agriculture in China and call for more relevant policies to encourage farmers with different household life cycles to adopt biopesticides in farming practices.

Technical efficiency and technology gap in Kenya’s tea industry: accounting for farm heterogeneity

ABSTRACT The study used a cross-county survey from Kenya to investigate smallholder tea farmers’ performance using a stochastic metafrontier framework. According to the results, farmers in all four regions are falling short of their potential with the mean technical efficiency ranging from 0.69, 0.77, 0.61, and 0.74, respectively, for the Nandi, Mau, Kisii, and Kericho regions. Comparing its performance with the technology available in the industry, each region faces a technology gap. Even though some variables were not statistically significant, a combination of socioeconomic and farm-specific factors were identified as sources of technical inefficiency among farmers. The farmers in all regions, however, possess the potential to overcome technological constraints and achieve higher levels of productivity. Kenya Tea Development Agency Ltd should, therefore, enhance its efforts to help the farmers improve their management and technical skills on how to use their resources more efficiently.

A benchmark model for exploring the differentiation of trust in information sources in heterogeneous farmers' green behavior.

The literature reports that trust in information sources (ISs) is an important determinant of farmers' adoption of sustainable environmental practices. However, few in-depth studies have focused on the differences in trust among different ISs in heterogeneous farmers' green behavior. Therefore, it is challenging for heterogeneous farmers to design efficient and differentiated information strategies. This study proposes a benchmark model to explore differences in trust in different ISs in the application of organic fertilizers (OFs) to farmers at different scales. A total of 361 farmers of a geographically indicated agricultural product in China were evaluated to understand their trust in different ISs when adopting OFs. The results identify the differentiation of heterogeneous farmers' trust in different ISs when considering green practices. Specifically, large-scale farmers' green behavior is more likely to be influenced by trust in formal ISs (strength-weakness ratio of 1.15 for the effect of two ISs), whereas small-scale farmers' green behavior is strongly influenced by trust in informal ISs (strength-weakness ratio of 4.62 for the effect of two ISs). This difference was mainly caused by differences in farmers' information acquisition ability, level of social capital, and preference for social learning. The model and findings of this study can aid policy-makers in designing effective and differentiated information interventions for different types of farmers to maximize their adoption of sustainable environmental practices.

Marginal climate change abatement costs in Swiss dairy production considering farm heterogeneity and interaction effects

Marginal climate change abatement costs in Swiss dairy production considering farm heterogeneity and interaction effects

Do Financial Linkages Ease the Credit Rationing of Forest Rights Mortgage Loans? Evidence from Farm Households in Fujian Province, China

Affected by the small scale of forest farmers’ land and the imperfect development of the forest land transfer market, China’s forest rights mortgage loans have suffered from more serious credit rationing. The application of financial linkage theoretically has the effect of solving credit rationing. However, previous studies on financial linkages have focused on the field of credit lending, whereas the applied studies in the field of mortgage lending are mainly case studies on transaction models, and empirical tests on the application of financial linkages in mortgage lending are lacking. Therefore, to fill this gap, this study analyzed the effect of financial linkage on credit rationing for forestry mortgage loans and the mechanism of action through a study of farmers in Fujian, one of the key collective forestry areas in China, using the PSM method with 785 sample values. The results show the following: (1) Financial linkages have a significant mitigating effect on supply rationing, demand rationing, and the total rationing of forest rights mortgage loans. Compared to non-participation, financial linkages significantly reduced total rationing by 15.2%, with a 5% reduction in supply rationing and a 10.2% reduction in demand rationing. (2) The impact of financial linkage differs significantly among heterogeneous farmers. It has a significant mitigating effect on supply rationing for small-scale farmers, but not for large-scale farmers; meanwhile, it better mitigates demand rationing for large-scale farmers than for small-scale farmers. (3) In the mechanistic test, financial linkages were found to moderate the relationship between the value of collateral and supply rationing for small-scale farmers, and transaction costs play an intermediary role in the relationship between financial linkages and demand-based rationing. According to the study results, in order to promote the development of forest rights mortgage loans, it is necessary to develop different lending strategies for heterogeneous farmers, to further encourage small- and medium-sized farmers to participate in financial linkages, as well as to further reduce the related transaction costs.

How do farmers’ environmental preferences influence the efficiency of information instruments for water quality management? Evidence from a social-ecological agent-based model

Diverse public policies encourage farmers to adopt eco-friendly practices to address the issue of diffuse pollution from agriculture, including measures based on the provision of information on the environment. Indeed, farmers’ perception of the state of the water body and their awareness of the causes and consequences of water pollution affect their willingness to adopt eco-friendly farming practices. Public policies therefore have a role to play in disseminating environmental information. In this article, we investigate how information measures may exert influence on changes in farming practices and thereby water pollution. We extend an existing agent-based model of a social-ecological system representing a drinking water catchment area. In the decision-making process based on the theory of planned behaviour we integrate a dynamical environmental component of farmers’ attitude towards eco-friendly practices, in order to take into account the effect of information on the ecological system. We explore the impact of information measures, heterogeneity in farmers’ environmental preferences and variations in the initial level of water pollution on farmers’ participation to a water catchment protection programme. Our results show that: (1) targeting farmers who have higher environmental preferences is more effective than no targeting; (2) the heterogeneity in farmers’ environmental preferences impacts their involvement in the programme depending on the average environmental preferences; (3) the higher the initial pollution, the higher the farmers are involved in the protection programme; (4) when two different measures are combined, once a certain threshold of public awareness is reached, there is a synergy between them.

Can the use of the internet improve fish farmers' financial performance? Evidence from Ghana

This study’s investigation is about how Internet usage affects the financial performance of Ghanaian fish producers. We used a sample size of 222 fish farmers after employing the multistage sampling approach and the endogenous treatment regression (ETR) technique to achieve the study’s objective. The results estimated after dealing with the endogeneity issue depict that the association between farm financial performance and Internet utilization has both heterogenous and homogenous impacts. Specifically, Internet use homogenously caused a significant rise in Net returns, Return on Investment (ROI), and Profit Margin of the fish farmers. Also, regarding the heterogeneous farm financial performance effect of using the Internet analysis, it was revealed that Internet use enhances the farmers' Net returns, ROI, and Profit Margin regardless of their gender or household income status. Generally, our findings recommend that policies that boost aquaculture practitioners’ economic and financial performance should consider enhancing Internet connectivity across the nation.

Evolution of livelihood vulnerability in rice terrace systems: Evidence from households in the Ziquejie terrace system in China

IntroductionGlobally, terraces, and rice terrace systems face problems that affect their sustainability, such as terrace degradation, abandonment, de-agriculturalization, labor migration, etc. The implementation of development projects such as reforestation, poverty alleviation, and tourism development have changed traditional smallholder livelihood patterns. It is not clear whether farmers' livelihoods have become more resilient or vulnerable as a result.MethodsUsing survey data on households' livelihoods in a rice terrace system in Southern China, we evaluated the livelihood impacts of multiple changes.ResultsThe results show that development projects are not entirely beneficial. The attributes and intensity of the disturbance of projects (e.g., tourism) on land functions, and differentiated farmer strategies jointly drive the hierarchical evolution of livelihood vulnerability. In detail, underdeveloped tourism increased rather than reduced livelihood vulnerability; the role of agriculture in livelihood directly exacerbated the variation in vulnerability levels; this resulted in the most vulnerable livelihood for households that are exogenously dependent or located in the core tourism area.DiscussionSubsequently, an evolutionary model of livelihood vulnerability is proposed in this study. Based on this, we judged that the livelihood vulnerability of rice terrace systems has entered a chaotic stage of adaptation. Reducing livelihood vulnerability will require the support of a tangible and circular pathway of benefits between farmers and the land. Policies should focus on the heterogeneity of farmers and the “negative effects” of development projects on livelihood. This household-level farmer livelihood vulnerability dynamics study goes beyond anti-poverty to provide science-based practical guidance to promote the sustainable development of rice terrace systems.

Accounting for Heterogeneity in Performance Evaluation of Norwegian Dairy and Crop-Producing Farms

It is critical to analyze the performance of enterprises to achieve sustainable agricultural development. Several studies have been conducted to assess farm performance. However, the studies have been criticized for failing to account for farm heterogeneity (which is frequently unobserved) in their evaluation of Norwegian agricultural performance. Technically, a farm is efficient if it can produce a certain amount of output with the fewest possible inputs and no input waste. In this paper, efficiency scores are calculated using a production function with both a random intercept and a random slope parameter, addressing the issue of unobserved heterogeneity in stochastic frontier analysis. Using Norwegian dairy and crop farms as a case study, we demonstrate the viability of improving the agriculture industry and reducing resource waste. The case study was established on data collected from 5884 dairy farms and 1880 crop farms from the years 2000 to 2019. According to the empirical findings of the case study, dairy and crop producers used inefficient technologies and squandered production resources. If all farmers follow a sustainable and efficient path to produce agricultural output, they could increase output by 15–18%. Farmers must follow sustainable paths, and politicians must encourage farm experience exchange so that less efficient dairy and crop-producing farms can learn from the most efficient farms to achieve sustainable development.

Heterogeneity preferences and willingness to pay for environmental services: Evidence from Iran

Environmental challenges such as soil salinity and desertification have been concerns of Iran's agricultural sector in recent decades. Payment for ecological characteristics is one of the market methods of protection which has received much attention. One of the areas that have been plagued by such problems in the last decade is the aquifer of the Dasht-e-Abbas of Ilam province. This study examines the preferences and willingness to pay farmers to maintain and improve the aquifer of Dasht-e-Abbas. For this purpose, the choice experiment method and mixed logit and latent class models were used. The required information was obtained by completing a questionnaire and interviews with 108 farmers in 2021. The results obtained from both models confirmed the existence of heterogeneity in farmers' preferences, and the variables age, environmental orientation, and groundwater use were identified as heterogeneity factors. The mixed logit model and latent class results showed that the characteristics of reed level, soil salinity, and desertification have the highest priority from farmers' perspectives, respectively. The maximum willingness to pay for these two attributes has been 420 and 256 thousand Iran Rials per month per hectare. Based on the results, there is a need for the authorities to take effective action by holding extension classes related to the importance of the environment and the problems associated with this aquifer.

Farmers’ heterogeneous preferences for traits of improved varieties: Informing demand-oriented crop breeding in Tanzania

Summary Understanding farmers’ preferences and willingness to pay for different traits is critical for demand-driven varietal development and designing targeted strategies that stimulate adoption of varieties by farmers. This study uses choice experiment data from a random sample of 1299 Tanzanian farmers to analyze their preferences for traits of groundnut varieties, investigate trade-offs involved in valuation of attributes, and explore heterogeneity in preferences. Results reveal that farmers have strong preferences for groundnut varieties that are high yielding, tolerant to environmental stresses, early-maturing, red-colored, and fetching high sale prices in grain markets. Farmers are willing to pay the highest premium for high-yielding attributes, closely followed by the tolerance trait. Further, a latent class analysis identifies four distinct classes of farmers, confirming considerable heterogeneity in farmers’ preferences for various groundnut traits. A specific distinction is notable between preferences of consumption-oriented and market-oriented farmer classes. Our results have important implications for demand-driven variety development and targeted dissemination of improved varieties.

Educational activity of farms in selected European countries

The aim of the article is to present the genesis and idea of the activity of educational farms, as well as their organisation and functioning in selected European countries (Poland, Italy, Switzerland, Austria, France). The desk research method was used in this study. Educational farms in different countries are connected by the area of their operation and the goals pursued. However, significant differences can be found in the official requirements for such entities, as well as in the ways and possibilities of cooperation between them within the organisations associating them, which results in significant heterogeneity of educational farms in individual countries. The presented research outcomes may be helpful in improving existing and creating new entities associating educational farms.

Determinants of heterogeneous farmers’ joint adaptation strategies to irrigation-induced landslides on the Loess Plateau, China

Understanding the determinants of farmers’ disaster adaptation is significant for risk reduction. This study explores farmers’ willingness and influencing factors to adopt various agricultural and non-agricultural adaptation measures to mitigate irrigation-induced landslides on the Loess Plateau, northern China. Multivariate probit models are applied to address the joint decision-making of multiple choices considering their inter-correlations, using data from 397 farmer survey questionnaires. The results reveal that farmers’ characteristics, landslide experience, social factors, landslide perception, and the present adaptation situation play important but different roles in their adaptation decisions regarding various measures (drip irrigation, drought-tolerant crops, income diversification, and migration). Heterogeneity among farmers is considered: Government support, social network, and perception of landslide causation are essential in affecting all of the farmers’ adaptation decisions, while the impacts of the annual income, gender, land scale, and risk perception on non-agriculture farmers and full-time or part-time farmers are opposite. Notably, current adaptation hinders farmers’ future actions. The probability of adopting a specific measure is estimated to be higher than that of joint adoption. Barriers to adaptation are also addressed, and policy implications are discussed. This study provides a theoretical and practical reference for mitigating landslide risks that are caused by artificial triggers.

Identifying farmers' preferences for types of credit and its market structure in rural Benin using the conjoint analysis approach

PurposeThis study analyzes farmers' preferences for agricultural credit and its market structure in rural Benin using the conjoint analysis approach.Design/methodology/approachThe data used come from primary sources collected from 228 randomly selected farmers. The conjoint analysis approach was used to produce the results. The bias associated with the heteroscedasticity of the error terms was fixed using the weighted least squares estimation method. Agricultural credit markets were segmented using the Calinski algorithm.FindingsThe study results reveal that farmers prefer a long-term agricultural credit with a low interest rate received via mobile banking. The interaction between a type of credit with collateral and a low interest rate is positively correlated with farmers' credit demand. The authors also found that agricultural credit markets are heterogeneous because of the heterogeneity in farmers' credit demand. This result has led to three different rural credit market segments identified in the selected study's sites. The market share simulation reveals a significant market share for the type of credit preferred by farmers in two segments.Research limitations/implicationsThe proven evidence from this study can guide the development of appropriate agricultural financial products that promote financial inclusion among farmers in rural Benin. More specifically, agricultural financial policies that promote digital long-term credit with low interest rate and appropriate guarantee mechanisms can promote financial inclusion among farmers and reduce the problem of asymmetric information in agricultural credit market. The study also calls for the promotion of differentiated policies across the three identified segments in order to positively impact the welfare of all farmers.Practical implicationsThe use of agricultural financial products that include digital long-term credit with low interest rate and appropriate guarantee mechanisms promote financial inclusion and reduce asymmetric information problems in agricultural credit markets in rural Benin.Social implicationsThe promotion of long-term digital and cheap credit improves farmers household's wellbeing in rural Benin.Originality/valueThis study contributes to a better understanding of the structure of rural credit markets. It also reveals the most preferred characteristics of rural credit profiles by farmers. Besides, it validates the importance of the use of guarantee as an appropriate mechanism which minimizes the problem of asymmetric information between financial agents and farmers.

Climate-Smart Agriculture, Non-Farm Employment and Welfare: Exploring Impacts and Options for Scaling Up

Climate-smart agriculture (CSA) has been receiving increasing attention in recent policy dialogues for its potential to improve agricultural transformation, risk management, and welfare. This study seeks to provide evidence on the welfare impacts of CSA adoption and its complementarity with non-farm employment using household-level data from Ethiopia combined with novel historical weather data. The study uses a multinomial endogenous switching regression model to deal with selection bias and farmer heterogeneity. The results show that households adopting CSA enjoy higher welfare benefits than non-adopter households. Households experience a higher welfare impact (lower monetary and multidimensional poverty rate) when CSA and non-farm employment are adopted simultaneously. However, there is less evidence regarding the complementarity between CSA and non-farm employment when considering per capita consumption expenditure. The study findings will have important policy implications for climate change adaptation, resilience, and poverty reduction in low-income countries.

Classification of Mountain Silvopastoral Farming Systems in Walnut Forests of Kyrgyzstan: Determining Opportunities for Sustainable Livelihoods

Kyrgyz walnut-fruit forests are unique ecosystems inhabited by silvopastoral farm households that depend on forest resources for their livelihoods. Illegal logging, excessive collection of non-timber forest products (NTFPs), and overgrazing of forest pastures negatively affect forest regeneration and biodiversity, ultimately impacting sustainable livelihoods in the region. Understanding farm heterogeneity is critical to identify targeted interventions that have the potential to improve livelihood sustainability for local populations. This study identifies and elucidates the typology of farms in walnut-fruit forests. Data were collected from 220 farm-households in three villages located within or in the buffer zone of protected areas. Principal component analysis (PCA) and cluster analysis were used to analyze quantitative data and aggregate farms into clusters according to forest resource availability and use, production means, and socioeconomic characteristics. Three distinct silvopastoral farming systems were identified, in which farmers collect and sell NTFPs, but also have: (i) relatively high NTFP income, medium-sized livestock herds, and low off-farm income; (ii) moderate NTFP income, large livestock herds, and high off-farm income; and (iii) low NTFP income, small herds, and moderate off-farm income. Overall, all types of farms showed different livelihood strategies; specific recommendations aimed at increasing sustainability were provided for each type. While both improved forages for livestock and grazing in forests are relevant for all types of farms, in some cases, value-added processing of NTFPs and contributions from off-farm activities such as tourism are necessary for the conservation and sustainable use of forests.

Government subsidy policy for green and efficient raw materials considering farmer heterogeneity

To protect soil quality for sustainable development and raise farmers' incomes, agricultural firms are increasingly developing green and efficient raw materials (GRMs) that can improve crop yields and reduce soil damage compared to TRMs. However, farmers have heterogeneity in both the trust in agricultural information and sustainable development attitudes, leading to underestimation of the value of GRMs. This paper explores the optimal subsidy policy of the government to promote GRMs considering the effect of farmer heterogeneity using a government‐firm‐farmer Stackelberg game. Our analysis reveals that the government should subsidize both farmers and the GRM firm when the GRMs' effectiveness is not high enough; otherwise, it is more effective to subsidize farmers but not the GRM firm. Such a government subsidy policy can bring a win–win–win outcome for farmers, the GRM firm, and social welfare under certain conditions. Although higher farmers' trust in agricultural information or sustainable development attitudes can increase their subjective willingness to adopt GRMs, counterintuitively, the total farmer surplus will decrease because in this situation: (1) the government will reduce the subsidy to farmers or (2) the GRM firm will increase the GRM price. In addition, compared with considering two‐dimensional heterogeneity of farmers, considering only one‐dimensional heterogeneity or no heterogeneity of farmers will cause the government subsidy to deviate from the goal of promoting GRMs, resulting in a 59.3% reduction in GRM market demand, a 17.3% decrease in the profit of GRM firm, and possibly even making the GRM firm “die out.”

Effect of agricultural subsidies on heterogeneous farmers’ fertilizer application intensity and its mediating mechanism: Based on China household finance survey database

Agricultural subsidies have an important effect on the farmer’s fertilizer application behavior, but the differences in the effect on different farmers and its mediating mechanism have not been sufficiently studied. Using relevant data from the CFHS database in 2015, this paper focused on the differences in the effect of agricultural subsidies on fertilizer application intensity among farmers with different operation scales and planting structures, as well as the mediating mechanism of the effect of agricultural subsidies on farmers’ fertilizer application intensity. It was found that agricultural subsidies in general helped farmers reduce fertilizer application. This finding still held after replacing the explanatory variables. However, the effect of agricultural subsidies on fertilizer application intensity varied significantly across farmers with different operation scales and planting structures. The fertilizer reduction effect of agricultural subsidies was weakened by the increase in the operation scale and the share of food crop cultivation, i.e., the fertilizer reduction effect of agricultural subsidies on smaller farmers and cash crop cultivation was greater relative to larger farmers and food crop cultivation. Farmers’ operation scale, planting structure and farm machinery inputs are important mediating variables of the effect of agricultural subsidies on farmers’ fertilizer application intensity. The agricultural subsidies played a role in reducing fertilizer application intensity by encouraging farmers to expand their operation scale and increase food crop cultivation, and increased fertilizer application intensity by incentivizing farmers to purchase farm machinery and adopt mechanical farming. Finally, some suggestions were put forward to play the fertilizer reduction effect of agricultural subsidies based on the findings of the study.

Individual and Village Level Factors Affect Farmers’ Satisfaction with Sustainable Rural Development Practices: Evidence from Guangdong Province in China

Farmers are the most important stakeholders in the sustainable development of rural areas. Studying farmers’ satisfaction with sustainable rural development (SRD) practices can help us to understand how to mobilize farmers’ enthusiasm and initiative, such that they can play a major role in SRD. This study aimed to identify the factors influencing farmers’ satisfaction with SRD practices. Based on the survey data of 599 farmers in 57 villages in the Guangdong Province, Hierarchical Linear Modelling (HLM) was used to identify the influencing factors of farmers’ satisfaction with SRD practices in Guangdong Province at the individual and village levels. This study found that there was spatial heterogeneity in farmers’ satisfaction with SRD practices in the Guangdong Province, and factors at the individual level and village level jointly affected the farmers’ satisfaction. At the individual level, farmers’ college education, identity of Chinese Communist Party (CCP), and participation have positive predictive effects on farmers’ satisfaction. At the village level, the improvement of public services, village infrastructure, and grassroots governance has a positive predictive effect on farmers’ satisfaction. However, the improvement of the village living environment and the income of the village’s collective economy were not significant determinants of farmers’ satisfaction. The results provide practical implications for policymakers to guide farmers to actively participate in SRD practices.

Life Cycle Sustainability Assessment of European beef production systems based on a farm-level optimization model

The European Union (EU) is among the largest beef producers in the world. Besides the economic turnover, beef production causes adverse environmental impacts such as climate change. The sector is known for high heterogeneity in production systems, partly explained by different natural and economic conditions. This study assesses the environmental, social, and economic performances of three typical beef production systems in the EU at the farm level. The farm optimization model FarmDyn is used in this study to carry out a Life Cycle Sustainability Assessment (LCSA) from cradle to farm gate; combined with a sensitivity analysis on prices, yields and animal traits. The assessed systems are a Belgian suckler cow farm that fattens its own offspring (BE); a system where calves raised in a French suckler cow farm are fattened on a farm in Italy (FR-IT); and a system where dairy bred calves from one farm are fattened on another farm, both located in Germany (GE-GE). The functional unit is 1 kg of carcass weight from young bulls. In addition to several environmental impact categories, the gross margin is estimated as an economic indicator. The social performance is measured with on-farm workload differentiated by tasks, and human calorie and protein conversion used for production. GE-GE performs better than the other systems in the environmental indicators because emissions are partially allocated towards dairy production. FR-IT shows the highest gross margin due to a higher beef price. BE and FR-IT use less human-consumable feed, as both systems employ grasslands and by-products for animal feeding. The sensitivity analysis identifies the price of beef and calves, the yield of roughage crops, and the weight and age of animals as major factors influencing the results. FarmDyn proves useful to perform LCSA of beef production on a farm-level as it integrates environmental, economic, and social indicators in a consistent framework; while considering price effects and farmers' behaviour in the context of farm heterogeneity and variability in management practices. Results thus provide valuable information to inform not only farmers’ decision but the debate of sustainable beef production in the EU.