Purchase Of Inputs Research Articles

Nobody’s gonna slow me down? The effects of a transportation cost shock on firm performance and behavior

We study the firm-level responses to a substantial increase in transportation costs in the wake of a quasi-experiment that introduced tolls in a subset of Portuguese highways. Exploiting a unique dataset encompassing the universe of Portuguese private firms, we find that the introduction of tolls caused a substantial decrease in turnover (−10.2%) and productivity (−4.3%) in treated firms vis-à-vis firms in the comparison group. In response to the tolls, firms substantially cut employment-related expenses and purchases of other inputs. Labor costs were reduced by both employment cuts and a decrease in average wages. While firms did not increase inventory, there is some evidence for increased firm exit, in particular by firms in tradables sectors.

In Memoriam: Mats Morell

In Memoriam: Mats Morell

Exporting and sourcing strategies

AbstractThis study uses firm‐level panel data for South Korea for the period 2006–2015, to investigate changes in firms' sourcing behaviors after these firms start exporting. The data studied includes detailed information on firms' export status, whether their purchases of intermediate inputs were domestic or from foreign markets, and whether the supplier firms were affiliated or non‐affiliated. To estimate the effects of exporting on firms' sourcing strategies, we employ a difference‐in‐differences estimator with propensity score matching. The main finding is that participation in export markets leads to the increased use of intermediate inputs purchased from foreign suppliers; it also increases these firms' sourcing from affiliated parties relative to sourcing from non‐affiliated suppliers. These changes in firms' sourcing compositions after their entry into export markets are mainly driven by purchasing rather than subcontracting. These findings point out that firms that newly participate in exporting tend to improve their product competitiveness by increasing the proportion of their intermediate inputs from foreign affiliates. It is also possible that these firms expanded their foreign networks after they begin export activities, and this plays a role in how and where they source their intermediate inputs.

Agri-Inputs Consumption Patterns, Access, and Delivery Mechanism in India

The Government of India has initiated several programs to provide timely inputs to farmers with special subsidies on regular inputs such as seed material, fertilizers, irrigation, animal purchase, etc. These inputs are supplied through various mechanisms such as government departments, agricultural universities, KVKs, NGOs, local shop owners, producer's associations etc. Studying the agri-inputs available and their supplying mechanisms in India provides clarity on the status of farmers and the number of farmers who benefi ted from diff erent services provided by GOI. A survey questionnaire was developed to collect data from the 14 states with a sample size of 409 farmer respondents and was administered to the Foundation course for Agricultural Research Service (FOCARS)-82 batch, who were undergoing fi eld experience training (FET) at ICAR-NAARM, Rajendranagar, Hyderabad, Telangana State. The survey revealed that most farmers felt satisfi ed with the quality of seed, followed by agrochemicals and chemical fertilizers. Among all the assets, farmers spent the most money on purchasing animal feed (INR 46047.05) followed by planting material- saplings (INR 34445.07) and adult draught animals (INR 31805.07). The maximum number of respondents specifi ed that storage facility for grains, electricity, and byproducts were suffi ciently available. More money is spent on purchasing the recurrent associated input, i.e., irrigation sprinkler/drip, followed by irrigation wells. The Maximum number of farmers has access to Common Property Resources (CPRs) such as pasture land, irrigation sources, threshing fl oors, water harvesting structures, producer's associations, selfhelp groups, and primary cooperative society. About 269 farmers availed credit facilities; among them, 103 farmers took a credit of >10,000-50,000, which was majorly used for input purchase (240 farmers responded). About 132 farmers said they receive subsidies on seed/propagating material, fertilizer/agrochemicals, and irrigation. Most farmers received quality seed/propagating material from the local shop owners, followed by neighboring farmers, govt. departments and private companies. Very few are using/visiting Agricultural Universities, KVKs, cooperatives, NGOs, Agri-clinics, producers' associations, and village panchayats for seed purposes. In terms of credit suppliers, farmers listed public sector banks fi rst, followed by cooperative society credit cards and moneylender. Farmers with medium-sized land holdings have a better chance of availing subsidies compared to small-category farmers. Most small landholders need more opportunities to access agricultural credit. An adequate supply of timely inputs and support of low-cost credit from institutional sources is of great importance to small and marginal, farmers who contribute almost 60 per cent of total food grain production in India. The output of this study would become a benchmark for future assessments and decision-making in the fi eld of agri-inputs.

An analysis of governance factors influencing performance of selected smallholder dairy cooperatives in Zimbabwe.

Cooperatives are organisations owned and operated by individuals or groups that come together for mutual benefit including pooling of resources for the purchase of inputs and marketing of products. Marketing of milk is through dairy cooperatives where the milk collection centres are mandated to help integrating smallholder farmers into competitive markets. The study investigated governance structures of five smallholder dairy schemes purposively selected based on their agroecological regions in Zimbabwe. The aim of the study was to explore how the governing boards conduct their business, particularly marketing milk, and how this affects allocation of resources (milk production and deliveries to milk centres) by smallholder farmers. Qualitative data were collected using focus group discussions with 20 dairy cooperative members from each milk collection centre. Key informant interviews were conducted with chairpersons, management committee members, and dairy value chain stakeholders such as dairy associations and processors. The SWOT analysis technique was employed to identify governance structures highlighting major strengths, weakness, opportunities, and threats as a gateway to isolating strategies for enhancing centre performance. An analysis of implications of the governance structures on resource allocation decision by farmers was also performed. So focus is on how boards are discharging mandate such as marketing on behalf of farmers, price setting and negotiations, trainings, and accountability to members. Such factors if executed well will see farmers increasing milk production and deliveries to MCC yielding positive results in income and profits. The study results show that poor governance mainly caused by incompetent boards and management committees was the major factor affecting performance. Other findings were that if good governance factors were in place, then cooperatives became proficient leading to their growth. Thus, cooperatives must adopt business models based on private sector partnerships to maximise on expertise and technical support. The schemes ought to take advantage of existing opportunities, especially policies that mitigate threats and improve product diversity, value addition, and effective pricing strategies. To achieve these milestones, capacity building roadmaps ought to identify competent and efficient boards.

Changes in the effects of oil price shocks on US industrial production

AbstractThis paper examines whether there exists a structural change in the relationship between oil shocks and US industrial production with the rapid development in oil industry due to the shale revolution. Using a structural VAR model, I identify supply and demand shocks in global crude oil markets and estimate changes in their effects on the US industrial production. The key finding is that the US industry output has become more responsive to oil price shocks since the shale oil boom. Oil supply shocks have been more important and heterogeneous effects on the industrial production depending on the US or non‐US oil supply component. There has also emerged the positive effect of oil demand shocks, stimulating aggregate economic activity. In particular, I find that there have been strong positive spillover effects from an oil price increase to other industries not only through direct purchases of inputs for oil production and investment, but also through indirect knowledge and technology transfers created during the shale revolution. These findings have profound policy implications for the fiscal and monetary authority who copes with exogenous oil shocks.

The importance of agribusiness in the United States in promoting food security

The expression “food security” appears at the end of the 2nd. World War, before the misery installed in different countries. In opposition to food security that guarantees a dignified survival, there is food insecurity, represented by the lack of basic inputs for a diet that guarantees energy and vitality to individuals. Food insecurity around the world is on a vertiginous scale, aggravated by the Covid-19 pandemic. Global hunger is caused by different factors: population growth; social differences; more or less extreme weather events; constant rises in food prices; insufficient demand and distribution to the most needy regions; among other structural and conjunctural deficiencies. To combat this humanitarian tragedy, the forms of cultivation and production in agriculture evolved to version 5.0, bringing new practices and cutting-edge equipment to the field. This article was developed, according to the methodology of bibliographical research, aiming to answer the question: how does the modernization of North American agribusiness collaborate with the fight against food insecurity? The objective is to present the modernization of existing planting techniques and possible improvements, based on Agriculture 5.0. As a result of the analysis and interpretation of the selected literature, it was found that the adoption of new technologies arising from Agriculture 5.0 optimize all planting and food cultivation practices, from the collection of information in real time through drones, and interpretation of the data received in computers that make possible the purchase, use and control of inputs, pest control, optimization of the harvest and its greater use.

Socio-economic Determinants Influence on NiliRavi Buffalo Farmers Choice of Milk Marketing Channels in Punjab

A total of 120 NiliRavi buffalo farmers from two districts of Punjab were selected for the study. The average production, consumption and marketed surplus of the milk are found to be higher for the Firozpur farmers in comparison with their counterpart. About 70 per cent of NiliRavi farmers preferred organised marketing channels to dispose surplus milk. The distance of dairy cooperatives (Govt. or Private) / dairy FPOs with regular & assured market and support in availing loan for purchase of animals and inputs were main reasons for opting organised marketing channels. Advance payment for purchase of inputs and door step milk collection were important factors for choosing unorganised milk marketing channels. The results of binomial logistic regression revealed that Nili-Ravi farmer with younger age and large number of NiliRavi milch buffalo holdings preferred organised milk marketing channels to dispose surplus milk rather than unorganised channels. The organised milk marketing channels needs to be strengthened and promoted for regular and assured milk marketing and also use these channels as centre for the supply of NiliRavi superior germplasm to propagate their population.

Analysis of Farmers' Characteristics under the Attitude of Online Purchase of Agricultural Inputs—An Empirical Study Based on 312 Households in Shandong and Anhui Provinces

Online shopping for items needed for agricultural production has become a new agricultural business model, and the development of this model has been influenced by the attitude of rural households towards online shopping. Little literature has studied deeply and systematically rural households' attitudes towards shopping online of agricultural means of production. This paper analyzes rural households' attitudes towards shopping online of agricultural means of production and the influencing factors. This paper analyzes rural households' attitudes towards shopping online of agricultural means of production and causes of formation based on the investigation data of 312 It probes into individual characteristics of respondents, the household It probes into individual characteristics of respondents, the household business characteristics, knowledge of shopping online and the relationship between the cognition of way of shopping online of agricultural means of production and attitude towards shopping online of agricultural means of production. This study finds that some rural households have accepted shopping online of agricultural means of production. However, majority of rural households don't have shopping online willingness. The gender, education level, household planting scale, shopping online knowledge and way of cognition of the gender, education level, household planting scale, shopping online knowledge and way of cognition of respondents have a significant impact on rural households' willingness of shopping online of agricultural means of production. with people who don't want to shop online, people willing to shop online are those that are mainly men, with a higher educational level, a larger household planting scale, a lower cost larger household plant scale, a lower cost per unit area of the annual agricultural purchase, more communication of shopping online experience with their children and a better understanding of shopping.

Adequação dos cardápios escolares e exigências do programa nacional de alimentação escolar: uma revisão sistemática

Abstract Objectives: this review aimed to evaluate the adequacy of school menus regarding the nutritional requirements of the Programa Nacional de Alimentação Escolar (PNAE) in Brazilian public schools regarding the presence of macronutrients and micronutrients and allocation of resources to purchase products from family farming. Methods: a systematic literature review was carried out using the SciELO, Bireme and Lilacs databases to select the articles. The inclusion criteria were articles that presented data on the adequacy of energy, macronutrients, micronutrients, and purchases of products from family farming during the PNAE regiment, as well as quantitative, cross-sectional, and descriptive studies carried out in the Brazilian territory. Review, editorials, letters, case studies, duplicates and those that did not assess the requirements of the PNAE were excluded. Results: at the end, 12 studies were included that showed overestimation and underestimation of nutritional adequacy in the school environment. In relation to purchases of inputs from family farming, it was observed that most of the Brazilian municipalities evaluated fulfilled the requirements for the allocation of resources. Conclusion: school menus need more supervision so that they meet the adjustments proposed by the PNAE. In addition, it is essential to promote a healthy diet that contains all the nutrients necessary to provide nutritional support for child growth and development.

Determinants of Performance and Constraints Faced by Farmer Producer Organizations (FPOs) in India

Farmer Producer Organization (FPO) is believed to improve the livelihood of farmers by collectivizing them for input purchase and providing forward linkage. In order to understand the determinants of performance and the constraints faced by them, the study was undertaken by surveying 125 FPOs of Andhra Pradesh, Madhya Pradesh, Telangana, Maharashtra and Uttar Pradesh during April-August 2022. It was found that most of the FPOs are engaged in input supply followed by produce aggregation. The FPOs with more number of enterprising activities were able to achieve higher turnover and better net profit. Multiple regression was used to identify the determinants of paid-up capital and turnover of FPO. Members number, BOD size and years of existence were found to be the determinants of paid-up capital of FPO. Paid-up capital was found to be significant predictor of turnover of FPO. Capital requirement was found to be the biggest constraint faced by FPO in achieving better performance. It was concluded that for increasing the turnover, the FPO should focus on increasing the paid-up capital as paid-up capital can be used for scaling up and expanding the business. Extending capital loan as well as working capital loan to FPO should be made easy.

The impact of migration on food security in Tigray, Northern Ethiopia: The role of migration patterns and remittances

Food insecurity continues to be a major international concern aggravated by the economic crisis, pandemics, violent conflicts and war. In the past decade, scholars have highlighted the role of migration in household food security, yet the interrelationships between migration and food security have shown disconnections in the literature. This study is therefore intended to provide empirical evidence of the food security–migration nexus in the case of Ethiopia’s Tigray region. Mixed-methods approaches were used in the study, including semi-structured household and expert interviews and Participatory Rural Appraisal (PRA). The study demonstrates that migration, through the flow of both financial and social remittance, has a positive impact on household food security. Based on the results, remittances contribute to household food security in a variety of ways, including facilitating the acquisition of consumable goods, diversifying sources of income, and funding the purchase of production-related inputs and health insurance, housing, and other household goals. Furthermore, the findings establish that migration is a reaction to a variety of circumstances, primarily prompted by economic factors, such as a desire to enhance one’s standard of life, high levels of poverty, high unemployment, low agricultural yields, and food crises. The study concludes that migration has dual implications for household food security: on the one hand, migration as a response strategy to food insecurity, and on the other hand, migration as a form of vulnerability to household food insecurity, demonstrating the reciprocal relationship between food security and migration.

Opinion Leaders versus Interpersonal Forces: Analysis of the Relative Influence on Zimbabwean Farmers Input Purchase Behavior

This study had the primary aim of analyzing the relative influence of opinion leaders and interpersonal forces on farmers’ input purchases. The interpersonal factors analyzed in the study include age, education, income, years of farming experience, farm size, and family/friends while the opinion sources investigated include input supplier/distributors, extension agents, other farmers, cooperative leaders, and internet search. The study also had the secondary objective of determining the most influencing interpersonal factor and the most influencing opinion source on farmers’ input purchases decision. The study employed the use of the descriptive research design and quantitative research methods in data collection and analysis. Data was collected through a survey of 100 farmers in Bulawayo Metropolitan province of Zimbabwe using the convenience sampling technique. Findings indicate that interpersonal forces have more influence on farmers’ input purchase decisions than opinion leaders. Findings also indicate that farmers’ farming experience is the most influencing interpersonal factor in this study while other farmers’ opinions are the most influencing opinion source. Other farmers’ opinions are also based on their own experience; therefore, experience is the crucial factor influencing input purchase decisions. The implications of this finding on practice are that farmers are inclined to reject new inputs they and other farmers have no experience with and it is therefore recommended that both extension agents and input suppliers develop strong partnerships with farmers to influence the adoption of new inputs.

Do Rainfall Shocks Prompt Commercial Input Purchases Amongst Smallholder Farmers in Diverse Regions and Environments in Malawi?

The ability of farmers to acquire inputs through purchase from available markets empowers them with the autonomy and capacity to diversify inputs, consequently enhancing the resilience of their cropping activities to various shocks. This paper investigates whether climate shocks, particularly rainfall shocks, influence commercial input purchase decisions by smallholder farmers in contrasting geographic regions in Malawi, with a particular emphasis on fertilizer, agrochemicals, seed, and labor. The empirical approach integrates historical weather information, climate shock perceptions with a longitudinal household survey data set to model commercial input purchasing decisions using appropriate latent variable models. The findings suggest that exposure to recent rainfall shocks, especially droughts, stimulates commercial input purchasing across regions, especially in drier central and southern regions of Malawi. This result holds true for general input purchase decisions and for specific inputs such as agrochemicals, fertilizer, seed, and labor. Although drought shocks considerably increase the probability of acquiring inputs through purchase, they occasionally diminish the intensity of purchases. Both objective and subjective measures of lagged rainfall shocks are revealed as significant determinants of commercial input purchases across regions in Malawi. In addition to regional heterogeneity findings, further analysis shows that the relatively wealthier, male-headed families and those with access to information are more likely to invest in purchased inputs in response to drought shocks. Scaling up policies that remove demand- and supply-side barriers to smallholder farmers’ access to commercial inputs from available markets is necessary for adaptation to rainfall shocks.

Does Rwanda’s flagship microcredit programme boost agriculture and incomes?

One of the three components of Rwanda’s flagship anti-poverty programme, Vision 2020 Umurenge (VUP), is the provision of credit to relatively poor households, nearly all of them farmers. In this paper we estimate the impact of the programme using high-quality household survey data from 2013/2014 and 2016/2017. Using the panel data, the double-difference model shows that households that borrow increase their stock of livestock. This is confirmed by the cross-section inverse probability-weighted regression adjustment models, which also find that VUP borrowing leads to more purchases of farm inputs, greater consumption (especially of home-produced food), lower poverty, and greater secondary school enrolment, but not to more hours worked. While VUP loans account for only 2% of the value of microcredit in Rwanda, they do help fill a need for production credit at a scale large enough to be able to help households appreciably increase their agricultural and other assets, and ultimately their income.

Risk preferences, intra-household dynamics and spatial effects on chemical inputs use: Case of small-scale citrus farmers in Indonesia

The use of chemical fertilisers and pesticides is rapidly increasing in developing countries. If used appropriately, these inputs are key approaches to enhancing farm productivity including mitigating potential damage caused by climate change. Yet there is also an increasingly concerning trade-off between chemical input applications and environmental externalities in communities of smallholder farmers. Furthermore, fertilisers and pesticides account for a high proportion of farm input expenses, especially for high-value horticultural crops, impacting on the risks facing farmers and potentially limiting other household needs for cash-constrained households. Given the potential impacts of chemical input purchases on household expenditures and the joint roles of male and female spouses in farming activities in Indonesia, these input purchase decisions may involve complex intra-household dynamics between spouses. Moreover, small-scale farmers in rural areas often refer to their neighbour farmers in managing their farm. In this paper, we consider the independent and joint roles that risk, intra-household dynamics, and extra-household (spatial) dynamics play in decisions regarding household expenditure on chemical fertilisers and pesticides. Using spatial regression models, we find that these factors are all associated with household expenditures on chemical inputs. The results also indicate the importance of social networking in the decision of chemical pesticides and fertilisers usage.

RESOURCE-USE EFFICIENCY OF RICE PRODUCTION IN KURA LOCAL GOVERNMENT AREA OF KANO STATE, NIGERIA

Rice is an important crop to the Nigerian economy. However, the level of inputs used in its production are not at the optimum level. This study examined the resource use efficiency of rice producers in Kura LGA of Kano State, Nigeria. Data used for the study was obtained by scheduled interview using structured questionnaires administered to 115 respondents selected using a simple random sampling procedure. Descriptive statistics, budgetary techniques and multiple regression were used to analyze the data. Results obtained revealed that the mean age of the farmers was 31 years, most of the farmers were male, educated and with farming experience of 8 years. Results for profitability of rice production showed that the net farm income for rice production was N176922.2 with a return to Naira investment value of 2.7. This implies that 1N invested on rice production would give a return of N1.7. Results for regression analysis showed that farm size, agrochemicals, and labour had a significant effect on output. Analysis of return to scale was 4.5. This indicates an increasing return to scale with increased use of input resources. Results for resource-use efficiency revealed that farm size, agrochemicals, seed quantity, and labour were under-utilized. Further analysis showed that inadequate capital and poor extension service delivery affected rice production. The study recommended improvement on extension service delivery. The government, Non-governmental organizations and farmer organizations were advised to educate the farmers on appropriate use of farm inputs and ensure the availability of these inputs to farmers at subsidized prices. Farmers could be provided with soft agricultural loans to finance purchase of equipment and production inputs.

Comparing the uses of available labor and capital in diversified farming systems in Drâa oases (Morocco)

In this study, uses of labor were characterized using the ‘Work Balance’ method in a sample of 17 oasis farms. The results showed that almost 44% of total uses of labor are devoted to livestock, while the remainders 56% are used for crops. The labor required to raise livestock was almost entirely (92%) provided by family member, whereas that required for crops was mostly provided by hired laborers. Date palms are the pillar of the oasis farming system and enable the positive synergies of this mixed crop/livestock system. Date wastes and cereal straw are used to feed the animals, while the livestock supplies the farmers with milk and meat, and their sale ensures the purchase of agricultural inputs in the period preceding date harvest. Our results show that labor is an essential component of oasis farming systems, as it provides opportunities to achieve a circular economy. Otherwise, on farms specialized in crops that have no livestock, the economic efficiency of labor is higher, thanks to higher investments. Taken together, these results suggest that there are ways to improve the efficiency of the uses of labor on oasis farms.

The Achilles heel of the U.S. food industries: Exposure to labor and upstream industries in the supply chain

AbstractThe modern‐day food industries are part of a complex agri‐food supply chain, where food production has become efficient yet potentially vulnerable to supply chain risks. The COVID‐19 pandemic is a testament to that end. This article measures and identifies the U.S. food manufacturing industries' vulnerability to upstream industries and labor occupations by (a) calculating a food industry's diversification of intermediate input purchases across upstream industries, (b) quantifying the relative exposure of food manufacturing in a given industry and location to upstream input suppliers and labor occupations, and (c) estimating each food industry's gross output elasticity of inputs. This article also explores geographic heterogeneity in food industries' vulnerability. Among our results, we find evidence that the animal processing industry's output is relatively vulnerable to production labor, consistent with the observed disruptions to the meatpacking sector during COVID‐19, which were largely caused by labor issues. Our results may help academics and practitioners to understand food industries' vulnerabilities to upstream industries and labor occupations.

Impact of ‘RythuBandhu’ Scheme on Farmers: An Evolutionary Study in Telangana State

The Government of Telangana launched ‘RythuBandhu’ scheme for farmers on 10th May 2018. The scheme was aimed at relieving farmers of debt burden and protects them from falling into the debt trap.It is a farmer’s welfare programme. Under the scheme, the state Government offered Rs. 4000 per acre per farmer per each crop for the purchase of inputs like seeds, fertilizers, pesticides, labour, etc. The total farming land is 1.42 crore acres and the number of farmers in the state is 58.33 lakhs. During 2018-19 budget, the Government has allocated Rs. 12000 cr. for the scheme. Further,Telangana Government decided to increase the amount under the scheme up to Rs. 5000 per acre during 2019-20 budget and allocated Rs. 12000 cr. Since, June 2nd 2019, the farmerswere being given Rs. 5,000 per each acrein both Kharif and Rabi season. Therefore, the present studyaims to evaluate the performance of RythuBandhu scheme.The study also focusesto evaluate the impact of RythuBandhu scheme on farmer’s with the help of three parameters. As a part of it, primary data collected from 193 respondents and tested with the help of SPSS version 20. Besides, results, discussions,policy implications and suggestions are also discussed.