Non-agricultural Business Research Articles

Non-agricultural business activity as a source of income of farmers’ households in Poland

Non-agricultural business activity as a source of income of farmers’ households in Poland

Description of the criteria governing the areas of overlap between the competence of KRUS and ZUS in respect of farmers who are subject to social insurance

The Social Insurance Institution (PL: Zakład Ubezpieczeń Społecznych, ZUS) and the Agricultural Social Insurance Fund (PL: Kasa Rolniczego Ubezpieczenia Społecznego, KRUS) are among the constituent parts of the social security system in Poland. In principle, both institutions function in such a way that there is no overlap between the areas of their competence, but there are certain forms of professional activity which, when carried out by an insured farmer or his/her household member, result in an overlap between the social insurance titles. These include in particular a non-agricultural business activity, an agency contract, a contract of mandate or other contract for the provision of services to which the provisions on the mandate apply and serving on a supervisory board. The main aim of the article is to analyse the ways to deal with and mechanisms which govern cases when the competence of KRUS and ZUS overlaps for certain farmers subject to social insurance and to present the normative acts containing regulations in this area. Keywords: serving on a supervisory board, non-agricultural business activity, social insurance, agency contract, contract of mandate

Voluntariness of social insurance for entrepreneurs – de lege ferenda postulates

Abstract Subject and purpose of work: The subject of this paper is to discuss the situation of entrepreneurs in the Polish social insurance system and to present postulates based on conclusions resulting from the analysis of the legal situation of entrepreneurs. Materials and methods: The institutional analysis method was used in the paper, which made it possible to present the situation of entrepreneurs in the Polish social insurance system. Based on the analysis of legal acts and the rules of the social security system, the main challenges and issues related to the non-agricultural business activity in Poland were pointed out. Results: As a result of the analyses, de lege ferenda postulates have been formulated indicating the need for changes in the area of social insurance for people engaged in non-agricultural business activity. Conclusions: Assuming that entrepreneurship is more valuable and that the right to social security can be exercised not only though the insurance process (but also by way of provision, cumulative, or assistance techniques), it is reasonable to introduce voluntary social insurance coverage for people engaged in non-agricultural business activities. With the introduction of voluntariness, it would be necessary to redefine the conditions of eligibility for the statutory minimum pension so that the rights to benefits are not abused.

Pengaruh Sektor Pertanian, Kehutanan, dan Perikanan terhadap Perekonomian Kabupaten Banggai

The purpose of carrying out this research is (1) to find out how the influence the agricultural, forestry and fisheries sectors on the economy between 2011 and 2021 which provides information and analysis results that, based on testing the simple regression coefficient shown by the results of the study, the equation Y = -2,873 + 11,812 X shows that there is an influence between Banggai Regency revenue in agriculture, forestry and fisheries sectors to the economy. The value of the variable (X) is 11,812, meaning that if the agricultural, forestry and fisheries sectors experience an increase of one billion rupiah, then the economy will experience an increase of 11,812 billion rupiah and vice versa. The growth in the contribution of the agriculture, forestry and fisheries sectors has decreased from year to year. This indicates that along with technological developments and education levels, people are starting to look for new ideas and ways not to always depend on nature, so that they are starting to switch to non-agricultural business fields, this will lead to a change in the economic structure from agrarian to modern which puts more emphasis on world of business and industry.

Is the second generation of transmigrants more prosperous? A study of intergenerational welfare in ex-transmigration settlements

Purpose. This study aims to analyze: (1) the characteristics of the second generation of transmigrants; (2) the welfare of the second generation compared to the first generation.
 Methodology / approach. The research setting is two villages in Rimbo Bujang District, Tebo Regency, Jambi Province, Indonesia. The population of this study consists of second-generation transmigrant families over the age of 20 or married. A simple random sampling method determined the sample. The number of samples is 40 respondents for each selected village; the total sample is 80 respondents for the second generation and 80 for the first generation. A descriptive analysis was conducted with the help of single and cross-frequency tables.
 Results. The welfare of the second generation is improved compared to the first generation. The study found that land fragmentation occurred in transmigrant families, but this did not cause a decrease in welfare, as there are job opportunities outside the agricultural sector and land fragmentation already within the family. The second generation of transmigrants can take advantage of these job opportunities outside the agricultural sector because their education is better than the first generation.
 Originality / scientific novelty. The scientific novelty of this research is related to the object of research, namely the welfare of transmigrant descendants. So far, research on transmigration has focused more on the first generation of transmigration and the macro aspects of the transmigration program.
 Practical value / implications. The government is recommended to facilitate and create a favorable investment climate so that non-agricultural business activities in transmigration villages can develop better. The development of these non-agricultural activities will open up new job opportunities and be able to eliminate the decline in welfare due to the fragmentation of land within the family.

Развитие высокотехнологичного сельского хозяйства и субъектов сельской локальной экономики в условиях депопуляции сельского населения

Over the past 30 years, Russian agriculture has made a difficult, tortuous and unpredictable path of transition to market relations. In the 1990s, the industry was treated as a «black hole», and in the 20s of the XXI century - already as a driver of the domestic economy. Thus, by the end of 2022, the growth of the national volume of agricultural production amounted to 10.2%. To date, two main forms of agricultural producers have developed in agricultural production: large agribusiness, represented by agricultural holdings and large private farms forming a high-tech sector of the agricultural economy, and small and medium-sized agricultural and non-agricultural business, represented by the most active part of small agricultural entrepreneurship in the face of peasant (farmer) farms, commodity farmsteads (personal subsidiary and other individual family farms), rural cooperatives and consumer societies, horticultural, gardening and dacha partnerships, individual entrepreneurs belonging to the subjects of rural local economy. The article deals with the problems of the influence of these two forms of agricultural producers on the preservation and development of rural lifestyle and rural demography. The role of subjects of rural local economy in performing an important function of social control over rural territories is shown.

Assessment of the financial situation of rural municipalities in Poland depending on the activity of their inhabitants in the development of non-agricultural business activity

Purpose: The purpose of the article is to identify and assess the financial situation of rural communes in Poland depending on the activity of their inhabitants in undertaking and developing non-agricultural economic activity. Design/methodology/approach: The financial situation of rural communes in Poland was identified and assessed depending on the activity of their inhabitants in undertaking and developing non-agricultural economic activity. The empirical material of the article applies to both the whole country and all rural communes in Poland. Numerical data come from the Local Data Bank of the Central Statistical Office in Warsaw and concerns 2019-2021. The empirical material collected and ordered was developed in a descriptive, tabular, and graphic form, using the comparative analysis method. Furthermore, a point assessment of all diagnostic characteristics was performed that illustrates the financial situation of rural communes in Poland against the background of the entire country for the years 2019-2021. Findings: The analysis of statistical data has confirmed the research hypothesis, which assumes that the financial situation of rural communes in Poland is related to the activity of their inhabitants in undertaking and developing non-agricultural business activity, with it clearly the best in units with high activity of residents in this area. Originality/value: The originality of the work is the original approach to the analysis of the research issues undertaken. For the use of the research, the article combined and uses an original indicator of residents' activity in the development of non-agricultural economic activity in a given local government unit (commune) against the background of the country and other local government units (communes). In addition, the financial situation of the examined local government units was also assessed in the context of the country. The work is addressed primarily to local government officials responsible for public local government finances, as well as for conditions and possibilities and directions of local socioeconomic development of rural communes in Poland. Keywords: financial situation, rural communes in Poland, economic activity of residents, non-agricultural economic activity Category of the paper: research paper.

Household Level Determinants of Food Insecurity in Rural Ethiopia

Introduction. Currently, Ethiopia, in particular, the rural areas of Ethiopia, faces high levels of food insecurity. In spite of the fact that there have been many studies on food security, most of them have been conducted in specific national settings. Hence, the determinants of food insecurity should be assessed at the national level. Therefore, this study was primarily aimed to identify the determinant factors of household food insecurity in rural Ethiopia. Method. A cross-sectional Ethiopian socioeconomic survey (ESS) data collected from September 2018 to August 2019 was utilized. A sample of 3115 households was selected from 316 clusters across rural Ethiopia using a two-stage probability sampling technique. To identify the determinants of food insecurity, logistic regression was applied. Results. Among 3,115 households, 50.05% of them were food insecure. Factors such as the household head being aged from 30 to 64 (AOR = 0.786, 95% CI: [0.635, 0.973]), widowed, divorced, or separated (AOR = 1.588, 95%CI: [1.001, 2.518]), literate (AOR = 0.702, 95%CI: [0.590, 0.834]), household aid (AOR = 1.339, 95%CI: [1.089, 1.648]), drought-affected (AOR = 0.640, 95%CI: [0.507, 0.808]), nonagricultural business (AOR = 0.655, 95%CI: [0.472, 0.908]), dependency ratio from 50 to 75% (AOR = 0.680, 95%CI: [0.534, 0.867]), having 6 to 10 livestock (AOR = 0.644, 95%CI: [0.496, 0.836]), and more than 10 livestock (AOR = 0.362, 95% CI: [0.284, 0.461]) were found to be significantly associated with the household’s food insecurity at 5% level of significance. Conclusion. The household head’s age from 30 to 64, being literate, drought-affected, having nonagricultural business, dependency ratio from 50 to 75%, and owning more than 10 livestock have been negatively affecting food insecurity. While supporting households, a “widowed, divorced, or separated” household head has had a positive effect on food insecurity in rural Ethiopia positively influencing food insecurity in rural Ethiopia. Policymakers need to pay special attention to very young and old-aged household heads, adult education, household self-help, livestock improvement, and entrepreneurship while implementing poverty reduction programs.

CONDUCTING A NON-AGRICULTURAL BUSINESS ACTIVITY AS A SOCIAL INSURANCE TITLE – SELECTED ISSUES

Conducting non-agricultural business activity is a special title of social insurance. It results from the fact that within the scope of being subject to social insurance, only entrepreneurs (out of all persons conducting non-agricultural activity) have the right to periodically exclude the obligation of social insurance and to suspend the conducting of business activity, not only due to the personal care of a child. On the other hand, in the sphere of paying social insurance contributions, there are three ways of establishing the contribution calculation basis on this account (ordinary, preferential and income-dependent basis). In general, it should be stated that conducting non-agricultural business activity as a social insurance title is of the following nature: commercial, obligatory, general (in case of an overlapping of social insurance titles), independent (autonomous), strictly paid and privileged (in relation to other forms of non-agricultural activity).

Status and determinants of other gainful activities by farmers in mountainous rural regions of Gilgit-Baltistan, Pakistan

Non-farm income sources are important for livelihood sustenance, especially in the mountainous regions of developing countries. To implement effective policies to improve economic development, policymakers need insights at the grassroots level. Yet, there is a lack of empirical evidence in the context of Pakistan. This study examines the current situation and the factors influencing the decision by farmers to engage in other gainful activities (OGAs) such as farm diversification and off-farm work in the northern mountainous regions of Pakistan. The study is based on quantitative survey data obtained from 459 farm managers and qualitative data from 24 key informants from five different districts in Gilgit-Baltistan. Utilizing a logistic regression model, a statistical analysis is conducted on farmer and farm characteristics to investigate the probability of farm managers to engage in OGAs. The survey results show that around 71% of farm managers are engaged in OGAs (with 24% in farm diversification, 61% in offfarm work and 15% in both). The share of female farm managers is 51% in farm diversification while male farm managers dominate off-farm activities (69%). The most prevalent types of farm diversification are the processing of farm products and tourism-related farm work, while the main off-farm activities are setting up grocery stores outside the farm, having salaried jobs or engaging in other non-agricultural business. There are significant differences between farmers with and without OGAs particularly regarding farmer characteristics, agricultural income and some other variables. The logit model results show that farmer characteristics mainly determine off-farm work activities while farm (and other) characteristics mostly explain farm diversification. These findings suggest that OGAs primarily exist as livelihood strategies. Farm diversification is linked with the long-term sustenance of agricultural activities while off-farm work is predominantly driven by economic needs. Both types of OGAs require specific support policies while attention needs to be given not to threaten regional food supply.

Spheres of Employment in Rural Areas of the Penza Region and the Republic of Tatarstan (Based on Statistics and Interview Materials)

The problems of the rural labor market are relevant for the Russian rural economy and have their own characteristics in the regions. The article analyzes the employment opportunities provided by the rural environment of the Penza region and the Republic of Tatarstan. The villagers in these regions are employed in the formal sphere (employment in large agricultural organizations, peasant farms, work in budgetary organizations, engaging in agricultural and non-agricultural business) and in the informal sphere (work in private farmsteads, one-time hired employment, earnings on the road). According to the All-Russian Agricultural Census 2016 and expert assessments in interviews, rural residents of the Penza region more often than in the Republic of Tatarstan develop non-agricultural businesses, hire workers to work in private farmsteads, participate more actively in labor migration, preferring to leave for large Russian cities and especially to Moscow. The villagers of Tatarstan more often than in the region are employed in large agricultural organizations; they hire workers in farms, prefer to develop agricultural business, go to work, mainly in the cities of the republic. In both regions, the processes of demographic aging of the countryside, migration activity of young people, issues of low wages, a shortage of qualified personnel and seasonal employment in rural areas are relevant.

Rural electrification, migration and structural transformation: Evidence from Ethiopia

To what extent does rural electrification induce structural change and alter migration patterns? This paper addresses this question using a simple multi-sector spatial model and evidence from a panel of rural Ethiopian villages during its recent expansion of electricity supply. We find that electrification raised irrigation rates, agricultural yields and non-agricultural business activity. Furthermore, electrified villages experienced higher rates of in-migration and lower rates of out-migration. Each of these predictions is qualitatively consistent with the predictions of our model. Our results suggest that rural electrification helped facilitate structural transformation of villages economies in Ethiopia and slowed out-migration from rural areas.

Sustainability through Non-Agricultural Business Development in Resident Cooperative Planning: A Case of Korea’s Rural Area

This study analyzes a participatory regeneration project implemented for sustainable improvement as the center of Yeongju, a rural area in Korea, declines. The paper explains how participants were chosen from the mostly elderly population and encouraged to participate. In this case, a small, non-agricultural business that existing residents could maintain was conceived and implemented with a focus on cooperation rather than agricultural recovery or urbanization through the construction of large apartments and new industrial complexes. To this end, the administration continues to support the community from a long-term perspective, and experts have consistently made practical implementations among them. The participating community is not fixed but flexibly reorganized based on the progress of the project. In addition, by creating public community facilities, residents can continue their activities. This study emphasizes that participatory planning does not necessarily imply a retreat to the administration and experts and provides important guidance for implementation under similar conditions in the future.

Revisiting agrarian questions of capital: examining diversification by capitalist farmers in Punjab, India

While economic diversification by capitalist farmers in India is a commonly accepted fact, it is rarely analysed through the lens of agrarian questions of capital. This paper argues that questions about the movement and transformation of agrarian capital continue to be significant in understanding contemporary processes of agrarian change and rural development. However, these need to be studied by looking beyond the agrarian transition debate in contexts where agrarian capitalism has consolidated itself and non-agricultural capitalist development is not fuelled by agrarian capital. Using the case of the state of Punjab and drawing on intensive field research, the paper examines a broad spectrum of non-farm investments and activities of large capitalist farmers, including agriculture-based business, non-agricultural business, education-based diversification and international migration. It shows that both industrial investments and mobility through education have been limited. International migration is a preferred, but also risky, channel for the utilisation of agrarian surplus. The analysis takes seriously experiences of failure of non-agricultural businesses, resulting in the circulation of agrarian capital across the agricultural and non-agricultural sectors. This both further strains accumulation within agriculture and reveals the limits to productive investment in the non-agricultural economy imposed by historically specific social, political and economic conditions.

A Health Production Approach to Bone Health in Kenya

Reduced density and quality in bones increase fracture risk, which becomes evident later in life through recognition of osteoporosis which is a skeletal disorder characterized by compromised bone strength, pre-disposing to an increased risk of fracture and is a global health problem that affects men as well as women. Shocks are inevitable to everyone everywhere and in the wake of shock of chronic/severe illness like Corona virus (Covid-19) which is infecting and affecting individuals worldwide and countrywide; the response may be negative or positive. The negative responses acts like additional shocks, hence focus will be on the positive responses (good reports) which are meant to counter the shocks and improve individuals and consequently household’s welfare. In some cases covid-19 results to death of a household member, this calls for immediate response to the shock. During the outbreak of corona virus, many individuals have lost their employment and at such a time when loss of salaried employment or non-payment of salary results, individuals may need to respond to the shock positively. A time like this the health care facilities are overstrained with many hospitalizations as a result of day to day increase in the shocks (corona virus) and its associated shocks like loss of employment and death. Likewise, the governments’ curfews have made individuals to experience business failure, limit their movements, reduce physical activity, and change their food and nutrition and as a result may affect their health outcomes. This study sought to establish the determinants of bone health, based on the health production approach by isolating the effects of response to shocks, and food and nutrition on bone health. The current study found that good report (positive response to shocks), exercising (through use of non-motorized transport), completing secondary education, taking wine, consuming fruits like apples, pineapples and melons and vegetables such as lettuce, cucumber and courgette, and increased consumption of peanut butter, tinned fish, and minced meat, chocolate and cheese significantly helps in improvement of bone health as they reduce bone fracture. However, bad reports deteriorate bone health, increased consumption of bread and corned beef significantly depletes bone health as they increase the occurrence of fracture. This study recommends that in order to improve individuals’ bone health there is need to convey good reports especially during shocks like Covid-19. Individuals who have experienced non-agricultural household business failure due to the outbreak of corona virus, they need not to give up but ought to respond by starting a new business. For improved bone health, individuals also need to continually exercise by using non-motorized means of travel like walking or cycling; they may need to take a little wine especially as their age increases; and strengthening their bones through increased consumption of apples, pineapples and melons, lettuce, cucumber and courgette, peanut butter, tinned fish, and minced meat, chocolate and cheese. Keywords: Bone Health, Health Production, Corona Virus, Covid-19, Response to Shocks, Food and Nutrition DOI: 10.7176/JHMN/85-15 Publication date: January 31 st 2021

Can Suramadu Bridge Reduce International Migration? (Case Study in Bangkalan Regency, East Java Province, Indonesia)

Migration is one way for villagers in Bangkalan District to survive and improve their lives. Availability of employment and differences in the level of wages received in migrant areas are attractive factors, while the condition of villages in terms of physical capital, human capital, financial capital and natural capital which are less than ideal are the driving factors for migrating. This study examines the impact of the Suramadu bridge on the number of villagers migrating internationally using Village Potential data in 2007 and 2017 along with the factors that influence villagers to migrate internationally. Data were analyzed using tobit regression. The existence of the Suramadu bridge was not able to reduce the interest of the population to migrate internationally, instead it even increased the interest of the population to migrate internationally. Before the Suramadu bridge was operational, the existence of rice fields, building area, program credit, non-agricultural business, educational facilities and superior products reduced the interest of villagers to migrate internationally. After the Suramadu bridge operated, the existence of rice fields, building area and skills facilities reduced the interest of villagers to migrate internationally and the presence of poor people in the village increased the interest of residents to migrate.
 Keywords: Migration, Infrastruktur, Rural, Regional

Landscape and business’ risks: History and climate (Rural Russia)

A history of transformations in using a landscape by humans is difficult, because such history depends on social-cultural factors and local changes in climate and environment. A business in rural sector usually respond acuteness on all of these factors. That has determined special attention to this topic. A goal of this investigation was to determine a business’ risks in using a particular landscape in the context of the influence of a specific climate. Attention is given to facts in local history of climate and landscape-using. Extremely hot weather became an especially important factor for society, life and business in the last few decades in the Eurasian area. In 2010 an extremely hot summer period in a central part of European Russia caused a fire in peat areas and a bad harvest for potatoes and cereals. Forest fire covered more than ten million hectares in an area of European Russia and temperature set a record (38.2 degrees Celsius) on 29 July 2010. A lot of fires in peat areas were a result of drainage of a peat-bog, after finishing a process of peat extraction. A history of local landscape using includes many facts that document extremely hot periods in this area in the past (for instance, in 1972 and 2003). Analysis of data derived from taking measures allows researchers to recommend diversification in the landscape using (particularly in expansion of non-agricultural business), and also eco-protection activity as prospective keys for reducing risks for a business in a local landscape and also for realizing a model of Sustainable Development for this local area.

Factors affecting household debt in Thailand

An increase in household debt become an important issue in developing countries including Thailand. This paper examines factors affecting household debt in 77 provinces in Thailand from 2009 to 2017. The results show that economic factors including household income, inflation rate and household consumption expenditure, and social factors including education, marriage and young population, have significant effects on total household debt. The economic factors significantly affect, especially on debt related to household expenditure, agricultural business and non-agricultural business; while social factors mostly influence debt related to agricultural business, educational debt and debt for purchasing or renting real estate and land.

Economic activity of residents in border districts of Poland: A study of non-agricultural business enterprises

Economic activity of residents in border districts of Poland: A study of non-agricultural business enterprises

CONDITIONS MOTIVATING A DECISION TO START AND DEVELOP A NON-AGRICULTURAL BUSINESS ON A FARM IN THE PROVINCE OF WARMIA AND MAZURY

The main objective of the research is an attempt to diagnose and evaluate the conditions for the development of non-agricultural activities in selected districts of the Warmia and Mazury Province. The survey was completed in 2018-2019 in 4 selected districts, having the potential to develop non-agricultural activities and characterized by development problems (a high unemployment rate, a relatively low share of income from non-agricultural activities and a high share of development land within the State Treasury’s resources). The number of farms covered by the survey from 4 districts was 86. Based on an analysis, it can be concluded that there is some potential, both on farms and in their surroundings, to develop non-agricultural business activity, but now exploited on a relatively low level. Farmers are engaged in a diverse array of non-agricultural businesses. Many are considering to further develop the non-agricultural businesses they conduct. This is particularly true about selling raw farm produce for processing, developing own food processing capacity, or providing agritourism services. The dominant stimulating factor was the higher amount of EU funds allocated to this purpose, in addition to simplified administrative procedures when setting up and conducting a business.