-PDF Download- A Farm Level Perspective Of The Policy Challenges For Export Diversification In Malawi EBOOK

A farm-level perspective of the policy challenges for export diversification in Malawi

Author: Johnson, Michael E.

Publisher: Intl Food Policy Res Inst

Published: 2016-08-26

Total Pages: 52

ISBN-13:

The primary goal of the study is to investigate the potential to expand oilseeds, specifically soybeans,as an alternative commercialcrop to tobacco among Malawian farmers. A principal motivation for undertaking the study at the microeconomic level is to determine, in a theoretically consistent fashion, the type of policy and economic environment under which farmers begin to shift more of their scarce resources to oilseed production.The study aims to provide recommendations to a growing demand among policy makers and development partners for a greater diversification of exports and crop production systems of the majority smallholder farmers in Malawi. Using representative farm models, the study examinesthe potential for expanding production of soybeans among typical smallholder farming systems in Malawi. The results will help guide future policies and investments targeted at promoting greater crop diversification and incomes, in order to reduce poverty and malnutrition in Malawi. Given the amount of labor and land resources allocated to maize production for food security purposes, we also consider the policy challenges that emerge for crop diversification as a result

Achieving food security and industrial development in Malawi

Author: Aragie, Emerta

Publisher: Intl Food Policy Res Inst

Published: 2016-07-12

Total Pages: 20

ISBN-13:

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Restrictions on exports of staples or cash crops are frequently imposed in developing countries to promote food security or industrial development goals. By diverting production to the local market, these policies aim to reduce prices and increase the supply of food or intermediate inputs to the benefit of consumers or downstream industrial users. Although export restrictions reduce aggregate welfare, they are attractive to policymakers: Governments gain support when they are seen to keep consumer prices low; likewise, politicians are swayed by industrial lobbyists who promise increased value-addition in exchange for access to cheaper inputs. This study weighs in on the debate around the desirability of export restrictions by simulating the economy-wide effects of Malawi’s longstanding maize export ban as well as a pro-posed oilseed export levy intended to raise value-addition in processing sectors. Our results show that, while export restrictions may have the desired outcome in the short run, producers respond to weakening market prospects in the longer run by restricting supply, often to the extent that the policies become self-defeating. Specifically, maize export bans only benefit the urban non-poor, while poor farm households experience income losses and reduced maize consumption in the long run. The oilseed export levy is equally ineffective: Even when export tax revenues are used to subsidize processors, gains in industrial value-addition are outweighed by declining agricultural value-addition as production in the fledgling oilseed sector is effectively decimated. The policy is further associated with welfare losses among rural households, while urban non-poor households benefit marginally.

Will China’s demographic transition exacerbate its income inequality?

Author: Wang, Xinxin

Publisher: Intl Food Policy Res Inst

Published: 2016-09-29

Total Pages: 32

ISBN-13:

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Demographic transition due to population aging is an emerging trend throughout the developing world, and it is especially acute in China, which has undergone demographic transition more rapidly than have most industrial economies. This paper quantifies the distributional effects in the context of demographic transition using an integrated recursive dynamic computable general equilibrium model with top-down behavioral microsimulation. The results of the poverty and inequality index indicate that population aging has a negative impact on the reduction of poverty while its impact is positive with regard to equality. In addition, elderly rural households are experiencing the most serious poverty, and their inequality problems compared with other household groups and within group inequality worsens with demographic transition. These findings not only advance the previous literature but also deserve particular attention from Chinese policy makers.

Implications of Slowing Growth in Emerging Market Economies for Hunger and Poverty in Rural Areas of Developing Countries

Author: Laborde Debucquet, David

Publisher: Intl Food Policy Res Inst

Published: 2016-09-06

Total Pages: 58

ISBN-13:

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Over the past 25 years, economic growth rates in many developing countries have outpaced those in industrialized countries, and per capita incomes of these two groups of countries have started to converge. Growth in developing countries contributed to a dramatic drop—from 37 percent to 13 percent—in the global extreme poverty rate between 1990 and 201. However, the global economic outlook has deteriorated recently. This paper examines the impact of the actual and projected slowdown in the world economy since 2012 on the poor and on the potential for achievement of the Sustainable Development Goals (SDGs). It builds on the changes between 2012 and late 2015 in the International Monetary Fund’s World Economic Outlook projections to provide the basic slowdown scenario. It then uses a global model to assess the impacts of lower rates of productivity growth and consequent lower savings and investment on key price and income variables. The productivity shocks are passed directly to the production activities included in household microsimulation models for almost 300,000 households. These households are also affected by the modeled changes in prices and wages. Simulations allow us to assess the impacts of the slowdown on the real household incomes of the poor, and hence on the poverty rate. The results suggest that the poorest countries will see the greatest slowdown in poverty reduction, with over 5 percent of their population projected to remain below the poverty line. Overall 38 million fewer people will leave extreme poverty compared to earlier projections. Farm households are at particular risk in middle-income countries, with over 1.5 percent more of the farming population potentially not escaping extreme poverty in these countries. By 2030, average extreme poverty in rural areas is now projected to be about 7.5 percent, rather than 7.1 percent. While substantial poverty reduction is still expected between now and 2030, a strong focus on policies for poverty reduction will be vital to achieving the first SDG goal of eliminating poverty.

Using zero tillage to ameliorate yield losses from weather shocks

Author: Khan, Md. Tajuddin

Publisher: Intl Food Policy Res Inst

Published: 2016-10-05

Total Pages: 28

ISBN-13:

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Zero tillage (ZT) for wheat is one of the most widely adopted resource-conserving technologies in the rice-wheat systems in northern India. In areas of Haryana with rice-wheat systems, 36.5 percent of all farmers practice ZT on 35 percent of their wheat area. Yet the literature measuring the impact of ZT on farmers’ fields is scarce. This study fills this gap by using the data collected from a random sample of 717 farmers from 50 villages in 10 districts of Haryana. It applies the difference-in-differences method to five-year recall data on wheat yields in ZT and conventionally tilled plots of land to quantify the crop loss due to unseasonal rains right before wheat harvests in March 2015. The results reveal significantly lower wheat yield losses in the ZT plots than in the conventionally tilled plots. On average, farmers suffered yield losses ranging between 3.73 and 4.53 quintals per hectare in 2015 due to unseasonal rains. The loss was lower by 1.05–1.10 quintals per hectare in ZT plots. The analysis clearly shows that adoption of ZT helped in reducing crop loss in wheat by 24–28 percent, valued at 1,523–1,595 Indian rupees (Rs.) per hectare (approximately US$22.50 per hectare). The loss avoided due to ZT is nearly equal to the prevailing rental rate of the ZT machine (Rs. 1,500 per hectare) in Haryana. Climate models suggest that the incidence of short-duration acute hydro meteorological events is likely to increase in years to come. Such events are hard to predict and prepare for, and dealing with them hinges mainly on disaster relief. However, our results show that adoption of ZT is one possible way to reduce potential loss from some of these weather events and that ZT is therefore well characterized as a climate-smart technology.

Limits to green revolution in rice in Africa

Author: Ragasa, Catherine

Publisher: Intl Food Policy Res Inst

Published: 2016-09-29

Total Pages: 48

ISBN-13:

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This paper examines closely the constraints in productivity improvements and evaluates available rice technologies looking at the heterogeneity of irrigated and rainfed ecologies in 10 regions in Ghana. Employing yield response models, profitability analysis, and adoption models, results show various practices contribute to yield improvements in irrigated and rainfed systems including chemical fertilizer use, use of certified seed of improved varieties, transplanting, bunding, leveling, use of a sawah system, seed priming, and row planting. Evidence also shows that extension services on rice production are limited and that intensifying extension services can contribute to increases in rice yield.

Making pulses affordable again

Author: Joshi, Pramod Kumar

Publisher: Intl Food Policy Res Inst

Published: 2016-09-15

Total Pages: 24

ISBN-13:

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Rising prices and declining consumption of pulses cause concern in terms of both nutrition and food inflation in India. This paper outlines policy strategies to increase the availability of pulses at affordable prices in India and also points out limitations of some of the most common recommendations for achieving these objectives. There seems to be no option but to increase domestic production of pulses in India. The global supply of pulses is limited compared with India’s needs, and sizable imports by India are bound to increase world prices. Domestic production of pulses in India is most likely piecewise inelastic, meaning that small price increases do not translate into a significant supply response. Because farmers face both production and marketing risks, they increase pulse area and intensify production only when there is a large increase in expected prices that covers the risk premium. Droughts, too, are a major risk for pulses. Access to one or two protective irrigations during the growing season can possibly lead to sizable increases in pulse production and reduce the production risk. The har khet ko paani (assured irrigation) initiative under the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) program should give priority to pulse-producing areas. The minimum support price (MSP) for pulses, without direct government procurement, helps traders more than farmers because it acts as a focal point for tacit collusion among traders. Farmers will benefit from the MSP only if it is raised substantially from its current levels. The increase in farmgate prices due to a higher MSP will not necessarily lead to an increase in the retail price of pulses because much of the wedge between farmgate prices and consumer prices is traders’ margin. Including subsidized pulses in public distribution systems can save households some money, but it has only a small effect on total consumption of pulses and almost no effect on total protein intake. We suggest, as more potent solutions, investing in research and extension for pulses, aggregating pulse growers into farmer producer organizations, and paying pulse growers or pulse-growing areas for the ecosystem services offered by pulses.

Framework to assess performance and impact of pluralistic agricultural extension systems

Author: Faure, Guy

Publisher: Intl Food Policy Res Inst

Published: 2016-11-11

Total Pages: 48

ISBN-13:

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Extension and advisory services (EAS) are well recognized as a key factor in contributing to agricultural productivity and growth. However, rigorous evaluation of EAS approaches and assessment of complex national or subnational pluralistic EAS systems are rare. This working paper examines the literature on experiential and empirical insights and explores methods to assess complex pluralistic EAS systems. The authors present conceptual thinking on innovation systems and EAS, and review the IFPRI “best-fit” framework. This framework remains relevant because it is based on a holistic perspective with an impact pathway orientation. The paper aims to operationalize and improve the best-fit framework to guide the evaluation of complex EAS systems. The authors draw on and summarize existing literature to illustrate methods and tools used to analyze each component of the framework. The review pays close attention to the literature and methods for assessing the diversity of service providers and their various delivery tools and learning approaches. The discussion also pays close attention to the interaction of each component and how it affects the performance and impact of EAS from a systems perspective. This paper adds key points and considerations on how to operationalize the best-fit framework to carry out evaluations of pluralistic EAS.

Adoption of food safety measures among Nepalese milk producers

Author: Kumar, Anjani

Publisher: Intl Food Policy Res Inst

Published: 2016-09-15

Total Pages: 52

ISBN-13:

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Food safety is the most vital component of food security. One option to ensure food safety is through enhancing compliance at the farm level. This study investigates the status, estimates the cost, identifies the determinants, and assesses the impact of compliance with food safety measures in milk production in Nepal. The study is based on cross-section primary data collected at the farm level from six districts of Nepal. These districts are known for milk production and capture the geographical and institutional diversity of milk production in the country. The study shows that the status of compliance with food safety measures at the dairy farm level is not very encouraging. The intensity with which food safety practices are adopted shows wide inter- and intra-district variations. This intensity depicts a positive relationship to herd size. The additional cost of compliance with food milk safety measures reveals an inverse relationship with herd size. The factors associated with the adoption of food safety measures are caste, number of children and elderly people in a family, household labor size, herd size, access to information, inspection for conformity with the safety and quality standards in dairy farming, perception of households about food safety assistance provided by milk buyers, and market outlet types. We also provide evidence of the impact of food safety measures on farm-gate prices and farmers’ profitability.

Learning from China?

Author: Chen, Yunnan

Publisher: Intl Food Policy Res Inst

Published: 2016-11-21

Total Pages: 32

ISBN-13:

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The question of how to promote structural transformation is central in fostering sustainable growth and poverty reduction in low-income countries in Africa. Following China’s domestic economic transformation and its growing outward investments in the developing world, we seek to understand how Chinese investment in Africa, particularly in manufacturing, may help to foster industrialization and in turn the structural transformation of African economies. We focus on Chinese investments and partnerships in Nigeria, a salient destination for Chinese manufacturing foreign direct investment in Africa, and examine the potential mechanisms of technology transfer that might catalyze such transformation. We find some small but significant cases of potential technology transfer, particularly through technical partnerships between firms. However, the future potential of such mechanisms will depend on the initiative of Nigerian actors to leverage Chinese investment to their interest.