Reverse-Share-Tenancy and Marshallian Inefficiency
Reverse-Share-Tenancy and Marshallian Inefficiency

Author: Hosaena Ghebru Hagos

Publisher: Intl Food Policy Res Inst

Published: 2013-05-17

Total Pages: 48

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While there are ample empirical studies that claim the potential disincentive effects of sharecropping arrangements, the existing literature is shallow in explaining why share tenancy contracts are prevalent and diffusing in many developing countries. Using a unique tenant-landlord matched dataset from the Tigray region of Ethiopia, we are able to show how the tenants’ strategic response to the varying economic and tenure-security status of the landlords can explain sharecroppers’ productivity differentials. To the best of our knowledge, this is the first study to use tenant–landlord matched data that accounts for both the supply (landlord) and demand (tenant) side characteristics in analyzing sharecroppers’ level of effort and productivity. The study reveals that sharecroppers’ yields are significantly lower on plots leased from landlords who are non-kin, who are female, who have lower income-generating opportunity, and who are tenure insecure than on plots leased from landlords with the opposite characteristics. While, on aggregate, the results show no significant efficiency loss on kin-operated sharecropped plots, more decomposed analyses indicate strong evidence of Marshallian inefficiency on kin-operated plots leased from landlords with weaker bargaining power and higher tenure insecurity. This study thus shows how failure to control for the heterogeneity of landowners’ characteristics can explain the lack of clarity in the existing empirical literature on the extent of moral hazard problems in sharecropping contracts.

Welfare and Poverty Impacts of India’s National Rural Employment Guarantee Scheme
Welfare and Poverty Impacts of India’s National Rural Employment Guarantee Scheme

Author: Klaus Deininger

Publisher: Intl Food Policy Res Inst

Published: 2013-09-13

Total Pages: 36

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India’s National Rural Employment Guarantee Scheme (NREGS) is one of the largest public works programs globally. Understanding the impacts of NREGS and the pathway through which its impacts are realized thus has important policy implications. We use a three-round 4,000-household panel from Andhra Pradesh together with administrative data to explore short- and medium-term poverty and welfare effects of NREGS. Triple difference estimates suggest that participants significantly increase consumption (protein and energy intake) in the short run and accumulate more nonfinancial assets in the medium term. Direct benefits exceed program-related transfers and are most pronounced for scheduled castes and tribes and households supplying casual labor. Asset creation via program-induced land improvements is consistent with a medium-term increase in assets by nonparticipants and increases in wage income in excess of program cost.

The Impact of Alternative Input Subsidy Exit Strategies on Malawi’s Maize Commodity Market
The Impact of Alternative Input Subsidy Exit Strategies on Malawi’s Maize Commodity Market

Author: Mariam A. T. J. Mapila

Publisher: Intl Food Policy Res Inst

Published: 2013-07-16

Total Pages: 32

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This study has been conducted in order to generate evidence of the visibility of exit from farm input subsidies in an African context. The study simulates the impact of alternative exit strategies from Malawi’s farm input subsidy program on maize markets. The simulation is conducted using a multiequation partial equilibrium model of the national maize market, which is sequentially linked via a price-linkage equation to local rural maize markets. The model accounts for market imperfections prevailing in the country that arise from government price interventions. Findings show that some alternative exit strategies have negative and sustained impacts on maize yields, production, and acreage allocated to maize over the simulation period. Market prices rise steadily as a result of the implementation of different exit strategies. Despite higher maize prices, domestic maize consumption remains fairly stable, with a slow but increasing trend over the simulation period. Results further suggest that exit strategies that are coupled with improvements in agricultural extension services have the potential to offset the negative impacts of the removal or scaling down of agricultural input subsidies. The study findings demonstrate the difficulty of feasibly removing farm input subsidies. Study recommendations are therefore relevant for policymakers and development partners debating removal or implementation of farm input subsidies.

Assessment of the Capacity, Incentives, and Performance of Agricultural Extension Agents in Western Democratic Republic of Congo
Assessment of the Capacity, Incentives, and Performance of Agricultural Extension Agents in Western Democratic Republic of Congo

Author: Catherine Ragasa

Publisher: Intl Food Policy Res Inst

Published: 2013-08-19

Total Pages: 60

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Agricultural extension is critical for agricultural growth and food security, but making the extension system effective, demand driven, and responsive to the needs of a diverse set of producers remains a challenge. As part of the institutional reforms in the Democratic Republic of Congo (DRC), the extension system is being reviewed to identify strategies and practical actions to transform the system to better respond to the knowledge needs in a rapidly changing agriculture and food sector. This paper provides an in-depth review of the agricultural extension system of DRC including an analysis of its policies and legal framework, organization, and management; links to critical institutions; and capacity and incentive of different actors in the system. This review involved document analyses, interviews with key informants, and surveys of 107 extension organizations and 162 extension agents in 156 randomly selected villages in western DRC. This review suggests serious funding constraints, human resource management problems, no linkage and coordination within the extension system and with research and education systems, and a majority of underserved communities and farmers. This review also highlights a good opportunity given the huge human resources (more than 11,000 agents) deployed into the sectors and territories as part of the Ministry’s agricultural inspection system. However, their mandate is not clear and they currently focus on data collection (census) and checking what farmers do and limited in extension and advisory work. This review highlights the urgent need for human resource or civil service reform; public-sector commitment and funding; infrastructure rebuilding and skills upgrading in extension, education and training, and research organizations; and a unified policy or strategy with clear vision, mandate, targets, and performance-based incentive system.

Links between Tenure Security and Food Security
Links between Tenure Security and Food Security

Author: Hosaena Ghebru Hagos

Publisher: Intl Food Policy Res Inst

Published: 2013-09-13

Total Pages: 36

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While numerous studies exist that evaluate the impacts of land reform on household investment behavior, land productivity, and land rental market activities, the literature is thin in terms of showing the direct food securities impacts of land tenure reforms. This study, thus, uses five rounds of household panel data from Tigray, Ethiopia, collected in the period 1998–2010 to assess the impacts of a land registration and certification program that aimed to strengthen tenure security and how it has contributed to increased food availability and thus food security in this food-deficit region. Our first survey took place just a year before the intervention (the land certification program). Our panel data in combination with the “years of certificate ownership” variable allow us to assess the dynamic impacts on food (calorie) availability of strengthened tenure security. Anthropometric data also allow us to assess potential child nutrition impacts of the reform 8–12 years after its implementation. Results show that land certification appears to have contributed to enhanced calorie availability (calorie intake), and more so for female-headed households, either through enhanced land rental market participation or increased investment and productivity on owner-operated land. Results also show that members of households that accessed additional land through the land rental market had a significantly higher body mass index. Though results show that land rental market participation is enhancing production efficiency, high transaction costs in that market suggest there are still unrealized gains from trade. Thus, the recent restrictive regional land law that allows for only short-term rental contracts and does not allow more than 50 percent of land to be rented out may threaten future tenure security and may undermine the benefits from the existing tenure reform.

Tenancy Relations in Backward Agriculture
Tenancy Relations in Backward Agriculture

Author: Pravat Kumar Kuri

Publisher: Mittal Publications

Published: 2004

Total Pages: 168

ISBN-13: 9788170999393

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Attempts To Explore The Typical Tenancy Contractsin Rural Assam A Subject That Has Remained Understudied. Contains 8 Chapters-Appendices, Bibliography And An Index.

Land Constraints and Agricultural Intensification in Ethiopia
Land Constraints and Agricultural Intensification in Ethiopia

Author: Derek Headey

Publisher: Intl Food Policy Res Inst

Published: 2013-09-13

Total Pages: 40

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Highland Ethiopia is one of the most densely populated regions of Africa and has long been associated with both Malthusian disasters and Boserupian agricultural intensification. This paper explores the race between these two countervailing forces, with the goal of informing two important policy questions. First, how do rural Ethiopians adapt to land constraints? And second, do land constraints significantly influence welfare outcomes in rural Ethiopia? To answer these questions we use a recent household survey of high-potential areas. We first show that farm sizes are generally very small in the Ethiopian highlands and declining over time, with young rural households facing particularly severe land constraints. We then ask whether smaller and declining farm sizes are inducing agricultural intensification, and if so, how. We find strong evidence in favor of the Boserupian hypothesis that land-constrained villages typically use significantly more purchased input costs per hectare and more family labor, and achieve higher maize and teff yields and high gross income per hectare. However, although these higher inputs raise gross revenue, we find no substantial impact of greater land constraints on net farm income per hectare once family labor costs are accounted for. Moreover, farm sizes are strongly positively correlated with net farm income, suggesting that land constraints are an important cause of rural poverty. We conclude with some broad policy implications of our results.