Insuring against droughts: Evidence on agricultural intensification and index insurance demand from a randomized evaluation in rural Bangladesh
Insuring against droughts: Evidence on agricultural intensification and index insurance demand from a randomized evaluation in rural Bangladesh

Author: Hill, Ruth Vargas

Publisher: Intl Food Policy Res Inst

Published: 2017-04-07

Total Pages: 40

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It is widely acknowledged that unmitigated risks provide a disincentive for otherwise optimal investments in modern farm inputs. Index insurance provides a means for managing risk without the burdens of asymmetric information and high transaction costs that plague traditional indemnity-based crop insurance programs. Yet many index insurance programs that have been piloted around the world have met with rather limited success, so the potential for insurance to foster more intensive agricultural production has yet to be realized. This study assesses both the demand for and the effectiveness of an innovative index insurance product designed to help smallholder farmers in Bangladesh manage risk to crop yields and the increased production costs associated with drought. Villages were randomized into either an insurance treatment or a comparison group, and discounts and rebates were randomly allocated across treatment villages to encourage insurance take-up and to allow for the estimation of the price elasticity of insurance demand. Among those offered insurance, we find insurance demand to be moderately price elastic, with discounts significantly more successful in stimulating demand than rebates. Farmers who are highly risk averse or sensitive to basis risk prefer a rebate to a discount, suggesting that the rebate may partially offset some of the implicit costs associated with insurance contract nonperformance. Having insurance yields both ex ante risk management effects and ex post income effects on agricultural input use. The risk management effects lead to increased expenditures on inputs during the aman rice-growing season, including expenditures for risky inputs such as fertilizers, as well as those for irrigation and pesticides. The income effects lead to increased seed expenditures during the boro rice-growing season, which may signal insured farmers’ higher rates of seed replacement, which broadens their access to technological improvements embodied in newer seeds as well as enhancing the genetic purity of cultivated seeds.

Rural livelihoods in Mon State: Evidence from a representative household survey
Rural livelihoods in Mon State: Evidence from a representative household survey

Author: Filipski, Mateusz J.

Publisher: Intl Food Policy Res Inst

Published: 2017-05-05

Total Pages: 132

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The purpose of this report is to provide information and analysis to government, civil society, and donors interested in improving the well-being of the rural population of Mon State, Myanmar. Specifically, the report analyzes the different sources of income for rural households, as well as their socioeconomic characteristics, with a view to helping identify constraints on growth and potential pathways to improving incomes. The overall picture that emerges is one of a struggling agricultural sector and an economy heavily dependent on services for local employment and on international migration for income. The analysis is based on a sample of 1,632 rural households, designed to be representative of rural households in Mon State as a whole. The survey included a household questionnaire and a community survey, and gathered information on demographics, all economic aspects of the household, and access to infrastructure and services at the community level.

Agribusiness competitiveness: Applying analytics, typology, and measurements to Africa
Agribusiness competitiveness: Applying analytics, typology, and measurements to Africa

Author: Shishodia, Mahika

Publisher: Intl Food Policy Res Inst

Published: 2017-07-02

Total Pages: 44

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Agribusiness has a major role to play in the transformation of the agricultural sector in Africa. With the demand for high-value food products increasing around the world, the production and export of these goods represents an opportunity to achieve increases in income and employment. To capture the benefits of this trend and capitalize on this opportunity for long-term agricultural growth, agribusiness in Africa must become more competitive. In addition to improving competitiveness, increasing agricultural productivity and food security are also major challenges in African agricultural development. In this paper, we compare the agribusiness competitiveness of African countries and develop typologies connected with their food security and agricultural productivity status. The typologies reveal various stylized facts on the competitiveness of agribusiness to help nations prioritize issues for agricultural development and growth. We develop the measures of agribusiness competitiveness and apply them to African countries. Additionally, we present policy implications and lessons for increasing the competitiveness of agribusiness in African countries.

Pathways from agriculture to nutrition in India: Implications for sustainable development goals
Pathways from agriculture to nutrition in India: Implications for sustainable development goals

Author: Babu, Suresh Chandra

Publisher: Intl Food Policy Res Inst

Published: 2017-06-09

Total Pages: 40

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emphasizes the importance of identifying different pathways from agriculture to nutrition for better nutritional outcomes. Using a disaggregated dashboard approach with agriculture, food consumption, and demographic and health survey data, this study examines the progress of Indian states toward the Sustainable Development Goals. There is evidence of both disconnects and linkages among food security indicators along the agriculture-nutrition pathways. Through a broadened and comprehensive approach under one coordinating body with a good set of improved interventions and governance, Indian states can attain food and nutrition security by 2030. Such evidence based policy making is need of the hour to observe impact on the ground, rather than framing policies based on ideologies. At a time when the focus is more and more on impact, the shift

Revitalized agriculture for balanced growth and resilient livelihoods: Toward a rural development strategy for Mon State
Revitalized agriculture for balanced growth and resilient livelihoods: Toward a rural development strategy for Mon State

Author: Filipski, Mateusz J.

Publisher: Intl Food Policy Res Inst

Published: 2017-05-05

Total Pages: 54

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This report offers specific policy and investment options articulated around two broad areas: (1) stimulating growth in agriculture and sustainable management of fisheries and (2) providing public infrastructure and services that strengthen the enabling environment. A plan to stimulate growth in agriculture and fisheries, the first broad area, could be centered around the following set of goals: revitalize the rubber sector, develop high-value fresh products, improve rice productivity, modernize land and input markets, expand access to loans for machinery and seasonal input purchases, strengthen agricultural extension services to ensure dynamism in Mon State’s farm sector, improve management of marine capture fisheries, and facilitate expansion of aquaculture. The first part of the report details the challenges and potential solutions presented by each of these points. The second part of the report details options to create a growth-enabling environment through public infrastructure and services, centered around the following goals: improve the budgetary and fiscal process to enable locally driven public investment, improve access to and reliability of infrastructure, expand the formal credit market, promote productive investment by the private sector, strengthen regulatory frameworks for the construction sector, exploit the potential for the development of tourism, and improve the quality of and access to education and health services.

Can agricultural aspirations influence preferences for new technologies?
Can agricultural aspirations influence preferences for new technologies?

Author: Bell, Andrew R.

Publisher: Intl Food Policy Res Inst

Published: 2017-05-03

Total Pages: 36

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In the face of increasing environmental stresses, there is a critical need to improve water-use efficiency in many arid and semiarid agroclimatic zones. Drip irrigation is a high-efficiency irrigation technology that can improve water-use efficiency in currently irrigated areas and transform areas that are not otherwise irrigable in practice. Although adoption of drip irrigation is growing rapidly in India, adoption is low in neighboring Pakistan. The authors of this paper undertook a discrete choice experiment framed around the hypothetical subsidized purchase of a drip irrigation system in four districts of Punjab, Pakistan. The nonrepresentative sample of adopters and nonadopters in the study districts identified a clear increase in the valuation of drip systems in the first several years following adoption. This finding suggests that farmers may be unaware of the opportunities for the use of drip irrigation on their farms or the benefits that may accrue from such use. In addition, farmers’ aspirations for cropping systems under drip were better predictors of the valuation of drip systems than were current cropping patterns, implying that a different agricultural landscape might reasonably emerge under improved adoption of drip. Aspirations differed across the different agroecological zones and water regimes captured by this study. Aspirations to substitute wheat crops for fruits and vegetables were associated with a higher appreciation of the subsidy level, whereas aspirations to expand wheat were associated with a higher appreciation of the area covered by the drip initiative; together, these findings imply a degree of control over the extent of wheat production in the landscape via careful design of the drip subsidy program. Although the penetration of drip irrigation is not yet sufficient to draw inferences from a representative sample, these results suggest a number of ways in which drip irrigation may transform Pakistan’s agricultural landscape

Empowerment, adaptation, and agricultural production
Empowerment, adaptation, and agricultural production

Author: Wouterse, Fleur Stephanie

Publisher: Intl Food Policy Res Inst

Published: 2017-05-19

Total Pages: 28

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Located at the heart of West Africa, Niger is a landlocked country with three-quarters of its territory covered by the Sahara Desert. Niger’s climate is mostly arid, and it is one of the least developed countries in the world. The vast majority of its population lives in rural areas, and the country is strongly dependent on agriculture. Agriculture is predominantly rainfed and yields rely on one rainy season. Although productivity in Niger has shown a positive trend, agriculture has been strongly affected in recent decades by several crises partly or entirely due to extreme weather events. Farmers pursue a number of strategies in the face of climatic (and nonclimatic) stressors including soil and water conservation methods such as barriers, terracing, and planting pits, and their adaptive capacity is deemed critical for estimating the economic impact of climate change. An understanding of climate change adaptation processes at the farm household level is therefore crucial to the development of well-designed and targeted mitigation policies. In this study, we use new data from Niger and regression analysis to study climate change adaptation through the digging of zaї pits and food production and the role of human capital measures therein. We find that adaptation is influenced by the perception that the frequency of droughts has increased and by the availability of financial resources and household labor. Adaptation is also influenced by educational attainment—both formal and Koranic school education. Adaptation of zaї pits is found to play an important role in food productivity. Our counterfactual analysis reveals that even though all households would benefit from adaptation, the effect is found to be significantly larger for households that actually did adapt relative to those that did not, indicating that the prospects of closing the productivity gap through encouraging adaptation in less well-endowed households are limited.

Measuring postharvest losses at the farm level in Malawi
Measuring postharvest losses at the farm level in Malawi

Author: Ambler, Kate

Publisher: Intl Food Policy Res Inst

Published: 2017-04-14

Total Pages: 36

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Reducing food loss and waste are important policy objectives prominently featured in the United Nation’s Sustainable Development Goals. To optimally design interventions targeted at reducing losses, it is important to know where losses are concentrated between the farm and fork. This paper measures farmlevel postharvest losses for three main crops—maize, soy, and groundnuts—among 1,200 households in Malawi. Farmers answered a detailed questionnaire designed to learn about losses during harvest and transport, processing, and storage and which measures both total losses and reductions in crop quality. The findings indicate that fewer than half of households report suffering losses conditional on growing each crop. In addition, conditional on losses occurring, the loss averages between 5 and 12 percent of the farmer’s total harvest. Compared to nationally representative data that measure losses using a single survey question, this study documents a far greater percentage of farmers experiencing losses, though the unconditional proportion lost is similar. We find that losses are concentrated in harvest and processing activities for groundnuts and maize; for soy, they are highest during processing. Existing interventions have primarily targeted storage activities; however, these results suggest that targeting other activities may be worthwhile.

The great Chinese inequality turnaround
The great Chinese inequality turnaround

Author: Kanbur, Ravi

Publisher: Intl Food Policy Res Inst

Published: 2017-05-03

Total Pages: 32

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The high level of inequality in China has been a focus of interest for policy makers and researchers. However, few studies have evaluated the trend since 2010. With changes in the economic structure and new policy tools introduced in recent years, a revisit of Chinese inequality should give us the latest information about its evolution and the impacts of these economic and policy changes on income distribution. This paper argues that after a quarter century of sharp and sustained increase, Chinese inequality is now plateauing and even turning down. The argument is made using a range of data sources and a range of measures and perspectives on inequality. The evolution of inequality is further examined through decomposition by income source and population subgroup. Some preliminary explanations are provided for these trends in terms of shifts in policy and the structural transformation of the Chinese economy. The narrative on Chinese inequality now needs to focus on the reasons for this great turnaround.