Farm income, population and farmland prices: a relative information approach

This paper uses an entropy-based information approach to determine if farmland values are more closely associated with urban pressure or farm income. The basic question is: how much information on changes in farm real estate values is contained in changes in population versus changes in returns to production agriculture? Results suggest population is informative, but changes in farmland values are more strongly associated with changes in the distribution of returns. However, this relationship is not true for every region nor does it hold over time, as for some regions and time periods changes in population are more informative. Results have policy implications for both equity and efficiency.

Farm and socio-economic characteristics of smallholder milk producers and their influence on technology adoption in Central Mexico

In order to identify the factors influencing adoption of technologies promoted by government to small-scale dairy farmers in the highlands of central Mexico, a field survey was conducted. A total of 115 farmers were grouped through cluster analysis (CA) and divided into three wealth status categories (high, medium and low) using wealth ranking. Chi-square analysis was used to examine the association of wealth status with technology adoption. Four groups of farms were differentiated in terms of farms’ dimensions, farmers’ education, sources of incomes, wealth status, management of herd, monetary support by government and technological availability. Statistical differences (p < 0.05) were observed in the milk yield per herd per year among groups. Government organizations (GO) participated little in the promotion of the 17 technologies identified, six of which focused on crop or forage production and 11 of which were related to animal husbandry. Relatives and other farmers played an important role in knowledge diffusion and technology adoption. Although wealth status had a significant association (p < 0.05) with adoption, other factors including importance of the technology to farmers, usefulness and productive benefits of innovations together with farmers’ knowledge of them, were important. It is concluded that the analysis of the information per group and wealth status was useful to identify suitable crop or forage related and animal husbandry technologies per group and wealth status of farmers. Therefore the characterizations of farmers could provide a useful starting point for the design and delivery of more appropriate and effective extension.

Retirement and succession on the family farm

For farmers, the decision as to when to retire is probably one of the hardest that they will have to face during their working lives. The business of farming brings special circumstances which means that retirement is more often a process than a definitive action. This paper seeks firstly to clarify those special circumstances, and then, by means of flow charts, to identify the key decisions which must be faced if the retirement is to be successful. The practise of handing on the farmland and the other business assets to the next generation are regarded as separate but interrelated stages in the process of retirement, both having legal, financial and human consequences which are considered. By way of conclusion, the parameters for a successful retirement are considered, both from the standpoint of the retirer and of the successor.

The Farm-Retail Price Spread in an Imperfectly Competitive Food Industry

Gardner's popular model of perfect competition in the marketing sector is extended to a conjectural-variations oligopoly with endogenous entry. Revising Gardner's comparative statics on the "farm-retail price ratio," tests of hypotheses about food industry conduct are derived. Using data from a recent article by Wohlgenant, which employs Gardner's framework, tests are made of the validity of his maintained hypothesis-that the food industries are perfectly competitive. No evidence is found of departures from competition in the output markets of the food industries of eight commodity groups: (a) beef and veal, (b) pork, (c) poultry, (d) eggs, (e) dairy, (f) processed fruits and vegetables, (g) fresh fruit, and (h) fresh vegetables.

Succession to farm tenancies: future imperfect?

Until the law was amended in 1984, the tenants of agricultural holdings enjoyed security of tenure for life, plus the prospect of two family successions to their tenancies, virtually guaranteeing a tenant- farming family at least three generations occupation of a holding. The orthodox view has been that any transfers of interests that took place before the passing of the Act which introduced the scheme in 1976 would not count towards the inherent 'totting-up' process. The 1993 High Court judgement in Saunders v Ralph has raised serious questions as to the validity of that assertion. This paper seeks to identify the key legal provisions involved and to highlight the problems that may result from the case.

Social consensus, moral intensity and willingness to pay to address a farm animal welfare issue

An experimental contingent valuation (CV) survey of university students was undertaken to explore the impact of social consensus information on people's stated willingness to pay (wtp) to address a farm animal welfare issue. The survey found that additional information presented to respondents on social consensus concerning the moral dimensions of the issue led to a greater perception of social consensus by respondents. This greater perception of social consensus appeared to result in a higher level of moral intensity associated with the issue and a higher stated wtp by respondents for policy to address the issue. However, as for many CV studies of public goods, a question remains as to whether the estimated wtp is a true measure of people's preferences and relative values or merely a measure of attitudes on an arbitrary monetary scale.

Moral intensity and willingness to pay concerning farm animal welfare issues and the implications for agricultural policy

An experimental survey was undertaken to explore the links between the characteristics of a moral issue, the degree of moral intensity/moral imperative associated with the issue (Jones, 1991), and people's stated willingness to pay (wtp) for policy to address the issue. Two farm animal welfare issues were chosen for comparison and the contingent valuation method was used to elicit people's wtp. The findings of the survey suggest that increases in moral characteristics do appear to result in an increase in moral intensity and the degree of moral imperative associated with an issue. Moreover, there was a positive link between moral intensity/moral imperative associated with an issue and people's stated wtp for policy to address the issue. The paper discusses the relevance of the findings of the survey in the context of the debate concerning the relationship between moral and economic values and the use of the contingent valuation method to estimate people's wtp of policy options with moral dimensions.

Farm-level economic impact of biotechnology: smallholder Bt cotton farmers in South Africa

This paper describes the method and findings of a survey designed to explore the economic benefits of the adoption of Bacillus thuringiensis (Bt) cotton for smallholder farmers in the Republic of South Africa. The study found reason for cautious optimism in that the Bt variety generally resulted in a per hectare increase in yields and value of output with a reduction in pesticide costs, which outweighed the increase in seed costs to give a substantial increase in gross margins. Thus, these preliminary results suggest that Bt cotton is good for smallholder cotton farmers and the environment.

Farm level impact of Bt cotton in South Africa

This paper describes the method and findings of the first independent survey of smallholder farmers in the Republic of South Africa designed to explore the economic benefits of their adoption of Bt cotton. The study found that the Bt variety generally resulted in a per hectare increase in yields, value of output and reduction of pesticide costs which outweighed the increase in seed costs to give a substantial increase in gross margins. There are several surveys being carried out at the moment on different aspects of the Makhathini experience. The Monitor will be reporting on their results as these become available.