New Directions for Smallholder Agriculture 1st Edition by Peter Hazell, Atiqur Rahman – Ebook PDF Instant Download/Delivery: 0199689342, 9780199689347
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ISBN 10: 0199689342
ISBN 13: 9780199689347
Author: Peter B. R. Hazell, Atiqur Rahman
The majority of the poor and hungry people in the world live on small farms and struggle to subsist on too little land with low input – low yield technologies. At the same time, many other smallholders are successfully intensifying and succeeding as farm businesses, often in combination with diversification into off-farm sources of income. This book examines the growing divergence between subsistence and business oriented small farms, and discusses how this divergence has been impacted by population growth, trends in farm size distribution, urbanization, off-farm income diversification, and the globalization of agricultural value chains. It finds that policy makers need to differentiate more sharply between different types of small farms than they did in the past, both in terms of their potential contributions towards achieving national economic growth, poverty alleviation, and food security goals, and the types of assistance they need. The book distinguishes between smallholders that are business oriented, subsistence oriented, and at various stages of transition to the non-farm economy, and discusses strategies appropriate for assisting each type. The book draws on a wealth of recent experience at IFAD and elsewhere to help identify best practice approaches.
New Directions for Smallholder Agriculture 1st Table of contents:
1. What role for small farms?
2. Structure of the book
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Part I: The State of Smallholder Agriculture in the Developing World
2: On being a smallholder
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3: Right place, right time: The state of smallholders in agriculture in sub-Saharan Africa (SSA)
1. Introduction
2. Smallholder farming—sub-Saharan Africa in perspective
2.1 FARM SIZE IN SUB-SAHARAN AFRICA
2.2 AVAILABILITY AND QUALITY OF LAND
2.3 AGRICULTURAL PERFORMANCE
2.4 TRADE
3. Opportunities for sub-Saharan Africa’s smallholders
3.1 FROM EXTENSIFICATION TOWARDS INTENSIFICATION
3.2 THE ROLE OF RISK MANAGEMENT IN FARMING AS A BUSINESS
3.3 HELPING SSA’S SMALLHOLDERS MANAGE THE RISKS OF FARMING AS A BUSINESS
4. Right place, right time—doing a better job of lowering business risk
4.1 RIGHT PLACE
So what is the impact of remoteness to marke ton agricultural productivity?
Reasons for high transport prices
4.2 RIGHT TIME
5. Conclusions and recommendations
REFERENCES
4: Smallholder farming in Asia and the Pacific: challenges and opportunities
1. Introduction
2. Transformation of agriculture
2.1 THE GREEN REVOLUTION
2.2 RECENT TRANSFORMATION IN AGRICULTURE
Growth in consumption and production of high-value commodities
Transformation of agrifood industry
3. Challenges faced by small farms
3.1 SIZE, MARKETED SURPLUS, AND PRICE
3.2 CROP YIELDS BY SIZE
3.3 DETERMINANTS OF MARKETED SUPPLY
3.4 DECLINING PRODUCTIVITY GROWTH
3.5 ENVIRONMENTAL PROBLEMS
3.6 LAND AND TENURE SECURITY
3.7 WATER SHORTAGES
3.8 DIVERSIFICATION
3.9 IMPACT OF CLIMATE CHANGE
3.10 RISK AND VULNERABILITY
4. Opportunities for higher productivity, higher incomes, and sustainability
4.1 TECHNOLOGICAL INNOVATIONS TO ADDRESS ENVIRONMENTAL PROBLEMS AND YIELD GROWTH
Conservation agriculture/zero tillage
Organic agriculture
Biotechnology
4.2 INSTITUTIONAL INNOVATIONS FOR PRODUCTIVITY ENHANCEMENT AND DIVERSIFICATION
Farmer/producer organisations
Contract farming
Supply chains and supermarkets
Information and communication technology
Fiscal stimulus
5. Enabling policy and programme support to small farms—an example from Asia and the Pacific
6. Concluding remarks
Annex A
KERNEL DENSITY FUNCTIONS OF YIELDS
Annex B
THE TOBIT MODEL
REFERENCES
5: The state of smallholders in agriculture in Latin America
1. Introduction
2. Concepts
3. The smallholder sector in LAC
3.1 ARGENTINA
3.2 BRAZIL
3.3 CHILE
3.4 COLOMBIA
3.5 ECUADOR
3.6 GUATEMALA
3.7 NICARAGUA
3.8 URUGUAY
3.9 IN SUMMARY
4. The proximate context of smallholders
4.1 LOCAL ECONOMIC GROWTH AND POVERTY REDUCTION
4.2 TRENDS IN AGRI-FOOD MARKETS
5. The challenges
REFERENCES
Part II: The Business Agenda for Smallholders
6: Targeting investments to link farmers to markets: a framework for capturing the heterogeneity of
1. Introduction
2. Capturing the heterogeneity of smallholders through a typology of micro-regions
3. Implementing the proposed typology
3.1 THE MODEL
3.2 ESTIMATION
3.3 THE DISTINCTION BETWEEN PRODUCTION INPUTS AND ENVIRONMENTAL FACTORS
3.4 MOVING FROM HOUSEHOLD-LEVEL ESTIMATIONS TO SPATIAL ANALYSIS
4. Implementing the typology in three developing countries: Guatemala, Armenia, and Mozambique
4.1 CONSTRUCTING THE TYPOLOGY FOR GUATEMALA, ARMENIA, AND MOZAMBIQUE
5. Conclusions and policy issues
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ANNEX A: EMPIRICAL ESTIMATION OF STOCHASTIC PROFIT FRONTIER
Step 1: Estimation of the stochastic profit frontier function. Farmer level
Step 2: Prediction of potential and efficiency. Regional level
ANNEX B
Market access estimation
The accessibility model
ANNEX C
7: Promoting small farmer market access in Asia: Issues, experiences, and mechanisms
1. Introduction
2. Constraints and challenges
2.1 HIGH-VALUE CROPS, MARKET LINKAGE, AND SMALL PRODUCERS
2.2 CONCEPTUAL FRAMEWORK FOR MARKET ACCESS
3. Market access experience in Asia
3.1 ROLE OF THE STATE
Hopcoms
Safal
Turmeric Cooperative (FAPRO)
3.2 ROLE OF INTERMEDIARIES IN MARKET ACCESS
NGOs as intermediaries in market access
Private sector as intermediaries
Aggregator model
Corporate linkage for smallholders
Public–private partnership for market access
Group market access
Producer/farmer companies
4. Conclusions and ways forward for effective market access
REFERENCES
8: Financing smallholder farmers in developing countries
1. Introduction
2. The context of finance for smallholder farmers
2.1 THE PERSISTENCE OF INFORMAL FINANCE
2.2 THE EVOLUTION OF INFORMAL FINANCE; ITS POTENTIAL ROLE IN SUPPORTING SMALL FARMERS
3. Overcoming development challenges: innovative approaches to financing small farmers
3.1 FINANCING VALUE CHAINS
3.2 INDEX-BASED WEATHER INSURANCE
4. Public sector financing of small farmers
5. Conclusion
REFERENCES
9: Improving farmers’ access to agricultural inputs and finance: approaches and lessons from sub-S
1. Introduction
2. Improved seed supply and demand challenges
2.1 FARM-LEVEL SEED DEMAND CHALLENGES
2.2 BOTTLENECKS AFFECTING SEED SUPPLY IN AFRICA
2.3 EXPANDING THE SUPPLY OF SEED
3. Demand and supply for fertilizers among farmers
3.1 DEMAND SIDE CONSTRAINTS TO THE USE OF FERTILIZERS
3.2 SUPPLY SIDE CONSTRAINTS TO FERTILIZER USE
4. Improving affordability of farm inputs
4.1 EXPANDING ‘SMART INPUT SUBSIDIES’
4.2 PACKAGING INPUTS IN SMALL SIZES TO IMPROVE AFFORDABILITY
4.3 DEVELOPING RURAL INPUT MARKETS
Expanding agro-dealers networks
Challenges faced by agro-dealers
Impacts of agro-dealers on input supply in rural areas
5. Farm credit constraints
5.1 AGRICULTURAL DEVELOPMENT BANKS
5.2 MICROFINANCE, SAVING, AND CREDIT ASSOCIATIONS
5.3 INTERLOCKED MARKETS FOR CREDIT AND VALUE-CHAIN FINANCING
5.4 CREDIT GUARANTEE SCHEMES
5.5 SUCCESSFUL EXPERIENCES IN EXPANDING ACCESS TO FINANCE FOR FARMERS
Equity Bank
National Microfinance Bank
Standard Bank
6. Conclusions
REFERENCES
10: Corporate agribusiness development and small farms
1. Introduction
2. Corporate investment in agricultural value chains
2.1 THE AGRICULTURAL TRANSFORMATION PROCESS
2.2 SOME RECENT DEVELOPMENTS
Private-sector recognition of agriculture as a ‘growth industry’
Agribusiness concern over security of raw material supply
Increased corporate interest in large-scale farming
Growth of bio-energy production
Growing South–South investment
Increasing interest in social enterprise
3. Corporate engagement with small farms
3.1 BUSINESS MODELS AND VALUE CHAINS
The ‘ideal’ model from the corporate perspective
The consequences for small farmers’ participation in value chains
3.2 FORMS OF ENGAGEMENT
Nature of the transaction
Terms and conditions
Price determination
Outcomes
4. Inducing greater, and more beneficial, corporate involvement with small farms
4.1 THE AGRIBUSINESS INVESTMENT DECISION
4.2 BENEFITS, COSTS, AND RISKS
For agribusiness projects in general
For agribusiness projects involving small farmers
4.3 THE STRATEGIC CHOICE TO ENGAGE WITH SMALL FARMERS
‘Internal’ influences
External influences
4.4 THE SMALL FARM ‘EXCLUSION’ ISSUE
5. Policy implications
5.1 THE PARTIES INVOLVED
5.2 IDENTIFYING THE OPTIONS
Business environment
Public–private partnerships
Market intervention measures
5.3 WHAT WORKS?
Product branding for smallholder supply
Corporate commitment to new sourcing from smallholders
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11: A twenty-first-century balancing act: smallholder farm technology and cost-effective research
1. Introduction
2. Technology design
3. The centrality of adaptive research
4. Scale economies in increasing productivity in smallholder, rain-fed agriculture
5. Designing R&D institutions to foment growth in smallholder productivity
5.1 ORGANIZATIONAL CONSTRAINTS TO LINK TECHNOLOGY DESIGN, ADAPTIVE RESEARCH, AND DISSEMINATION
5.2 RESEARCH HIERARCHIES AND THE SMALLHOLDER
5.3 RESEARCH ORGANIZATION IN RESPONSE TO SYSTEM COMPLEXITY
6. Conclusions
REFERENCES
12: Farmers as entrepreneurs: sources of agricultural innovation in Africa
1. Introduction
2. Farmers as entrepreneurs: origins of agricultural innovation
3. Support systems and sources of agricultural innovation
3.1 PROVIDING ADEQUATE INFRASTRUCTURE
3.2 ENHANCING TECHNICAL COMPETENCE
3.3 FOSTERING BUSINESS DEVELOPMENT
4. Implications for public policy and institutions
5. Conclusions
REFERENCES
Part III: Enhanced Livelihood Opportunities for Smallholders
13: The changing rural world and livelihood options for resource-poor rural people
1. Rural areas are changing
1.1 ACROSS MUCH OF THE DEVELOPING WORLD, AGRICULTURAL LAND ISSUES ARE DRIVING CHANGE
1.2 ENVIRONMENTAL DEGRADATION, CLIMATE CHANGE, AND THEIR IMPACTS
1.3 AGRICULTURAL MARKETS HAVE CHANGED PROFOUNDLY IN THE LAST 30 YEARS, AND THERE IS AN EXPANDING AND
1.4 MOBILE PHONES HAVE IMPROVED LIVES AND STIMULATED A WHOLE RANGE OF ECONOMIC ACTIVITIES IN RURAL A
1.5 THE RAPID INCREASE IN MIGRATION FROM RURAL AREAS, AND THE REMITTANCES THAT THE MIGRANTS SEND HOM
1.6 IMPROVED INFRASTRUCTURE, COMBINED WITH GLOBALIZATION, IS STARTING TO CHANGE THE MAKE-UP AND STRU
1.7 AS THE WORLD AROUND THEM IS CHANGING, SO ARE RURAL POPULATIONS THEMSELVES
2. What do these changes mean for the poor rural people?
3. Livelihood strategies of the rural poor
4. Supporting the livelihood options of resource-poor rural people
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14: Securing land rights for smallholder farmers
1. Background and motivation
2. Conceptual issues
2.1 WHY SECURING LAND RIGHTS IS IMPORTANT
Investment incentives
Land transfers and financial markets
Power relations
2.2 CHALLENGES FOR EFFORTS TO STRENGTHENING LAND RIGHTS
Distributional aspects
Benefits from existing arrangements
Economically unaffordable solutions
3. Embedding smallholders’ rights in a system of good land governance
3.1 SECURING, ENFORCING, AND ALLOWING TRANSFERABILITY OF RIGHTS
3.2 PROVIDING EFFECTIVE AND LOW-COST ENFORCEMENT (INCLUDING DISPUTE RESOLUTION
3.3 IMPARTIALITY MANAGING PUBLIC LAND
4. Promising approaches to enhancing smallholders’ rights
4.1 REGISTRATION AND MAPPING OF COMMUNAL LAND
4.2 REGISTRATION OF INDIVIDUAL RIGHTS
4.3 MAKING LAND INFORMATION MORE WIDELY AVAILABLE AND IMPROVING INSTITUTIONAL EFFICIENCY
4.4 GENDER EQUITY
5. Conclusions and next steps
REFERENCES
15: Empowering women to become farmer entrepreneurs: case study of an NGO-supported programme in Ban
1. Introduction
2. Women’s participation in agriculture: prevailing knowledge
3. Findings of longitudinal surveys
4. Case study of a targeted project
4.1 PROJECTS FOR WOMEN’S ENGAGEMENT IN AGRICULTURE
4.2 DATA AND METHODOLOGY
4.3 RESULTS AND DISCUSSIONS
Socio-economic profile of NCDP farmers
Project intervention
Impact of the project
5. Concluding remarks
REFERENCES
16: Securing a future for smallholder farmers in an era of climate change
1. Introduction
2. Main climate threats by region and type of farm
2.1 DIRECT IMPACTS
2.2 INDIRECT CLIMATE-CHANGE IMPACTS
2.3 OVERALL COSTS OF CLIMATE-CHANGE IMPACTS
3. Adapting to climate change
3.1 BUILDING RESILIENCE TO DEAL WITH RISK AND UNCERTAINTY
3.2 ADAPTING RURAL SYSTEMS TO CLIMATE-CHANGE RISKS
4. New opportunities from climate-change policy and markets
5. What mix of measures will help smallholders adapt and prosper?
6. Conclusions
REFERENCES
17: Rural non-farm economy: current understandings, policy options, and future possibilities
1. Introduction
2. How important is the rural non-farm economy?
2.1 CONTRIBUTION TO JOBS AND INCOMES
2.2 INCREASING IMPORTANCE THROUGH TIME
2.3 COMPOSITION OF THE RURAL NON-FARM ECONOMY
2.4 CONTRIBUTION TO POVERTY AND INEQUALITY
3. How does the rural non-farm economy develop?
3.1 INTERNAL FORCES: TRADABLES AND THE ECONOMIC BASE
3.2 EXTERNAL FORCES: LINKS TO URBAN AREAS AND THE RISE OF PERI-URBAN AREAS
3.3 LINKAGES AND MULTIPLIERS: SPREADING THE BENEFITS OF A DYNAMIC ECONOMIC ACTIVITY
3.4 STAGNATION AND THE PUSH INTO NON-FARM WORK
3.5 SUPPLY OF RURAL NON-FARM GOODS AND SERVICES
3.6 RURAL NON-FARM DEVELOPMENT: POSSIBLE PATTERNS
4. What policies may stimulate the rural non-farm economy?
4.1 RURAL PUBLIC GOODS: PHYSICAL INFRASTRUCTURE AND INVESTING IN PEOPLE
4.2 FINANCE: DEALING WITH MARKET FAILURES
4.3 LOCATION: THREE DIFFICULT QUESTIONS FOR POLICYMAKERS
5. What is the future of the rural non-farm economy in developing countries?
5.1 URBANIZATION, ECONOMIC GROWTH, AND MIGRATION
5.2 DEMOGRAPHIC TRANSITIONS
5.3 LIBERALIZATION AND GLOBALIZATION
5.4 RISE OF CHINA AND INDIA AND OTHER LARGE EMERGING ECONOMIES
5.5 TECHNOLOGY ADVANCES
5.6 CHANGES POSSIBLE IN THE MEDIUM TERM
5.7 FUTURE RURAL ECONOMIES
6. Conclusions: small farmers and the rural non-farm economy
REFERENCES
Part IV: The Policy Agenda
18: Concluding chapter: the policy agenda
Defining small farms
Competitiveness of small farms
Farm size—a reverse transition
Does reverse transition matter?
The context of assisting small farms
COUNTRY CONTEXT
DIVERSITY OF SMALL FARMS
Approaches to assisting small farms
SOME GUIDING PRINCIPLES
ASSISTING BUSINESS-ORIENTED SMALL FARMS
Accessing improved technology
Linking small farmers to markets
Accessing seeds and fertilizer
Accessing finance
Accessing land
Encouraging entrepreneurship
Empowering women and vulnerable groups to become successful farmers
Building resilience
ASSISTING SMALL FARMS IN TRANSITION
ASSISTING SUBSISTENCE-ORIENTED SMALL FARMS
Targeting and delivering small farm assistance
TARGETING ASSISTANCE
DELIVERING ASSISTANCE
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