Access to credit is essential for sustainable agricultural development. This paper evaluates the impact of formal and informal agricultural credit, access to extension services, and different combinations of agricultural credit and extension services on the economic outcomes of farming households in Afghanistan. This study applies a quasi-experimental approach (propensity score matching) and inverse-probability-weighted regression adjustment (IPWRA) analysis. The data comes from a survey of 277 randomly selected farming households in the three districts of rural Afghanistan. The results show that having access to formal agricultural credit has a positive and differentiated impact on the farming costs and net revenue of farming households. However, the effects increase when a farming household has access to both formal credit and extension services. The results also reveal that credit constraints affect farming costs and net revenue. The study provides some practical implications for agricultural development policymakers. First, formal agricultural credit affects farm revenue in rural Afghanistan. Second, the impact of credit bundled with agricultural extension services on farm revenue is higher than the impact of the provision of each service separately. Therefore, a more sustainable agricultural credit arrangement should be supplemented by extension services for farmers in Afghanistan.
The government of Afghanistan promotes saffron production as a means to achieve economic development while reducing the widely spread opium cultivation in the country by providing necessary support to its farmers via saffron farmer service centers. This study investigates the causal effects of relevant attributes of potential saffron production promotion policies on the participation probabilities of saffron farmers. This study applies a randomized conjoint experiment to primary survey data of 298 farmers in Herat Province, which is perceived by the government as the center of saffron production in the country. The proposed hypothetical saffron production promotion policy consists of six attributes, namely, provision of machinery equipment, weather-based crop insurance, accessibility to long-term loans, location of saffron farmer service centers, provider of services, and annual payment. In the randomized conjoint experiment design, the respondents rank two alternative policies and policies against the status quo. The desirable policy comprises the machinery provision, long-term (up to 5 years) loan accessibility, an easily accessible service center, and policy implementation by international non-governmental organizations (NGOs). The estimated results reveal that saffron farmers are highly supportive of the proposed saffron promotion policy and that their willingness to pay is as high as 17% of their per capita income.
Afghanistan frequently faces drought and other climate change-related challenges due to rising temperatures and decreased precipitation in many areas of the country. Therefore, acquiring a thorough comprehension of the implications of climate change on the cultivation of key cereal crops is of the utmost importance. This is particularly significant in the context of Afghanistan, where the agricultural sector plays a pivotal role, contributing close to a quarter of the country’s national gross domestic product and serving as the primary source of employment for 70% of the rural workforce. In this paper, we employ a panel regression model to evaluate the relationship between climate change and cereal productivity in Afghanistan’s agro-climatic zones. Temperature had a significant negative impact, implying that a mean temperature increase of 1 °C decreased wheat and barley yields by 271 and 221 kg/ha, respectively. Future medium- and high-emission scenarios (RCP4.5 and RCP8.5, respectively) for the period 2021–2050 were considered for future yield predictions. To project future climate change impacts, the estimated panel data regression coefficients were used to compute the projected changes in cereal yields. During the period 2021–2050, the mean yield of wheat is projected to decrease by 21 or 28%, the rice yield will decrease by 4.92 or 6.10%, and the barley yield will decrease by 387 or 535 kg/ha in the RCP4.5 and RCP8.5 emission scenarios, respectively, further emphasizing the need for targeted actions to tackle the effects of climate change on agriculture in Afghanistan in alignment with SDG 2 (Zero Hunger) and SDG 13 (Climate Action).
PurposeNatural calamities impair agricultural households' ability to invest in their farms. Facilitating access to agricultural credit may assist farmers in the face of negative revenue shocks. The aim of this study is to investigate the impact of agricultural credit on the agricultural input expenditure of disaster-affected farmers in Bangladesh.Design/methodology/approachThe study utilizes data on 2,519 disaster-affected farming households from Bangladesh's Household Income and Expenditure Study (HIES) 2016–2017, which employs a nationwide representative five-year interval survey. Further, propensity score matching (PSM) identification strategy is used to estimate the average treatment effect on the treated (ATET), and Mahalanobis distance matching (MDM) is used for the robustness test. In addition, heterogeneous analysis has been conducted to explore the impact of agricultural credit on different types of farming households.FindingsThe findings reveal that access to agricultural credit has a favorable and significant effect on farm input expenditure for disaster-affected farmers. Therefore, agricultural credit accessibility could be utilized as a policy tool to assist disaster-affected farmers in improving their investment capacity, and hence, agricultural output.Originality/valueThis study, using a quasi-experimental design of access to agricultural credit on agricultural input expenditures of the disaster-affected farming households in coastal areas of Bangladesh to estimate the causal effect.
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