Purpose -The purpose of this paper is to assess the adherence, constraints and key factors associated with smallholder pineapple farmers' compliance with Global working group for Good Agricultural Practice (GLOBALGAP) standards in the Akuapem-South Municipal area, Ghana. It utilizes the modeling of socio-economic, farm, market and institutional factors influencing smallholder farmers' compliance with GLOBALGAP standards. This paper aims to enhance smallholder farmers' compliance with food safety standards in particular GLOBALGAP so they can continue to participate in international food trade. Design/methodology/approach -The study uses mainly primary data solicited from 150 randomly selected smallholder farmers. Descriptive statistics are employed in estimating compliant farmers' rate of adherence with standards requirements and identifying constraints of farmers while a probit regression model is used to determine the factors influencing GLOBALGAP compliance decision of farmers. Findings -Findings of the study show that compliant farmers' rate of adherence with the standard is about 90 percent and this is below the minor musts compliance criteria of 95 percent. The results also indicate that lack of access to farm credits, high cost of farm inputs and high cost of labor are the major constraints to GLOBALGAP compliance. Factors found to positively influence farmers' compliance decision are number of pineapple farms, access to off-farm income, access to market information and extension services. However, compliance is negatively influenced by age. Research limitations/implications -Majority of Ghanaian smallholder pineapple farmers are not GLOBALGAP certified. The study was limited to Akuapem-South because most farmers produce pineapple for the export market and are certified under the Option II GLOBALGAP group certification. Originality/value -This paper brings to bear issues confronting food safety standards compliance among smallholder farmers in developing countries, particularly Ghana.
Purpose Credit is central in labour allocation decisions in smallholder agriculture in developing countries. The purpose of this paper is to analyse the effect of credit constraints on farm households’ labour allocation decisions in rural Burkina Faso. Design/methodology/approach The study used a direct elicitation approach of credit constraints and applied a farm household model to categorize households into four labour market participation regimes. A joint estimation of both the multinomial logit model and probit model was applied on survey data from Burkina Faso to assess the effect of credit constraint on the probability of choosing one of the four alternatives. Findings The results of the probit model showed that households’ endowment of livestock, access to news, and membership to an farmer-based organization were factors lowering the probability of being credit constrained in rural Burkina Faso. The multinomial logit model results showed that credit constraints negatively influenced the likelihood of a farm household to use hired labour in agricultural production and perhaps more importantly it induces farm households to hire out labour off farm. The results also showed that the other components of household characteristics and farm attributes are important factors determining the relative probability of selecting a particular labour market participation regime. Social implications Facilitating access to credit in rural Burkina Faso can encourage farm households to use hired labour in agricultural production and thereby positively impacting farm productivity and relieving unemployment pressures. Originality/value In order to identify the effect of credit constraints on farm households’ labour decisions, this study examined farm households’ decisions of hiring on-farm labour, supplying labour off-farm or simultaneously hiring on-farm labour and supplying family labour off-farm under credit constraints using the direct elicitation approach of credit constraints. To the best of the authors’ knowledge, this study is the first to examine this problem in Burkina Faso.
PurposeThe aim of this paper is to identify the factors that influence rice farmers' decisions to adopt crop insurance and premium payments (willingness to pay [WTP] amounts). The paper also demonstrates the usefulness of the complementary log-log (cloglog) truncated Poisson double-hurdle model as an alternative hurdle model.Design/methodology/approachThe study first investigated the nature of the dependent variable, which had non-normal residuals and was overdispersed. The probit truncated normal regression double-hurdle model was tried but it failed the normality and homoscedasticity tests; hence, the cloglog truncated Poisson double-hurdle model was employed in the study.FindingsAn estimated 61% of respondents would purchase crop insurance, despite farmers not having prior experience with this product. Amongst others, the factors that influence insurance adoption amongst rice farmers are the share of rice in total income, reliability perception of crop insurance schemes and the probability of failure to achieve target yields. The latter helps the authors to address adverse selection, a central issue to the viability of such an insurance programme. The determinants of farmers' WTP are also identified.Research limitations/implicationsSampling was limited to farmers using irrigation and living in one region of Ghana, which may limit the study’s wider applicability.Originality/valueAs far as the authors are aware, this study is the first to select the appropriate hurdle model based on established properties of the dependent variable on this topic – crop insurance decisions.
PurposeThe aim of this paper is to analyze the effects of access to credit on maize productivity in Mali, by identifying the determinants of credit market participation and maize yield, and then estimating the impact of credit on maize yield.Design/methodology/approachThis study analyzes the impact of credit on maize productivity using data from the World Bank 2014 Living Standards Measurement Survey (LSMS) on Mali, and the endogenous switching regression (ESR) model.FindingsThe results suggest a positive effect of credit on maize yield in Mali. Farm size, production shocks and the female gender exert negative effects on credit market participation, unlike education, intercropping with cotton, male family labor and fertilizer use which show positive effects. Farm size has a negative effect on maize yield, but both male family labor, and fertilizer use exert positive effects. Although the use of credit improves agricultural yields, the results show a greater potential effect for rationed producers, than credit users.Research limitations/implicationsThese results suggest that implementing a credit strategy that allows those currently excluded from the credit market, to participate, could substantially increase productivity and maize production output in furtherance of the country's food security strategy. Gender-based targeting is needed to bridge the gender gap in access to credit.Originality/valueAs far as the authors are aware, this study is the first to explore the credit-farm productivity links in Mali, while addressing selection bias.
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