This article comprehensively examines the impact of integrated pest management-farmer field school (IPM-FFS) on yield, insecticide expenditures, labor expenditures, herbicide expenditures, fertilizer expenditures, and profit, based on data from onion producers in the Philippines. Propensity score matching (PSM) and regression-based approaches that account for potential bias due to selection problems from observable variables are used to achieve the objective of the study. Sensitivity of our IPM-FFS impact results to potential bias due to "selection on unobservables" was also assessed. We find that farmers who participate in the IPM-FFS training program have statistically lower insecticide expenditures than the non-IPM-FFS farmers. But we do not find any evidence that the IPM-FFS training program significantly affects yield and the other inputs. There is some evidence indicating that IPM-FFS farmers may have statistically higher profit levels than non-IPM-FFS producers, but these results are sensitive to and may still be invalidated by bias due to unobservable variables. Since IPM-FFS seem to only significantly reduce insecticide use, policymakers and extension educators may need to adjust the IPM-FFS curriculum to further emphasize (or include) other agronomic practices that also optimize the use of other inputs like labor, fertilizer, and herbicides. The more efficient use of all inputs would likely reduce total expenditures and eventually translate to higher incomes.JEL classifications: Q10, Q12, Q16
We determine the production risk effects and welfare implications of single-trait Bt corn adoption in the Philippines. We use a stochastic production function estimation approach that allows for examining the skewness effects of Bt within a damage abatement specification. Our results indicate that Bt corn has a statistically significant yield increasing, risk-increasing (i.e., variance-increasing) and downside risk-reducing (i.e., skewness-increasing) effects. Based on risk premium, certainty equivalent, and loss probability welfare measures, Bt corn farmers in the Philippines are better-off (in absolute terms) relative to non-Bt farmers given Bt corn's dominant yield increasing effect and downside risk-reducing effect.
The article evaluates the expected welfare gain from voluntary partial government-subsidized maize insurance in north-east China. A total of 356 maize-growing households’ risk preferences from Linkou County of Heilongjiang province are examined and their expected welfare gains were analysed by the expected utility theory with each farmer’s unique risk preference. The research found that 217 out of 356 households are rational decision-makers and most of them are risk averse. In term of expected welfare gain, the research pointed out that providing the existing crop insurance creates a welfare gain of about CNY 177 per hectare. However, this estimated welfare gain might be reduced to only CNY 124 per hectare if the local government decided to provide 100 per cent insurance premium subsidy with a lower level of protection at the same fiscal budget. Further, the results indicated that about 36 per cent of the rational households made wrong decisions in buying the crop insurance, and households with fewer family members and a lower portion of non-farming income are more likely to make wrong decisions. Additional education may help these farmers to make better decisions and increase future welfare gain to a potential level of about CNY 275 per hectare on average.
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