Production and green technology investment strategy for contract-farming supply chain under yield insurance

Shi, Ligang; Pang, Tao; Peng, Hongjun

doi:10.1080/01605682.2022.2033141

Cited by 7 publications

(2 citation statements)

References 24 publications

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“…Moreover, this study adds new insights by demonstrating that the decision to participate in contract farming has a significant impact on fertilizer use, contributing to the discourse on sustainable agricultural practices. This reflects and expands existing studies, which highlighted the potential of contract farming in promoting sustainability [12][13][14]. The findings of this study offer a richer understanding of the complex dynamics at play in contract farming decisions and their environmental implications, thereby providing valuable empirical evidence to shape future research and policy in sustainable agriculture.…”

Section: Empirical Results Discussionsupporting

confidence: 71%

“…These aspects significantly contribute to achieving multiple global sustainable development goals (SDGs), primarily those related to no poverty, zero hunger, clean water and sanitation, and good health and well-being [13]. One such opportunity lies in the potential of contract farming to influence the application of chemical fertilizers-an area of increasing importance given the environmental and health implications associated with excessive chemical fertilizer use and reduced chemical fertilizer use [14]. According to Food and Agriculture Organization (FAO) statistics, in 2020, the intensity of chemical fertilizer application measured according to potassium content in China was 61.92 kg/ha, which was much higher than the value of 20.23 kg/ha in the European Union (EU), and the intensity of organic fertilizer application measured according to potassium content was 29.72 kg/ha, which was lower than the value of 39.59 kg/ha in the EU (data source: Food and Agriculture Organization (FAO); https://www.fao.org/faostat/en/#data/ESB (accessed on 19 July 2023)).…”

Section: Introductionmentioning

confidence: 99%

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Fertilizer Application in Contract Farming: A Risk Analysis

Zhang

Yang

Zhao

et al. 2023

Land

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To our knowledge, this is the first study in the world to incorporate risk into the contract-farming participation decision process and to examine empirical evidence on the effect of contract farming on fertilizer application, filling the research gaps in the relevant literature and providing perspectives on both chemical fertilizer reduction and organic fertilizer application behavior. To estimate the impact of contract farming on farmers’ application of chemical fertilizer and organic fertilizer, we used data on tea farmers from the Fujian and Hubei provinces in China and the recursive binary probit model. The 2SLS (two-stage least-squares) model was used to estimate the impact of the contract-farming participation rate on farmers’ organic and chemical fertilizer application intensity. The empirical results show that farmers’ risk-prevention ability had a significant negative impact on farmers’ contract-farming participation decision and rates. Contract-farming participation had a significant, positive impact on farmers’ organic and chemical fertilizer application intensity, while contract-farming participation rates had a significant, negative impact on the intensity of chemical fertilizer application by farmers. However, contract-farming participation rates did not have a significant impact on organic and chemical fertilizer application intensity. To promote fertilizer reduction and organic fertilizer incremental application, an effective strategy could be to promote farmers’ participation in contract agriculture.

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Section: Empirical Results Discussionsupporting

confidence: 71%

Section: Introductionmentioning

confidence: 99%