The Welfare Impacts of Commodity Price Volatility: Evidence from Rural Ethiopia

Bellemare, Marc F.; Barrett, Christopher B.; Just, David R.

doi:10.2139/ssrn.1544172

Cited by 75 publications

(97 citation statements)

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“…In this application, a great deal of this unobserved heterogeneity can be captured by di¤erences in a respondent's marginal utility from contract farming. Take for example a respondent who is price risk averse (Bellemare et al, 2013). Such a respondent might prefer to participate in contract farming because contract farming arrangements typically insure growers against price risk.…”

Section: Identi…cationmentioning

confidence: 99%

Contract Farming and Food Security

Bellemare

Novak

2016

American J Agri Economics

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152

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Contract farming has often been associated with an increase in the income of participating households. It is unclear, however, whether contract farming increases other aspects of household welfare. Using data from six regions of Madagascar and a selection-on-observables design in which we control for a household's marginal utility of participating in contract farming, which we elicited via a contingent valuation experiment, we show that participating in contract farming reduces the duration of a household's hungry season by about ten days on average, and that it makes participating households about 20 percent more likely to see their hungry season end at any point in time. Further, we …nd that these e¤ects are more pronounced for households with a larger number of children, and for households with a larger number of girls. This is an important result as childrenespecially girls-often bear the burden of food insecurity.

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Section: Identi…cationmentioning

confidence: 99%

Contract Farming and Food Security

Bellemare

Novak

2016

American J Agri Economics

Self Cite

152

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“…In particular, we note Andersson et al (2011) on food aid and safety nets, Barrett et al (2001) on income diversification, Bellemare et al (2013) on commodity price volatility, Beyene and Muche (2010) Among all these studies, Mohammed (2014) is the closest to our analysis both in terms of the location of the investigation and the method followed in the investigation. Ethiopia has been experiencing fast economic growth, especially in urban areas, in the last decade-around 10% per year.…”

Section: Introductionmentioning

confidence: 85%

The Coffee-Food Security Interface for Subsistence Households in Jimma Zone Ethiopia

Beghin

Teshome

2017

Frontiers of Economics and Globalization

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We investigate food security in three villages in rural Ethiopia for smallholder farmers growing staple crops and coffee, and facing variable coffee and commercial input prices. The surveys were conducted in the coffee growing region of Oromia ( Jimma Zone). Commercial input use among these smallholders remains sporadic, although most farmers use them occasionally. A major impediment to systematic usage is the price of these inputs. Policies lowering the unit cost and increasing the local availability of commercial inputs would be useful to systematically boost production and income generation. These smallholders rely on a major coffee cooperative to market their coffee. The cooperative helps with transportation and easing market participation decisions-it provides better prices and some market information. Many farmers rely on credit and banking services offered by the cooperative. The food insecure households are more likely to be led by a female head and to be constrained by extremely small land holdings than food-secure households. These food insecure households tend to work outside of their own farm more often than food-secure households, but in lowerreturn activities. In our sample, food shortages and household size do not seem to be related, although food shortages are less likely in households with more children. Despite the fast growing economy of Ethiopia, many of these households still face considerable impediments to improve their economic livelihoods and market participation because of bad roads, poor telecommunication infrastructure and limited land. Basic schooling seems to reach most of their children. We investigate food security in three villages in rural Ethiopia for smallholder farmers growing staple crops and coffee, and facing variable coffee and commercial input prices. The surveys were conducted in the coffee growing region of Oromia (Jimma Zone). Commercial input use among these smallholders remains sporadic, although most farmers use them occasionally. A major impediment to systematic usage is the price of these inputs. Policies lowering the unit cost and increasing the local availability of commercial inputs would be useful to systematically boost production and income generation. These smallholders rely on a major coffee cooperative to market their coffee. The cooperative helps with transportation and easing market participation decisions-it provides better prices and some market information. Many farmers rely on credit and banking services offered by the cooperative. The food insecure households are more likely to be led by a female head and to be constrained by extremely small land holdings than food-secure households. These food insecure households tend to work outside of their own farm more often than food-secure households, but in lower-return activities. In our sample, food shortages and household size do not seem to be related, although food shortages are less likely in households with more children. Despite the fast growing economy of Ethiopia, many of these households...

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“…One example is the Ethiopian Rural Household Survey (ERHS) conducted by the Department of 6 Bellemare et al (2013) also document the seasonal volatility of food prices and find that households in select rural communities are willing to pay 6-32 per cent of their income to eliminate price volatility, though the welfare gains from price stability accrue disproportionately to the non-poor.…”

Section: Hices Poverty and Other Data Sources On Monetary Povertymentioning

confidence: 99%

Growth and Poverty in Sub-Saharan Africa

Arndt¹,

McKay

Tarp

2016

Growth and Poverty in Sub-Saharan Africa

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes.You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence.https://creativecommons.org/licenses/by-nc-sa/3.0/igo/ www.econstor.eu Growth and Poverty in Sub-Saharan AfricaUnited Nations University World Institute for Development Economics Research (UNU-WIDER) was established by the United Nations University as its first research and training centre and started work in Helsinki, Finland, in 1985. The mandate of the institute is to undertake applied research and policy analysis on structural changes affecting developing and transitional economies, to provide a forum for the advocacy of policies leading to robust, equitable, and environmentally sustainable growth, and to promote capacity strengthening and training in the field of economic and social policymaking. Its work is carried out by staff researchers and visiting scholars in Helsinki and via networks of collaborating scholars and institutions around the world. The moral rights of the authors have been assertedFirst Edition published in 2016 Impression: 1 Some rights reserved. This is an open access publication. Except where otherwise noted, this work is distributed under the terms of a Creative Commons Attribution-Non Commercial-Share Alike 3.0 IGO licence (CC BY-NC-SA 3.0 IGO), a copy of which is available at https://creativecommons.org/licenses/by-nc-sa/3.0/igo/.It is permitted to reuse, share and adapt this work, subject to the following terms:Attribution -appropriate credit is given to the original work, the copyright holder and creator, and any changes made to the work are properly indicated.Non-Commercial -the work, or any adaptation of the work, may not be used, distributed or reproduced in any format, by any means, for commercial purposes.Share-Alike -the work, or any adaptation of the work is distributed under the same licence terms as the original, with a URL link provided to the licence.Enquiries concerning use outside the terms of the Creative Commons licence should be sent to the Rights Department, Oxford University Press, at the above address or to academic.p...

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The Welfare Impacts of Commodity Price Volatility: Evidence from Rural Ethiopia

Cited by 75 publications

References 46 publications

Contract Farming and Food Security

Contract Farming and Food Security

The Coffee-Food Security Interface for Subsistence Households in Jimma Zone Ethiopia

Growth and Poverty in Sub-Saharan Africa

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