Agricultural Finance ReviewTable of Contents for Agricultural Finance Review. List of articles from the current issue, including Just Accepted (EarlyCite)https://www.emerald.com/insight/publication/issn/0002-1466/vol/83/iss/4/5?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestAgricultural Finance ReviewEmerald Publishing LimitedAgricultural Finance ReviewAgricultural Finance Reviewhttps://www.emerald.com/insight/proxy/containerImg?link=/resource/publication/journal/b961cf029b2396d1d950d53988a62d57/urn:emeraldgroup.com:asset:id:binary:afr.cover.jpghttps://www.emerald.com/insight/publication/issn/0002-1466/vol/83/iss/4/5?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestFemale smallholder farmers’ preferences for digital and conventional credit attributes: evidence from Madagascarhttps://www.emerald.com/insight/content/doi/10.1108/AFR-01-2023-0008/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestDigital credit is spreading rapidly across Sub-Saharan Africa and holds potential for financial inclusion and female financial autonomy. Women in developing economies have long been targeted by microfinance institutions due to the women’s reliability and positive spillover effects. Yet, adoption rates for digital financial innovations remain moderate among rural women in Sub-Saharan Africa. The authors explore whether female preferences for digital and conventional credit differ from males. The authors conduct a Discrete Choice Experiment with 420 smallholder farmers in central Madagascar, one of the region's poorest countries, to assess preferences for selected digital and conventional credit attributes. Results of the mixed logit model and the comparison of the willingness-to-pay via Poe-test suggest high general demand for both credit forms. The demand of female respondents is higher than that of males, suggesting that they might be underserved. This holds for both credit forms. However, differences in willingness to pay for the credit attributes are mostly not statistically significant, indicating that designing gender-specific services may not be advisable. This article is believed to be the first to assess and compare gendered willingness to pay for digital and conventional credit. The study’s findings give valuable insights to decision-makers in development politics as well as the fintech industry.Female smallholder farmers’ preferences for digital and conventional credit attributes: evidence from Madagascar
Annkathrin Wahbi, Yaw Sarfo, Oliver Musshoff
Agricultural Finance Review, Vol. 83, No. 4/5, pp.549-571

Digital credit is spreading rapidly across Sub-Saharan Africa and holds potential for financial inclusion and female financial autonomy. Women in developing economies have long been targeted by microfinance institutions due to the women’s reliability and positive spillover effects. Yet, adoption rates for digital financial innovations remain moderate among rural women in Sub-Saharan Africa. The authors explore whether female preferences for digital and conventional credit differ from males.

The authors conduct a Discrete Choice Experiment with 420 smallholder farmers in central Madagascar, one of the region's poorest countries, to assess preferences for selected digital and conventional credit attributes.

Results of the mixed logit model and the comparison of the willingness-to-pay via Poe-test suggest high general demand for both credit forms. The demand of female respondents is higher than that of males, suggesting that they might be underserved. This holds for both credit forms. However, differences in willingness to pay for the credit attributes are mostly not statistically significant, indicating that designing gender-specific services may not be advisable.

This article is believed to be the first to assess and compare gendered willingness to pay for digital and conventional credit. The study’s findings give valuable insights to decision-makers in development politics as well as the fintech industry.

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Female smallholder farmers’ preferences for digital and conventional credit attributes: evidence from Madagascar10.1108/AFR-01-2023-0008Agricultural Finance Review2023-06-29© 2023 Emerald Publishing LimitedAnnkathrin WahbiYaw SarfoOliver MusshoffAgricultural Finance Review834/52023-06-2910.1108/AFR-01-2023-0008https://www.emerald.com/insight/content/doi/10.1108/AFR-01-2023-0008/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The empirical demand for farm insurance in Ireland: a quantile regression approachhttps://www.emerald.com/insight/content/doi/10.1108/AFR-04-2022-0051/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to analyse the association between farm/farmer characteristics and unsubsidized farm insurance premium expenditure in Ireland. The distribution of farm insurance expenditures is wide, and it is important to understand the extent to which individual factors influence demand for different levels of insurance premium. The quantile regression approach and farm accountancy data from the Teagasc National Farm Survey are used to model the association between farm/farmer characteristics and farm insurance demand in Ireland. Asset values (livestock, buildings and machinery) are positively associated with total insurance expenditure. Both forestry area and crop area are significantly associated with farm insurance expenditure with a stronger influence on the middle and upper part of the distribution. The interaction between farm income and farmer age is positively associated with insurance expenditure pointing to the importance of farm income protection. The research is mainly concerned with insuring against substantive risks, which are capable of threatening the asset base and continuation of the farm business. Future research can integrate questions in relation to farm safety and farmer health with research on the economic survival of the farm business. Farmers in Ireland adopt unsubsidized farm insurance as a risk management tool. This situation is relevant to other EU member states including Belgium, Denmark, Germany and Sweden. The findings can be used to inform stakeholders and policymakers about the relative impact of different factors on insurance expenditure. Previous research has typically focused on the linear relationship between farm/farmer characteristics and insurance demand without accounting for variability across the size distribution. This research is based on the quantile regression approach where the association between farm/farmer characteristics and farm insurance expenditure can be assessed at different points of the distribution.The empirical demand for farm insurance in Ireland: a quantile regression approach
Jason Loughrey, Herath Vidyaratne
Agricultural Finance Review, Vol. 83, No. 4/5, pp.572-596

The purpose of this paper is to analyse the association between farm/farmer characteristics and unsubsidized farm insurance premium expenditure in Ireland. The distribution of farm insurance expenditures is wide, and it is important to understand the extent to which individual factors influence demand for different levels of insurance premium.

The quantile regression approach and farm accountancy data from the Teagasc National Farm Survey are used to model the association between farm/farmer characteristics and farm insurance demand in Ireland.

Asset values (livestock, buildings and machinery) are positively associated with total insurance expenditure. Both forestry area and crop area are significantly associated with farm insurance expenditure with a stronger influence on the middle and upper part of the distribution. The interaction between farm income and farmer age is positively associated with insurance expenditure pointing to the importance of farm income protection.

The research is mainly concerned with insuring against substantive risks, which are capable of threatening the asset base and continuation of the farm business. Future research can integrate questions in relation to farm safety and farmer health with research on the economic survival of the farm business.

Farmers in Ireland adopt unsubsidized farm insurance as a risk management tool. This situation is relevant to other EU member states including Belgium, Denmark, Germany and Sweden. The findings can be used to inform stakeholders and policymakers about the relative impact of different factors on insurance expenditure.

Previous research has typically focused on the linear relationship between farm/farmer characteristics and insurance demand without accounting for variability across the size distribution. This research is based on the quantile regression approach where the association between farm/farmer characteristics and farm insurance expenditure can be assessed at different points of the distribution.

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The empirical demand for farm insurance in Ireland: a quantile regression approach10.1108/AFR-04-2022-0051Agricultural Finance Review2023-07-06© 2023 Emerald Publishing LimitedJason LoughreyHerath VidyaratneAgricultural Finance Review834/52023-07-0610.1108/AFR-04-2022-0051https://www.emerald.com/insight/content/doi/10.1108/AFR-04-2022-0051/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Investments, subsidies and financial constraints in Estonian agriculturehttps://www.emerald.com/insight/content/doi/10.1108/AFR-10-2022-0132/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to explore the determinants of investment decisions of Estonian farms after the transition to market economy and accession to the European Union (EU), in the period 2006–2019. The paper employs Estonian Farm Accountancy Data Network (FADN) individual farm-level data from the period 2006–2019, and standard and augmented accelerator investment models. Generalised methods of moments (GMM) and bias-corrected least-squares dummy variables (LSDVC) regressions were used to estimate parameters of these models. In the considered period, farm investments were positively affected by sales growth, investment subsidies and the cash flow. Decomposition of cash flow into volatile, market income related part, and more stable, farm subsidies related part indicated that investments do not depend on market income part of cash flow. Instead, the stable part of the cash flow (farm subsidies) had a significant and positive effect on investments. This suggests that credit rationing could be present in the EU agriculture, and it depends on the farm subsidies not market income of farms. Despite the wealth of literature on the investment behaviour of farmers, this article is the first attempt to decompose farm cash flow into stable (farm subsidies) and volatile (market income) parts to explain the role of subsidies as a part of cash flow in credit rationing.Investments, subsidies and financial constraints in Estonian agriculture
Olha Aleksandrova, Imre Fertő, Ants-Hannes Viira
Agricultural Finance Review, Vol. 83, No. 4/5, pp.597-616

The purpose of this study is to explore the determinants of investment decisions of Estonian farms after the transition to market economy and accession to the European Union (EU), in the period 2006–2019.

The paper employs Estonian Farm Accountancy Data Network (FADN) individual farm-level data from the period 2006–2019, and standard and augmented accelerator investment models. Generalised methods of moments (GMM) and bias-corrected least-squares dummy variables (LSDVC) regressions were used to estimate parameters of these models.

In the considered period, farm investments were positively affected by sales growth, investment subsidies and the cash flow. Decomposition of cash flow into volatile, market income related part, and more stable, farm subsidies related part indicated that investments do not depend on market income part of cash flow. Instead, the stable part of the cash flow (farm subsidies) had a significant and positive effect on investments. This suggests that credit rationing could be present in the EU agriculture, and it depends on the farm subsidies not market income of farms.

Despite the wealth of literature on the investment behaviour of farmers, this article is the first attempt to decompose farm cash flow into stable (farm subsidies) and volatile (market income) parts to explain the role of subsidies as a part of cash flow in credit rationing.

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Investments, subsidies and financial constraints in Estonian agriculture10.1108/AFR-10-2022-0132Agricultural Finance Review2023-08-22© 2023 Emerald Publishing LimitedOlha AleksandrovaImre FertőAnts-Hannes ViiraAgricultural Finance Review834/52023-08-2210.1108/AFR-10-2022-0132https://www.emerald.com/insight/content/doi/10.1108/AFR-10-2022-0132/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Struggle to survive: case of flood risk on US community bankshttps://www.emerald.com/insight/content/doi/10.1108/AFR-02-2023-0018/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe survivorship of firms under extreme weather poses an essential question about the local economy's health. Over 90% of agricultural banks are categorized as community banks, which are important financial institutions promoting local growth. While previous studies suggest that climate change and weather shocks adversely impact community banks' resiliency, studies on whether these institutions engage in risk-reducing management strategies have been limited. In this study, the authors examine strategic choices of local community banks when facing flood events which include (1) safety net increase, (2) portfolio diversification, and (3) branch opening. These strategic choices are the coping mechanisms banks can take to survive while affecting the local competitive lending market. The authors use panel-fixed effect regressions based on the storm data from National Oceanic and Atmospheric Administration (NOAA)'s National Weather Service (NWS) and the call reports from the Federal Deposit Insurance Corporation (FDIC). The authors focus on community banks' account variable characteristics and the number of offices to examine whether community banks take an active role in managing flood risk. Results suggest that community banks do employ the selected strategic choices to a certain degree, as it is found that there is an increase in the core capital that absorbs shocks and portfolio diversification. However, the magnitudes of these activities are rather small and not large enough to fully mitigate the climate risk. Also, the authors do not find any evidence of branch expansion associated with local floods. This study contributes to the literature by examining different strategic choices of community banks in the face of natural uncertainty. Even though concerns of climate risk have been raised in the regulatory setting, a lack of guidance or assessment tools could contribute to the passive action of these community banks, even though climate risks can have a significant economic impact. Thus, the evidence documented from this study calls for further guidelines and the importance of highlighting climate risks on community banks so that they can actively engage in risk-reducing strategies.Struggle to survive: case of flood risk on US community banks
Nyonho Oh, Kevin Nooree Kim
Agricultural Finance Review, Vol. 83, No. 4/5, pp.617-634

The survivorship of firms under extreme weather poses an essential question about the local economy's health. Over 90% of agricultural banks are categorized as community banks, which are important financial institutions promoting local growth. While previous studies suggest that climate change and weather shocks adversely impact community banks' resiliency, studies on whether these institutions engage in risk-reducing management strategies have been limited. In this study, the authors examine strategic choices of local community banks when facing flood events which include (1) safety net increase, (2) portfolio diversification, and (3) branch opening. These strategic choices are the coping mechanisms banks can take to survive while affecting the local competitive lending market.

The authors use panel-fixed effect regressions based on the storm data from National Oceanic and Atmospheric Administration (NOAA)'s National Weather Service (NWS) and the call reports from the Federal Deposit Insurance Corporation (FDIC). The authors focus on community banks' account variable characteristics and the number of offices to examine whether community banks take an active role in managing flood risk.

Results suggest that community banks do employ the selected strategic choices to a certain degree, as it is found that there is an increase in the core capital that absorbs shocks and portfolio diversification. However, the magnitudes of these activities are rather small and not large enough to fully mitigate the climate risk. Also, the authors do not find any evidence of branch expansion associated with local floods.

This study contributes to the literature by examining different strategic choices of community banks in the face of natural uncertainty. Even though concerns of climate risk have been raised in the regulatory setting, a lack of guidance or assessment tools could contribute to the passive action of these community banks, even though climate risks can have a significant economic impact. Thus, the evidence documented from this study calls for further guidelines and the importance of highlighting climate risks on community banks so that they can actively engage in risk-reducing strategies.

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Struggle to survive: case of flood risk on US community banks10.1108/AFR-02-2023-0018Agricultural Finance Review2023-08-22© 2023 Emerald Publishing LimitedNyonho OhKevin Nooree KimAgricultural Finance Review834/52023-08-2210.1108/AFR-02-2023-0018https://www.emerald.com/insight/content/doi/10.1108/AFR-02-2023-0018/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Does crop insurance attenuate farm financial risk?https://www.emerald.com/insight/content/doi/10.1108/AFR-01-2023-0003/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestFederally subsidized crop insurance aims to mitigate farm risks of crop producers. A body of literature has examined informational problems under this program. However, few studies empirically link crop insurance participation with farm financial performance. Most use county-level aggregates to argue that crop insurance participation is associated with increased farm financial debt. Using farm-level data, this study provides empirical evidence of crop insurance's effects on farm financial risk. The impact of crop insurance on farm financial risks is assessed using farm-level data from Kansas. The sample consists of at least 1,600 farms each year from 2002 to 2015. Financial risks are measured using the probability of falling into the critical zone of five different financial ratios. The study uses two matching estimators to estimate the causal effects of crop insurance participation on farm financial risks. Several alternative empirical approaches account for unobserved heterogeneity and potential endogeneity. Crop insurance participation has reduced the farm's likelihood of being in the critical liquidity risk by 8%. This result is robust across matching estimators and alternative specifications to account for unobserved heterogeneity and potential endogeneity. This is one of the few studies to examine whether crop insurance reduces farm financial risks. This study provides empirical evidence of the extent to which crop insurance enrollment impacts farm financial risks. Findings suggest that crop insurance is critical to maintaining the financial well-being of crop producers, and significantly reduces the likelihood of producers being in a critical liquidity risk.Does crop insurance attenuate farm financial risk?
Madhav Regmi, Allen M. Featherstone, Jesse Tack
Agricultural Finance Review, Vol. 83, No. 4/5, pp.635-654

Federally subsidized crop insurance aims to mitigate farm risks of crop producers. A body of literature has examined informational problems under this program. However, few studies empirically link crop insurance participation with farm financial performance. Most use county-level aggregates to argue that crop insurance participation is associated with increased farm financial debt. Using farm-level data, this study provides empirical evidence of crop insurance's effects on farm financial risk.

The impact of crop insurance on farm financial risks is assessed using farm-level data from Kansas. The sample consists of at least 1,600 farms each year from 2002 to 2015. Financial risks are measured using the probability of falling into the critical zone of five different financial ratios. The study uses two matching estimators to estimate the causal effects of crop insurance participation on farm financial risks. Several alternative empirical approaches account for unobserved heterogeneity and potential endogeneity.

Crop insurance participation has reduced the farm's likelihood of being in the critical liquidity risk by 8%. This result is robust across matching estimators and alternative specifications to account for unobserved heterogeneity and potential endogeneity.

This is one of the few studies to examine whether crop insurance reduces farm financial risks. This study provides empirical evidence of the extent to which crop insurance enrollment impacts farm financial risks. Findings suggest that crop insurance is critical to maintaining the financial well-being of crop producers, and significantly reduces the likelihood of producers being in a critical liquidity risk.

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Does crop insurance attenuate farm financial risk?10.1108/AFR-01-2023-0003Agricultural Finance Review2023-08-31© 2023 Emerald Publishing LimitedMadhav RegmiAllen M. FeatherstoneJesse TackAgricultural Finance Review834/52023-08-3110.1108/AFR-01-2023-0003https://www.emerald.com/insight/content/doi/10.1108/AFR-01-2023-0003/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Simulating corn futures market reaction and prices under weekly yield forecastshttps://www.emerald.com/insight/content/doi/10.1108/AFR-04-2023-0045/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe increased availability and adoption of precision agriculture technologies has left researchers to grapple with how to best utilize the associated high-frequency large-volume of data. Since the wealth of information from precision equipment can easily be aggregated in real-time, this poses an interesting question of how aggregates of high-frequency data may complement, or substitute for, publicly released periodic reports from government agencies. This study utilized advances in event study and yield projection methodologies to test whether simulated weekly harvest-time yields potentially drive futures price that are significantly different from the status quo. The study employs a two-step methodology to ascertain how corn futures price reactions and price levels would have evolved if market participants had access to weekly forecasted yields. The marginal effects of new information on futures price returns are first established by exploiting the variation between news in publicly available information and price returns. Given this relationship, the study then estimates the counterfactual evolution of corn futures price attributable to new information associated with simulated weekly forecasted yields. The results show that the market for corn exhibits only semi-strong form efficiency, as the “news” provided by the monthly Crop Production and World Agricultural Supply and Demand Estimates reports is incorporated into prices in at most two days after the release. As expected, an increase in corn yields relative to what was publicly known elicits a futures price decrease. The counterfactual analysis suggests that if weekly harvest-time yields were available to market participants, the daily corn futures price will potentially be relatively volatile during the harvest period, but the final price at the end of the harvest season will be lower. The study uses simulation to show the potential evolution of corn futures price if market participants had access to weekly harvest-time yields. In doing so, the study provides insights centered around the ongoing debate regarding the economic value of USDA reports in the presence of growing information availability within the private sector.Simulating corn futures market reaction and prices under weekly yield forecasts
Francis Tsiboe, Jesse B. Tack, Keith Coble, Ardian Harri, Joseph Cooper
Agricultural Finance Review, Vol. 83, No. 4/5, pp.655-674

The increased availability and adoption of precision agriculture technologies has left researchers to grapple with how to best utilize the associated high-frequency large-volume of data. Since the wealth of information from precision equipment can easily be aggregated in real-time, this poses an interesting question of how aggregates of high-frequency data may complement, or substitute for, publicly released periodic reports from government agencies.

This study utilized advances in event study and yield projection methodologies to test whether simulated weekly harvest-time yields potentially drive futures price that are significantly different from the status quo. The study employs a two-step methodology to ascertain how corn futures price reactions and price levels would have evolved if market participants had access to weekly forecasted yields. The marginal effects of new information on futures price returns are first established by exploiting the variation between news in publicly available information and price returns. Given this relationship, the study then estimates the counterfactual evolution of corn futures price attributable to new information associated with simulated weekly forecasted yields.

The results show that the market for corn exhibits only semi-strong form efficiency, as the “news” provided by the monthly Crop Production and World Agricultural Supply and Demand Estimates reports is incorporated into prices in at most two days after the release. As expected, an increase in corn yields relative to what was publicly known elicits a futures price decrease. The counterfactual analysis suggests that if weekly harvest-time yields were available to market participants, the daily corn futures price will potentially be relatively volatile during the harvest period, but the final price at the end of the harvest season will be lower.

The study uses simulation to show the potential evolution of corn futures price if market participants had access to weekly harvest-time yields. In doing so, the study provides insights centered around the ongoing debate regarding the economic value of USDA reports in the presence of growing information availability within the private sector.

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Simulating corn futures market reaction and prices under weekly yield forecasts10.1108/AFR-04-2023-0045Agricultural Finance Review2023-09-06© 2023 Emerald Publishing LimitedFrancis TsiboeJesse B. TackKeith CobleArdian HarriJoseph CooperAgricultural Finance Review834/52023-09-0610.1108/AFR-04-2023-0045https://www.emerald.com/insight/content/doi/10.1108/AFR-04-2023-0045/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Impact of village saving groups on adoption intensity of sustainable agricultural practices among smallholder farmers in Northern region, Ghanahttps://www.emerald.com/insight/content/doi/10.1108/AFR-01-2023-0001/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestAccess to formal financial services is one of the main obstacles to the adoption of agricultural technologies such as Sustainable Agricultural Practices (SAPs). In order to increase financial inclusion and lessen farmers' liquidity restrictions, Village Savings and Loans Associations (VSLA) are being promoted in rural farming communities. However, there extent to which VSLA contributes to the acceleration of agricultural practices, such as SAP, remains little explored in existing literature. The objective of this study was to quantitatively assess the impact of VSLA on the intensity of adoption of SAPs. This study used cross-sectional data from 376 farming households in the East Gonja district of Ghana. An Endogenous Poisson Treatment Regression (EPTR) was applied to correct for self-selection bias that might emanate from both observed and unobserved differences in household characteristics. The empirical results indicated that farmers' engagement in non-farm economic activities, ownership of land and size of agricultural land under cultivation positively and significantly influence the intensity of SAPs adoption. Moreover, participation in VSLA improves the adoption of SAPs, and that VSLA-participants adopted about three more SAPs than they would have if they did not participate in VSLA. This study re-affirmed the significance of VSLA in rural farming communities and recommend that it should be promoted as an alternative to formal financial services to enhance financial inclusiveness, and consequently boost the uptake of SAPs. In the search of literature, this study is the first to estimate the impact of VSLA on adoption of SAPs. The use of EPTR helps to bring out the true treatment effects of VSLA on SAPs.Impact of village saving groups on adoption intensity of sustainable agricultural practices among smallholder farmers in Northern region, Ghana
Abdul-Karim Alhassan, Vivian Fiatusey Boateng, Gideon Danso-Abbeam
Agricultural Finance Review, Vol. 83, No. 4/5, pp.675-690

Access to formal financial services is one of the main obstacles to the adoption of agricultural technologies such as Sustainable Agricultural Practices (SAPs). In order to increase financial inclusion and lessen farmers' liquidity restrictions, Village Savings and Loans Associations (VSLA) are being promoted in rural farming communities. However, there extent to which VSLA contributes to the acceleration of agricultural practices, such as SAP, remains little explored in existing literature. The objective of this study was to quantitatively assess the impact of VSLA on the intensity of adoption of SAPs.

This study used cross-sectional data from 376 farming households in the East Gonja district of Ghana. An Endogenous Poisson Treatment Regression (EPTR) was applied to correct for self-selection bias that might emanate from both observed and unobserved differences in household characteristics.

The empirical results indicated that farmers' engagement in non-farm economic activities, ownership of land and size of agricultural land under cultivation positively and significantly influence the intensity of SAPs adoption. Moreover, participation in VSLA improves the adoption of SAPs, and that VSLA-participants adopted about three more SAPs than they would have if they did not participate in VSLA.

This study re-affirmed the significance of VSLA in rural farming communities and recommend that it should be promoted as an alternative to formal financial services to enhance financial inclusiveness, and consequently boost the uptake of SAPs.

In the search of literature, this study is the first to estimate the impact of VSLA on adoption of SAPs. The use of EPTR helps to bring out the true treatment effects of VSLA on SAPs.

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Impact of village saving groups on adoption intensity of sustainable agricultural practices among smallholder farmers in Northern region, Ghana10.1108/AFR-01-2023-0001Agricultural Finance Review2023-09-15© 2023 Emerald Publishing LimitedAbdul-Karim AlhassanVivian Fiatusey BoatengGideon Danso-AbbeamAgricultural Finance Review834/52023-09-1510.1108/AFR-01-2023-0001https://www.emerald.com/insight/content/doi/10.1108/AFR-01-2023-0001/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Input credit scheme, farm productivity and food security nexus among smallholder rice farmers: evidence from North East Ghanahttps://www.emerald.com/insight/content/doi/10.1108/AFR-03-2023-0039/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study examined the impact of the Input Credit Scheme (ICS) by the Integrated Water Management and Agriculture Development (IWAD) on the productivity and food security of smallholder rice farmers in Ghana. Cross-sectional data from 250 rice farming households in the Mamprugu Moagduri district of the North East Region obtained from a multi-stage sampling technique were used for the study. Inverse Probability Weighted Regression Adjustment (IPWRA), Propensity Score Matching (PSM) and Kendall's coefficient of concordance were the methods of analysis employed. Empirical results show that education, rice farming experience, dependency ratio, FBO membership, farm size and farm age were the significant factors influencing participation in the input credit scheme (ICS). Also, participants had an average rice productivity of 1,476.83 kg/ha, whereas non-participants had 1,131.81 kg/ha implying that participants increased their productivity by about 30%. In addition, the study revealed that participant households increased their household dietary diversity (HDDS) by 0.45 points amounting to about 8% diversity in their diets. High-interest rates associated with credit received, the short periods of credit repayment and the high cost of inputs provided under the scheme were the most challenging constraints associated with partaking in the ICS. The available literature on agricultural interventions have predominantly emphasized input credit as a key factor for improving cropt productivity and food security of smallholders. This study provides compelling evidence that participation in ICSs can result in substantial benefits for agricultural development, as evidenced by increased productivity leading to improved food security. The significance of these findings is highlighted by the fact that, through participation in input credit schemes, smallholder rice farmers in many developing countries see substantial improvement in their capacity to access productive resources, thereby improving their productivity, while simultaneously reducing food insecurity. Leveraging on the improved productivity of participants in the ICS, this study advocates that such input credit schemes should scale up to more food-insecure farming communities in Ghana. The study uses a doubly robust econometric approach to evaluate the impact of ICS on smallholder rice farmers' productivity and food security in Ghana, making it the first of its kind. The findings offer a solid basis for future research and provide guidance for policymakers looking to boost agricultural development in Ghana.Input credit scheme, farm productivity and food security nexus among smallholder rice farmers: evidence from North East Ghana
Camillus Abawiera Wongnaa, Alhassan Abudu, Awal Abdul-Rahaman, Ernest Amegawovor Akey, Stephen Prah
Agricultural Finance Review, Vol. 83, No. 4/5, pp.691-719

This study examined the impact of the Input Credit Scheme (ICS) by the Integrated Water Management and Agriculture Development (IWAD) on the productivity and food security of smallholder rice farmers in Ghana.

Cross-sectional data from 250 rice farming households in the Mamprugu Moagduri district of the North East Region obtained from a multi-stage sampling technique were used for the study. Inverse Probability Weighted Regression Adjustment (IPWRA), Propensity Score Matching (PSM) and Kendall's coefficient of concordance were the methods of analysis employed.

Empirical results show that education, rice farming experience, dependency ratio, FBO membership, farm size and farm age were the significant factors influencing participation in the input credit scheme (ICS). Also, participants had an average rice productivity of 1,476.83 kg/ha, whereas non-participants had 1,131.81 kg/ha implying that participants increased their productivity by about 30%. In addition, the study revealed that participant households increased their household dietary diversity (HDDS) by 0.45 points amounting to about 8% diversity in their diets. High-interest rates associated with credit received, the short periods of credit repayment and the high cost of inputs provided under the scheme were the most challenging constraints associated with partaking in the ICS.

The available literature on agricultural interventions have predominantly emphasized input credit as a key factor for improving cropt productivity and food security of smallholders. This study provides compelling evidence that participation in ICSs can result in substantial benefits for agricultural development, as evidenced by increased productivity leading to improved food security. The significance of these findings is highlighted by the fact that, through participation in input credit schemes, smallholder rice farmers in many developing countries see substantial improvement in their capacity to access productive resources, thereby improving their productivity, while simultaneously reducing food insecurity.

Leveraging on the improved productivity of participants in the ICS, this study advocates that such input credit schemes should scale up to more food-insecure farming communities in Ghana.

The study uses a doubly robust econometric approach to evaluate the impact of ICS on smallholder rice farmers' productivity and food security in Ghana, making it the first of its kind. The findings offer a solid basis for future research and provide guidance for policymakers looking to boost agricultural development in Ghana.

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Input credit scheme, farm productivity and food security nexus among smallholder rice farmers: evidence from North East Ghana10.1108/AFR-03-2023-0039Agricultural Finance Review2023-09-11© 2023 Emerald Publishing LimitedCamillus Abawiera WongnaaAlhassan AbuduAwal Abdul-RahamanErnest Amegawovor AkeyStephen PrahAgricultural Finance Review834/52023-09-1110.1108/AFR-03-2023-0039https://www.emerald.com/insight/content/doi/10.1108/AFR-03-2023-0039/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Feeder and fed cattle purchases of livestock risk protectionhttps://www.emerald.com/insight/content/doi/10.1108/AFR-06-2023-0063/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestPremium subsidy rates were increased in 2019 and 2020 for livestock risk protection (LRP) insurance, which is price insurance for cattle producers. The authors examined if the LRP subsidy rate changes affected the LRP coverage levels purchased by feeder and fed cattle producers. The authors collected the United States Department of Agriculture Risk Management Agency summary of business sales data for daily LRP purchases from 2015 to 2023. The authors estimated a multinomial logit model to determine if subsidy rate changes were associated with the likelihood of LRP policies being purchased at different coverage levels. After the 2019 and 2020 subsidy rate changes, the likelihood of producers buying LRP-feeder cattle policies with coverage over 95% increased relative to the policies with coverage less than 89.99% but did not influence the likelihood of producers buying LRP-feeder cattle policies with coverage between 90 and 94.99% relative to policies with coverage less than 89.99%. Marginal effects show these subsidy rate changes increased the likelihood of buyers purchasing LRP-feeder cattle policies with greater than 95% coverage. The subsidy change did not affect the purchase of LRP-fed cattle policies. The results demonstrate the influence of the recent LRP policy adjustments on insurance purchases, which could be important for agency officials and policy makers. This is the first study to explore the LRP policy purchases which provides the United States cattle industry insight into the LRP price insurance take-up, which can guide producer extension education on managing price risk.Feeder and fed cattle purchases of livestock risk protection
Christopher N. Boyer, Eunchun Park, Karen L. DeLong, Andrew Griffith, Charles Martinez
Agricultural Finance Review, Vol. 83, No. 4/5, pp.720-733

Premium subsidy rates were increased in 2019 and 2020 for livestock risk protection (LRP) insurance, which is price insurance for cattle producers. The authors examined if the LRP subsidy rate changes affected the LRP coverage levels purchased by feeder and fed cattle producers.

The authors collected the United States Department of Agriculture Risk Management Agency summary of business sales data for daily LRP purchases from 2015 to 2023. The authors estimated a multinomial logit model to determine if subsidy rate changes were associated with the likelihood of LRP policies being purchased at different coverage levels.

After the 2019 and 2020 subsidy rate changes, the likelihood of producers buying LRP-feeder cattle policies with coverage over 95% increased relative to the policies with coverage less than 89.99% but did not influence the likelihood of producers buying LRP-feeder cattle policies with coverage between 90 and 94.99% relative to policies with coverage less than 89.99%. Marginal effects show these subsidy rate changes increased the likelihood of buyers purchasing LRP-feeder cattle policies with greater than 95% coverage. The subsidy change did not affect the purchase of LRP-fed cattle policies.

The results demonstrate the influence of the recent LRP policy adjustments on insurance purchases, which could be important for agency officials and policy makers. This is the first study to explore the LRP policy purchases which provides the United States cattle industry insight into the LRP price insurance take-up, which can guide producer extension education on managing price risk.

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Feeder and fed cattle purchases of livestock risk protection10.1108/AFR-06-2023-0063Agricultural Finance Review2023-09-12© 2023 Christopher N. Boyer, Eunchun Park, Karen L. DeLong, Andrew Griffith and Charles MartinezChristopher N. BoyerEunchun ParkKaren L. DeLongAndrew GriffithCharles MartinezAgricultural Finance Review834/52023-09-1210.1108/AFR-06-2023-0063https://www.emerald.com/insight/content/doi/10.1108/AFR-06-2023-0063/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Christopher N. Boyer, Eunchun Park, Karen L. DeLong, Andrew Griffith and Charles Martinezhttp://creativecommons.org/licences/by/4.0/legalcode
Estimating US farmers' speed of climate change adaptation: the case of subsurface tile drainagehttps://www.emerald.com/insight/content/doi/10.1108/AFR-02-2023-0027/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestClimate change is expected to cause larger and more frequent precipitation events in key agricultural regions of the United States, damaging crops and soils. Subsurface tile drainage is an important technology for mitigating the risks of a wetter climate in crop production. In this study, the authors examine how quickly farmers adapt to increased precipitation by investing in drainage technology. Using farm-level data from the 2018 Agricultural Resource Management Survey (ARMS) of soybean producers, the authors construct a drainage adoption timeline based on when the operator began farming their land and when tile drainage was installed, if at all. The authors examine both the initial investment decision and the speed with which drainage is installed by adopters. A Heckman-style Poisson regression is used to model the count nature of adoption speed (measured in years taken to install tile drainage) and to correct for potential sample-selection bias. The authors find that local precipitation is not a significant determinant of the drainage investment decision but may be highly influential in the timing of adoption among drainage users. Farms exposed to crop-damaging levels of precipitation install tile drainage faster than those with low to moderate levels of rainfall. Estimates of farm adaptation speeds are heterogeneous across farm and operator characteristics, most notably land tenure status. Understanding how US farmers adapt to extreme weather through technology adoption is key to predicting the long-term impacts of climate change on America's food system. This study extends the existing climate adaptation literature by focusing on the speed of adoption of an important and increasingly common climate-mitigating technology – subsurface tile drainage.Estimating US farmers' speed of climate change adaptation: the case of subsurface tile drainage
Haden Comstock, Nathan DeLay
Agricultural Finance Review, Vol. 83, No. 4/5, pp.734-761

Climate change is expected to cause larger and more frequent precipitation events in key agricultural regions of the United States, damaging crops and soils. Subsurface tile drainage is an important technology for mitigating the risks of a wetter climate in crop production. In this study, the authors examine how quickly farmers adapt to increased precipitation by investing in drainage technology.

Using farm-level data from the 2018 Agricultural Resource Management Survey (ARMS) of soybean producers, the authors construct a drainage adoption timeline based on when the operator began farming their land and when tile drainage was installed, if at all. The authors examine both the initial investment decision and the speed with which drainage is installed by adopters. A Heckman-style Poisson regression is used to model the count nature of adoption speed (measured in years taken to install tile drainage) and to correct for potential sample-selection bias.

The authors find that local precipitation is not a significant determinant of the drainage investment decision but may be highly influential in the timing of adoption among drainage users. Farms exposed to crop-damaging levels of precipitation install tile drainage faster than those with low to moderate levels of rainfall. Estimates of farm adaptation speeds are heterogeneous across farm and operator characteristics, most notably land tenure status.

Understanding how US farmers adapt to extreme weather through technology adoption is key to predicting the long-term impacts of climate change on America's food system. This study extends the existing climate adaptation literature by focusing on the speed of adoption of an important and increasingly common climate-mitigating technology – subsurface tile drainage.

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Estimating US farmers' speed of climate change adaptation: the case of subsurface tile drainage10.1108/AFR-02-2023-0027Agricultural Finance Review2023-09-18© 2023 Emerald Publishing LimitedHaden ComstockNathan DeLayAgricultural Finance Review834/52023-09-1810.1108/AFR-02-2023-0027https://www.emerald.com/insight/content/doi/10.1108/AFR-02-2023-0027/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Beginning farmer status and financial performance differentialshttps://www.emerald.com/insight/content/doi/10.1108/AFR-05-2023-0054/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestBeginning Farmer and Rancher programs are available for operators with ten years of experience or less on any farm. These programs support farmers who are starting operations, often without an initial asset allocation. However, some beginning farmers acquire operations that are already established, with substantial assets in place. The authors investigate whether a profitability gap exists between beginning farmers entering the industry ex novo and those operating a preexisting operation and if so, what factors contribute to the gap. The authors utilize the Blinder-Oaxaca decomposition to determine what drives financial differences between first-generation beginning farmers, second-generation beginning farmers and established farmers using a unique farm-level panel dataset from 1997 to 2021. Results indicate that first- and second-generation beginning farmers have similar operating profit margins, but first-generation beginning farmers have a statistically higher rate of return on assets than second-generation beginning farmers. Established farmers outperform second-generation beginning farmers on both the operating profit margin and rate of return on assets. These results suggest that economic viability for beginning farmers differs depending upon the initial status of their operation, suggesting that heterogenous policies may be more impactful in supporting various pathways to enter agriculture. This analysis is the first to identify beginning farmers that enter the industry without an asset base and those that take over a principal operator role on an established farm through an assumed farm transition. The authors quantify differences in financial performance using detailed accrual-based financial data that tracks farms over time in one dataset.Beginning farmer status and financial performance differentials
Rebecca Weir, Joleen Hadrich, Alessandro Bonanno, Becca B.R. Jablonski
Agricultural Finance Review, Vol. 83, No. 4/5, pp.762-782

Beginning Farmer and Rancher programs are available for operators with ten years of experience or less on any farm. These programs support farmers who are starting operations, often without an initial asset allocation. However, some beginning farmers acquire operations that are already established, with substantial assets in place. The authors investigate whether a profitability gap exists between beginning farmers entering the industry ex novo and those operating a preexisting operation and if so, what factors contribute to the gap.

The authors utilize the Blinder-Oaxaca decomposition to determine what drives financial differences between first-generation beginning farmers, second-generation beginning farmers and established farmers using a unique farm-level panel dataset from 1997 to 2021.

Results indicate that first- and second-generation beginning farmers have similar operating profit margins, but first-generation beginning farmers have a statistically higher rate of return on assets than second-generation beginning farmers. Established farmers outperform second-generation beginning farmers on both the operating profit margin and rate of return on assets. These results suggest that economic viability for beginning farmers differs depending upon the initial status of their operation, suggesting that heterogenous policies may be more impactful in supporting various pathways to enter agriculture.

This analysis is the first to identify beginning farmers that enter the industry without an asset base and those that take over a principal operator role on an established farm through an assumed farm transition. The authors quantify differences in financial performance using detailed accrual-based financial data that tracks farms over time in one dataset.

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Beginning farmer status and financial performance differentials10.1108/AFR-05-2023-0054Agricultural Finance Review2023-09-19© 2023 Emerald Publishing LimitedRebecca WeirJoleen HadrichAlessandro BonannoBecca B.R. JablonskiAgricultural Finance Review834/52023-09-1910.1108/AFR-05-2023-0054https://www.emerald.com/insight/content/doi/10.1108/AFR-05-2023-0054/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Regulation and agriculture financing in Kenyahttps://www.emerald.com/insight/content/doi/10.1108/AFR-10-2022-0130/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe agricultural sector remains the backbone of several emerging economies, including Kenya, where it contributes 34% to its gross domestic product (GDP). However, access to financing for agricultural activities appears to be very low compared to developed economies. Following this, governments in a number of countries have sought to introduce banking sector regulations to facilitate increased funding to the agricultural sector. Taking motivation of the interest rate capping regulations by the Central Bank of Kenya (CBK) in 2016, this paper examined the effect of these interest rate ceiling regulations on agri-lending in Kenya. The paper employs random effects technique to estimate a panel data of 26 commercial banks in Kenya from 2014 to 2018 using the ratio of loans to agricultural sector to gross loans and the natural logarithm of loans to agricultural sector as proxies for agri-lending. Bank size, equity, asset quality, liquidity, revenue concentration and bank concentration are employed as control variables. The results of the panel regression estimations show that the introduction of the interest cap resulted in increases in the proportion and growth in agri-lending compared with the pre-interest cap period. In addition, large banks and highly capitalised banks were found to be associated with lower agri-lending, with differences in the effects across pre-cap and post-cap periods. From a policy perspective, the findings highlight the effectiveness of interest rate capping in meeting this objective and supports the calls for strengthening cooperation between the government and key stakeholders in the financial sector. This will allow for the effective enforcement of policies by the regulatory powers in a manner that guarantees sound and dynamic financial systems, particularly within the agricultural sector. As far as the authors are aware, this the first paper to examine the effect of the interest rate cap regulation on agri-lending in Kenya.Regulation and agriculture financing in Kenya
Kellen Murungi, Abdul Latif Alhassan, Bomikazi Zeka
Agricultural Finance Review, Vol. 83, No. 4/5, pp.783-799

The agricultural sector remains the backbone of several emerging economies, including Kenya, where it contributes 34% to its gross domestic product (GDP). However, access to financing for agricultural activities appears to be very low compared to developed economies. Following this, governments in a number of countries have sought to introduce banking sector regulations to facilitate increased funding to the agricultural sector. Taking motivation of the interest rate capping regulations by the Central Bank of Kenya (CBK) in 2016, this paper examined the effect of these interest rate ceiling regulations on agri-lending in Kenya.

The paper employs random effects technique to estimate a panel data of 26 commercial banks in Kenya from 2014 to 2018 using the ratio of loans to agricultural sector to gross loans and the natural logarithm of loans to agricultural sector as proxies for agri-lending. Bank size, equity, asset quality, liquidity, revenue concentration and bank concentration are employed as control variables.

The results of the panel regression estimations show that the introduction of the interest cap resulted in increases in the proportion and growth in agri-lending compared with the pre-interest cap period. In addition, large banks and highly capitalised banks were found to be associated with lower agri-lending, with differences in the effects across pre-cap and post-cap periods.

From a policy perspective, the findings highlight the effectiveness of interest rate capping in meeting this objective and supports the calls for strengthening cooperation between the government and key stakeholders in the financial sector. This will allow for the effective enforcement of policies by the regulatory powers in a manner that guarantees sound and dynamic financial systems, particularly within the agricultural sector.

As far as the authors are aware, this the first paper to examine the effect of the interest rate cap regulation on agri-lending in Kenya.

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Regulation and agriculture financing in Kenya10.1108/AFR-10-2022-0130Agricultural Finance Review2023-10-10© 2023 Kellen Murungi, Abdul Latif Alhassan and Bomikazi ZekaKellen MurungiAbdul Latif AlhassanBomikazi ZekaAgricultural Finance Review834/52023-10-1010.1108/AFR-10-2022-0130https://www.emerald.com/insight/content/doi/10.1108/AFR-10-2022-0130/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Kellen Murungi, Abdul Latif Alhassan and Bomikazi Zekahttp://creativecommons.org/licences/by/4.0/legalcode
Agricultural value chain participation and farmers' access to credit in northern Ghanahttps://www.emerald.com/insight/content/doi/10.1108/AFR-01-2023-0007/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestPromoted for its inclusivity, agricultural value chain (AVC) financing leverages social capital and mechanisms such as off-take agreements and forward contracts to reduce borrowing and lending costs and risks for both farmers and lending institutions. AVC financing has been defined as the flow of financial products and services to and among the various actors within the AVC to address constraints of production and distribution and fulfill the needs of those involved in the chain by reducing risk and improving efficiency. This paper investigates how farmers' involvement in AVC affects their access to credit. The authors collected primary data from 400 crop farmers in northern Ghana through a semi-structured questionnaire and analyzed the data, using the multinomial endogenous switching regression model. Joint participation in AVC increased the amount of formal and informal credit received by 64 and 78%, respectively, compared to nonparticipation. Similarly, participation in AVC horizontal linkage and AVC vertical linkage increased the amount of formal and informal credit received by 40 and 47% and 46 and 74%, respectively, compared to nonparticipation. Irrigation farming, extension visits, knowledge of AVC in the community, access to a storage facility and trust in contract farming significantly influenced farmers' participation in AVC. The authors’ work offers valuable insights into how different dimensions of value chain participation can impact smallholder farmers' access to credit. This work also underscores the importance of considering both formal and informal credit sources when analyzing the outcomes of value chain participation. The findings could enable formal financial providers to identify, liaise and/or resource informal financial players such as value chain actors to supply both formal and informal credit to farmers in AVCs.Agricultural value chain participation and farmers' access to credit in northern Ghana
Timothy Anakwa Osei, Samuel A. Donkoh, Isaac Gershon Kodwo Ansah, Joseph A. Awuni, Mensah Tawiah Cobbinah
Agricultural Finance Review, Vol. 83, No. 4/5, pp.800-820

Promoted for its inclusivity, agricultural value chain (AVC) financing leverages social capital and mechanisms such as off-take agreements and forward contracts to reduce borrowing and lending costs and risks for both farmers and lending institutions. AVC financing has been defined as the flow of financial products and services to and among the various actors within the AVC to address constraints of production and distribution and fulfill the needs of those involved in the chain by reducing risk and improving efficiency. This paper investigates how farmers' involvement in AVC affects their access to credit.

The authors collected primary data from 400 crop farmers in northern Ghana through a semi-structured questionnaire and analyzed the data, using the multinomial endogenous switching regression model.

Joint participation in AVC increased the amount of formal and informal credit received by 64 and 78%, respectively, compared to nonparticipation. Similarly, participation in AVC horizontal linkage and AVC vertical linkage increased the amount of formal and informal credit received by 40 and 47% and 46 and 74%, respectively, compared to nonparticipation. Irrigation farming, extension visits, knowledge of AVC in the community, access to a storage facility and trust in contract farming significantly influenced farmers' participation in AVC.

The authors’ work offers valuable insights into how different dimensions of value chain participation can impact smallholder farmers' access to credit. This work also underscores the importance of considering both formal and informal credit sources when analyzing the outcomes of value chain participation. The findings could enable formal financial providers to identify, liaise and/or resource informal financial players such as value chain actors to supply both formal and informal credit to farmers in AVCs.

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Agricultural value chain participation and farmers' access to credit in northern Ghana10.1108/AFR-01-2023-0007Agricultural Finance Review2023-11-10© 2023 Emerald Publishing LimitedTimothy Anakwa OseiSamuel A. DonkohIsaac Gershon Kodwo AnsahJoseph A. AwuniMensah Tawiah CobbinahAgricultural Finance Review834/52023-11-1010.1108/AFR-01-2023-0007https://www.emerald.com/insight/content/doi/10.1108/AFR-01-2023-0007/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Remittances and agricultural productivity: the effect of heterogeneity in economic activity of farming households in Ghanahttps://www.emerald.com/insight/content/doi/10.1108/AFR-03-2023-0043/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to test the impact of remittances receipt on agricultural productivity. The paper empirically assesses whether heterogeneity in economic activity of farming households affects the effects of remittances on productivity of tradable and nontradable crop farming households in Ghana. The authors employ propensity score matching (PSM) methods to address potential endogeneity issues that could arise from the estimation due to selection bias. This paper uses the seventh round of Ghana living standard survey dataset for Ghana. The authors find that, the involvement of farming households in other economic activities alters the impact of remittances on crop yield. This differential impact also varies according whether the crop is tradeable or not. Policy can reduce the cost of sending remittances and include financial literacy modules in the farmer training modules to increase farmers' knowledge on investment of remittance in agricultural production. The authors distinguish the paper from others by controlling for crop types (particularly tradeable or otherwise and gestation period), farming of a second or more crops and engagement of smallholder farmers in nonfarm economic activities.Remittances and agricultural productivity: the effect of heterogeneity in economic activity of farming households in Ghana
Mark Eghan, Charles Adjasi
Agricultural Finance Review, Vol. 83, No. 4/5, pp.821-844

This paper aims to test the impact of remittances receipt on agricultural productivity. The paper empirically assesses whether heterogeneity in economic activity of farming households affects the effects of remittances on productivity of tradable and nontradable crop farming households in Ghana.

The authors employ propensity score matching (PSM) methods to address potential endogeneity issues that could arise from the estimation due to selection bias. This paper uses the seventh round of Ghana living standard survey dataset for Ghana.

The authors find that, the involvement of farming households in other economic activities alters the impact of remittances on crop yield. This differential impact also varies according whether the crop is tradeable or not.

Policy can reduce the cost of sending remittances and include financial literacy modules in the farmer training modules to increase farmers' knowledge on investment of remittance in agricultural production.

The authors distinguish the paper from others by controlling for crop types (particularly tradeable or otherwise and gestation period), farming of a second or more crops and engagement of smallholder farmers in nonfarm economic activities.

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Remittances and agricultural productivity: the effect of heterogeneity in economic activity of farming households in Ghana10.1108/AFR-03-2023-0043Agricultural Finance Review2023-11-14© 2023 Emerald Publishing LimitedMark EghanCharles AdjasiAgricultural Finance Review834/52023-11-1410.1108/AFR-03-2023-0043https://www.emerald.com/insight/content/doi/10.1108/AFR-03-2023-0043/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Impact of financial literacy and financial confidence on the savings behaviour of the farmers: the Indian scenehttps://www.emerald.com/insight/content/doi/10.1108/AFR-05-2023-0056/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe study aims to explore the savings behaviour of Indian farmers. An attempt is also made to inspect the effect of financial literacy (FL) and financial confidence (FC) on the savings behaviour of the farmers in India. This study used secondary data on 10,263 Indian farmers from Financial Inclusion Insights, 2017 database. Relevant statistical techniques and ordered probit regression were used to unfold the effect of FL and FC on the savings behaviour of farmers. The outcome of the study revealed that the majority of the Indian farmers exhibited poor levels of FL and FC. Of the total, 42.99% were found to save regularly. FL and FC were observed to play instrumental roles in steering the savings behaviour of the Indian farmers. Household size, financial shocks, gender, farm ownership, income, household financial decision-making process, religion and educational attainment have emerged to be significant predictors of the savings behaviour of Indian farmers. The present study makes an original contribution to the extant literature by unfolding the savings behaviour of Indian farmers and the effect of FL and FC on such behaviour using a rich sample of 10,263 farmers for the first time.Impact of financial literacy and financial confidence on the savings behaviour of the farmers: the Indian scene
Soumyadwip Das, Sumit Kumar Maji
Agricultural Finance Review, Vol. 83, No. 4/5, pp.845-861

The study aims to explore the savings behaviour of Indian farmers. An attempt is also made to inspect the effect of financial literacy (FL) and financial confidence (FC) on the savings behaviour of the farmers in India.

This study used secondary data on 10,263 Indian farmers from Financial Inclusion Insights, 2017 database. Relevant statistical techniques and ordered probit regression were used to unfold the effect of FL and FC on the savings behaviour of farmers.

The outcome of the study revealed that the majority of the Indian farmers exhibited poor levels of FL and FC. Of the total, 42.99% were found to save regularly. FL and FC were observed to play instrumental roles in steering the savings behaviour of the Indian farmers. Household size, financial shocks, gender, farm ownership, income, household financial decision-making process, religion and educational attainment have emerged to be significant predictors of the savings behaviour of Indian farmers.

The present study makes an original contribution to the extant literature by unfolding the savings behaviour of Indian farmers and the effect of FL and FC on such behaviour using a rich sample of 10,263 farmers for the first time.

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Impact of financial literacy and financial confidence on the savings behaviour of the farmers: the Indian scene10.1108/AFR-05-2023-0056Agricultural Finance Review2023-11-16© 2023 Emerald Publishing LimitedSoumyadwip DasSumit Kumar MajiAgricultural Finance Review834/52023-11-1610.1108/AFR-05-2023-0056https://www.emerald.com/insight/content/doi/10.1108/AFR-05-2023-0056/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Change in US farm sector's financial position and performance in 2020 compared to pre-pandemic expectations: An analysis using financial ratioshttps://www.emerald.com/insight/content/doi/10.1108/AFR-02-2023-0024/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to examine how US farm sector performed in 2020, the first year of the pandemic. There were significant supply and demand shocks due to the pandemic. Furthermore, there was significant fluctuation in commodity prices and record high government payments in 2020. This study aims to examine the performance and position of US farm sector (financially) to system (and global economy) wide shocks. The authors examine 2020 values for farm sector financial ratios before and after the onset of the Coronavirus (COVID-19) pandemic using the data from the United States Department of Agriculture to understand the financial position and performance of the US farm sector. The authors find solvency ratios (which are indicators of the sector's ability to repay financial liabilities via the sale of assets) worsened in 2020 relative to pre-pandemic expectations. Efficiency ratios (which evaluate the conversion of assets into production and revenue) and liquidity ratios (which are indicators of the availability of cash to cover debt payments) showed mixed outcomes for the realized results in 2020 relative to the pre-pandemic forecasts. Four profitability ratios were stronger in 2020 relative to pre-pandemic expectations. All solvency, liquidity and profitability ratios plus 2 out of 5 efficiency ratios for 2020 were weaker than their respective average ratios obtained from 2000 to 2019 data. This research is one of the first papers to use financial ratios to examine how the US farm sector performed in 2020 compared to expectations prior to the pandemic.Change in US farm sector's financial position and performance in 2020 compared to pre-pandemic expectations: An analysis using financial ratios
Anil K. Giri, Carrie Litkowski, Dipak Subedi, Tia M. McDonald
Agricultural Finance Review, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this study is to examine how US farm sector performed in 2020, the first year of the pandemic. There were significant supply and demand shocks due to the pandemic. Furthermore, there was significant fluctuation in commodity prices and record high government payments in 2020. This study aims to examine the performance and position of US farm sector (financially) to system (and global economy) wide shocks.

The authors examine 2020 values for farm sector financial ratios before and after the onset of the Coronavirus (COVID-19) pandemic using the data from the United States Department of Agriculture to understand the financial position and performance of the US farm sector.

The authors find solvency ratios (which are indicators of the sector's ability to repay financial liabilities via the sale of assets) worsened in 2020 relative to pre-pandemic expectations. Efficiency ratios (which evaluate the conversion of assets into production and revenue) and liquidity ratios (which are indicators of the availability of cash to cover debt payments) showed mixed outcomes for the realized results in 2020 relative to the pre-pandemic forecasts. Four profitability ratios were stronger in 2020 relative to pre-pandemic expectations. All solvency, liquidity and profitability ratios plus 2 out of 5 efficiency ratios for 2020 were weaker than their respective average ratios obtained from 2000 to 2019 data.

This research is one of the first papers to use financial ratios to examine how the US farm sector performed in 2020 compared to expectations prior to the pandemic.

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Change in US farm sector's financial position and performance in 2020 compared to pre-pandemic expectations: An analysis using financial ratios10.1108/AFR-02-2023-0024Agricultural Finance Review2023-12-26© 2023 Emerald Publishing LimitedAnil K. GiriCarrie LitkowskiDipak SubediTia M. McDonaldAgricultural Finance Reviewahead-of-printahead-of-print2023-12-2610.1108/AFR-02-2023-0024https://www.emerald.com/insight/content/doi/10.1108/AFR-02-2023-0024/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Impact of interest subvention scheme (ISS) on the behaviour of farm households: a case of Andhra Pradesh and Madhya Pradeshhttps://www.emerald.com/insight/content/doi/10.1108/AFR-03-2023-0036/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestCredit is an essential element in the production process in agriculture. There are two sources from which farm households can access credit: institutional sources and non-institutional or informal sources of credit. The informal sources of credit, such as moneylenders, charge exorbitant rates of interest, which further puts a financial burden on the farmers. Hence, to increase the flow of credit from institutional sources, a policy known as the interest subvention scheme (ISS) was introduced in the year 2006. This paper aims to find the effect of the ISS on the behaviour of farm households. The author has used difference-in-difference analysis for estimation. In the analysis, the author has taken Madhya Pradesh as the treatment state and Andhra Pradesh as the controlled state. The author has used the Village Dynamics in South Asia (VDSA) dataset of ICRISAT for analysis. The author has used data from 2009 to 2014 for the two states. The author has found that the difference between the average interest rate of Andhra Pradesh and Madhya Pradesh is significant for both pre-treatment and post-treatment periods and this gap has increased after the intervention period. The results suggest that the share of informal sector borrowings has reduced in the treatment group (Madhya Pradesh) as compared to the control group (Andhra Pradesh) in the post-treatment period. This paper is particularly important because of the dearth of literature on the impact of this scheme in India and may shed light on the much-needed policy implications of this particular policy.Impact of interest subvention scheme (ISS) on the behaviour of farm households: a case of Andhra Pradesh and Madhya Pradesh
Shubham Kumar Sehgal
Agricultural Finance Review, Vol. ahead-of-print, No. ahead-of-print, pp.-

Credit is an essential element in the production process in agriculture. There are two sources from which farm households can access credit: institutional sources and non-institutional or informal sources of credit. The informal sources of credit, such as moneylenders, charge exorbitant rates of interest, which further puts a financial burden on the farmers. Hence, to increase the flow of credit from institutional sources, a policy known as the interest subvention scheme (ISS) was introduced in the year 2006. This paper aims to find the effect of the ISS on the behaviour of farm households.

The author has used difference-in-difference analysis for estimation. In the analysis, the author has taken Madhya Pradesh as the treatment state and Andhra Pradesh as the controlled state. The author has used the Village Dynamics in South Asia (VDSA) dataset of ICRISAT for analysis. The author has used data from 2009 to 2014 for the two states.

The author has found that the difference between the average interest rate of Andhra Pradesh and Madhya Pradesh is significant for both pre-treatment and post-treatment periods and this gap has increased after the intervention period. The results suggest that the share of informal sector borrowings has reduced in the treatment group (Madhya Pradesh) as compared to the control group (Andhra Pradesh) in the post-treatment period.

This paper is particularly important because of the dearth of literature on the impact of this scheme in India and may shed light on the much-needed policy implications of this particular policy.

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Impact of interest subvention scheme (ISS) on the behaviour of farm households: a case of Andhra Pradesh and Madhya Pradesh10.1108/AFR-03-2023-0036Agricultural Finance Review2023-11-28© 2023 Emerald Publishing LimitedShubham Kumar SehgalAgricultural Finance Reviewahead-of-printahead-of-print2023-11-2810.1108/AFR-03-2023-0036https://www.emerald.com/insight/content/doi/10.1108/AFR-03-2023-0036/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Differences in financial outcomes for family and nonfamily farmshttps://www.emerald.com/insight/content/doi/10.1108/AFR-09-2023-0115/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestNonfamily farms are responsible for a disproportionate amount of US agriculture production. The importance of these operations to the volume of agriculture production in the United States has led researchers and policymakers to understand nonfamily farms as large commercial operations. This paper examines whether the distinction between family and nonfamily helps explain the financial outcomes of farm operations and households. We test for differences in financial outcomes of the household and operations of family and nonfamily farms using an Oaxaca-Blinder decomposition. We compare these results to a decomposition of other possible typologies. We present evidence that nonfamily farms are a heterogeneous group with a majority of small operations that are dominated by a small number of large operations. We discover that differences associated with the family-nonfamily distinction are largely explained by observable farm and operator characteristics that arise mechanically from the definition. However, we find suggestive evidence that family-nonfamily classification captures differences in economic behavior that lead to higher profitability measures to nonfamily farms. We find little evidence of any inherent structural differences between family and nonfamily farms that helps explain financial outcomes related to leverage or household finances. We conclude that including nonfamily farms in official statistics of farm households may provide a more comprehensive overview of the farm sector, as our results suggest that family and nonfamily farms do not have innate differences that help explain many of their financial outcomes. We incorporate previously unused data on nonfamily farm households and test the difference in mean financial outcomes between family and nonfamily farms.Differences in financial outcomes for family and nonfamily farms
David J. Williams, Francisco Scott
Agricultural Finance Review, Vol. ahead-of-print, No. ahead-of-print, pp.-

Nonfamily farms are responsible for a disproportionate amount of US agriculture production. The importance of these operations to the volume of agriculture production in the United States has led researchers and policymakers to understand nonfamily farms as large commercial operations. This paper examines whether the distinction between family and nonfamily helps explain the financial outcomes of farm operations and households.

We test for differences in financial outcomes of the household and operations of family and nonfamily farms using an Oaxaca-Blinder decomposition. We compare these results to a decomposition of other possible typologies.

We present evidence that nonfamily farms are a heterogeneous group with a majority of small operations that are dominated by a small number of large operations. We discover that differences associated with the family-nonfamily distinction are largely explained by observable farm and operator characteristics that arise mechanically from the definition. However, we find suggestive evidence that family-nonfamily classification captures differences in economic behavior that lead to higher profitability measures to nonfamily farms. We find little evidence of any inherent structural differences between family and nonfamily farms that helps explain financial outcomes related to leverage or household finances.

We conclude that including nonfamily farms in official statistics of farm households may provide a more comprehensive overview of the farm sector, as our results suggest that family and nonfamily farms do not have innate differences that help explain many of their financial outcomes.

We incorporate previously unused data on nonfamily farm households and test the difference in mean financial outcomes between family and nonfamily farms.

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Differences in financial outcomes for family and nonfamily farms10.1108/AFR-09-2023-0115Agricultural Finance Review2024-03-15© 2024 Emerald Publishing LimitedDavid J. WilliamsFrancisco ScottAgricultural Finance Reviewahead-of-printahead-of-print2024-03-1510.1108/AFR-09-2023-0115https://www.emerald.com/insight/content/doi/10.1108/AFR-09-2023-0115/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited