Using detailed census data covering over 30,000 farms in Alberta, Saskatchewan and Manitoba, Canada, we document the vast and increasing farm size heterogeneity, and analyse the role of farm size in adapting to the removal of an export subsidy in 1995. Consistent with the Alchian‐Allen hypothesis, the increase in per‐unit trade costs due to the reform was associated with farms of all sizes shifting

We propose a minimax regret approach to optimal factor demand under uncertainty. Regret is the deviation of any given decision from the optimal decision based on a specified set of possible scenarios for the uncertain variables. This approach does not require the specification of instrumental variables to control for unobserved states of nature, and also does not require specification of the number

Given the marked heterogeneous conditions in smallholder agriculture in Sub‐Saharan Africa, there is a growing policy interest in site‐specific extension advice and the use of digital extension tools to provide site‐specific information. Empirical ex‐ante studies on the design of digital extension tools and their use are rare. Using data from a choice experiment in Nigeria, we elicit and analyze the

This article examines the presence of spatial spillovers in farms’ dynamic technical inefficiency scores using Data Envelopment Analysis and a second‐stage spatial truncated bootstrap regression model. Dynamic inefficiency is measured in terms of variable input contraction and gross investment expansion, while the second‐stage model allows an individual’s dynamic inefficiency to be influenced by both

Studies of improved seed adoption in developing countries are almost always based on household surveys and are premised on the assumption that farmers can accurately self‐report their use of improved seed varieties. However, recent studies suggest that farmers’ reports of seed varieties planted, or even whether the seed is local or improved, are sometimes inconsistent with the DNA fingerprinting results

We present a systematic review of the extensive body of research on farmer risk preference measurement across Europe. We capture the methodological developments over time and discuss remaining challenges and potential areas for further research. Given the constantly evolving policy environment in Europe, and increasing climate‐change related risks and uncertainties, there is large value to be gained

We develop an index that measures the overall trade effects of domestic support payments. Our index is based on the Mercantilist Trade Restrictiveness Index (MTRI) and is capable of analysing the development of the trade restrictiveness of domestic support payments over time and across countries. It facilitates the evaluation of agricultural policy reforms introducing changes in the composition of

We quantitatively assess the impacts of re‐allocating budgetary resources within Pillar 1 of the EU's Common Agricultural Policy (CAP) from direct income support to a direct greenhouse gas (GHG) reduction subsidy for EU farmers. The analysis is motivated by the discussion on the future CAP, with calls for both an increased ambition on climate action from the agricultural sector and for a more incentive‐based

We develop a methodology addressing the issue of confounded beliefs and preferences in models of discrete choice. First, we formalise the theoretical framework and logical underpinnings of a belief‐preference model of choice for experience and credence goods, where subjective beliefs relate to uncertain product quality. We then present the experimental procedure within the context of an online choice

Russia's transition to a market economy in the early 1990s shocked its agricultural sector, creating the potential for profit and gains from specialisation and productivity improvements. However, subsequent regional agricultural development has been highly uneven, and the sources of the sector's productivity improvement remain unclear. Drawing on a newly‐assembled Russian regional farm production and

We present empirical evidence on how changes in food preferences have contributed to nutrition transition, where the dietary pattern of households shifts away from traditional staples. Using household‐level time series cross‐section survey data for India, we estimate time varying demand elasticities, revealing evidence of the declining importance of cereals in Indian household diets. The estimates

We evaluate the performance of area yield crop insurance (AYCI) and farm yield crop insurance (FYCI) using farm‐level yield data from China, focusing on their effects on farmers' welfare, and their cost‐effectiveness in terms of government subsidy. Given a subsidy rate sufficient to generate a politically acceptable participation level, the price advantage of AYCI may no longer offset its higher basis

Cowpea covers the largest area of any grain legume in Africa and is especially important in West Africa where Nigeria and Niger alone account for over 75% of the total cowpea production in the world. Despite successes of international and national cowpea improvement research in the development and release of several improved varieties, there is limited empirical evidence of adoption and ex‐post impacts

We examine heterogeneous consumer preferences in Chinese milk markets. Using a discrete choice experiment, we examine how the brand, quality certification, traceability label and price influence consumers' milk choices. We identify four consumer segments using a latent class model: price conscious (9.8%), balanced thinking (19.8%), health conscious (57.5%), and environment conscious (12.9%) consumers

The 'high speed' rotavator is used for shallow tillage to create a fine tilth and incorporate crop residues, often with a single tractor pass. Rotavator tillage has spread quickly in many parts of South Asia, despite short-term experimental trials suggesting deteriorating soil quality and crop yield penalties. Evidence of rotavator impacts on farmer fields across soil gradients and time is largely

Despite extensive efforts made by national and international certification agencies, Indonesian smallholder farmers’ participation in palm oil certification schemes adoption remains low. A fundamental obstacle is the smallholder practice of rainforest transformation into oil palm plantation which is forbidden by the agencies. In this context, we investigate three policies that could lead to a reduction

Drought Tolerant Maize Varieties (DTMV) and Rainfall Index Insurance (RII) are potential complements, though with limited empirical basis. We employ a multivariate spatial framework to investigate the potential for bundling DTMV with a simulated multi‐site and multi‐environment RII, designed to insure against mild, moderate and severe drought risk. We use yield data from on‐farm trials conducted by

We investigate the extent of variation in output sharing in land rental contracts and alternative hypotheses to explain this variation. Close to half of the rental contracts in our study in northern Ethiopia have output shares that deviate from the dominant 50–50 equal sharing. Variation in land quality, the relative bargaining power of landlords and tenants, production risks and shocks are hypothesised

This paper deals with the controversial measure of indirect land use changes of the European biodiesel policy. Two studies sponsored by the European Commission find significant, but contrasted, land use impacts for the different vegetable oils used for biodiesel production. The first study uses an aggregate computable general equilibrium model capturing direct, indirect and induced effects. The second

Consumers have responded negatively to agricultural products originating from the Fukushima prefecture after the 2011 Fukushima Daiichi nuclear power plant incident. These consumers’ behavioural changes have caused substantial economic losses for the producers located in contaminated regions through reductions in market prices, consumption quantities and market shares. Remarkably, these losses are

Exports from Russia, Ukraine and Kazakhstan (RUK) help to improve global wheat availability and, hence, global food security. During the past 15 years, however, RUK wheat exports have shown high variability, mainly because they have been repeatedly diminished by severe harvest failures. We present an outlook for RUK wheat production and exports up to 2027, taking into account possible yield variability

Agricultural biotechnology (genetic modification) has encountered resistance from many consumers, resulting in disparate regulatory approaches across different jurisdictions. The recent advent of CRISPR‐Cas9, or gene editing, offers the potential for significant improvements in plant breeding. However, little is known currently about consumer responses to the technology. A factor often omitted from

China’s research and development (R&D) policy has changed considerably over recent decades, and great changes occurred in 2006 when the main programme objective of China’s R&D changed from the 863 Programme and 973 Programme to the National Science and Technology Major Project. One topic that has drawn extensive attention is whether the investment reform improved R&D productivity in China. Using a

The use of corn as an ethanol feedstock has been stimulated by US biofuels policy. This has changed both the position and the slope of the corn demand curve and increased the pass‐through from crude oil to corn prices. The principal constraints on ethanol consumption and production have been regulation (the biofuels mandate), capacity constraints in ethanol refining and the blend wall, which puts a

We investigate the willingness to pay (WTP) for cultural ecosystem services from grasslands using a meta‐analysis based on 32 eligible research papers that provide in total 79 estimates. The average WTP (corrected for purchasing power) across these studies is 38 Euros per person per year. Yet, our analysis reveals that the transfer of these results needs careful evaluation. More specifically, it is

This study is motivated by the need to understand how the rise of medium‐scale farms in Africa is affecting small‐scale farm households. Survey evidence over the past decade has shown a dramatic rise in the prevalence of ‘medium’ sized farms between 5 and 100 hectares, but smaller farms still constitute the vast majority of farms and rural households. Prior evidence highlights a co‐evolution between

Commercialisation of smallholder agriculture is important for rural economic growth. While previous studies have analysed effects of commercialisation on productivity and income, implications for farm household nutrition have received much less attention. We evaluate the effects of commercialisation on household food security and dietary quality with a special focus on calorie and micronutrient consumption

Population growth, increasing wealth and changing diets require agriculture in Sub‐Saharan Africa to intensify to meet future food demand and ensure food security in the region. Conservation agriculture can increase yields in the long run and reduce the negative environmental impacts of intensive farming. In changing the mix of resources used and how they are managed, the adoption of conservation agriculture

Increasing popularity of economic experiments for policy impact analysis has led to an on‐going debate about the suitability of students to substitute professionals as experimental subjects. To date, subject pool effects in agricultural and resource economics experiments have not been sufficiently studied. In order to identify differences and similarities between students and non‐students, we carry

Without enforced standards or reliable third‐party verification, food safety threats such as pesticide residues and aflatoxin contamination are generally unobservable or only partially observable to both buyers and sellers, especially of staple foods in rural maize markets in sub‐Saharan Africa. As a result, sellers have more information about food quality than do buyers. Such information asymmetries

Using a new detailed dataset on country‐product information on European Union (EU) Geographical Indications (GIs), we study the impact of this food quality policy on trade margins over the 1996–2014 period. We consider the effect of GIs on both intra‐ and extra‐EU trade margins (extensive and intensive), as well as on export (and import) unit values. Our main results show that GIs affect trade flows

The UK Brexit vote triggered a new wave of policy developments for a future outside the EU. In this context, we analyse the business performance of English hill and upland farms, characterised by marginal economic conditions but also high nature value (HNV). The analysis aims to help identify farm‐level management and policy options for greater economic, environmental and social sustainability. Business

This address explores the importance for agricultural sustainability of different types of capital assets, especially knowledge capital, drawing on recent research in New Zealand that has aimed to expand the contribution of the primary sector to sustainable wellbeing. I begin with an overview of the theory on what constitutes sustainability and wellbeing, focusing on connections between wellbeing,

The increasing policy interest and academic debates on non‐tariff measures (NTMs) has stimulated a growing literature on how NTMs affect agri‐food trade. The empirical literature provides contrasting and heterogeneous evidence, with some studies supporting the ‘standards as catalysts’ view, and others favouring the ‘standards as barriers’ explanation. To the extent that NTMs can influence trade, understanding

Livestock products, such as dairy and beef, are increasingly regarded as resource intensive and concerns are raised about animal welfare and environmental sustainability. As a result, consumer awareness of these issues has led to an increasing demand for products with high quality credence attributes (CAs) that cannot be directly experienced or identified. A number of empirical studies have attempted

Index insurance has been heralded as a potential solution to risk management problems faced by smallholder farmers in developing countries. Despite its potential, demand for standalone index insurance contracts has remained low in early field trials. We investigate the willingness to pay for drought index insurance‐backed loans in northern Ghana using contingent valuation. We find that index insurance

Agriculture is a significant source of global greenhouse gas (GHG) emissions. GHG mitigation through agri‐environmental programmes could be important in achieving emission reduction targets under the 2015 UN climate agreement. This study uses the principal‐agent model to examine a peatland retirement programme to reduce agricultural emissions in Norway. The focus is on the role of the government's

In this paper, we generalise existing approaches to the treatment of stated attribute non‐attendance data in discrete choice experiments by allowing attribute specific impacts. We implement this approach by employing an extended hierarchical Bayes logit model specification. To illustrate this approach, we consider data collected to examine Indian consumers’ preferences for traditional aromatic rice

We apply a value chain approach to examine how blackberry producers in Ecuador can improve production and marketing practices to obtain more favorable prices. Results show that general upgrading actions are associated with improved producer prices, and specific activities, such as seeking information from reputable sources can lead to substantial welfare improvements. The paper goes beyond most value

This paper investigates the assessment and effects of adverse shocks on agricultural production, with an application to corn yield. Adverse shocks are assessed by the probability of facing low yields, i.e. by the probability of being exposed to downside risk. Defined in terms of willingness‐to‐pay to eliminate risk, the ex‐ante cost of facing adverse events is evaluated under prospect theory. Prospect

The agro‐food sector has experienced a profound transformation of contractual arrangements along the value chain, coinciding with important technological innovations and product quality upgrading. Our understanding of the impact that this transformation has had on trade flows in the agricultural sector is very limited. In particular, we have limited knowledge about the extent to which the patterns

Private efforts to prevent and control biological pests and infectious diseases can be a public good, and so incentivising private biosecurity management actions is both desirable and problematic. Compensation contracts can encourage biosecurity efforts, provide support against the collapse of economic sectors, and create an insurance network. We conceptualise a novel biosecurity instrument relying

Initially taken as a template for farm restructuring after the demise of collective agriculture, the ‘Western family farm model’ has taken root in the former Soviet countries only belatedly and incompletely. We examine dairy structures in Russia and Kazakhstan and analyse the drivers of recent herd growth. We are specifically interested in the role of farm management and organisation, vertical integration

The effectiveness of nitrogen abatement trading as a policy measure relies on both heterogeneity in costs and environmental effectiveness across landscapes. Cost‐efficient implementation may therefore critically depend on spatial distributions of farm and farmer characteristics in water catchments. We use a spatially specific hypothetical market experiment to analyse the likelihood of farmers’ enrolment

The present paper extends the existing literature on vertical price transmission and cost pass‐through by investigating the impact of product differentiation. We apply distance‐measures of product differentiation to a specific product market (yoghurt) within one country (Germany). Results from a panel‐error‐correction model for 30 products sold in 432 stores over a period of 312 weeks suggest that

Switzerland applies seasonal tariff rate quotas (TRQs) for the import of many fruits and vegetables during the domestic harvest season. We examine how this system affects the relationship between Italian and Swiss tomato prices and test for physical market integration and spatial equilibrium conditions over time. We use detailed, transaction‐based data on trade flows and trade costs and estimate an

Lloyd's review of the literature on food price transmission in the Journal of Agricultural Economics (2017) is incomplete in that it omits discussion of technical change and international trade. The purpose of this Comment is to explain why these topics are essential for a proper understanding of price transmission. As a by‐product of the discussion, I show that the pass‐through and pass‐back equations

Most studies of input subsidy programmes confine their analyses to measuring programme effects over a one-year period. This article estimates the potential longer-run or enduring effects of fertiliser subsidy programmes on smallholder farm households' demand for commercial fertiliser and maize production over time. We use four waves of panel data on 462 farm households in Malawi for whom fertiliser