THE DETERMINANTS OF ADOPTION OF SUSTAINABLE AGRICULTURE TECHNOLOGIES: EVIDENCE FROM THE HILLSIDES OF HONDURAS

Recent years have seen a growth of interest in the adoption and diffusion of low-input sustainable agricultural technologies among smallholder agriculturalists in developing countries. This paper examines the adoption of one such technology, labranza minima, a form of minimum tillage, among resource-poor agricultural households in villages in central Honduras. Logistic regression is used to analyze the determinants of adoption of minimum tillage among a sample of 250 agricultural households. The results show that plots with irrigation, plots farmed by their owners and plots with steeper slopes were more likely canididates for minimum tillage adoption. Farmer household characteristics are not generally found to represent significant influences on adoption. Importantly, household income does not appar to be a determinant of adoption, suggesting that minimum tillage is an appropriate low-input technology for resource-poor households. The results also indicate that previous use of leguminous cover crops, soil amendments (including chemical fertilizers), and commercial vegetable production are all associated with minimum tillage adoption. Results from studies like this are useful in targeting low-input technologies and programs promoting them among the farm household population.technology adoption, sustainable agriculture, minimum tillage, Farm Management,

Spatial Price Integration in U.S. and Mexican Rice Markets

Agricultural trade between the U.S. and Mexico has become progressively liberalized over the past 20 years, with significant increases in bilateral trade in many sectors. The rice sector in both nations, however, continues to be highly protected, with producers and millers on both sides of the border continuing to protest the other nation's protectionist policies. This paper examines market efficiency and spatial price integration in ten U.S. and Mexican rice markets over the 1998-2002 period, during which a retaliatory antidumping duty was imposed by Mexico. The paper uses a multiple step analytical process, including analysis of market price differentials, stationarity tests, bivariate and multivariate cointegration tests, and impulse response analysis. Based on the cointegration results, long-run equilibrating relationships are shown to bind most Mexican markets to U.S. markets, and the U.S. markets are shown to be integrated with continuity. Smaller and more remote Mexican markets located far from transport hubs and milling centers tend not to be integrated with other regions, suffer from information asymmetries, and are characterized by relatively high price levels. In large markets where tariffs tend to be binding, trade policy plays a key role in determining equilibrium market relationships. For example, the tariff structure largely determines whether rice consumed in Mexico will primarily be milled domestically or in the U.S. in the long run. Overall, the results suggest that while consumers in major urban centers have benefited from freer trade, those in remote rural markets have yet to realize significant gains from liberalized rice markets.Crop Production/Industries, Demand and Price Analysis,

Combining internal and external inputs for sustainable intensification

Farmers and local development organizations around the world use and promote a variety of technologies to increase food production. But the high cost of inorganic fertilizers and other agrochemicals often drives farmers to rely on locally available resources instead of purchased, externally produced inputs. So-called low external input agriculture (LEIA) has spread rapidly to different parts of the globe as a challenging alternative to—or, more frequently, a complement to— Green Revolution technologies...The goal of policy, research, and extension should be to help LEIA farmers achieve "sustainable intensification", which refers to the simultaneous increase in returns to land and labor (in the short run) and the maintenance of soil nutrient balances (in the long run).Soil fertility. ,Food production. ,Technological innovations. ,Fertilizers. ,Agricultural research. ,

THE ANDEAN PRICE BAND SYSTEM: EFFECTS ON PRICES, PROTECTION AND PRODUCER WELFARE

The Andean Community's Price Band System (APBS), introduced in 1995, had the announced goal of reducing domestic price instability by buffering fluctuations in international prices through use of a variable import tariff. This paper evaluates the effects of the Andean Price Band System on domestic producer price variability, levels of nominal protection and changes in producer welfare. Application is made to four important food products - maize, rice, sugar and milk - in Colombia, Ecuador and Venezuela, from the period 1990 to 1998. The effects of the APBS on producer price variability are analyzed through 1) comparing coefficients of variation of detrended, monthly deseasonalized real prices before and after the harmonization of the APBS in 1995, and 2) variance decomposition of real domestic prices. For Colombia and Ecuador, the APBS is shown to have successfully reduced real price instability below levels of instability which existed prior to its introduction. Real exchange rate instability also decreased sharply in these two countries following introduction of the APBS. In Venezuela, real price instability is shown to have increased following introduction of the APBS, while real exchange rate instability was unchanged. The APBS' effects on producer price protection are examined through estimation of average nominal protection coefficients for the twelve country-commodity combinations identified above before and after the introduction of the APBS. Results show that in all three countries and four virtually all products, the APBS contributed to increased producer protection. Finally, this paper uses a variant of the Newbery-Stiglitz approach to calculate efficiency benefits due to risk reduction among producers and the transfer benefits created by redistributing income among producers, consumers and government. The results show that the risk reduction benefits created by the APBS are small. Similarly, the income transfer effects, though larger, are also low, and both contribute to generally low levels of estimated producer welfare effects. Overall, the paper concludes that the APBS has been of limited usefulness as a policy instrument designed to reduce producer price variability in an economically efficient manner.Andean Community, price band system, agricultural prices, price stabilization, Demand and Price Analysis,

EXPLAINING THE ADOPTION AND DISADOPTION OF SUSTAINABLE AGRICULTURE: THE CASE OF COVER CROPS IN NORTHERN HONDURAS

Although technology adoption has been the subject of a great deal of economic research, that focused on the economics of adoption of low-input "sustainable" systems has been much more limited and recent. This paper attempts to explain the recent decline in the use of cover crops using in maize farming in the Department of Atlantida, Honduras. In the early 1970's, farmers in the region began rotating maize with the velvetbean (mucuna ssp.), a system learned from Guatemalan immigrants. Tohe mucuna-maize system decreased the labor required for maize farming even as it increased yields, prevented erosion, and conferred a variety of other agronomic benefits. By 1992, estimates show that the system had diffused among more than 60% of farmers in the Department. Both due to this widespread dissemination, and the fact that diffusion was largely spontaneous (unassisted by extensions and NGOs), the maize-mucuna system has become a widely acknowledged "success story" of sustainable agriculture diffusion. However, recent anecdotal evidence, confirmed by the survey research reported here, shows that by the late 1990s, use of the system had begun to decline sharply. Various hypotheses about the cause of this decline were investigated in this research, including whether the abandonment of the mucuna-maize system is attributable to a generalized decline in maize cultivation, changes in land tenure and distribution, a burgeoning cattle industry, infrastructural improvements, widespread infestations of noxious weed (rottboellia cochinchinensis), or limitations in farmer management. Modeling techniques evaluated two land-use decisions: whether to adopt mucuna-maize and the contingent decision of whether to abandon the system, once adopted. Bivariate probit analysis is used in the econometric analysis. Descriptive statistics and econometric results indicate that age, level of income from non-maize sources, the presence of rottboellia, and access to a road or highway are significantly related to the abandonment of overcropping. Meanwhile, greater dedication to maize, diversification into high value crops, greater experience with the system, and annual reseeding of mucuna are associated with continued use of the mucuna-maize rotation. The empirical results overall demonstrate that the phenomenon of maize-muchuna adoption and abandonment is a highly complex process. The results have policy implications for the "farmer to farmer" model of extension as well as the promotion of mucuna-maize as a sustainable agriculture technique. In the first case, less emphasis on diffusion and greater attention to farmer-to-farmer teaching of crop system dynamics may be important for the durability of cover crop systems. Regarding the second, cover crop species like mucuna should not be viewed as "silver bullet" solution to sustaining low-input agriculture: indeed, exclusive rotation of mucuna with maize may eliminate critical sources of plant and animal species diversity, ultimately undermining the system itself.International development, Sustainable agriculture, Adoption, Disadoption, Farmer management, Crop Production/Industries,

FACTORS AFFECTING PARTICIPATION IN THE MILK DIVERSION PROGRAM IN THE U.S. AND NEW YORK

Participation in the 1984-85 Milk Diversion Program (MDP) is examined through the analysis of aggregate state level data for the U.S. and county level data from New York. Linear probability, logit and probit models of participation are estimated. The empirical results are highly similar across models and identify the important determinants of farmer participation in the MDP. Models explaining contracted diversion levels are also estimated but do not have the explanatory power of the participation models. The implications of the results for the analysis of U.S. dairy policy alternatives are discussed.Agricultural and Food Policy, Livestock Production/Industries,

TRANSPORTATION DEREGULATION AND INTERREGIONAL COMPETITION IN THE NORTHEASTERN FEED ECONOMY

The effects of rail deregulation on feed transportation in the Northeast are examined through construction of a spatial equilibrium model of the Northeastern feed industry. Short-run and long-run effects of deregulation are analyzed through incorporation of rail rate structures for 1981 and 1984, respectively, into model simulations and comparison with pre-deregulation base year results (1980). The results show that the Northeast feed economy has generally benefited from rail deregulation which has led to lower transportation costs, lower feed costs and an enhanced competitive position relative to the Southeastern U.S.Public Economics,

STRUCTURAL ADJUSTMENT AND AGRICULTURAL EXPORT RESPONSE IN LATIN AMERICA

Expanding exports has been one of the principal goals of structural adjustment programs aimed at restoring external balance of payments equilibria in many developing countries. This paper analyzes the changing responsiveness of agricultural exports to price and exchange rate variation for selected crops in eight Latin American countries over the period 1961-1990. The results show that: (1) commodity and country disaggregation in estimation generates much higher export response elasticities than previously estimated; (2) real exchange rate changes dominate price changes in stimulating export response; and (3) statistical tests confirm structural change in export response elasticities in over half of the equations estimated. Overall, the evidence suggests that price and exchange rate changes accompanying stabilization and adjustment reforms have had significant though non-uniform effects in stimulating agricultural export expansion in Latin America.International Relations/Trade,