Case Study #6-6 of the Program: ''Food Policy For Developing Countries: The Role Of Government In The Global Food System''

11 pp.©Cornell University, Ithaca, New York. All rights reserved. This case study may be reproduced for educational purposes without express permission but must include acknowledgment to Cornell University. No commercial use is permitted without permission.Contract farming is defined as an agreement, which may range from a simple verbal commitment to a written document, between a farmer and a firm, in which the farmer agrees to deliver fresh or partially processed products and the firm commits itself to purchasing the produce under certain agreed price and non-price conditions. Contract farming is usually considered a substitute for poorly functioning or absent markets. The literature on contract farming presents two opposite views of the potential of this alternative market institution as a bridge for trading between smallholders and agroprocessing firms. Some researchers argue that contracts are an adequate mechanism for integrating smallholders into dynamic markets by overcoming the constraints of a failing market. Others warn about the downside of contracting. We present the rationales for different types of contractual regimes between small-scale pepper producers and agroprocessing firms in the northern region of Costa Rica under two market configurations— namely, a competitive market and a local monopsony. Three types of contractual agreements (written contracts, verbal commitments, and no agreement) are found. The analysis is based on a survey of pepper producers using a semistructured questionnaire to obtain data on production systems and marketing arrangements. Pepper is an attractive diversification activity for smallholders because it is a labor-intensive crop, does not require complex technologies or machinery, requires detailed attention and frequent disease control through the cropping cycle, and can reach high, fairly stable yields per hectare. A major drawback is the high entry cost during the start-up phase, stemming from the need for initial investments in crop establishment and the long maturation time before the first harvest. Contracts may help overcome these constraints and permit market entry at a reduced level of uncertainty. A farmer's level and sources of income have a clear effect on his or her contract choice and bargaining power. Income diversification enables farmers to increase their asset specificity in pepper crops,1 even without the insurance provided by contracts. Therefore, pepper companies prefer to offer contracts to less-endowed farmers who have some farming experience but limited income diversification. These farmers are likely to engage in contract farming owing to their limited bargaining power. Even though the enterprise operating in the monopsonistic market also maintains high asset specificity, it is able to buy from some farmers without any prior agreement, since the latter possess limited bargaining options for valuing their asset-specific investments. Farmers with contracts definitely invest more inputs and time in soil maintenance activities on their pepper plots. Resource-providing contracts in the competitive market have a stronger effect on farmers' investments than simple market specification contracts in the monopsonistic market. This finding confirms the literature regarding the importance of resource-providing contracts and vertical integration for sustainable agricultural intensification (Kuyvenhoven and Ruben 2002). Budgetconstrained farmers that intend to tailor their investment decisions in line with the designed technological package may substitute for the default level of fertilizer use with additional labor investments in soil maintenance activities. Your assignment is to recommend a government policy to assure an acceptable level of competition and to facilitate increasing incomes and reduced risks for low-income pepper farmers in Costa Rica.Cornell University Division of Nutritional Science

Identificación de áreas de manejo crítico de la tierra : propuesta metodológica para áreas metropolitanas, a partir de la GAM, Costa Rica

El análisis del estilo de desarrollo seguido por el sector agrícola y turismo se recrea por medio de un diagnóstico global de la dinámica económica, institucional y espacial, bajo las cuales ambas actividades hacen uso de la tierra y compiten por la misma. Partiendo de la definición de la zona de estudio, la presente propuesta metodológica apunta a identificar, localizar y geo-referenciar las principales actividades agropecuarias y eco-turísticas que se desarrollan en una zona de estudio. Esto permite hacer un primer análisis de la dinámica y tendencias del desarrollo de ambos sectores. La propuesta define una localización y categorización de usos de la tierra, asociada a una jerarquización económica de las principales actividades económicas, para terminar con un perfil del mercado laboral de la zona de estudio. Es de esperar que esta metodología aporte información útil para alimentar modelos bio-económicos, para la formulación de planes reguladores y de protección de recursos naturales, así como también para vislumbrar escenarios plausibles, a la hora de plantear tendencias futuras y recomendaciones de política económica para el Gran Área Metropolitana (GAM).The style of development followed by the agricultural and tourism sectors in a given area starts with a global analysis of their economic, institutional and spatial dynamics and the consequent impact on land use. Starting with the definition of a study area, this methodological approach aims to identify, locate and geo-reference the main agricultural and eco-tourism activities, followed by an socioeconomic analysis of the dynamics and development trends of both sectors. The location and categorization of land use are defined, linked to and economic ranking of main economic activities. A first profile of the labor market in the study zone is also provided. The methodology yielded useful information of critical land use areas, which can be used to feed bio-economic models, show possible scenarios and future trends, and help in the formulation of regulatory and protection plans

Identificación de áreas de manejo crítico de la tierra: Propuesta metodológica para áreas metropolitanas, a partir de la GAM, Costa Rica

El análisis del estilo de desarrollo seguido por el sector agrícola y turismo se recrea por medio de un diagnóstico global de la dinámica económica, institucional y espacial, bajo las cuales ambas actividades hacen uso de la tierra y compiten por la misma. Partiendo de la definición de la zona de estudio, la presente propuesta metodológica apunta a identificar, localizar y geo-referenciar las principales actividades agropecuarias y eco-turísticas que se desarrollan en una zona de estudio. Esto permite hacer un primer análisis de la dinámica y tendencias del desarrollo de ambos sectores. La propuesta define una localización y categorización de usos de la tierra, asociada a una jerarquización económica de las principales actividades económicas, para terminar con un perfil del mercado laboral de la zona de estudio. Es de esperar que esta metodología aporte información útil para alimentar modelos bio-económicos, para la formulación de planes reguladores y de protección de recursos naturales, así como también para vislumbrar escenarios plausibles, a la hora de plantear tendencias futuras y recomendaciones de política económica para el Gran Área Metropolitana (GAM).Uso de la tierra, agricultura, eco-turismo, sistema de información geográfica, mercado de estudio

Política agrícola en Costa Rica y su efecto sobre el campesinado. ¿Tendrá la educación “alguna vela en este entierro”?

Agrarian policy, rural population and education are three issues which are combined in this study and examined in a particularly difficult context for small farmers in Costa Rica . Although the term agrarian policy refers to the ways in which the government proposes objectives and goals for the farm sector, and the methods to be used to reach them, the lack of defined policies is a political option in itself. This study describes the change from an aid-oriented development model to that of the free market, where the lack of a defined agrarian policy appears to be the norm. This has been particularly serious for the small farmers in Costa Rica, who were affected by the same agro-export bias policies as those applied to the large producers, with no adequate preparatory strategy. Most small farmers have suffered from economic exclusion and poverty for 20 years. This situation has endangered the existence of the social network in rural areas. The analysis is extended to cover the role assumed by education to the present time, and includes its implications in this process of change in the farm sector

El análisis de las políticas públicas y el desarrollo territorial rural

Agenda de discusión: Sobre el concepto de políticas públicas. ¿Por qué el análisis de las políticas públicas?. Sobre el concepto de “desarrollo”. Métodos. Algunos ejemplos.Universidad Nacional, Costa RicaCentro Internacional en Política Económica para el desarrollado sostenibl

La encrucijada en que estamos

La llegada de la covid-19 aceleró la historia en todo el mundo, y lo hizo particularmente en un país como el nuestro, entrampado en discusiones de corto plazo, en donde nos desgastamos tratando de neutralizar crisis recurrentes, buscando comprar más tiempo con “soluciones de sobrevivencia”.The arrival of covid-19 accelerated history throughout the world, and it did so particularly in a country like ours, trapped in short-term discussions, where we wear ourselves out trying to neutralize recurring crises, seeking to buy more time with "solutions of survival ”.Universidad Nacional, Costa RicaCentro Internacional de Política Económica para el Desarrollo Sostenibl

Repensar el desarrollo de los territorios rurales desde la perspectiva de los actores locales

Presentación que se preparó como un producto interno del proyecto "Fortalecimiento colaborativo de la capacidad de diálogo y co-construcción de políticas de Desarrollo Territorial Rural (DTR) contextualizadas con comunidades, espacios de gobernanza, organizaciones civiles y sectoriales de la Región Chorotega, Costa Rica (CADICO-DTR), código 277-18. y que está vigente hasta diciembre 2021. la presentación conferenciaUniversidad Nacional, Costa RicaCentro Internacional de Política Económica para el Desarrollo Sostenibl

La Costa Rica que necesitamos repensar

legamos al final de un año 2020 con una extraña mezcla de emociones, entre serias preocupaciones laborales y económicas que han agobiado a las familias y a las empresas en el corto plazo, preocupaciones por la situación fiscal del país que parece no tener fin, a todavía no digerir del todo, cómo han cambiado nuestras vidas después de marzo de este año. Sin embargo, en el fondo todos tenemos una esperanza de que el año 2021 será mejor que este. ¡Debería de ser mejor que éste!at the end of a year 2020, with a strange mix of emotions, between serious labour and economic concerns that have burdened families and businesses in the short term, concerns about the country’s fiscal situation that seems endless, To still not fully digest how they have changed our lives after March this year. However, deep down we all have a hope that the year 2021 will be better than this. It should be better than this!Universidad Nacional, Costa RicaCentro Internacional en Política Económica para el Desarrollo Sostenibl