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Definition
Most crop research is aimed at increasing crop productivity.
But, increasing food production alone may be insufficient
for ensuring household food security, which is also strongly
influenced by governmental policies and economic factors.
Many poor households consume more food than they produce,
so their ability to attain food security depends on having
income to purchase nutritious food or having access to additional
resources (inputs/land) to grow more food. Some influential
factors include:
- Entitlements-entitlements refer to the ownership
or enhancement of capital resources needed to earn incomes
(land resources, credit resources, and human capital resources,
such as education). In traditional societies, differences
in entitlements according to gender and/or social status
are often a key issue (see Sen, 1990).
- Government policies-the policy environment operating
within a country has an enormous influence, particularly
agricultural policies that subsidize or tax inputs (eg,
fertilizer, land) and outputs (particular crops; agricultural
output vs. industrial output). Budget policies determine
the size and type of allocations for funding national agricultural
research and extension and so influence the level of expertise
and assistance that farmers receive, as well as orientation
of activities towards resource rich versus resource poor
farmers and the emphasis on export versus staple crops.
Macroeconomic policy (eg, governing interest rates and exchange
rates) is also terribly important for the success of agricultural
programs or projects. (see Timmer, Falcon, and Pearson,
Food Policy Analysis).
- Credit- crop production for both home consumption
and external markets typically require credit if any external
inputs are used. The main reason for this is the time dimension
of agricultural production-crops must be planted at one
point in time (incurring various costs, variable and fixed),
and returns are generated at the end of the season. Most
farmers do not rely on savings to pay the up front costs,
they often rely on credit. If they don't have credit, they
are often forced to sell assets (eg livestock) or to not
use additional inputs.
- Markets-for small farmers it is important to establish
stable markets. Often strategies such as adding value to
a crop through processing and/or packaging can garner a
superior and stable price for growers. Other strategies
include differentiation through production methods such
as use of organic growing practices. The rise of supermarkets
in domestic markets and other consolidation of markets,
have given rise to a dual supply chain in many countries.
Typically, capitalized farms are able to meet the requirements
of supermarket buyers and sell directly to large buyers.
Meanwhile, small farmers are at the mercy of intermediaries
who dictate prices and the majority of the market risk is
carried by the farmers. Other market factors that are important
to consider include marketing structures, such as infrastructure
(eg roads) that can be used to get crops to market and market
imperfections (monopoly markets).
The crop production decisions that farmers make are influenced
by the above factors. Income distribution and crop production
responsibilities within households, particularly male vs.
female imbalances (crops for cash vs. crops for home consumption)
may also be important. In measuring costs and returns, farmers
typically maximize expected profits. Very poor farmers may
operate on the principle of minimizing variability vs. maximizing
profits. Farmers often worry about the uncertainty in end-of-season
prices and in weather, pests etc during the crop season. Risk
and uncertainty are an inherent part of agriculture at all
stages in development.
One framework that is helpful in thinking about crop production
is a linear programming or optimization mindset. Farmers maximize
expected profits or minimize expected variability subject
to a set of constraints. Expected (gross) profits reflect
the price times yield of all outputs produced on the farm.
What are the constraints in the particular case you're interested
in? They might include: land size, agro-climatic conditions,
credit availability, seasonal labor availability, water etc.
In a dynamic sense, how can these constraints be manipulated
or lessened in intensity? What sets of crops are possible
to produce given these constraints, and what are the relative
benefits (for home consumption or market) of producing the
various crops? Also, in understanding the types of constraints
operating on agriculture within a country, the "Mosher
framework" can be useful (see Timmer et al, Food Policy
Analysis, Production chapter). This framework examines the
relative strength of agro-ecological, technological, and policy
constraints.
Relevant CCRP projects
None listed as of
.
Relevant events
None listed as of
.
Relevant literature
- Diaz-Bonilla, E. And L. Reca,. 2000. "Trade and agroindustrialization
in developing countries: trends and policy impacts."
Agriculture Economics. 23, 219-229.
- Eicher, C. and J. Staatz (eds.). 1990. Agricultural Development
in the Third World. Baltimore, John Hopkins University Press.
- Fafchamps, M. and R Hill, 2005. Selling at the farmgate or
travelling to market. American Journal of Agricultural Economics,
87(3).717
- Govereh, J. and Jayne, T.S. 2003. Cash cropping and food
crop productivity: synergies or trade-offs? Agricultural Economics.
28, 39-50.
- Lee, D.R., and C.B. Barrett (eds.). 2001. Tradeoffs or Synergies?
Agriculture Intensification, Economic Development and the
Environment. Wallingford, CABI Publishing.
- May, P. and Bonilla, O. 1996. The environmental effects of
agricultural trade liberalization in Latin America: an interpretation.
Ecological Economics. 22, 5-18.
- Reardon, T., Barrett, C., 2000. "Agroindustrialization,
globalization, and international development An overview of
issues, patterns and determinants." Agricultural Economics.
23, 195-205.
- Reardon, T., Trimmer, C., Barrett, C., Berdegue, J., 2003.
"The Rise of Supermarkets in Africa, Asia, and Latin
America." American Journal of Agriculture Economics.
December, 2003.
- Sanchez, P. and M.S. Swaminathen, 2005. Cutting World Hunger
in Half. Science, 307, 357-359.
- Seitz, W., G. Nelson, and H.Halcrow. 1994. Economics of Resources,
Agriculture, and Food, McGraw-Hill.
- Sen, A. 1990. Food, Economics, and Entitlements, in C.Eicher
and J. Staatz (eds.), Agricultural Development in the Third
World. Baltimore, John Hopkins University Press.
- Timmer, C.P., W. Falcon, and S. Pearson. 1983. Food Policy
Analysis. Baltimore, Johns Hopkins University Press.
- Timmer, C.P. 2000. The macro dimensions of food security.
Food Policy, 25(3) 285-293.
- Von Braun, J. and Kennedy, E (eds.). 1994. Agriculture commercialization,
economic development, and nutrition, Baltimore, Johns Hopkins
Press.
Relevant links
International Food Policy Research Institution (IFPRI)
- Website: IFPRI
- Description: "IFPRI’s vision is a world free of hunger and
malnutrition. The vision is based on the human right to
adequate food and nutrition and recognition of the inherent
dignity of all members of the human family. It is a world
where every person has secure access to sufficient and safe
food to sustain a healthy and productive life and where
decisions related to food are made transparently and with
the participation of consumers and producers."
International Institute for Environment and Development
(IIED)
- Website: IIED
- Description: "IIED acts as a catalyst, broker and
facilitator and helps vulnerable groups find their voice
and ensure their interests are heard in decision-making.
Environmental sustainability is a core concern but not at
the expense of people’s livelihoods."
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