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This paper examines the recent decentralization of governance in Indonesia and its impact on local infrastructure provision. The decentralization of decisionmaking power to local jurisdictions in Indonesia may have improved the matching of public infrastructures provision with local preferences. However, decentralization has made local public infra...
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Context 1
... were surveyed about their agricultural and non-agricultural income sources, practices, demographics and assets over the past two seasons. 4 Table 1 presents sample characteristics, rainfall, and population density data for each sampled district. The 22 sampled districts are grouped into eight agro-regional zones; these zonal definitions are used in subsequent descriptive analysis. ...
Context 2
... Table 9 presented the marginal effects of small changes in the level of cash cropping intensity across the relevant crop and district combinations, Table 10 displays a simulation of the average effects of the same combinations. This exercise is important, given that promotion of particular crops through outgrower marketing/processing arrangements really represents a non- marginal change in agriculture where it occurs. ...
Similar publications
This paper examines the recent decentralization of governance in Indonesia and its impact on local infrastructure provision. The decentralization of decisionmaking power to local jurisdictions in Indonesia may have improved the matching of public infrastructures provision with local preferences. However, decentralization has made local public infra...
Citations
... Results indicate that a 1% increase in the rate of market orientation and value of animal output increases on-farm investment by about 0.28% and 0.23%, respectively. The result of the positive and significant effects of the rate of market orientation is consistent with Strasberg et al. (1999), who found that agricultural household's farm commercialization has a significant and positive impact on fertilizer use and productivity. On the other hand, as expected, household size negatively and significantly affects smallholders' on-farm investment in India. ...
This paper examines the impact of land ownership on farm-level investment and investment risk (variability) in Indian agriculture using nationally representative survey data. The study adopts a flexible moment approach with White’s heteroscedasticity consistent standard error method. Results reveal that land ownership intensity significantly augments on-farm investment and reduces its variability. Other variables like family head’s education, access to irrigation, technical advice, credit and nonfarm income have significant inducement effects on-farm investment. We also observe that farmers’ education, age, irrigation, technical advice, MSP awareness and commercialization reduce farm investment risk. Findings have important policy implications for Indian land tenancy
... In the existing literature, agricultural commercialization is often measured using the Household Commercialization Index (HCI). Accordingly, various authors have applied HCI to measure commercialization level of farm households (Getahun 2020;Getahun et al. 2019;Gidelew et al. 2022;Jaleta et al. 2009;Leta 2018;Sida et al. 2021;Strasberg et al. 1999). Therefore, we used the same method to measure teff commercialization in the cluster farming priority regions of Ethiopia, and HCI is calculated as follows. ...
Background
Cluster farming is an agricultural practice that involves organizing and grouping together farmers within a specific geographic area based on proximity of their farm plots to create synergies and economies of scale. In developing countries including Ethiopia cluster farming has gained prominence as a strategic initiative to foster commercialized agriculture and enhance the livelihoods of smallholder farmers by integrating their production within the broader value chain. In light of this, the government of Ethiopia plans to promote cluster farming throughout the country based on the best practices of the four cluster farming priority regions and 10 high-value commodities. Teff is one of the high-value commodities in the cluster farming priority regions. However, the impact of cluster farming on teff commercialization was not studied before.
Methods
We conducted this study to examine the impact of cluster farming on teff commercialization using nationally representative data collected by Agricultural Transformation Institute of Ethiopia. Then, we analyzed the data using descriptive and inferential statistics, commercialization index, and endogenous switching regression model.
Results
The result revealed that the mean teff commercialization of cluster farming participants was higher than non-participants in all the cluster farming priority regions of Ethiopia. Similarly, the model result indicated that cluster farming had a positive and significant impact on teff commercialization at p < 0.01.
Conclusion
The findings suggest that the promotion of cluster farming facilitates teff commercialization in Ethiopia. However, we recommend further studies using panel data collected from large samples to provide a longitudinal perspective on the impact of cluster farming on teff commercialization over time. The findings of these studies can offer comprehensive insights and concrete information that can inform policymakers to support and promote teff cluster farming in Ethiopia.
... the extent of vegetable commercialization was analyzed using the household commercialization index (hci). the household commercialization index (hci) gives the extent of commercialization as the percentage of marketed crop production (leavy et al., 2008; Strasberg et al., 1999). a commercialization index near zero indicates low commercialization whereas an index value approaching 100 signifies a higher degree of commercialization. ...
This study aimed to investigate the extent and determinants of vegetable commercialization among smallholders in the Sebeta Hawas Woreda, Oromia region, Ethiopia. Data were collected through surveys of 385 farm households. The study results indicated that vegetable production in the study area is highly commercialized in terms of vegetable output marketed with an average commercialization extent of 74.2% although vegetable commercialization extent is at a low level (34.82%) in terms of land areas allotted to vegetable production. The results of the truncated Tobit regression model revealed that the extent of vegetable commercialization was significantly and positively influenced by the gender of the household head, year of schooling, family size, access to irrigation facilities, cooperative membership, access to credit services, contact with extension agents, access to improved seeds, access to chemical fertilizers, and access to market information. Conversely, the age of the household head, livestock holdings, and participation in off-farm activities significantly and negatively influenced the extent of vegetable commercialization. The study suggests that vegetable commercialization can be enhanced by supplying farm inputs such as improved seeds, chemical fertilizers, pesticides, and irrigation equipment. In addition, designing gender-focused intervention programs is essential to promote the equal participation of both men and women in vegetable production and marketing. Moreover, providing adequate and relevant market information and strengthening farmers’ cooperatives can enable smallholder farmers to access the market and increase their market participation so that they can obtain reasonable returns from the vegetable business.
... the extent of vegetable commercialization was analyzed using the household commercialization index (hci). the household commercialization index (hci) gives the extent of commercialization as the percentage of marketed crop production (leavy et al., 2008; Strasberg et al., 1999). a commercialization index near zero indicates low commercialization whereas an index value approaching 100 signifies a higher degree of commercialization. ...
... Using this approach was more common than the input side. According to Strasberg et al. (1999) and von Braun and Kennedy (1994), commercialization index for crop production can be defined as: CIp ¼ Gross value of all crop sales of hhi in year j Gross value of all crop production of hhi in year j X100 ...
In Ethiopia, agricultural output commercialization plays a crucial role in maintaining the share of the sector in the economic growth of the country. This study was designed to analyze determinants of potato market participation among smallholder farmers in the Mida Kegn district of West Shoa Zone. A stage sampling procedure was employed to select 150 sample respondents randomly from the district. To accomplish the study, data were accessed from both primary and secondary data sources. Primary data were accessed through a structured questionnaire. The descriptive result indicated that 38% and 62% of sample households were categorized as non-participant and participant farmers in the potato output market, respectively. Moreover, the result shows that about 54.46% of potato produce was supplied to the market from total produce. The result of the double-hurdle model analysis showed that experience and land allocated for potatoes influenced potato commercialization positively, whereas family size, dependency ratio, and distance to all-weather roads were affected negatively. Consequently, the study suggests that all concerned bodies should focus on facilitating farmers to participate in off/non-farm activities, supporting potato producers through the provision of training and access to improved seed, proper utilization of land resources, and giving enough family planning training by health extension workers.
... Commercialization of agriculture plays an important role in enhancing economic development and poverty reduction in developing nations, especially countries whose development is based on agriculture (Andaregie et al., 2021;Rubhara & Mudhara, 2019;Tabe Ojong et al., 2022;Timmer, 1997;Von Braun & Kennedy, 1994). Increasing food production per person and raising rural incomes are the biggest challenges in many African countries (Strasberg et al., 1999). Consequently, in the past decades, many developing nations have made different reformations in the agriculture sector to boost production and ensure food security (Von Braun, 1995). ...
... In addition, agricultural commercialization has a spillover effect on other non-farm sectors like input manufacturers and suppliers by creating income sources and employment, thus, stimulating overall economic growth (Ayele, 2022). Furthermore, according to Strasberg et al. (1999), agricultural commercialization has a considerable positive impact on the usage of input and crop productivity. Therefore, the effect of agricultural commercialization on farm households' livelihood is positive and beneficial. ...
... The study adopted the household commercialization index (HCI) to determine the level of wheat commercialization by producing households in the study area. The HCI has been widely used in several previous studies of smallholder commercialization involving one or more crops (Abate et al., 2021;Ayele et al., 2021;Birhanu et al., 2021;Carletto et al., 2017;Endalew et al., 2020;Rahut et al., 2010;Rubhara & Mudhara, 2019;Strasberg et al., 1999;Von Braun & Kennedy, 1994). It measures the ratio of the value of wheat sales by farmer iin year j to the value of the wheat produced by the same farmer i in the same year j, which can be expressed in terms of a percentage. ...
Agricultural commercialization stimulates the economic growth of developing nations like Ethiopia. Wheat commercialization in Ethiopia is seen as one way of implementing agricultural transformation strategies to enhance the livelihoods of smallholder households. Despite the production potential and importance of wheat, the level of wheat commercialization and its determinants in the Central Ethiopia region have been unheeded, with prior studies primarily focusing on the Oromia region and northern Ethiopia. Therefore, this study aims to analyze the determinants of smallholder wheat commercialization in Lemo district, Hadiya zone, Central Ethiopia region. Both primary and secondary data sources were used, and 155 wheat producers were interviewed. The descriptive and inferential statistics, household commercialization index, and Tobit regression model were used to analyze the data. The results of the study indicated that 11%, 57%, and 32% of respondents were subsistence, semi-commercialized, and commercialized farmers, respectively. The overall intensity of wheat commercialization in Lemo District was 48.92%, which indicates that wheat commercialization is semi-commercialized. Besides, the model result revealed that wheat commercialization was significantly determined by the sex of the household head, household size, landholding, technology adoption, access to market information regarding inputs and output prices, credit utilization, and membership in cooperatives. Hence, commercialization policies need to be crafted to incorporate the implementation of family planning, promote gender-inclusive and market-oriented production, support technology adoption among farmers, offer market intelligence services, ensure the establishment of agricultural credit schemes, and increase the participation of farmers in cooperatives to improve smallholder wheat commercialization and their living standards.
... The level of crop output commercialization at a household level was computed as the ratio of the value of agricultural outputs sold to the total value of agricultural outputs produced by a household [7,24,52]. For this study, major crops: wheat, barley, potato, and pulse crops (faba bean, peas, and chickpeas) were considered. ...
... Access to direct market information will have the advantages of bypassing middlemen and direct marketing with agricultural product buyers and will reduce transaction costs. That will also enhance the market participation and intensity of market participation [7]. Hence, the result of our finding revealed that access to market information has a positive and significant effect on the intensity of market participation where the value is significant at a 10% probability. ...
More than 95% of crop production in Ethiopia comes from smallholder farmers operating on a farm size of less than 2 hectares. This implies that agriculture is dominantly operated by smallholders nationally. Agricultural commercialization is believed to improve farmers' livelihoods; hence, commercializing agriculture in Ethiopia means contributing to the smallholder farmer's welfare. To do so, a study of participation and level of commercialization and their determinant factors is vital. Hence, this study was initiated to evaluate crop output commercialization status and its determinants in rural Ethiopia. Heckman's two-step model was employed for the analysis. The mean commercialization index (CI) for the sample was 43.40% while 26% and 35% of households were commercially oriented and subsistent farmers respectively. The decision to participate in crop output marketing was affected by age, market distance, and instrument for the level of farm mechanization negatively. In contrast, it was affected positively by livestock size (TLU), being in mid-highland agroecology, ownership of equines, amount of annual income, and access to market information. The intensity of com-mercialization was positively affected by annual income, access to market information, and number of oxen; while it was negatively affected by operational land, level of crop diversification, and market distance significantly. Improving the resource endowment, and minimizing transaction costs by improving access to market centers, market information, and means of transportation can further enhance commercialization. Improving access to farm mechanization and enhancing productivity in highland areas are also issues that shall get policy and development practitioners' focus.
... Surprisingly little research has been done on how these variables interact. Previous studies have investigated the relationship between market involvement and productivity (Govereh, Jane, & Nyoro, 1999;Strasberg, et al. 1999;Govereh & Jayne, 1999). ...
The goal of the study is to get insight into agriculture production and market constraints in the AJK region. To achieve the objectives of the study, in the first stage, production function is estimated to obtain technical efficiency scores that are explicitly dependent on the farm and farm-specific variables. For this, single-step stochastic production estimation was applied. Tobit regression was employed in the second phase, with the market participation index as the dependent variable and market accessibility factors and efficiency as explanatory variables. The findings show that all inputs contributed favourably and considerably to farm production, with a mean technical efficiency of 58 percent, indicating that sample farmers might achieve the maximum production frontier by raising their efficiency to 42 percentage points. Among the determinants of technical efficiency farm size, land fragmentation and traction power negatively contributed to efficiency. Market participation was low as approximately 47 percent of the sampled farmers had less than 50 percent market participation and 20 percent did not participate in the market. The remaining 33 percent had market participation greater than 50 percent. The major factors that affect market participation were production efficiency, distance from roads and the market, credit facility, training, experiences, and internet and refrigerator facilities. All these variables were positive and significantly contributed to market participation.
... In commercialised agriculture, product choice and input use decisions by producers are based on the principles of profit maximisation (Pingali and Rosegrant, 1995). According to Strasberg et al. (1999), commercialisation of farmers' agriculture produce can be measured by the proportion of farm output sold in the market. Commercialisation of farmers' agriculture produce can occur on the output side of production with increased marketable surplus and the input side with increased use of purchased inputs (von Braun, 1995). ...
Purpose
The paper aimed to examine the determinants of agricultural commercialisation of farmers and measured its commercialisation level in the highland of Vietnam.
Design/methodology/approach
A sample size of 360 was randomly chosen from a total population of 5,771 farmers, and a structured questionnaire was developed to collect data. Descriptive and inferential statistics, including linear regression analysis, were used to analyse the data.
Findings
The descriptive statistics showed that the average commercialisation level of farmers was 56.3%. The regression model result indicated that number of off-farm income sources, farmer's risk perception, farming practices, number of agricultural activities, motorbikes value, ethnicity, distance from the city centre, number of customers, non-traded inputs value, participation in training programmes, family size, farm size, mobile phones value, traded inputs value, land tenure, distance from the local market and education of household head significantly affected agricultural commercialisation of farmers.
Originality/value
Any development strategies that assist farmers in adopting commercial farming in the highland of developing countries should consider these determinants.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-03-2022-0161
... Several studies, such as Abdullah (2017), Carletto et al. (2017), Mpogole et al. (2012), Ochieng and Hepelwa (2018), and van Asselt and Useche (2022) have measured the extent to which smallholder farmers were market oriented by using the commercialization index. However, a specific crop, either from the input or output side, measures the commercialization index (Mpogole, 2013;Mpogole et al., 2012;Strasberg et al., 1999;von Braun and Kennedy, 1994). For instance, Mpogole et al. (2012) establish that the commercialization index of smallholder farmers concerning round potatoes in the Southern Highlands of Tanzania is 88%, implying that smallholders highly commercialized round potato production. ...
