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Diversification strategies and their impact on farm performance
57-61Views:127The objective of this study is to identify factors determining the economic performance of agricultural holdings in Italy, with specific attention to the impact of the adoption of on-farm diversification strategies, namely income diversification and product differentiation. The adoption of these kinds of strategies has been increasingly recognised as a viable business option in agriculture as they allow better allocation of farm resources and an increase in the quota of value added retained on farms and therefore not passed on to other agents operating at the end of the food supply chain. By using a panel of professional Italian farms over the time period of 2003-2009, we estimate random effect, ordinary least square and quantile regression models to estimate the impact of income diversification and product differentiation strategies on the levels of farm income per unit of labour income. Our findings show that scale economies are important positive determinants of farm economic performance. On the contrary, when the family play an important role in the farm business, economic performance is worse. Finally, we do not find evidence of a statistically significant impact of the adoption of income diversification and product differentiation strategies. This latter result may be interpreted as a signal that farms use these strategies as risk management tools rather than as income increasing ones.
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Produce certification and income risk management strategies of cocoa farming households in South-West Nigeria
75-79Views:157Agricultural produce certification is synonymous to farm assurance of which cocoa certification is an example; dealing with issues of Good Agricultural, Environmental and Social Practices (GAP, GEP and GSP) in cocoa production. Essentially, GAP, GEP and GSP packages had in-built mechanism that can aid farmers mitigate factors that could lead to farm income risks in cocoa production. Consequently, this study examined the influence of cocoa certification on income risks of cocoa farming households in South-west Nigeria. A multistage sampling technique was used to select 180 cocoa farming households from whose heads data were obtained with interview schedule in Southwest Nigeria. Data were analyzed with Chi-square Statistic, Income Risk Management Diversification Index (IRD) and Mann-Whitney-U Test Statistic. Chi-square analysis shows that (52.3%) certified cocoa farming households employed more risk management strategies than (94.2%) uncertified cocoa farming households (p<0.01). The Mann-Whitney-U test revealed a significant difference (p>0.05) between the income risk management practices of certified and uncertified cocoa farming households. Therefore, produce certification has been helping cocoa farming households in mitigating farm income risk in cocoa production through the employment of diverse (risk) management strategies. Hence, stakeholders should intensify efforts in encouraging farming households to embrace (cocoa) produce certification.
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Extent and characteristic of diversification among Hungarian agricultural holdings
37-44Views:111Through the connection to rural resources agriculture has an impact on the three functions of countryside: ecology, society and economy. Resources of economy and production environment are continuously changing thus farmers have to adapt to these changing circumstances. One of the adaptation methods is the diversification of activities to promote effective capacity utilization and additional profit. However there is no standard definition of diversification from the point of agricultural economics aspect both traditional approaches and the influence of European Union should also be considered to define it. Diversification and alternative income opportunities could be subsistence possibilities for several farmers. This could be defined not only at private holdings’ but at enterprises’ level. According to a traditional approach Hungarian statistical databases collect on-farm and off-farm agricultural activities depending on the connection to resources of a farm business. Analysing this database an overall picture could be defined considering the position and characteristic of diversified farmers and the popularity of each activity among agricultural producers. Based on a study, published in 2011 (Hamza, 2011) this paper also involves the latest statistical data (2010, 2013). Analysing dataset of period 2000-2013 this paper gives an overall overview about national and regional position and characteristics of diversified holdings and activities.
JEL code: Q19
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The impact of the “greening” of the common agricultural policy on the financial situation of Polish farms
49-55Views:286This paper presents an assessment of the impacts of introducing the greening scenario of the CAP, proposed by the European Commission as an alternative for the reformed CAP after 2013. In the past, the CAP has undergone numerous transformations in response to the changing macroeconomic environment and in reaction to developments in the farming sectors in EU countries. On the 12th of October 2011, the Commission presented a set of legal proposals designed to make the CAP a more effective policy to encourage more competitive and sustainable agriculture and vibrant rural areas. The proposal brings various new elements under consideration, some of them raising strong controversies such as introducing “greening” as a component of direct payments. Changes in the direct payments scheme in line with the EC proposition include forcing adjustments in the cropping pattern and creating ecological focus areas (EFA) on 7% of the farm land ; the consequences of such a proposal on the size and structure of agricultural production, and thus on the economic performance of farms and the whole agricultural sector are uncertain. The authors analyse historical changes to the CAP with a focus on a growing importance of the environmental component of the CAP, discuss different scenarios of shaping the direct payments system and present the results of modelling the impacts of greening the CAP on the Polish farming sector with the use of the LP optimisation model. The study was based on Polish FADN data. Results show that the majority of farmers in Poland comply with the crop diversification constraint of greening. However, establishing the required EFAs and necessary diversification on farms with simplified cropping structures will have a negative impact on the volume of agricultural production as well as on farm incomes.
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Demand and supply of labor market: A case of UAE
145-153Views:208United Arab Emirates (UAE) witnessed a progress of growth booming since its establishment, which as result puched all economic componets to indicated a active movement in term of employment and capital investment as well. This steady economic growth has been marked by an increase in the income by the country’s citizens, both national as well as the foreign residents This paper to axamine the supply and demand of labor market in UAE. The technique used to source the data is a secondary resource and methodology employed in descriptive and analytical. The study found that, the diversification of the economy, and enhance the role of private sector increased the demand for labor as well as increased the diversification for nationalities in the country. From other side, because of diversification strategy, the foreigners labor have more numbers in total employment structure.
JEL CODE: O12
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The understanding of international tourism development
61-62Views:81Tourism is travel for recreational, leisure or business purposes. Tourism has become one of the major players in international commerce, and represents at the same time one of the main income sources for many developing countries. This growth goes hand in hand with an increasing diversification and competition among destinations (Unwto, 2010).Working and serving in this pumping industry means to understand and react to the needs of all these people moving around this “small” planet! Success is defined by those who understand these needs and fulfill them to the satisfaction. Unfortunately, our industry is rather slow and we can be characterized as reactive instead of innovative.We adapt too slow compared to other industries that define the needs of their costumers before the costumers actually calls for it!
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The understanding of international tourism development
53-54Views:133Tourism is travel for recreational, leisure or business purposes. Tourism has become one of the major players in international commerce, and represents at the same time one of the main income sources for many developing countries. This growth goes hand in hand with an increasing diversification and competition among destinations (Unwto, 2010).Working and serving in this pumping industry means to understand and react to the needs of all these people moving around this “small” planet! Success is defined by those who understand these needs and fulfill them to the satisfaction. Unfortunately, our industry is rather slow and we can be characterized as reactive instead of innovative.We adapt too slow compared to other industries that define the needs of their costumers before the costumers actually calls for it!
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Challenges to sustainable rural development in Russia: social issues and regional divergences
45-51Views:198Paper aims at investigation of contemporary approaches to sustainable rural development in Russia. It includes the overview of current experiences in rural development, analysis of major economic and social indicators of rural areas in comparison with urban ones. Analysis included the set of indicators such as number of rural people, number of rural settlements, rates of births and mortalities, natural and migration increases and declines of population, rates of employment and unemployment, average monthly nominal per capita wages, and level of the subsistence minimum. Indicators have been measured separately for rural and urban areas; regions have been grouped in relation to the particular indicator. The research is concluded by discovery of growth points for rural development and a set of recommendations on perspective measures of state and local policies in rural areas, directed on increase of living standards of rural population and retention of labour resources in their traditional rural areas of inhabitation.
JEL: Q18, P25
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