http://ageconsearch.umn.edu/handle/33736 Search the Channel search http://ageconsearch.umn.edu/simple-search http://ageconsearch.umn.edu/handle/5967 Title: Agricultural trade policy reform in South Africa <br/> <br/>Authors: Chitiga, M.; Kandiero, T.; Ngwenya, P. <br/> <br/>Abstract: This paper empirically investigates the impact of agricultural trade reform in South Africa. Using UNCTAD’s Agricultural Trade Policy Simulation Model (ATPSM), the study investigates two specific scenarios that capture the magnitude of (i) the economic impact of global agricultural trade reform in South Africa and (ii) the economic impact if the reform in South Africa is coupled with agricultural reforms in the European Union (EU). Trade reform focuses on substantial tariff reduction; although in the case of the EU, scenarios also include reduction in domestic support and export subsidies. The results show that a unilateral tariff reduction in a selected number of agricultural products amounts to welfare gains of US$21 million. These gains are three times higher when accompanied by extensive reforms in the EU. http://ageconsearch.umn.edu/handle/5969 Title: Determinants of off-farm participation decision of farm households in Ethiopia <br/> <br/>Authors: Beyne, A.D. <br/> <br/>Abstract: This study analyses the determinants of off-farm work participation decisions of farm households in Ethiopia. A bivariate probit model is applied to account for the simultaneity of participation decisions of both male and female members of farm households. The results of the analysis show that human capital variables such as health and training on non-farm activities have a positive effect on the off-farm participation decisions of male members of farm households. The education status of the head has no significant impact on the participation decisions of the members of the family as most of the off-farm activities do not require formal education. The availability of credit and transfer income is the other factors that have a positive impact on the decisions of male members to participate in off-farm activities. The effects of family and farm characteristics are also analysed. Finally, policies that aim to increase the off-farm work participation decisions of family members should take into consideration the difference in responses to the various factors that affect the off-farm work decisions of male and female members of farm households. http://ageconsearch.umn.edu/handle/5970 Title: Factors affecting the use of forward pricing methods in price risk management with special reference to the influence of risk aversion <br/> <br/>Authors: Jordaan, H.; Grove, B. <br/> <br/>Abstract: Risk aversion is the primary reason for farmers to use forward pricing methods to hedge against price risk. Previous international research on farmers’ forward pricing behaviour found inconsistent results with respect to the relationship between risk aversion and the use of forward pricing methods. Ordinary Least Squares (OLS) regression is used in this research to investigate the relationship between the proportion of maize Vaalharts maize producers are willing to forward price and risk aversion. The quantity decision is modelled conditional on the adoption decision to ensure that the modelling procedure does not force the same variables to influence the two decisions in the same way. Regression results showed that more risk averse farmers are forward pricing a larger proportion of their crop produce. The main conclusion from this research is that the relationship between farmers’ risk aversion and the quantity of maize forward priced is consistent with expected utility theory in spite of the fact that farmers needs to be less risk averse to adopt forward pricing. Future emphases should be placed on the factors affecting the adoption of forward pricing as risk management tool in order to promote risk management. Especially research that will change farmers’ perception about forward pricing is necessary. http://ageconsearch.umn.edu/handle/5971 Title: Management decisions on commercial sugarcane farms in KwaZulu-Natal: a focus on choice bracketing behaviour for risk management <br/> <br/>Authors: MacNicol, R.; Ortmann, G.F.; Ferrer, S.R.D. <br/> <br/>Abstract: The sugar industry is an important contributor to the South African (SA) economy, with average annual production estimated at 2.5 million tons of sugar. This study aims to quantify actual use of management instruments by a sample of commercial sugarcane farmers in KwaZulu-Natal (KZN) that are commonly associated with risk management, and uses factor analysis to investigate the extent to which these farmers bracket their management decisions. Data were obtained in 2006 via personal interviews of a stratified random sample of 76 large-scale sugarcane farmers in two separate mill-supply areas of KZN. Respondents were asked questions regarding risk-related management strategies, including diversification of on-farm enterprises, investments and management time. Factor analysis identified six management choice brackets, collectively explaining 77% of the variance in all of the 12 risk-related management responses considered. Recommendations that stem from these findings include that policy makers create a more enabling business environment and that government make labour legislation more flexible. Farmers need to search for information more proactively and develop management strategies that reduce barriers to efficiency. Future research based on time series data could be important to identify how management portfolios and choice bracketing levels change over time. http://ageconsearch.umn.edu/handle/6031 Title: Costs and benefits of higher tariffs on wheat imports to South Africa <br/> <br/>Authors: McDonald, Scott; Punt, Cecilia; Rantho, Lillian; van Schoor, Melt <br/> <br/>Abstract: Low international wheat prices, caused by tariffs and subsidies in developed countries, have been blamed for causing financial difficulty to South African farmers. While indignation at unfair trade practices may be valid, it does not necessarily follow that protection of the local industry is the best response. This study uses a static general equilibrium model to describe and quantify the effects of increased tariffs (by up to 25 percentage points) on the local wheat industry, other affected industries-- particularly downstream industries-- and the economy at large. The effects on factors, households and the government are also analysed. The results show that the benefits to the wheat industry are highly concentrated and smaller than the loss of income caused in other sectors. Welfare is negatively affected, especially for low-income households, for whom the effects are exacerbated by increases in relative food prices. http://ageconsearch.umn.edu/handle/6777 Title: Determinants of the demand for regular farm labour in South Africa, 1960-2002 <br/> <br/>Authors: Sparrow, G.N.; Ortmann, G.F.; Lyne, M.C.; Darroch, M.A.G. <br/> <br/>Abstract: This paper estimates long-run price (wage) elasticities of demand for regular farm labour in South Africa using both Ordinary Least Squares (OLS) regression and a Two-stage Least Squares (2SLS) simultaneous-equation model for the period 1960-2002. Both models include a piecewise interactive slope dummy variable with 1991 as the threshold year to reflect South African (SA) commercial farmers’ expectations that farm labour costs would increase as new labour legislation was introduced from the early 1990s onwards. The long-run price (wage) elasticity of demand for regular farm labour in South Africa during 1960-1990 was estimated as -0.25 for OLS and -0.23 for 2SLS regression, respectively. For the period 1991-2002, this elasticity estimate rose to -1.32 and -1.34 for OLS and 2SLS regression, respectively. These results suggest that a marked structural decline in the demand for regular labour has occurred since 1991 that raises questions about the appropriateness of labour laws and minimum wage legislation that have increased the cost of regular farm labour in South Africa.