@article{Kamoyo:347729,
      recid = {347729},
      author = {Kamoyo, Michael  and Makochekanwa, Albert},
      title = {The impact of poverty, risk aversion and time preference  on maize marketing channel choice decisions: the case of  Zvimba and Makonde districts of Zimbabwe},
      journal = {Agrekon},
      address = {2018-10-22},
      number = {2540-2024-4614},
      month = {Oct},
      year = {2018},
      abstract = {The study deployed the experimental and behavioural  economics toolkit to determine how risk aversion attitude,  time preference and poverty status influenced farmers’  marketing channel preferences between the state-owned Grain  Marketing Board (GMB) and the private buyer market.  Following maize market deregulation and subsequent entry of  private buyers in the Zimbabwean grain sector, marginalised  poor farmers remained confined to the low return private  buyer market that offered very low prices, as they avoided  GMB whose payment plan was uncertain and delayed. The  question therefore was: To what extent did farmers’ risk  aversion attitude and time preference explain the poor  farmers’ choice for low return private buyer market at the  expense of the high return GMB market? Using survey data  obtained from 433 maize farmers in Makonde and Zvimba  districts, an instrumental variable probit regression model  was estimated. The results confirmed that risk aversion  attitude and time preferences (as measured by farmers’  discount rate) reduced the likelihood of a farmer  participating in a high return state-owned GMB market. Poor  farmers were found to be more risk averse and impatient  than non-poor farmers in marketing channel selection. Their  high risk aversion attitude and impatience constituted the  greatest market impediments that restricted them to the low  return private buyer market. To make agricultural markets  work for poverty reduction the study recommended that  policies that promote the development of risk transfer  markets and futures markets for maturity transformation of  farmers’ payments are critical in guaranteeing effective  participation of poor households in high return markets.},
      url = {http://ageconsearch.umn.edu/record/347729},
      doi = {https://doi.org/10.22004/ag.econ.347729},
}