We use newly-available Indian panel data to estimate how the returns to planting-stage investments vary by rainfall realizations. We show that the forecasts significantly affect farmer investment decisions and that these responses account for a substantial fraction of the inter-annual...

The investment decisions of small-scale farmers in developing countries are conditioned by their financial environment. Binding credit market constraints and incomplete insurance can reduce investment in activities with high expected profits. We conducted several experiments in northern Ghana in...

This paper presents a new model which incorporates features of developing country agriculture that may be critical in shaping the welfare outcomes of alternative agricultural policies. The model features heterogeneous households linked through markets in a rural economy-wide structure, with...

Why do many households remain exposed to large exogenous sources of nonsystematic income risk? We use a series of randomized field experiments in rural India to test the importance of price and nonprice factors in the adoption of an innovative rainfall insurance product. Demand is significantly...

Prices may fail to explain farmers’ land allocation if the relevant decision prices are “shadow prices” that deviate from market prices. This may be the case for farmers who attach significant non-market values to their crops. I theoretically explain why land allocation may not respond to...

Exogenous shocks to farmers’ consumption, production and labour market decisions are rarely considered accurately. For farm households, under labour market imperfections, such decisions are often interlinked. This calls for non-separable agricultural household models. According to this...

The study is a pioneering attempt to assess the socio-economic impact of the Block Planting Scheme (BPS) from the angle of the beneficiaries,implementing agencies and the policymakers.The report is based on the primary information gathered from 480 households drawn from Block Planting Units with...

Despite more than a decade of NGO and government activities promoting developing world farmer participation in high-value agricultural markets, evidence regarding the household welfare effects of such initiatives is limited. This paper analyzes the geographic placement of supermarket supply...

Shifting cultivation is often blamed as a principal cause of deforestation in tropical Africa. It is claimed that the practice is unsustainable because shortened fallow lengths result in soils too degraded to support forest vegetation. The decline in fallow lengths is often attributed to...

This paper analyses whether agricultural information flows give rise to social learning effects in banana cultivation in Nyakatoke, a small Tanzanian village. Based on a village census, full information is available on socio-economic characteristics and banana production of farmer kinship...