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Farmers’ Subjective Valuation of Subsistence Crops: The Case of Traditional Maize in Mexico

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  • Aslihan Arslan
  • J. Edward Taylor
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    Abstract

    Shadow prices guide farmers’ resource allocations, but for subsistence farmers who grow traditional crops they may bear little relationship with market prices. We theoretically derive shadow prices for a subsistence crop with nonmarket value, then estimate shadow prices of maize using data from a nationally representative survey of rural households in Mexico. Shadow prices are significantly higher than market prices for traditional but not improved maize varieties. They are particularly high in the indigenous areas of southern and southeastern Mexico, indicating large de facto incentives to maintain traditional varieties there. Copyright 2009, Oxford University Press.

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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2009.01323.x
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    Bibliographic Info

    Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

    Volume (Year): 91 (2009)
    Issue (Month): 4 ()
    Pages: 956-972

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    Handle: RePEc:oup:ajagec:v:91:y:2009:i:4:p:956-972

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    Cited by:
    1. Bellon, Mauricio R. & Hellin, Jon, 2011. "Planting Hybrids, Keeping Landraces: Agricultural Modernization and Tradition Among Small-Scale Maize Farmers in Chiapas, Mexico," World Development, Elsevier, vol. 39(8), pages 1434-1443, August.
    2. Hoffmann, Vivian & Gatobu, Ken Mwithirwa, 2014. "Growing their own: Unobservable quality and the value of self-provisioning," Journal of Development Economics, Elsevier, vol. 106(C), pages 168-178.
    3. Arslan, Aslihan & McCarthy, Nancy & Lipper, Leslie & Asfaw, Solomon & Cattaneo, Andrea, 2013. "Adoption and Intensity of Adoption of Conservation Farming Practices in Zambia," Food Security Collaborative Working Papers 147461, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    4. Dyer, George A. & Taylor, J. Edward, 2011. "The Corn Price Surge: Impacts on Rural Mexico," World Development, Elsevier, vol. 39(10), pages 1878-1887.
    5. Isakson, S. Ryan, 2011. "Market Provisioning and the Conservation of Crop Biodiversity: An Analysis of Peasant Livelihoods and Maize Diversity in the Guatemalan Highlands," World Development, Elsevier, vol. 39(8), pages 1444-1459, August.
    6. Useche, Pilar & Blare, Trent, 2012. "Seeds of Gold: How Environmental Considerations Influence Cacao Production Decisions for Small Landholder Households in Northwestern Ecuador," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124738, Agricultural and Applied Economics Association.
    7. Useche, Pilar & Blare, Trent, 2013. "Traditional vs. modern production systems: Price and nonmarket considerations of cacao producers in Northern Ecuador," Ecological Economics, Elsevier, vol. 93(C), pages 1-10.

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