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Agricultural Prices and Income Distribution among Farmers: A Whole-Household, Multi-Country, Multi-Year Analysis

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Author Info

  • Rios, Ana R.
  • Shively, Gerald E.
  • Masters, William A.

Abstract

Recent studies have emphasized that the poorest farmers are often net buyers of key commodities and therefore harmed by rising prices. We use LSMS data from Tanzania, Vietnam and Guatemala to test the degree of net purchases or sales by income level. We find that poorer farmers may be net buyers of individual crops, but only the poorest are net buyers of all crops. More generally, net sales among poor farmers are low. We conclude that agricultural price changes have a diverse but limited influence on poor farmers’ welfare, because their farm sales tend to be offset by food purchases.

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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin with number 49314.

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Date of creation: 2009
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Handle: RePEc:ags:aaea09:49314

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Keywords: market participation; poverty; inequality; multi-continent multicountry; Agricultural Finance;

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References

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  1. Christopher B. Barrett & Paul A. Dorosh, 1996. "Farmers' Welfare and Changing Food Prices: Nonparametric Evidence from Rice in Madagascar," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 656-669.
  2. Ravallion, Martin, 2005. "Looking Beyond Averages in the Trade and Poverty Debate," Working Paper Series RP2005/29, World Institute for Development Economic Research (UNU-WIDER).
  3. von Braun, Joachim, 1995. "Agricultural commercialization: impacts on income and nutrition and implications for policy," Food Policy, Elsevier, vol. 20(3), pages 187-202, June.
  4. James Levinsohn & Margaret McMillan, 2005. "Does Food Aid Harm the Poor? Household Evidence from Ethiopia," NBER Working Papers 11048, National Bureau of Economic Research, Inc.
  5. Jayne, Thomas S. & Yamano, Takashi & Nyoro, James K. & Awuor, Tom, 2000. "Do Farmers Really Benefit from High Food Prices? Balancing Rural Interests in Kenya's Maize Pricing and Marketing Policy," Food Security Collaborative Policy Briefs 54641, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  6. Heltberg, R. & Tarp, F., 2002. "Agricultural supply response and poverty in Mozambique," Food Policy, Elsevier, vol. 27(2), pages 103-124, April.
  7. Benjamin, Dwayne & Deaton, Angus, 1993. "Household Welfare and the Pricing of Cocoa and Coffee in Cote d'Ivoire: Lessons from the Living Standards Surveys," World Bank Economic Review, World Bank Group, vol. 7(3), pages 293-318, September.
  8. Budd, John W, 1993. "Changing Food Prices and Rural Welfare: A Nonparametric Examination of the Cote d'Ivoire," Economic Development and Cultural Change, University of Chicago Press, vol. 41(3), pages 587-603, April.
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Cited by:
  1. Alberto Zezza & Benjamin Davis & Carlo Azzarri & Katia Covarrubias & Luca Tasciotti & Gustavo Anriquez, 2008. "The Impact of Rising Food Prices on the Poor," Working Papers 08-07, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).

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