Agricultural Prices and Income Distribution among Farmers: A Whole-Household, Multi-Country, Multi-Year Analysis
AbstractRecent 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 InfoPaper 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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market participation; poverty; inequality; multi-continent multicountry; Agricultural Finance;
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