Advanced Search
MyIDEAS: Login to save this paper or follow this series

Financial Viability of Advancing Payments for Contract Growers of Ground Nut Seeds

Contents:

Author Info

  • Hewavitharane, H.V.C.
  • Warnakulasooriya, H.U.
  • Rafeek, M.I.M.
Registered author(s):

    Abstract

    Delays in payment adversely affect the contract seed production program for other field crops (OFC) conducted by the Department of Agriculture (DOA) Sri Lanka. This study focuses on assessing the financial viability of advancing payments for contract farmers who produces groundnut (Arachis hypogaea L.) seeds. The average price payable to contract growers for the Seed and Planting Material Development Centre(SPMDC), to be break even between the current practices of paying after the processing is over and advancing payment, was estimated using an Expected Value Model (EVM). Proportions of grade I and grade II seed and the price payable for each seed lot were estimated incorporating parameter estimates of “A” reports in a regression model. The average price payable was estimated as Rs. 119.16/kg using EVM. The percentage of ungerminated seeds, and seeds with insect and mechanical damage were significantly related (p<0.05) with grade I and grade II seed percentages. A 1% increase in the ungerminated seeds increased the payable price by Rs 0.23/kg whereas, the same level of increase of insect and mechanical damages to the seed reduced the price by Rs 2.39/kg. The results revealed that either EVM or regression model could be used in decision making on early payments for the contract growers. The estimated premium for insurance per hectare estimated with the EVM ( Rs 11,726/ha), decreased to Rs 4,920/ha in regression model.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://purl.umn.edu/59981
    Download Restriction: no

    Bibliographic Info

    Paper provided by Agecon Search in its series Miscellaneous Papers with number 59981.

    as in new window
    Length:
    Date of creation: 2009
    Date of revision:
    Handle: RePEc:ags:miscpa:59981

    Contact details of provider:
    Web page: http://ageconsearch.umn.edu/

    Related research

    Keywords: Certified seed; Contract growing; Financial viability; Insurance premium; Agricultural Finance; Crop Production/Industries;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ags:miscpa:59981. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.