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Identifying the Factors that Influence Small-Scale Farmers' Transaction Costs in Relation to Seed Acquisition

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Author Info
Lone B. Badstue
Abstract

Using an ethnographic approach, this study explores small-scale farmers’ perceived transaction costs in relation to maize seed acquisition in the Central Valleys of Oaxaca. These farmers have different needs and require seed of diverse maize types with multiple traits in particular combinations. Formal seed distribution has yet to develop in this region and farmers depend mostly on informal seed sources. Issues of information about maize seed, seed transaction negotiation and enforcement are examined from a small-scale farmer perspective through the use of qualitative data. Results show that farmers’ perceived transaction costs are low to negligible in most cases where seed transactions take place locally, and trust is indicated as a factor which serves to reduce transaction costs to a minimum. Though maybe not a transaction cost in the theoretical sense, the risk of crop failure due to inadequate seed is a main concern for farmers in relation to seed transactions.

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Publisher Info
Paper provided by Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA) in its series Working Papers with number 04-16.

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Length: 47 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:fao:wpaper:0416

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Related research
Keywords: Costs; Food security; Informal sector; Maize; Mexico; Oaxaca; Quality; Rural development; Seed; Small farms; Zea mays;

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Find related papers by JEL classification:
D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology

References listed on IDEAS
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  1. Smale, M. & Bellon, M. R. & Aguirre, J. A. & Manuel Rosas, I. & Mendoza, J. & Solano, A. M. & Martinez, R. & Ramirez, A. & Berthaud, J., 2003. "The economic costs and benefits of a participatory project to conserve maize landraces on farms in Oaxaca, Mexico," Agricultural Economics, Blackwell, vol. 29(3), pages 265-275, December. [Downloadable!] (restricted)
  2. Steven Durlauf & Marcel Fafchamps, 2004. "Social Capital," Development and Comp Systems 0409060, EconWPA. [Downloadable!]
    Other versions:
    • Steven N. Durlauf & Marcel Fafchamps, 2004. "Social Capital," NBER Working Papers 10485, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    • Durlauf, Steven N. & Fafchamps, Marcel, 2005. "Social Capital," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 26, pages 1639-1699 Elsevier. [Downloadable!] (restricted)
  3. Oscar J. Cacho & Graham R. Marshall & Mary Milne, 2003. "Smallholder Agroforestry Projects: Potential for carbon sequestration and poverty alleviation," Working Papers 03-06, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA). [Downloadable!]
  4. Bellon, Mauricio R. & Adato, Michelle & Becerril, Javier & Mindek, Dubravka, 2003. "The impact of improved maize germplasm on poverty alleviation," FCND briefs 162, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  5. Marcel Fafchamps, 2002. "Returns to social network capital among traders," Oxford Economic Papers, Oxford University Press, vol. 54(2), pages 173-206, April.
    Other versions:
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