IDEAS home Printed from https://ideas.repec.org/a/eee/jfpoli/v20y1995i3p245-255.html
   My bibliography  Save this article

Agricultural diversification and policy reform

Author

Listed:
  • Quiroz, Jorge A.
  • Valdes, Alberto

Abstract

The impact of risk on agriculture and the alternative ways of dealing with it has captured the attention of economists and policy makers for a long time. In recent years, the issue has gained renewed interest. Many countries have started policy reforms aimed at liberalizing domestic markets, removing quantitative restrictions on trade, and opening up their economies to international trade opportunities. As this process develops, producers in different region of the world will start facing increased price variability arising from world market fluctuations, as up to now, mainly due to government marke interventions, domestic producer prices have varied substantially less than international ones (Hazell et. al., 1990; Schiff and Valdes,1992). Hence, risk,and price risk in particular, will most probably be at the core of the implementation problems associated with policy reform packages. It is well known that diversification of the production mix can be a particularly efficient mechanism for diminishing the impact of risk on producers' welfare. In this regard, different public policies may help to deepen diversification in agriculture, public investment in irrigation being the most important example. However, since many of these policies entail a significant use of resources, an important policy question concerns the impact that trade and macro reform may have on risk in agricultural activities, and on the endogenous diversification response by producers. The main objectives of this paper are to: 1) review the problem of price risk in agriculture, especially in the case of domestic markets facing international price fluctuations; 2) examine the potential role for diversification as a way of diffusing price risk; and 3) analyze the interaction between the process of trade and macro reform; price risk, and agricultural diversification. It is important to mention at the outset that the risk perspective - the one adopted in this paper - is just one of the many angles from w
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Quiroz, Jorge A. & Valdes, Alberto, 1995. "Agricultural diversification and policy reform," Food Policy, Elsevier, vol. 20(3), pages 245-255, June.
  • Handle: RePEc:eee:jfpoli:v:20:y:1995:i:3:p:245-255
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/0306-9192(95)00016-8
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Grilli, Enzo R & Yang, Maw Cheng, 1988. "Primary Commodity Prices, Manufactured Goods Prices, and the Terms of Trade of Developing Countries: What the Long Run Shows," World Bank Economic Review, World Bank Group, vol. 2(1), pages 1-47, January.
    2. Ardeni, Pier Giorgio & Wright, Brian, 1992. "The Prebisch-Singer Hypothesis: A Reappraisal Independent of Stationarity Hypotheses," Economic Journal, Royal Economic Society, vol. 102(413), pages 803-812, July.
    3. P. B. R. Hazell & M. Jaramillo & A. Williamson, 1990. "The Relationship Between World Price Instability And The Prices Farmers Receive In Developing Countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(2), pages 227-241.
    4. Ferson, Wayne E. & Constantinides, George M., 1991. "Habit persistence and durability in aggregate consumption: Empirical tests," Journal of Financial Economics, Elsevier, vol. 29(2), pages 199-240, October.
    5. Mundlak, Yair & Larson, Donald F, 1992. "On the Transmission of World Agricultural Prices," World Bank Economic Review, World Bank Group, vol. 6(3), pages 399-422, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Minot, Nicholas & Epprecht, Michael & Anh, Tran Thi Tram & Trung, Le Quang, 2006. "Income diversification and poverty in the Northern Uplands of Vietnam:," Research reports 145, International Food Policy Research Institute (IFPRI).
    2. Stanton, Julie V., 2000. "The Role Of Agribusiness In Development: Replacing The Diminished Role Of The Government In Raising Rural Incomes," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 18(2).
    3. Weiss, Christoph R. & Briglauer, Wolfgang, 2000. "Determinants and Dynamics of Farm Diversification," FE Working Papers 0002, Christian-Albrechts-University of Kiel, Department of Food Economics and Consumption Studies.
    4. Pingali, Prabhu L. & Rosegrant, Mark W., 1995. "Agricultural commercialization and diversification: processes and policies," Food Policy, Elsevier, vol. 20(3), pages 171-185, June.
    5. McCalla, Alex F. & Valdes, Alberto, 1997. "Diversification and International Trade," 1997 Conference, August 10-16, 1997, Sacramento, California 197032, International Association of Agricultural Economists.
    6. Väth, Susanne Johanna & Kirk, Michael, 2013. "Do land ownership and contract farming matter? Evidence from a large-scale investment in Ghana," 2013 AAAE Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161460, African Association of Agricultural Economists (AAAE).
    7. Boris Bravo & Horacio Cocchi & Daniel Solís, 2006. "Output Diversification Among Small-Scale Hillside Farmers In El Salvador," OVE Working Papers 1706, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jfpoli:v:20:y:1995:i:3:p:245-255. 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: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/foodpol .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.