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Linking smallholder farmers to markets on extensive and intensive margins: Evidence from Nicaragua☆

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  • Ebata, Ayako
  • Hernandez, Manuel A.

Abstract

Access to modern commercialization channels is key for smallholder farmers to move away from subsistence farming and overcome poverty. However, achieving that goal is challenging for smallholders given their lack of appropriate managerial practices, production technology and infrastructure. This paper examines the association between receiving trainings in two distinct entrepreneurial practices, one direct at the individual and farmer-association level and another indirect at the community level, and commercialization in non-local markets at the extensive and intensive margins. We exploit a panel dataset of bean producers in Nicaragua that participated in an NGO program implemented between 2007 and 2012. We find opposite results for the two market-linkage activities, especially on the intensive margin or volume of sales. While reciving direct training on entrepreneurial practices (EP) is positively associated with commercialization, training on municipality engagement (ME) activities is negatively associated. These correlation patterns are mainly observed among entrant farmers as opposed to those already participating in commercial markets prior to the program implementation. We also find varying results for ME activities by plot size and leadership position. Additional estimations show that training activities that are positively correlated with bean commercialization are not necessarily correlated with the commercialization of other crops, and vice versa.

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  • Ebata, Ayako & Hernandez, Manuel A., 2017. "Linking smallholder farmers to markets on extensive and intensive margins: Evidence from Nicaragua☆," Food Policy, Elsevier, vol. 73(C), pages 34-44.
  • Handle: RePEc:eee:jfpoli:v:73:y:2017:i:c:p:34-44
    DOI: 10.1016/j.foodpol.2017.09.003
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    More about this item

    Keywords

    Smallholder farmers; Market linkage; Nicaragua;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship

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