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Agricultural Prices and Income Distribution among Farmers: A Whole-Household, Multi-Country, Multi-Year Analysis

  • Rios, Ana R.
  • Shively, Gerald E.
  • Masters, William A.

Recent 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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File URL: http://purl.umn.edu/49314
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Paper 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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Date of creation: 2009
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Handle: RePEc:ags:aaea09:49314
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  1. Christopher B. Barrett & Paul A. Dorosh, 1996. "Farmers' Welfare and Changing Food Prices: Nonparametric Evidence from Rice in Madagascar," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 656-669.
  2. von Braun, Joachim, 1995. "Agricultural commercialization: impacts on income and nutrition and implications for policy," Food Policy, Elsevier, vol. 20(3), pages 187-202, June.
  3. Jayne, Thomas S. & Yamano, Takashi & Nyoro, James K. & Awuor, Tom, 2001. "Do Farmers Really Benefit from High Food Prices? Balancing Rural Interest in Kenya's Maize Pricing and Marketing Policy," Food Security Collaborative Working Papers 55149, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  4. Heltberg, Rasmus & Tarp, Finn, 2001. "Agricultural Supply Response and Poverty in Mozambique," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  5. James Levinsohn & Margaret McMillan, 2007. "Does Food Aid Harm the Poor? Household Evidence from Ethiopia," NBER Chapters, in: Globalization and Poverty, pages 561-598 National Bureau of Economic Research, Inc.
  6. Benjamin, Dwayne & Deaton, Angus, 1993. "Household Welfare and the Pricing of Cocoa and Coffee in Cote d'Ivoire: Lessons from the Living Standards Surveys," World Bank Economic Review, World Bank Group, vol. 7(3), pages 293-318, September.
  7. Budd, John W, 1993. "Changing Food Prices and Rural Welfare: A Nonparametric Examination of the Cote d'Ivoire," Economic Development and Cultural Change, University of Chicago Press, vol. 41(3), pages 587-603, April.
  8. Ravallion, Martin, 2004. "Looking beyond averages in the trade and poverty debate," Policy Research Working Paper Series 3461, The World Bank.
  9. Weber, Michael T. & Staatz, John M. & Holtzman, John S. & Crawford, Eric W. & Bernsten, Richard H., 1988. "Informing Food Security Decisions in Africa: Empirical Analysis and Policy Dialogue," Staff Papers 200969, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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