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

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  • 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.

Suggested Citation

  • Lone B. Badstue, 2004. "Identifying the Factors that Influence Small-Scale Farmers' Transaction Costs in Relation to Seed Acquisition," Working Papers 04-16, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    • Handle: RePEc:fao:wpaper:0416
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    References listed on IDEAS

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    6. Cacho, Oscar J. & Marshall, Graham R. & Milne, Mary, 2003. "Smallholder agroforestry projects: Potential for carbon sequestration and poverty alleviation," ESA Working Papers 289093, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
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    1. Badstue, Lone B. & Bellon, Mauricio R. & Berthaud, Julien & Ramirez, Alejandro & Flores, Dagoberto & Juarez, Xochitl, 2007. "The Dynamics of Farmers' Maize Seed Supply Practices in the Central Valleys of Oaxaca, Mexico," World Development, Elsevier, vol. 35(9), pages 1579-1593, September.
    2. Makate, Clifton & Angelsen, Arild & Holden, Stein Terje & Westengen, Ola Tveitereid, 2023. "Evolution of farm-level crop diversification and response to rainfall shocks in smallholder farming: Evidence from Malawi and Tanzania," Ecological Economics, Elsevier, vol. 205(C).
    3. Paul Winters & Romina Cavatassi & Leslie Lipper, 2006. "Sowing the Seeds of Social Relations: The Role of Social Capital in Crop Diversity," Working Papers 06-16, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    4. Loch, Adam & Wheeler, Sarah Ann & Settre, Claire, 2018. "Private Transaction Costs of Water Trade in the Murray–Darling Basin," Ecological Economics, Elsevier, vol. 146(C), pages 560-573.
    5. Luz P. Llamas-Guzmán & Elena Lazos Chavero & Hugo R. Perales Rivera & Alejandro Casas, 2022. "Seed Exchange Networks of Native Maize, Beans, and Squash in San Juan Ixtenco and San Luis Huamantla, Tlaxcala, Mexico," Sustainability, MDPI, vol. 14(7), pages 1-34, March.
    6. Mettepenningen, E. & Beckmann, V. & Eggers, J., 2011. "Public transaction costs of agri-environmental schemes and their determinants--Analysing stakeholders' involvement and perceptions," Ecological Economics, Elsevier, vol. 70(4), pages 641-650, February.

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    More about this item

    Keywords

    Costs; Food security; Informal sector; Maize; Mexico; Oaxaca; Quality; Rural development; Seed; Small farms; Zea mays;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • O17 - Economic Development, Innovation, 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 - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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