The Impact Of Producer Organisations On Farm Performance

This report contributes to the literature by estimating farm-level impacts of PO membership, as well the efficiency of support granted to POs under the EU Rural Development Programme (RDP). We employ the propensity score matching and difference in differences (PSM-DID) approach, using 939 observations of large commercial farms in Slovakia for 2006 and 2015. This study is particularly relevant as it analyses the performance of POs in a new EU Member State (MS) (i.e. Slovakia). In general, the penetration of POs in new MSs is much lower than in old MSs (e.g. OECD 2013; COPA-COGECA 2015). It has been widely argued that long periods under communist regimes in new MSs in Central and Eastern Europe have negatively affected the level of social capital and attitudes towards cooperative behaviour (e.g. Lovell 2001; Paldam and Svendsen 2001; Fidrmuc and Gërxhani 2008; Fałkowski and Ciaian 2016). This report attempts to shed light on whether POs can generate benefits for farmers in the context of a new MS socio-economic environment. It is often argued in the literature that small farms are in a better position to gain from cooperative behaviour, while there is less scope for large farms to engage in such actions (e.g. Chechin et al. 2013; Ma and Abdulai 2016). For example, Chechin et al. (2013) have shown that farm size is negatively correlated with commitment to collective action. Larger farms are likely to benefit less from cooperation with other farmers because they have a higher bargaining position as well as better ability to access input and output markets. Further, large farms are found to be more inclined to exit POs because of their stronger bargaining position, potentially causing a high failure rate of established POs with a high proportion of large members (Ollila 1985; Ollila et al. 2011). This report tries to shed some light in this discussion by providing empirical evidence of the impact of PO membership on large commercial farms in Slovakia. Finally, the report attempts to provide evidence on the effectiveness of the PO support granted under the RDP. This is an important policy question given that the functioning of EU food chains, and in particular the improvement of farmers' positions in the supply chain, is subject to policy intervention in the current CAP, as well being under intensive discussion for the post-2020 CAP reform (EP 2011, 2016; European Commission 2013, 2017). Although the support provided for POs within the CAP has a 5 relatively long history, there is little empirical evidence on its effects on the EU farming sector (Fałkowski and Ciaian 2016). The report is structured as follows. Section 2 provides a brief review of the literature on the impact of POs on farm performance. Section 3 discusses the role of the government and the conceptual challenges of setting up efficient state support for POs. Section 4 describes PO support in Slovakia. Sections 5 and 6 present the estimation approach and data used in the report, respectively. Section 7 describes the estimated results. Finally, Section 8 draws the main conclusions and policy implications.

Organising small producers for dealing with production and market risks has been an issue of much debate and research. The co-operative model has been the predominant form of organization of such producers in the past across the developing world and more so in India whether for input supply or output handling and marketing. In 2002, the Companies Act was amended to make space for producer or farmer companies under the Act. As a result, over the last decade, hundreds of producer companies have been promoted by different stakeholders like government, NGOs, farmers’ unions and some corporate agencies to link farmers with markets and create better bargaining power to deal with modern and changing markets. In this context, this study examines the nature and process of promotion of producer companies in India and their performance and dynamics across four states, commodity sectors, and promoters within agricultural sector with the help of case studies of two dozen such companies. It compares and contrasts the Indian producer company structure with traditional co-operatives and with similar innovations in other contexts like Sri Lanka’s farmer companies. The study analyses the performance and the problems of the producer companies from various perspectives, and examines policy and organizational issues to provide guidelines for better structuring and management of this innovative form of producer collectivization in India and the developing world.

Indian agriculture was transforming from a cereal-based production system toward high-value crops (HVC) during the 1990s. However, food security concerns resurfaced during the first decade of the 21st century, and the policy environment tilted in favor of cereal-based production systems, especially rice and wheat. This paper revisits an earlier study to evaluate how the policy shift influences the patterns and the sources of agricultural growth in India and assesses their implications for regional priorities for higher, more sustainable, and more inclusive agricultural growth.

FAO’s previous contribution to the development of contract farming saw the publication in 2015 of the UNIDROIT/FAO/IFAD Legal Guide on Contract Farming, which focused on the bilateral relationship between an agricultural producer and a contractor. This Legislative Study develops that research and focuses on the regulatory frameworks for contract farming, aiming to highlight different possible approaches for different contexts. Responsible contract farming can be a powerful tool for small scale farmers in developing countries to move towards larger scalecommercial production. It can create economic wealth, contribute to supply chain efficiency through the production of higher quantities of better quality products, and contribute to achieving domestic food security objectives. Maximizing these benefits while minimizing the inherent risks of contract farming is reliant upon the forging of an enabling environment, a key part of which is the domestic regulatory framework. This Legislative Study provides guidance to domestic regulators and other interested readers on how to appraise and potentially reform domestic regulatory frameworks to achieve responsible contract farming. Recognising that different countries and contextual realties may benefit from different regulatory solutions, this Study provides several examples, supported by representative case studies, on how contract farming can be regulated, without promoting a single solution as the most appropriate. Please visit FAO’s Contract Farming Resource Centre, http://www.fao.org/in-action/contract-farming/en/, which is a regularly updated website hosting a variety of material on contract farming both from FAO and from other recognized authors.

The book provides step-by-step guidance for development practitioners, managers, and all those interested in how development organisations can help small-scale producers build effective collective businesses.

In an effort to promote agro-enterprises and agro-industries as viable forms of inclusive development, the Food and Agriculture Organization of the United Nations (FAO) and The Cornell International Institute for Food, Agriculture and Development (CIIFAD) in collaboration with the International Association of Agricultural Economists (IAAE), organized an international symposium on the topic “Innovative Institutions, Public Policies, and Private Strategies for Inclusive Agro-Enterprise Development”, as part of the Triennial Meetings of the IAAE held in Foz do lguaçu, Brazil, in August 2012.This book contains the major papers presented at the symposium, which feature a wide range of country and regional experiences and examine the influence of markets and technology transfer to agro-enterprises on food security, poverty, and economic growth. The contributions also identify alternative market access strategies for sustainable economic development. This volume will enrich existing knowledge of agro-enterprises as a channel for promoting inclusive growth and reducing poverty levels across developing and emerging markets.

A joint FAO and World Bank study which shows how the farming systems approach can be used to identify priorities for the reduction of hunger and poverty in the main farming systems of the six major developing regions of the world.

The interval between the first and second editions of this book have witnessed significant changes for the food producers of the EEC. They have moved from a period of increasing production to an era of food surpluses and statutory reductions in production. This overall change in the fortunes of agriculture have greatly increased the need for sound business management. This book has been substantially updated to include all the current factors that have to be taken into consideration by farmers, as well as still providing a basic introduction to the study of farm management for students. It should prove invaluable reading to those running farms, whether experienced or inexperienced.

This comprehensive overview of local food systems explores alternative definitions of local food, estimates market size and reach, describes the characteristics of local consumers and producers, and examines early indications of the economic and health impacts of local food systems. Defining ¿local¿ based on marketing arrangements, such as farmers selling directly to consumers at regional farmers¿ markets or to schools, is well recognized. Statistics suggest that local food markets account for a small, but growing, share of U.S. agricultural production. For smaller farms, direct marketing to consumers accounts for a higher percentage of their sales than for larger farms. Charts and tables.