Rajendra Prasad Adhikari

Is Access to Tractor Service a Binding Constraint for Nepali Terai Farmers

Using results from the three rounds of Nepal Living Standard Surveys (conducted in 1995, 2003, and 2010), this study empirically assesses whether access to rented tractors or custom hiring services is a binding constraint on the income growth of farm households in Nepal. Because four-wheel tractors of medium horsepower are still the primary suppliers of these tractor services, access to these services can be restricted. First, we investigated the determinants of the adoption of hired tractors as well as the intensity of their use (measured by real annual expenditures on renting tractors). Results suggest that the adoption and the intensity patterns are generally consistent with the conventional theory of the demand for agricultural mechanization, indicating that the supply of these services may be relatively efficient in meeting the demand. However, adoption is still affected by the presence of tractor owners within the same village district committee, indicating that the proximity to tractor service providers may still partly determine accessibility. This second point was more formally tested using matching estimators within the Terai region of Nepal. It was found that, on average, the supply of tractor services might have evolved to a relatively efficient level in the Terai so that those who benefited from renting in tractors generally had access to such services. However, for at least certain segments of farm households in the Terai, insufficient access to tractor services was still a binding constraint on the growth of farm household incomes. The policy implications of these findings are briefly discussed in the last section.

Determinants of chemical fertilizer use in Nepal: Insights based on price responsiveness and income effects

Although overall chemical fertilizer use has grown steadily in Nepal in the past two decades, much of that growth has occurred in the Terai agroecological belt while use has stagnated in the Hills and the Mountains regions. Differences in chemical fertilizer use intensity between the Terai and the latter regions are typically pronounced among medium-to-large-size farmers. Using three rounds of the Nepal Living Standards Survey as well as secondary data, we examine the determinants of inorganic fertilizer (urea and DAP) use, as well as the marginal income returns from fertilizer use at the farm-household level. Similarities in soil and climate between farm locale and Agriculture Research Station locale seem to increase demand for fertilizer — even after controlling for distance to those stations. Most important, demand for chemical fertilizer is affected by the real fertilizer price (particularly since the 2003 NLSS survey), but the price response is relatively weaker in the Hills and Mountains, suggesting that returns to fertilizer may be generally low in those regions, and that reducing fertilizer price through subsidies on fertilizer or transportation may not substantially increase fertilizer use. This is confirmed by assessment of the returns to chemical fertilizer use estimated through generalized propensity score matching and ordinary propensity score matching. The findings cast doubt on the effectiveness of fertilizer subsidies as an instrument for stimulating chemical fertilizer use in Nepal, particularly among medium-to-large-scale farmers in the Hills, and point toward alternative measures like increased research and development into technologies that raise overall returns to chemical fertilizer.

Regional development and the Toowoomba Surat Basin Enterprise organization

ABSTRACT This paper discusses the development of the Toowoomba Surat Basin Enterprise economic development organization and how it used marketing and marketing support activities to enhance the region’s entrepreneurial ecosystem and foster entrepreneurial activity by local firms.

Applying a community entrepreneurship development framework to rural regional development

ABSTRACT This article develops a community entrepreneurship development (CED) framework and illustrates its use in a case study of the current and potential value of agriculture to the Barossa Valley in South Australia. The CED offers a framework for rural regional development that both practitioners and policymakers can use to develop and leverage entrepreneurial competencies and other forms of community capital to foster entrepreneurship at the community level. It assesses the potential for leveraging Emery and Flora’s [(2006). Spiraling-up: Mapping community transformation with community capitals framework. Community Development, 37(1), 19–35] community capital framework to build entrepreneurship and innovation. The findings suggest that the success of firm-level entrepreneurship is often dependent upon leveraging the rural region’s idiosyncratic natural capitals with human and social/entrepreneurial capitals to result in community-level entrepreneurial market development initiatives.

Does contract farming improve profits and food safety? Evidence from tomato cultivation in Nepal

Purpose The purpose of this paper is to quantify the benefits of contract farming (CF) on farmers’ income and adoption of food safety measures (FSMs) at the farm level. The paper also investigates the determinants of participation in CF. Design/methodology/approach The study is based on a survey of 600 tomato farmers from Nepal. Descriptive statistics, regression analysis (using instrumental variable) and propensity score matching have been used to accomplish the objectives of the study. Findings The study found that the CF ensures higher returns to farmers as well as higher adoption of FSMs at the farm level. The contract farmers earned about 38 per cent higher net returns and had 38 per cent higher adoption of FSM as compared to independent farmers. Caste, occupation, farm size and cropping intensity significantly affected farmers’ participation in CF. Research limitations/implications The analysis based on cross-section data has limitations to consider unobserved farmer-level individual heterogeneity. Originality/value This study will provide an empirical base to promote CF in Nepal. The study will also contribute to bridge the gap in literature on the drivers of CF and its impact on smallholders’ income and compliance with FSM in Nepal.