Evans School Policy Analysis & Research Group (EPAR)

This research brief synthesizes evidence on the effects of policy incentives on agricultural productivity. The evidence discussed is primarily drawn from documents provided to EPAR by the Bill and Melinda Gates Foundation. We review the role of policy and institutions in the Asian Green Revolution, a detailed case study on how policy changes have removed smallholder productivity constraints and contributed to growth, and the theory on the connection of policy incentives to productivity growth. 

In recent years, product supply chains for agricultural goods have become increasingly globalized. As a result, greater numbers of smallholder farmers in South Asia (SA) and Sub-Saharan Africa (SSA) participate in global supply chains, many of them through contract farming (CF). CF is an arrangement between a farmer and a processing or marketing firm for the production and supply of agricultural products, often at predetermined prices. This literature review finds empirical evidence that demonstrates that the economic and social benefits of CF for smallholder farmers are mixed. A number of studies suggest that CF may improve farmer productivity, reduce production risk and transaction costs, and increase farmer incomes. However, critics caution that CF may undermine farmers’ relative bargaining power and increase health, environmental, and financial risk through exposure to monopsonistic markets, weak contract environments, and unfamiliar agricultural technologies. There is consensus across the literature that CF has the best outcomes for farmers when farmers have more bargaining power to negotiate the terms of the contract. In reviewing the literature on CF, we find a number of challenges to comparing studies and evaluating outcomes across contracts. This literature review summarizes empirical findings and analyses regarding contract models and best practices to increase farmers’ bargaining power and decrease contract default.

Agriculture and Climate Change: Part I

With estimated global emissions of 5,969-6,615 metric tons (Mt) of carbon dioxide (CO2) per year, agriculture accounts for about 13.5% of total global anthropogenic emissions of greenhouse gases (GHG). Deforestation contributes about 11.8% of total GHG emissions, releasing about 5,800 Mt CO2 per year. Developing countries are largely responsible for emissions from agriculture and deforestation, with the developing countries of South Asia and East Asia accounting for 17% and 25% of global agricultural emissions respectively. Sub-Saharan Africa (SSA) accounts for about 13% of global emissions from agriculture and 15% of emissions from land use change and forestry. This report examines the biophysical and economic potential of mitigating agriculture and land use GHG emissions, and provides a summary on the current and projected impact of global carbon market mechanisms on emission reductions. 

Agriculture and Climate Change: Part II

This report covers two topics related to agriculture and climate change in developing countries. The first section discusses the role of agricultural offsets in mitigating greenhouse gas emissions. Recent negotiations around a post-Kyoto Protocol agreement have included debate about whether agricultural carbon sequestration projects should be eligible under the Clean Development Mechanism (CDM). We examine the reasons for supporting or opposing this type of CDM reform and how these reasons relate to impacts on development goals and smallholder farmers, scientific uncertainty about carbon sequestration, and philosophical disagreement about the use of emission offsets. The second section covers proposed agricultural adaptation activities in Africa and other developing countries. While the majority of developing countries have outlined immediate adaptation needs in National Adaptation Programs of Action (NAPAs), few have made progress in implementing adaptation activities. We find that issues related to financial resources, scientific and technical information, and capacity building continue to challenge developing countries in preparing for the impacts of climate change.
 

As our understanding of the impacts of hidden hunger on human nutrition grows, understanding the link between fertilizer use and human nutrition becomes increasingly important. This report presents an analysis of both grey and peer-reviewed literature on the effects of fertilizer use on nutritional quality of food, particularly the staples of maize, rice, wheat, cassava and legumes. We find that some nutrient deficiencies, such as zinc, can be effectively addressed through fertilizer use while others, such as iron deficiency, are more difficult to address.  Promising breakthroughs with fortified and complete fertilizers present the opportunity to correct multiple deficiencies. Current fertilizer products exist that, when applied with the proper agronomic methods, can have a significant effect on nutrition in the developing world.  However, it is important to recognize that there are many factors in the developing world that have the potential to inhibit the benefits of fertilizer for human nutrition.  Two significant factors are poor farmers’ difficulty in procuring the correct product and the relative sophistication required to apply fertilizers at the correct amounts and time to achieve desired results.  In addition, researchers have not focused on fertilizer and nutrition studies until recently, particularly micronutrient fertilizer studies, and few studies specifically study the impacts of fertilizer on human nutrition.  More research needs to be done to understand the most effective combinations and techniques, and to understand whether these methods truly increase the amount of nutrients bioavailable to humans.