Search

Off-farm work is a common phenomenon among farm household members in industrialised nations. In Scotland, it is expected to grow partly due to Brexit induced uncertainty in agricultural policy and markets. Previous research has linked the phenomenon to farmers’ production choices with some research findings suggesting that it increases the uptake of low input intensity pro-environmental farming methods but the overall evidence is mixed. An understanding of the influence of the expected growth in off-farm work on farmer production choices and its impact on the intensity of input use is of interest given the increasing policy emphasis being given to supporting sustainable agricultural production methods. Using Scotland’s Farm Accounts Survey data, we examine the determinants of off-farm work and investigate its effects on two measures of agricultural intensity namely fertiliser and crop protection expenditures per hectare. We find that tenanted farmers managing relatively small farms are more likely to be involved in off-farm work. We also find that farmers with very high levels of off-farm work are significantly less intensive in the use of fertilisers but there is no evidence of any impact of off-farm work on their intensity of use of crop protection products. It follows that an increase in the proportion of farmers with off-farm work brought about by Brexit may have the unintended (positive) consequence of reducing the intensity of inorganic fertiliser use in agriculture, thereby making the sector more environmentally sustainable.

Regional differences in dietary patterns, food supply, and food culture can influence the relationship between income and food demand and thus the impact of income-oriented policies on undernutrition across Africa. In order to test for evidence of regional differences in income elasticities for food demand in Africa, we conduct a meta-analysis using 1,768 food-income elasticity estimates for different categories of food, 324 nutrient-income elasticity estimates, and 103 calorie-income elasticity estimates, extracted from 66 studies covering 48 African countries. One key contribution of this study is that it considers nutrient- and food-income elasticities besides calorie-income elasticities, allowing us to explore issues relating to calorie (i.e. energy) deficiency as well as malnutrition. We find that heterogeneity in the income elasticities can be explained by both differences in primary study characteristics (e.g. data, methodology) and the characteristics of the countries to which the income elasticities refer. The findings for food groups suggest there are significant regional differences in the size of the income elasticities. Some of the regional differences can be related to differences in diet and food supply structures across Africa but there may be other factors captured by the geographic variables (e.g. socio-cultural practices). In terms of country-level characteristics, the demand for calories, nutrients, and food becomes less responsive to changes in income as countries become more urbanised. The effect of economic growth is complex and appears to vary according to the type of income elasticity. The overall food-income elasticity appears to decline with income growth, and the relation holds for cereals, dairy and fruit and vegetables, although it is weaker for the other main food groups. Interestingly, we find a positive relation between a country’s economic growth and the magnitude of the nutrient-income elasticity and that economic growth is associated with increased demand for foods with greater nutrient content but fewer, or no additional, calories. Further country-specific analysis is needed to ensure that income-based policies targeting undernourishment and malnutrition in Africa achieve their goals.

In order to combat malnutrition, economists and policymakers need to understand how food demand will change, as the continent further develops. Especially, a better understanding of, first, the factors underlying the relation between income and food demand, and, second, how this relation is changing according to the income level and/or characteristics of the country under study, may help improve the design and implementation of nutrition policies. There are a number of studies that have estimated the relation between income growth and food demand in Africa, but the resulting estimates are highly heterogeneous. This report provides a systematic review of the existing literature on income elasticities of food demand in Africa. Using a meta-analysis approach, this report identifies the factors determining the relation between food demand and income. Further research could usefully explore in greater detail some of the patterns identified and, in doing so, contribute to the design of policies aimed at addressing malnutrition., JRC.J.4-Agriculture and Life Sciences in the Economy

In many Sub Saharan Africa countries, access to electricity to electricity is very low in rural areas. For example in Ghana only 27% of rural households have access. However, extending the grid in these countries faces significant technical and financial constraints and many see decentralised systems particularly those using renewable energy as being enormously important. This presupposes the adoption of standalone technologies by a large number of poor farm households who are currently off-grid is likely. However, such households in LDCs typically face a range of market imperfections in credit, product and other markets. This paper explores the potential value of access to electricity for poor agricultural households and the extent to which credit and output market imperfections may inhibit the uptake of stand-alone solar panels using a life cycle farm household simulation model which allows for credit constraints and yield risk.