Long-term Impacts of Global Food Crisis on Production Decisions

• Tác giả: Manabu Nose
• Ngôn ngữ: eng
• Ký hiệu phân loại: 338.14 Factors affecting production
• Thông tin xuất bản: Taylor and Francis, 2016
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 298841
• Chủ đề: 1. cash crops; 2. Farm investment; 3. Food price crisis; 4. Supply response; 5. terms-of-trade

Tóm tắt

This paper estimates farmers' investment response to food price spikes using household panel data collected before and after the 2007/08 food price crisis in Indonesia. We found that an increase in farmers' terms-of-trade allowed relatively large crop-producing farmers to increase their investments at both extensive and intensive margins. Food price spikes had a significant income effect among farmers whose production surplus is large for market sales. During the food price crisis, large farmers particularly increased machine investments, which saved some labour inputs, pointing to the importance of complementarities between land and machine investments.