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The relationship between productivity and farm size has been at the center of considerable debate. Agricultural mechanization – that is rapidly taking off in a large number of low- and middle-income countries – has been identified as one of the emerging technologies in these settings with a critical, yet complex, influence on this productivity-size relation. However, knowledge gaps remain as how agricultural transformation due to the adoption of new technologies and the change in factor costs, such as mechanization fees, are associated with this productivity - size relation. In the case of Myanmar, where mechanization use has dramatically increased over the last decade, we find a significant inverse productivity - plot size relationship, with small rice plots having productivity levels approximately 30 percent higher than large plots. However, rising mechanization fees – more so in conflict-affected townships – attenuated this inverse relation between rice productivity (yield and profit per land) and plot size substantially. These results primarily hold on the largest rice plot cultivated by each farmer, but also generally hold when comparing total rice area and major non-rice area. Our results are likely explained by the fact that, in Myanmar, smallholders have become more dependent on mechanization services than larger farms (who can rely on their own machines) do, that alternatives to mechanization services have become scarce (as mechanization use changed little, despite these price increases), and that mechanization service costs account for a significant share of the total production costs among smallholders.
Book Synopsis Agricultural mechanization services, rice productivity, and farm/plot size: Insights from Myanmar by : Myanmar Agriculture Policy Support Activity (MAPSA)
Download or read book Agricultural mechanization services, rice productivity, and farm/plot size: Insights from Myanmar written by Myanmar Agriculture Policy Support Activity (MAPSA) and published by Intl Food Policy Res Inst. This book was released on 2023-07-27 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: The relationship between productivity and farm size has been at the center of considerable debate. Agricultural mechanization – that is rapidly taking off in a large number of low- and middle-income countries – has been identified as one of the emerging technologies in these settings with a critical, yet complex, influence on this productivity-size relation. However, knowledge gaps remain as how agricultural transformation due to the adoption of new technologies and the change in factor costs, such as mechanization fees, are associated with this productivity - size relation. In the case of Myanmar, where mechanization use has dramatically increased over the last decade, we find a significant inverse productivity - plot size relationship, with small rice plots having productivity levels approximately 30 percent higher than large plots. However, rising mechanization fees – more so in conflict-affected townships – attenuated this inverse relation between rice productivity (yield and profit per land) and plot size substantially. These results primarily hold on the largest rice plot cultivated by each farmer, but also generally hold when comparing total rice area and major non-rice area. Our results are likely explained by the fact that, in Myanmar, smallholders have become more dependent on mechanization services than larger farms (who can rely on their own machines) do, that alternatives to mechanization services have become scarce (as mechanization use changed little, despite these price increases), and that mechanization service costs account for a significant share of the total production costs among smallholders.
Evidence is scarce on how conflict affects technology adoption and consequent agricultural productivity in fragile states, an important topic given the high share of the extreme poor living in fragile environments globally. Our study contributes to filling this knowledge gap by using unique large-scale data on rice producers in Myanmar before and after a military coup in 2021, leading to a surge of conflicts in the country. We find that the increase in violent events significantly changed rice productivity. Specifically, increases in fatal violent events between 2020 and 2021 reduced rice Total Factor Productivity (TFP) – a measure of how efficiently agricultural inputs are used to produce rice – by about 4 percent on average in the short-run. Moreover, poorer farmers are more affected by conflict, as seen through an increased output elasticity to agricultural equipment owned, indicating reduced output resilience for less-capital owning, and therefore poorer, farmers. This seems partly due to reduced access to agricultural extension services, which would otherwise help farmers maintain productivity, even with limited capital ownership, through substitution with human capital and skills. Lower mechanization service fees partly mitigate these effects. Our results consistently hold for both short- and long-run production functions, across various specifications, and in Upper and Lower Myanmar. These findings suggest that containing and reducing violent events is critical in restoring rice productivity. Improved access to extension services, as well as to cheap mechanization service provision to mitigate lack of equipment ownership, could compensate for these losses and boost the productivity of farmers, especially for those with less production capital, in such fragile settings.
Book Synopsis Conflict and agricultural productivity: Evidence from Myanmar by : Myanmar Agriculture Policy Support Activity
Download or read book Conflict and agricultural productivity: Evidence from Myanmar written by Myanmar Agriculture Policy Support Activity and published by Intl Food Policy Res Inst. This book was released on 2023-02-21 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Evidence is scarce on how conflict affects technology adoption and consequent agricultural productivity in fragile states, an important topic given the high share of the extreme poor living in fragile environments globally. Our study contributes to filling this knowledge gap by using unique large-scale data on rice producers in Myanmar before and after a military coup in 2021, leading to a surge of conflicts in the country. We find that the increase in violent events significantly changed rice productivity. Specifically, increases in fatal violent events between 2020 and 2021 reduced rice Total Factor Productivity (TFP) – a measure of how efficiently agricultural inputs are used to produce rice – by about 4 percent on average in the short-run. Moreover, poorer farmers are more affected by conflict, as seen through an increased output elasticity to agricultural equipment owned, indicating reduced output resilience for less-capital owning, and therefore poorer, farmers. This seems partly due to reduced access to agricultural extension services, which would otherwise help farmers maintain productivity, even with limited capital ownership, through substitution with human capital and skills. Lower mechanization service fees partly mitigate these effects. Our results consistently hold for both short- and long-run production functions, across various specifications, and in Upper and Lower Myanmar. These findings suggest that containing and reducing violent events is critical in restoring rice productivity. Improved access to extension services, as well as to cheap mechanization service provision to mitigate lack of equipment ownership, could compensate for these losses and boost the productivity of farmers, especially for those with less production capital, in such fragile settings.
This study explores the transformation of Myanmar’s rice value chain (VC) over a period of liberalization, reform, and infrastructure expansion from 2013 to 2019, and over a period of multiple crises from 2020 to 2022 including a military coup and widespread conflict. We analyze modernization over these periods at different levels of the VC, including upstream (farms), midstream (mills), and downstream (rice vendors). We rely upon unique data from large-scale phone surveys collected at different segments of the rice value chain – including farm and post-farmgate – complemented with insights from key informant interviews, and secondary data. The major findings are the following: There have been large transformations within the rice value chain over the last decade, but modernization in some areas decelerated due to conflict. We note a process of modernization, upscaling, quality improvements, and increased outsourcing of agricultural activities to specialized service providers by farmers. The majority of this transformation occurred during the period of relative stability from 2013 to 2019. We show that although modernization continued during the crisis years that followed, including an improvement in rice quality and an expansion of modern mills, many modernization processes decelerated. Mills and farms in insecure and conflict-affected areas participated to a lesser extent and the modernization gaps widened during the crisis years. Local rice market conditions improved with better-quality rice sold locally. A large share of food vendors indicated better rice quality overall at the time of survey compared to 3 and 10 years earlier. Sixty-eight percent of vendors reported that there was no foreign matter in the rice that they sold a decade ago. That share has increased by 23 percentage points to 91 percent in 2022. In domestic retail, modern retail is (yet) negligible in rice distribution at the national level. Rice exports quadrupled, with Myanmar becoming globally the 5th biggest exporter of rice by the end of 2019. Rice exports have proven to be resilient during the crisis years. Rice exports increased dramatically despite more stringent, and costly, non-tariff measures for exports such as phyto-sanitary requirements. Rice is exported through different channels, moving away from low-quality rice trucked to China, to relatively better-quality and often certified rice being shipped on large vessels to a more diverse set of countries. We see shifting challenges over time – due to banking, electricity, and mobility problems that millers and traders adjusted to, at an increasing cost – but national exports mostly stabilized, in the crisis years compared to the period before, seemingly as major rice producing areas - except Sagaing - were less affected by conflicts, Midstream, we see rapid uptake and investments in modern drying machines – especially mechanized dryers – and modern milling machinery in the form of new mill starts and upgrading from traditional mills. The average number of modern mills operating in the miller’s same village tract/ward increased by about 60 percent from 2013 to 2019 and by a further 10 percent in 2022. The trend for traditional mills is the opposite: declining by 50 percent between 2013 and 2019 and a further 15 percent in 2022. This modernization has been driven by local firm investments as Foreign Direct Investment (FDI) has been limited. Upstream (at the farm level), we note a substantial expansion of modern input use. Rice seed markets have become more active in the 2010s. The sale of branded rice seeds doubled over the last decade. Chemical fertilizer use also increased over the last decade. While use was lower in 2022 than before the crisis, they were still at a higher level than a decade earlier. We also see increased use of modern harvest and post-harvest technologies and more outsourcing of harvest and post-harvest activities, mostly linked to these modern technologies and practices. In 2022, 54 percent of the farmers reported to have used a combine-harvester on most rice plots. Farmers hiring in tractors increased by 33 percentage points over the last decade. Outsourcing drying services has also increased, but the growth has been more modest: 22 percent of the farmers indicated that they outsourced the drying of paddy. Modern dryer use increased accordingly. We find significant negative relationships between severe local conflict and many modernization outcomes. Severe conflict is found to negatively impact various modernization aspects, notably the adoption of tractor services and modern dryers at the farm level, and the prevalence of modern mills and drying equipment in midstream operations. Modernization has not been everywhere inclusive. More remote and smaller firms are participating less in modern practices. More remote farmers show smaller growth in adoption of combine harvesters, modern dryers, and modern mills, while smaller farmers have smaller growth in the use of combine harvesters and drying service providers. In the midstream, mills in remote areas show smaller changes in the share of modern mills in their areas, while smaller mills have significantly slower growth in modern service provision and lower investment rates in value-added machinery. For many of these modernization outcomes, the gaps across firm size and remoteness widened during the crisis years. Our findings point to three main implications for the modernization of Myanmar’s rice VC. Private-market oriented reform leads to rapid modernization in VCs, while heavy intervention – e.g., low reference prices for rice; limits on intranational trade; control of imports and exports through an export licensing system; and currency manipulation through a dual exchange rate system – may jeopardize VC modernization and increase uncertainty throughout VCs. More inclusive transformation should be promoted. Smaller and more remote farms and mills are showing slower growth across many modernization outcomes, raising concerns about livelihood improvements for those participating less in the VC’s modernization. Conflict negatively affects modernization at the farm and VC midstream. The study reaffirms the crucial need for stable political and economic environments to foster effective agricultural growth and transformation.
Book Synopsis Conflict, inclusivity, and transformation of the rice value chain in Myanmar by : Myanmar Agriculture Policy Support Activity
Download or read book Conflict, inclusivity, and transformation of the rice value chain in Myanmar written by Myanmar Agriculture Policy Support Activity and published by Intl Food Policy Res Inst. This book was released on 2024-04-29 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study explores the transformation of Myanmar’s rice value chain (VC) over a period of liberalization, reform, and infrastructure expansion from 2013 to 2019, and over a period of multiple crises from 2020 to 2022 including a military coup and widespread conflict. We analyze modernization over these periods at different levels of the VC, including upstream (farms), midstream (mills), and downstream (rice vendors). We rely upon unique data from large-scale phone surveys collected at different segments of the rice value chain – including farm and post-farmgate – complemented with insights from key informant interviews, and secondary data. The major findings are the following: There have been large transformations within the rice value chain over the last decade, but modernization in some areas decelerated due to conflict. We note a process of modernization, upscaling, quality improvements, and increased outsourcing of agricultural activities to specialized service providers by farmers. The majority of this transformation occurred during the period of relative stability from 2013 to 2019. We show that although modernization continued during the crisis years that followed, including an improvement in rice quality and an expansion of modern mills, many modernization processes decelerated. Mills and farms in insecure and conflict-affected areas participated to a lesser extent and the modernization gaps widened during the crisis years. Local rice market conditions improved with better-quality rice sold locally. A large share of food vendors indicated better rice quality overall at the time of survey compared to 3 and 10 years earlier. Sixty-eight percent of vendors reported that there was no foreign matter in the rice that they sold a decade ago. That share has increased by 23 percentage points to 91 percent in 2022. In domestic retail, modern retail is (yet) negligible in rice distribution at the national level. Rice exports quadrupled, with Myanmar becoming globally the 5th biggest exporter of rice by the end of 2019. Rice exports have proven to be resilient during the crisis years. Rice exports increased dramatically despite more stringent, and costly, non-tariff measures for exports such as phyto-sanitary requirements. Rice is exported through different channels, moving away from low-quality rice trucked to China, to relatively better-quality and often certified rice being shipped on large vessels to a more diverse set of countries. We see shifting challenges over time – due to banking, electricity, and mobility problems that millers and traders adjusted to, at an increasing cost – but national exports mostly stabilized, in the crisis years compared to the period before, seemingly as major rice producing areas - except Sagaing - were less affected by conflicts, Midstream, we see rapid uptake and investments in modern drying machines – especially mechanized dryers – and modern milling machinery in the form of new mill starts and upgrading from traditional mills. The average number of modern mills operating in the miller’s same village tract/ward increased by about 60 percent from 2013 to 2019 and by a further 10 percent in 2022. The trend for traditional mills is the opposite: declining by 50 percent between 2013 and 2019 and a further 15 percent in 2022. This modernization has been driven by local firm investments as Foreign Direct Investment (FDI) has been limited. Upstream (at the farm level), we note a substantial expansion of modern input use. Rice seed markets have become more active in the 2010s. The sale of branded rice seeds doubled over the last decade. Chemical fertilizer use also increased over the last decade. While use was lower in 2022 than before the crisis, they were still at a higher level than a decade earlier. We also see increased use of modern harvest and post-harvest technologies and more outsourcing of harvest and post-harvest activities, mostly linked to these modern technologies and practices. In 2022, 54 percent of the farmers reported to have used a combine-harvester on most rice plots. Farmers hiring in tractors increased by 33 percentage points over the last decade. Outsourcing drying services has also increased, but the growth has been more modest: 22 percent of the farmers indicated that they outsourced the drying of paddy. Modern dryer use increased accordingly. We find significant negative relationships between severe local conflict and many modernization outcomes. Severe conflict is found to negatively impact various modernization aspects, notably the adoption of tractor services and modern dryers at the farm level, and the prevalence of modern mills and drying equipment in midstream operations. Modernization has not been everywhere inclusive. More remote and smaller firms are participating less in modern practices. More remote farmers show smaller growth in adoption of combine harvesters, modern dryers, and modern mills, while smaller farmers have smaller growth in the use of combine harvesters and drying service providers. In the midstream, mills in remote areas show smaller changes in the share of modern mills in their areas, while smaller mills have significantly slower growth in modern service provision and lower investment rates in value-added machinery. For many of these modernization outcomes, the gaps across firm size and remoteness widened during the crisis years. Our findings point to three main implications for the modernization of Myanmar’s rice VC. Private-market oriented reform leads to rapid modernization in VCs, while heavy intervention – e.g., low reference prices for rice; limits on intranational trade; control of imports and exports through an export licensing system; and currency manipulation through a dual exchange rate system – may jeopardize VC modernization and increase uncertainty throughout VCs. More inclusive transformation should be promoted. Smaller and more remote farms and mills are showing slower growth across many modernization outcomes, raising concerns about livelihood improvements for those participating less in the VC’s modernization. Conflict negatively affects modernization at the farm and VC midstream. The study reaffirms the crucial need for stable political and economic environments to foster effective agricultural growth and transformation.
A phone survey was conducted in January 2023 to understand the effects of COVID‑19 and political instability on Myanmar’s mechanization service providers (MSPs). MSPs are crucial to enabling smallholder farmers to undertake a range of power-intensive farm and post-harvest operations in a timely manner. This note reports on the results of this survey, the tenth in a series of phone surveys, and trends from earlier surveys.
Book Synopsis Monitoring the agri-food system in Myanmar: Mechanization service providers - January 2023 survey round by : Myanmar Agriculture Policy Support Activity (MAPSA)
Download or read book Monitoring the agri-food system in Myanmar: Mechanization service providers - January 2023 survey round written by Myanmar Agriculture Policy Support Activity (MAPSA) and published by Intl Food Policy Res Inst. This book was released on 2023-04-28 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: A phone survey was conducted in January 2023 to understand the effects of COVID‑19 and political instability on Myanmar’s mechanization service providers (MSPs). MSPs are crucial to enabling smallholder farmers to undertake a range of power-intensive farm and post-harvest operations in a timely manner. This note reports on the results of this survey, the tenth in a series of phone surveys, and trends from earlier surveys.
This research was undertaken to better assess the role of mechanization in the future of smallholder farmers in Nepal. It addresses the knowledge gap about whether promoting mechanization that is often complementary to land can effectively support smallholders, particularly in the face of a growing nonfarm sector. Rising rural wages in Nepal have increasingly put pressures on smallholder farmers, who tend to operate labor-intensive farming. Agricultural mechanization through custom hiring of tractor services has recently been considered as an option to mitigate the impact of rising labor costs for smallholders. However, the benefit of agricultural mechanization may still be better captured by exploiting the economies of scale of medium to large farmers rather than smallholders. In the meantime, the Nepal agricultural sector still employs a disproportionate share of workers given its share in the economy, potentially depressing agricultural labor productivity. It is therefore an important policy question whether to (1) continue supporting smallholders through custom-hired tractor services or (2) encourage smallholders to rent their farms out to medium-size or larger farmers, while helping smallholders specialize in the nonfarm sector, where their labor productivity may be higher. Using samples from the Terai zone—one of the agroecological belts in Nepal, largely consisting of lowland plains— from the Nepal Living Standards Survey, we assess whether the benefits of hiring in tractor services are greater among medium to large farmers than among smallholders, and how these benefits may depend on smallholders’ decision to remain in or leave farming. This study also contributes to the impact evaluation literature by showing that jointly assessing the effects of two treatments (whether to adopt custom-hired tractor services and continue farming, or to search for better options and specialize in off-farm activities) can lead to different implications than assessing them separately. Our analyses suggest that the government should continue to promote custom-hired tractor services not only for medium to large farmers but also for smallholders. If, over time, barriers to specializing in nonfarm activities are lowered and more smallholders start leaving farming, mechanization may no longer benefit the remaining smallholders. Support for mechanization can then be focused more on medium to large farmers, while types of support other than mechanization can be devised for the remaining smallholders.
Book Synopsis Effects of agricultural mechanization on smallholders and their self-selection into farming by : Takeshima, Hiroyuki
Download or read book Effects of agricultural mechanization on smallholders and their self-selection into farming written by Takeshima, Hiroyuki and published by Intl Food Policy Res Inst. This book was released on 2016-12-16 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: This research was undertaken to better assess the role of mechanization in the future of smallholder farmers in Nepal. It addresses the knowledge gap about whether promoting mechanization that is often complementary to land can effectively support smallholders, particularly in the face of a growing nonfarm sector. Rising rural wages in Nepal have increasingly put pressures on smallholder farmers, who tend to operate labor-intensive farming. Agricultural mechanization through custom hiring of tractor services has recently been considered as an option to mitigate the impact of rising labor costs for smallholders. However, the benefit of agricultural mechanization may still be better captured by exploiting the economies of scale of medium to large farmers rather than smallholders. In the meantime, the Nepal agricultural sector still employs a disproportionate share of workers given its share in the economy, potentially depressing agricultural labor productivity. It is therefore an important policy question whether to (1) continue supporting smallholders through custom-hired tractor services or (2) encourage smallholders to rent their farms out to medium-size or larger farmers, while helping smallholders specialize in the nonfarm sector, where their labor productivity may be higher. Using samples from the Terai zone—one of the agroecological belts in Nepal, largely consisting of lowland plains— from the Nepal Living Standards Survey, we assess whether the benefits of hiring in tractor services are greater among medium to large farmers than among smallholders, and how these benefits may depend on smallholders’ decision to remain in or leave farming. This study also contributes to the impact evaluation literature by showing that jointly assessing the effects of two treatments (whether to adopt custom-hired tractor services and continue farming, or to search for better options and specialize in off-farm activities) can lead to different implications than assessing them separately. Our analyses suggest that the government should continue to promote custom-hired tractor services not only for medium to large farmers but also for smallholders. If, over time, barriers to specializing in nonfarm activities are lowered and more smallholders start leaving farming, mechanization may no longer benefit the remaining smallholders. Support for mechanization can then be focused more on medium to large farmers, while types of support other than mechanization can be devised for the remaining smallholders.
Over the last decade, farms in Myanmar have gone through important market transitions. On the input side, imports of chemical fertilizer increased four-fold and agro-chemicals eight-fold while 55 percent more farmers were using mechanization rental services between 2011 and 2020. On the output side, three-quarters of Myanmar’s crop production is sold, indicating high market orientation, especially so for non-paddy crops. However, farm commercialization in Myanmar started from a low base and is still lagging peer countries in the region. The twin crises in 2020 and 2021 (the covid-19 and the political crisis) and international market developments have further led to increasing worries for an agricultural market transformation on hold or in reverse, as seen by a decline in imports of modern inputs, driven by price increases of inputs, currency policy changes, insecurity, and reduced profitability for most crop farmers. To improve farm commercialization and to catch up with peers, a better and secure business environment, openness to trade, further diversification, and improved infrastructure is called for.
Book Synopsis Farm commercialization in Myanmar: A transformation on hold or in reverse? by : Myanmar Agriculture Policy Support Activity (MAPSA)
Download or read book Farm commercialization in Myanmar: A transformation on hold or in reverse? written by Myanmar Agriculture Policy Support Activity (MAPSA) and published by Intl Food Policy Res Inst. This book was released on 2022-08-03 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the last decade, farms in Myanmar have gone through important market transitions. On the input side, imports of chemical fertilizer increased four-fold and agro-chemicals eight-fold while 55 percent more farmers were using mechanization rental services between 2011 and 2020. On the output side, three-quarters of Myanmar’s crop production is sold, indicating high market orientation, especially so for non-paddy crops. However, farm commercialization in Myanmar started from a low base and is still lagging peer countries in the region. The twin crises in 2020 and 2021 (the covid-19 and the political crisis) and international market developments have further led to increasing worries for an agricultural market transformation on hold or in reverse, as seen by a decline in imports of modern inputs, driven by price increases of inputs, currency policy changes, insecurity, and reduced profitability for most crop farmers. To improve farm commercialization and to catch up with peers, a better and secure business environment, openness to trade, further diversification, and improved infrastructure is called for.
Rice is an extremely important product for farmers’ livelihoods and for food security in Myanmar. Rice is the main staple, accounting for 51 and 62 percent of urban and rural calories consumed, respectively, making it crucial for food security in the country.1 Large international changes in commodity markets and twin local crises – COVID-19 and political problems due to the military take-over – have raised doubts on the performance of the agricultural sector overall and the rice sector in particular. The assessment on farmers’ rice productivity during the dry season of 2022 presented in this research note is based on data from the Myanmar Agriculture Performance Survey (MAPS) that was conducted with 678 rice producers, spread over all states/regions of the country, over the period August 2022 – September 2022. Detailed questions were asked to farmers about their background, input use and input prices, farm management practices, rice output and output prices, and natural and other shocks during the dry season of 2021 and 2022.2 This research note presents the results from that assessment.
Book Synopsis Rice productivity in Myanmar: Assessment of the 2022 dry season and farmers’ expectations for the monsoon of 2022 by : Myanmar Agriculture Policy Support Activity (MAPSA)
Download or read book Rice productivity in Myanmar: Assessment of the 2022 dry season and farmers’ expectations for the monsoon of 2022 written by Myanmar Agriculture Policy Support Activity (MAPSA) and published by Intl Food Policy Res Inst. This book was released on 2022-12-16 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: Rice is an extremely important product for farmers’ livelihoods and for food security in Myanmar. Rice is the main staple, accounting for 51 and 62 percent of urban and rural calories consumed, respectively, making it crucial for food security in the country.1 Large international changes in commodity markets and twin local crises – COVID-19 and political problems due to the military take-over – have raised doubts on the performance of the agricultural sector overall and the rice sector in particular. The assessment on farmers’ rice productivity during the dry season of 2022 presented in this research note is based on data from the Myanmar Agriculture Performance Survey (MAPS) that was conducted with 678 rice producers, spread over all states/regions of the country, over the period August 2022 – September 2022. Detailed questions were asked to farmers about their background, input use and input prices, farm management practices, rice output and output prices, and natural and other shocks during the dry season of 2021 and 2022.2 This research note presents the results from that assessment.
The recent history of rural economic transformation in Myanmar and the effects of COVID-19 and the military coup in February 2021 provide important lessons for the design and implementation of plans to help the country recover from these scourges. The impoverishment of farming communities in Myanmar during decades of socialist military rule, beginning in the 1960s until the turn of the century, led to an outflux of migrants to neighboring countries. As the country opened up to foreign investment through economic reforms initiated in 2011, rural wages surged and farm mechanization services expanded rapidly. Together with increased remittance flows from migrants, higher rural household incomes drove growth in a wide range of non-farm service enterprises. Nevertheless, agricultural growth was low and most crop subsectors stagnated due to underlying and unresolved structural constraints such as poor infrastructure and inequality in land access. As in many other countries in Asia, border closures and lockdowns instituted to prevent the spread of COVID-19 in early 2020 resulted in widespread employment and income losses. The Myanmar government pro-actively sought to mitigate the impacts through expanded credit to farmers and businesses. By the end of 2020, Myanmar was beginning to recover from the economic stresses of COVID-19. However, the February 2021 military coup resulted in a far more severe economic downturn than COVID-19 due to the collapse of the financial system, the massive resignations by public sector employees, and the prolonged movement restrictions. Coup-induced state failure greatly magnified the health and economic consequences of COVID-19 in terms of poverty, food insecurity, and stalled economic transformation. This paper uses a combination of macro, meso, and micro-level analyses to measure the impacts of COVID-19 and state failure on rural economic transformation through the lens of the agri-food system, and to draw lessons for policies to support broad-based and resilient economic recovery.
Book Synopsis Beyond emergency relief: What will it take to ensure a resilient recovery for agriculture and the rural economy of Myanmar by : Myanmar Agriculture Policy Support Activity (MAPSA)
Download or read book Beyond emergency relief: What will it take to ensure a resilient recovery for agriculture and the rural economy of Myanmar written by Myanmar Agriculture Policy Support Activity (MAPSA) and published by Intl Food Policy Res Inst. This book was released on 2022-02-02 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: The recent history of rural economic transformation in Myanmar and the effects of COVID-19 and the military coup in February 2021 provide important lessons for the design and implementation of plans to help the country recover from these scourges. The impoverishment of farming communities in Myanmar during decades of socialist military rule, beginning in the 1960s until the turn of the century, led to an outflux of migrants to neighboring countries. As the country opened up to foreign investment through economic reforms initiated in 2011, rural wages surged and farm mechanization services expanded rapidly. Together with increased remittance flows from migrants, higher rural household incomes drove growth in a wide range of non-farm service enterprises. Nevertheless, agricultural growth was low and most crop subsectors stagnated due to underlying and unresolved structural constraints such as poor infrastructure and inequality in land access. As in many other countries in Asia, border closures and lockdowns instituted to prevent the spread of COVID-19 in early 2020 resulted in widespread employment and income losses. The Myanmar government pro-actively sought to mitigate the impacts through expanded credit to farmers and businesses. By the end of 2020, Myanmar was beginning to recover from the economic stresses of COVID-19. However, the February 2021 military coup resulted in a far more severe economic downturn than COVID-19 due to the collapse of the financial system, the massive resignations by public sector employees, and the prolonged movement restrictions. Coup-induced state failure greatly magnified the health and economic consequences of COVID-19 in terms of poverty, food insecurity, and stalled economic transformation. This paper uses a combination of macro, meso, and micro-level analyses to measure the impacts of COVID-19 and state failure on rural economic transformation through the lens of the agri-food system, and to draw lessons for policies to support broad-based and resilient economic recovery.
Agricultural mechanization in Africa south of the Sahara — especially for small farms and businesses — requires a new paradigm to meet the needs of the continent’s evolving farming systems. Can Asia, with its recent success in adopting mechanization, offer a model for Africa? An Evolving Paradigm of Agricultural Mechanization Development analyzes the experiences of eight Asian and five African countries. The authors explore crucial government roles in boosting and supporting mechanization, from import policies to promotion policies to public good policies. Potential approaches presented to facilitating mechanization in Africa include prioritizing market-led hiring services, eliminating distortions, and developing appropriate technologies for the African context. The role of agricultural mechanization within overall agricultural and rural transformation strategies in Africa is also discussed. The book’s recommendations and insights should be useful to national policymakers and the development community, who can adapt this knowledge to local contexts and use it as a foundation for further research.
Book Synopsis An evolving paradigm of agricultural mechanization development: How much can Africa learn from Asia? by : Diao, Xinshen, ed.
Download or read book An evolving paradigm of agricultural mechanization development: How much can Africa learn from Asia? written by Diao, Xinshen, ed. and published by Intl Food Policy Res Inst. This book was released on 2020-12-07 with total page 548 pages. Available in PDF, EPUB and Kindle. Book excerpt: Agricultural mechanization in Africa south of the Sahara — especially for small farms and businesses — requires a new paradigm to meet the needs of the continent’s evolving farming systems. Can Asia, with its recent success in adopting mechanization, offer a model for Africa? An Evolving Paradigm of Agricultural Mechanization Development analyzes the experiences of eight Asian and five African countries. The authors explore crucial government roles in boosting and supporting mechanization, from import policies to promotion policies to public good policies. Potential approaches presented to facilitating mechanization in Africa include prioritizing market-led hiring services, eliminating distortions, and developing appropriate technologies for the African context. The role of agricultural mechanization within overall agricultural and rural transformation strategies in Africa is also discussed. The book’s recommendations and insights should be useful to national policymakers and the development community, who can adapt this knowledge to local contexts and use it as a foundation for further research.
There is an urgent need to anticipate and mitigate the threat posed by COVID-19 to Myanmar’s agricultural sector and to rural households that depend on farming for income and for food and nutrition security. We evaluate options to address the threat and to support farmers to prepare their land and plant their crops on time in the short window before the start of the 2020 monsoon cropping season. Recognizing that no single intervention can address the full range of vulnerabilities faced by rural households, we recommend a combination: • Expansion of access to seasonal farm credit with extended loan repayment schedules; • Limited agricultural input subsidies targeting certified seed; and • Implementation of a cash transfer program to smallholder farmers. Despite the high cost of a cash transfer program, there are good reasons to expect that the benefits of such support to farm households will outweigh program costs in monetary terms – even more so if the economic benefits from the consequent lower incidence of malnutrition to which the program would contribute can be measured.
Book Synopsis Strengthening smallholder agriculture is essential to defend food and nutrition security and rural livelihoods in Myanmar against the COVID-19 threat: Elements for a proactive response by : Boughton, Duncan
Download or read book Strengthening smallholder agriculture is essential to defend food and nutrition security and rural livelihoods in Myanmar against the COVID-19 threat: Elements for a proactive response written by Boughton, Duncan and published by Intl Food Policy Res Inst. This book was released on 2020-04-16 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is an urgent need to anticipate and mitigate the threat posed by COVID-19 to Myanmar’s agricultural sector and to rural households that depend on farming for income and for food and nutrition security. We evaluate options to address the threat and to support farmers to prepare their land and plant their crops on time in the short window before the start of the 2020 monsoon cropping season. Recognizing that no single intervention can address the full range of vulnerabilities faced by rural households, we recommend a combination: • Expansion of access to seasonal farm credit with extended loan repayment schedules; • Limited agricultural input subsidies targeting certified seed; and • Implementation of a cash transfer program to smallholder farmers. Despite the high cost of a cash transfer program, there are good reasons to expect that the benefits of such support to farm households will outweigh program costs in monetary terms – even more so if the economic benefits from the consequent lower incidence of malnutrition to which the program would contribute can be measured.
