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New Directions for Smallholder Agriculture$
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Peter B. R. Hazell and Atiqur Rahman

Print publication date: 2014

Print ISBN-13: 9780199689347

Published to Oxford Scholarship Online: April 2014

DOI: 10.1093/acprof:oso/9780199689347.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2019. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 22 November 2019

Targeting investments to link farmers to markets: a framework for capturing the heterogeneity of smallholder farmers

Targeting investments to link farmers to markets: a framework for capturing the heterogeneity of smallholder farmers

Chapter:
(p.155) 6 Targeting investments to link farmers to markets: a framework for capturing the heterogeneity of smallholder farmers
Source:
New Directions for Smallholder Agriculture
Author(s):

Maximo Torero

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199689347.003.0006

This chapter attempts to develop a framework that can capture smallholder heterogeneity and therefore identify and prioritise the types of institutions and infrastructure that would help link different types of smallholder to markets. A methodology is proposed in the chapter to identify a typology that incorporates profit potential and efficiency, captures the links to markets and income generation, geographical interdependence, and the bottlenecks associated with efficiency levels of small farmers. This typology will allow for the better targeting of policy interventions and is based on the estimation of an econometric stochastic profit frontier model that takes into account indicators of socioeconomic and market conditions as well as biophysical and market accessibility factors. The stochastic profit frontier set-up is well suited for modelling a farmer’s decision-making process and analysing the opportunities and challenges each farmer faces.

Keywords:   small farmers, typology, profits, efficiency, heterogeneity and stochastic frontier approach

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