Volume 45, Issue 3, September 2020

September, 2020

By: Zhang, Lisha ; Seale, James L. Jr. ; Paggi, Mechel S. ; Schmitz, Troy G.
The Food Safety Modernization Act (FSMA) provides new U.S. food safety standards to lower the incidence of foodborne diseases. We analyze the FSMA in terms of adoption effects on differently sized domestic and foreign farms producing fresh tomatoes for the U.S. market. Findings indicate that adoption of the FSMA will negatively affect the revenues of very small farms the most as well as small U.S. farms. However, it will positively affect the revenues of foreign farms (especially Canadian) and large U.S. farms. This may lead to the restructuring of tomato production and distribution in the U.S. tomato market.

September, 2020

By: Khanal, Aditya R. ; Mishra, Ashok K. ; Mayorga, Joaquin ; Hirsch, Stefan
This study examines the impact of the choice of contract farming (CF) conditions on the productivity and profitability of ginger growers. Using farm-level data from Nepal and the selectivity-corrected multinomial endogenous switching regression (MESR) method, we found that ginger growers increased yields by 16%, 19%, and 15% by participating in CF with input conditions (IC), with output conditions (OC), and with input and output conditions (BC), respectively. Ginger growers also increased profits by participating in CF. Price difference in spot and contract markets, distance to market and transportation facilities, and farm location are important factors affecting participation in any form of CF.