In this article, we analyse the (dis)investment behaviour of farmers in a within-subject designed experiment. We ascertain whether, and to what extent, the real options approach (ROA) and the classical investment theory can predict farmers' (dis) investment behaviour. We consider a problem of optimal stopping, stylising an option to (dis)invest in agricultural technology. Our results show that both theories do not explain exactly the observed (dis)investment behaviour. However, some evidence was found that the ROA predicted the decision behaviour of farmers better than the classical investment theory. Moreover, we found that farmers learn from repeated investment decisions and consider the value of waiting over time. Socio-demographic and farm-specific variables also affect the (dis)investment behaviour of farmers.
Addressing interconnected social and environmental issues, including poverty, food security, climate change, and biodiversity loss, requires integrated solutions. Agroforestry is a sustainable land use approach with the potential to address multiple issues. This study examined the tree cultivation behavior of smallholder farmers in the Mt. Elgon region of Uganda. We examined the proportion of indigenous tree species added to or removed from agricultural land and the reasons for farmers’ decisions in this regard. We found that farmers overwhelmingly planted exotic species, limiting the possible benefits for the conservation of biodiversity from a suggested re-greening of the region. Indigenous trees were cultivated in low numbers and dominated by a handful of species. Opportunities to help farmers increase the number and variety of indigenous trees on their land were found among smaller-scale coffee farmers and in the protection of natural forests from which indigenous trees propagate into the wider landscape.
The increasing demand for high‐value agricultural products such as fresh fruit presents opportunities for farmers in developing countries due to their higher market value compared with traditional staple crops. This study uses data on trust, risk, and time preferences obtained through behavioral experiments, combined with a discrete choice experiment to understand their effect on farmers’ choices of marketing attributes, collecting data from 252 farmers from Eastern Rwanda. The results reveal that farmers, overall, have positive attitudes toward collective marketing channels with guaranteed immediate payments, written contracts, provision of inputs, credit, and training, a personal relationship with a buyer, and low investment costs. Additionally, farmers with lower levels of risk aversion were found to have a greater preference for immediate payment than farmers with higher levels of risk aversion. Farmers with higher future orientation are more likely to choose contracts that guarantee inputs and/or services and written contracts, and they attach lower relative importance to immediate payments than farmers with lower future orientation. Farmers with higher trust levels attach lower relative importance to immediate payments, written contracts, and a personal relationship with a buyer than farmers with lower trust levels.
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