The main goal of the study is to determine which socio-economic factors affect level of participation in the community forest management of ''Ludhi-Damgade'' of Gorkha district in Nepal. The empirical evidence for level of participation as a function of social status is obtained by using an ordered probit and two-stage least-squares model. The model also estimates the marginal effects of socio-economic factors on different levels of participation suggesting how per unit change in such socio-economic characters affects the level of participation. Empirical results from the model also verify that participation in forest management determines the quantity and type of benefits received from the community forest. The research findings of the study suggest that participation in community forest management is based on the socio-economic profile of an individual and the level of participation is determined by the benefits obtained from the common forest resources. Lack of participation in community forest management excludes the disadvantaged groups from decision-making in product distribution. Consequently, the disadvantaged groups get less benefit from the community forest. The empirical results are expected to aid policy makers in empowering people of lower socio-economic status to understand the importance of participation in ARTICLE IN PRESS www.elsevier.de/jfe 1104-6899/$ -see front matter

Substantial attention has focused on the dairy industry because of a concern that many producers are getting out of dairying. Although low milk prices are postulated as a primary reason for exits from dairying, other factors may be important as well. Data from a representative 64-farm subset of a 2002 survey of dairy producers in Maine were used in the current study. Of the 64 farms, 15 indicated an imminent exit from dairying, whereas 49 dairy farms expected to remain in business for > or =5 yr. A binary choice logit regression model, based upon the dependent variable decision to exit or remain in the industry, was used as part of a 2-stage regression process to ascertain why dairy producers are choosing to leave the industry. The hypothesis states that the decision is a function of 3 independent variable categories: demographic, efficiency, and opportunity costs. Four variables were revealed that significantly influence the exit decision. Older producers, higher off-farm income, lower returns over variable cost, and greater diversification of farm income were more likely associated with a decision to leave dairy farming. Because factors other than milk price are involved in exit decisions, perhaps national or regional dairy programs should consider strategies beyond price supports to provide for a stable dairy industry and a reduction in the rate of dairy farm exits.

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Recent federal agricultural programs have accelerated the devolution of enterprise risk management responsibility from the state to individual producers. Using a biophysical simulation model, the risk management benefits of federal crop insurance and supplemental irrigation are derived and compared to uninsured rainfed crop production in an expected utility framework. Federal crop insurance programs are inefficient at reducing producer exposure to weather-related production risk in humid regions, and the risk management benefits from supplemental irrigation are found to be scale and technology dependent. Environmental policies that regulate resource development will increase the investment cost of irrigation alternatives and reduce economic feasibility.

New crop varieties often have been promoted in developing countries based upon superior yield vis-a-vis locally available varieties. This research presents a hedonic price model for upland rice by drawing upon the input characteristics and consumer good characteristics model literature. Model specification tests determine that a combination of production and consumption characteristics best explains the willingness to pay for new upland rice varieties. The household model specification determined that five traits explain the willingness to pay for new rice varieties: plant cycle length, plant height, grain colour, elongation/ swelling and tenderness. Yield was not a significant explanatory variable of the willingness to pay for seed. The implications of this model are two-fold. First, varietal development and promotion must include post-harvest characteristics in addition to production traits when determining which varieties to promote for official release. Secondly, non-yield production characteristics such as plant height and cycle length are significant factors in producer's assessments of the value of a new variety. Overall, this paper provides an alternative explanation for limited adoption of modern upland rice varieties in West Africa: varietal evaluation programs have focused too narrowly on yield evaluation and have not promoted varieties with superior non-yield characteristics than locally available varieties.