Direct payments to Japanese farmers: Do they reduce rice income inequality? Lessons for other Asian countries

Nitta, Atomu; Yamamoto, Yasutaka; Kondo, Katsunobu; Sawauchi, Daisuke

doi:10.1016/j.jpolmod.2020.02.006

Cited by 6 publications

(8 citation statements)

References 42 publications

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“…The use of Gini decomposition together with the concentration curve is also becoming popular in in-come-inequality studies. For example, a recent work by Nitta et al (2020) uses Gini decomposition and concentration curve to investigate the income-equalizing effect of direct payments on rice income in Japan. The study indicates that the direct payments in Japan were highly concentrated but they nevertheless reduced rice income inequality.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…The findings also show that the equalizing effect of direct payments was less than that in other countries because the Japanese payments were linked to participation in an acreage reduction program and were not fully decoupled. To pursue greater income equality, the study by Nitta et al (2020) recommend policymakers to decouple the payments and introduce mechanisms to decrease or limit the amount of support to the largest beneficiaries.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…Links with the Lorenz curve make the Gini coefficient an attractive statistic for the decomposition by income components, as the Lorenz curve graphically represents the Gini coefficient. The concentration coefficient of each income component with respect to total income is obtained from a concentration curve (Pyatt et al, 1980;Nitta et al, 2020). However, it should be noted here that, the Gini coefficient (or concentration coefficient) cannot be used to rank distributions if the Lorenz curves (or concentration curves) intersect.…”

Section: Data Processing and Analysismentioning

confidence: 99%

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Income Inequality in Mountain Areas: The Case of Agroforestry Farming Systems in Uluguru Mountains, Tanzania

Kadigi¹

2021

OJF

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Land degradation due to use of unsustainable agricultural practices has affected many communities in rural mountain areas rendering them to be more vulnerable to income poverty and inequality. In this case, agroforestry systems promise to offer great solutions as they can be developed in unfavourable conditions where other production systems would either rapidly degrade the land or otherwise would not be possible. However, little is known whether agroforestry can address issues of income inequality in mountain areas. Hence, we conducted a study to investigate the nature and determinants of income inequality in Uluguru Mountains, Tanzania. Specifically, we used the cross-sectional research design and we calculated the income percentile shares, Gini coefficients and the coefficient of variation (CV), to pinpoint the nature of income inequality in the study area. The determinants of income inequality were analysed using the step by step multiple linear model. The results of analysis suggested prevalence of income inequality. Crop production was the main source of income in the agroforestry systems of the study area. Earnings from crops and timber were decreasing income-inequality amongst smallholder farmers. Our disaggregated analysis showed that offfarm income was also decreasing income-inequality for farmers with farmlands located close to homestead, for female-headed households, for farmers who did not access extension services, and those who were members of community-based financial institutions. Estimated incomes increased with household assets, size of farmland, and age of household head. However, the same decreased with household size. We found gender disparity to be one of the key issues that need attention in formulating future policies to reduce inequality. We recommend promotion of livelihood diversification as well as the designing and implementation of tailor-made training and farm financing How to cite this paper: Kadigi, R.M.J.

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Section: Theoretical Frameworkmentioning

confidence: 99%

Section: Theoretical Frameworkmentioning

confidence: 99%

Section: Data Processing and Analysismentioning

confidence: 99%

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Income Inequality in Mountain Areas: The Case of Agroforestry Farming Systems in Uluguru Mountains, Tanzania

Kadigi¹

2021

OJF

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“…Both were implemented in 2010 for the purpose of ensuring farm viability and to maintain domestic production potential (MAFF, 2011). First, as explained by Nitta et al (2020), DPr was based on the current planted area of staple rice, with the payment rate set at JPY 150,000 (USD 1,281) 2 per ha of rice planted area. Second, DPu was granted to all farms that cultivated non-staple rice products (e.g.…”

Section: Introductionmentioning

confidence: 99%

“…In Japan, no study has dealt with the effects of direct payments on income variability, although the literature explores the effects of direct payments for less-favoured area support and environmental/ecosystem services in terms of preventing farmland abandonment and promoting collective stewardship of common property resources(Ito et al, 2018(Ito et al, , 2019Takayama et al, 2020). In addition, the distributional effects of the direct payments that are the focus of this study have been examined(Nitta et al, 2020).© 2021 The Authors. The Australian Journal of Agricultural and Resource Economics published by John Wiley & Sons Australia, Ltd on behalf of Australasian Agricultural and Resource Economics Society Inc…”

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confidence: 99%

Effects of direct payments on rice income variability in Japan*

Nitta¹,

Yamamoto²,

Severini³

et al. 2021

Aus J Agri & Res Econ

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The effects of direct payments on rice income variability in Japan are analysed based on a balanced panel dataset of Japanese rice farms for 2012-2016. Firstly, the contribution of income components to rice income variability and the effects of a direct payment reduction are discussed by applying variance decomposition. Secondly, robust regression techniques are used to measure the correlation between direct payments and rice income variability. The originality of this paper is that it disaggregates the effects of payments using a regression analysis of the effects of direct payments on income variability for Japan. This contrasts with the existing literature on this topic, which has largely focused on European Union countries. This paper discusses to what degree the reduction in direct payments increases income variability. The results reveal that direct payments decrease Japanese rice income variability. Indeed, after controlling for various farm characteristics, we find a negative relationship between the amount of direct payments linked to rice production and rice income variability. Finally, the results suggest that reducing direct payments when the rice price is falling would increase rice income variability.

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Can adaptive co-management reduce poverty and inequality in the coastal fishing community? An impact evaluation in the riverine system in Bangladesh

Haque¹,

Nahiduzzaman²,

Saha

2022

Regional Studies in Marine Science

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Direct payments to Japanese farmers: Do they reduce rice income inequality? Lessons for other Asian countries

Cited by 6 publications

References 42 publications

Income Inequality in Mountain Areas: The Case of Agroforestry Farming Systems in Uluguru Mountains, Tanzania

Income Inequality in Mountain Areas: The Case of Agroforestry Farming Systems in Uluguru Mountains, Tanzania

Effects of direct payments on rice income variability in Japan*

Can adaptive co-management reduce poverty and inequality in the coastal fishing community? An impact evaluation in the riverine system in Bangladesh

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