Abstract
Agricultural commercialization as a mechanism to alleviate rural poverty raises concerns about small land-holders, non-adopters, and inequity in the distribution of benefits within transforming economies. Farm gross margins were calculated to assess the economic status and impact of cash cropping on the economic well-being of agrarian households in the Mid-hills of Nepal. On an individual crop basis, tomatoes and potatoes were the most increasing, sensitivity analysis and scenarios suggest high variability and limited short-term impact on poverty alleviation. Profitable. On a per farm basis, 50% of the households with positive farm gross margins grew at least one vegetable crop, while only 25% of households with negative farm gross margins included vegetable crops in their rotation. Farmers have been hesitant to produce primarily for the market given the rudimentary infrastructure and high variability in prices. Farmers reported selling more crops, but when corrected for inflation, gross revenues declined over time. The costs and benefits of developing markets have been unevenly distributed with small holders unable to capitalize on market opportunities and wealthier farmers engaging in input intensive cash cropping. Farms growing vegetables
References: Adhikary, D. (1998). ‘‘Nepal country report.’’ In Agricultural Price Policy in Asia and the Pacific (pp. 228–236). Tokyo, Japan: Asian Productivity Organization (APO). Aldrich, S., W. Scott, and E. Leng (1975). Modern Corn Production. Champaign, Illinois: A and L Publishing. APROSC (1995). Agriculture Perspective Plan, Nepal. Prepared for National Planning Commission, Government of Nepal and Asian Development Bank. Agriculture Project Services Center (APROSC) and John Mellor Associates. Brown, S. (1997). Soil Fertility, Nutrient Dynamics and Socioeconomic Interactions in the Mid-hills of Nepal. PhD dissertation. Interdisciplinary Studies in Resource Management Science, University of British Columbia, Canada. Brown, S. and B. Shrestha (2000). ‘‘Market driven land use dynamics in the Mid-hills of Nepal.’’ Journal of Environmental Management 29: 217–225. Chapagain, D. P. (2001). Land and Agriculture: National Strategy for Sustainable Development. World Conservation Union (IUCN). Retrieved from http://www.nssd.net/country/ nepal/nep02.htm in July 2004. GON (1998). The Ninth National Plan (1997–2002). Kathmandu, Nepal: National Planning Commission. GON (2002). National Fertilizer Policy. Kathmandu, Nepal: Ministry of Agriculture and Cooperatives. Kennedy, G Panday, K. K. (1992). Sustainability of the Environmental Resource Base and Development Priorities of a Mountain Community: Bhardeo, Nepal. ICIMOD Occasional Paper No. 19. Kathmandu, Nepal: International Center for Integrated Mountain Development. Pathak, S. P. (1989). ‘‘Nepal country report.’’ In Marketing Farm Products in Asia and the Pacific (pp. 281–294). Tokyo, Japan (APO). Upadhyaya, H. K. (1999). Impact of Globalization on Rural and Agricultural Development. Seminar on the Impact of Globalization on Population Change and Poverty in Rural Areas. Asian Population Study Series No. 154. New York: UN ESCAP.