Soybean production has become a significant force for economic development in Brazil. It has also received considerable attention from environmental and social non-governmental organizations as a driver of deforestation and land consolidation. While many researchers have examined the impacts of soybean production on human and environmental landscapes, there has been little investigation into the economic and institutional context of Brazilian soybean production or the relationship between soy yields and planted area. This study examines the influence of land tenure, land use policy, cooperatives, and credit access on soy production in Brazil. Using county level data we provide statistical evidence that soy planted area and yields are higher in regions where cooperative membership and credit levels are high, and cheap credit sources are more accessible. This result suggests that soybean production and profitability will increase as supply chain infrastructure improves in the Cerrado and Amazon biomes in Brazil. The yields of competing land uses, wheat, coffee, and cattle production and a complementary use, corn production, also help to determine the location of soybean planted area in Brazil. We do not find a significant relationship between land tenure and planted area or land tenure and yields. Soy yields decline as transportation costs increase, but planted area as a proportion of arable land is highest in some of the areas with very high transportation costs. In particular, counties located within Mato Grosso and counties within the Amazon biome have a larger proportion of their arable, legally available land planted in soy than counties outside of the biome. Finally, we provide evidence that soy yields are positively associated with planted area, implying that policies intending to spare land through yield improvements could actually lead to land expansion in the absence of strong land use regulations. While this study focuses on Brazil, the results underscore the importance of understanding how supply chains influence land use associated with cash crops in other countries.

The American Midwest is suffering through the driest summer in decades, and Stanford economist Walter Falcon is watching the corn wither in his fields. He writes how the drought is affecting crops, prices and the livelihoods of his fellow farmers in Iowa. 

The paper presents a theory of policy timing that relies on uncertainty and transaction costs to explain the optimal timing and duration of policy reforms. Delaying reforms resolves some uncertainty by gaining valuable information and saves transaction costs. Implementing reforms without waiting increases welfare by adjusting domestic policies to changed market parameters. Optimal policy timing is found by balancing the trade-off between delaying reforms and implementing reforms without waiting. Our theory offers an explanation of why countries differ with respect to the length of their policy reforms, and why applied studies often judge agricultural policies to be inefficient when actually they may not be.

This paper looks at past and likely future agricultural growth and rural poverty reduction in the context of the overall Indian economy. The growth of India’s economy has accelerated sharply since the late 1980s, but agriculture has not followed suit. Rural population and especially the labor force are continuing to rise rapidly. Meanwhile, rural-urban migration remains slow, primarily because the urban sector is not generating large numbers of jobs in labor-intensive manufacturing. Despite a sharply rising labor productivity differential between non-agriculture and agriculture, limited rural-urban migration, and slow agricultural growth, urban-rural consumption, income, and poverty differentials have not been rising. Urban-rural spillovers have become important drivers of the rapidly growing rural non-farm sector—the sector now generates the largest number of jobs in India. Rural non-farm self-employment has become especially dynamic with farm households rapidly diversifying into the sector to increase income.

The growth of the rural non-farm sector is a structural transformation of the Indian economy, but it is a stunted one. It generates few jobs at high wages with job security and benefits. It is the failure of the urban economy to create enough jobs, especially in labor-intensive manufacturing, that prevents a more favorable structural transformation of the classic kind. Nevertheless, non-farm sector growth has allowed for accelerated rural income growth, contributed to rural wage growth, and prevented the rural economy from falling dramatically behind the urban economy. The bottling up of labor in rural areas, however, means that farm sizes will continue to decline, agriculture will continue its trend to feminization, and part-time farming will become the dominant farm model. Continued rapid rural income growth depends on continued urban spillovers from accelerated economic growth, and a significant acceleration of agricultural growth based on more rapid productivity and irrigation growth. Such an acceleration is also needed to satisfy the increasing growth in food demand that follows rapid economic growth and fast growth of per capita incomes.  

Seeds of Sustainability is a groundbreaking analysis of agricultural development and transitions toward more sustainable management in one region. An invaluable resource for researchers, policymakers, and students alike, it examines new approaches to make agricultural landscapes healthier for both the environment and people.

The Yaqui Valley is the birthplace of the Green Revolution and one of the most intensive agricultural regions of the world, using irrigation, fertilizers, and other technologies to produce some of the highest yields of wheat anywhere. It also faces resource limitations, threats to human health, and rapidly changing economic conditions. In short, the Yaqui Valley represents the challenge of modern agriculture: how to maintain livelihoods and increase food production while protecting the environment.

Renowned scientist Pamela Matson and colleagues from leading institutions in the U.S. and Mexico spent fifteen years in the Yaqui Valley in Sonora, Mexico addressing this challenge. Seeds of Sustainability represents the culmination of their research, providing unparalleled information about the causes and consequences of current agricultural methods. Even more importantly, it shows how knowledge can translate into better practices, not just in the Yaqui Valley, but throughout the world.