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Farmer field school participation and exit decisions in hog production: A case study from Beijing

Jinyang Cai, Yu Hong, Meifang Zhou, Ruifa Hu and Fengxiang Ding

Agribusiness, 2023, vol. 39, issue 2, 549-563

Abstract: The worsening volatility in the domestic and global hog and pork markets is a cause of concern for China's producers and government, as well as the global market. Cyclical price fluctuations have been caused by domestic small‐ and medium‐scale farmers' frequent exits and re‐entries into the hog market, which may have been partly driven by information asymmetry and risk resistance. This study examines the impact of a farmer field school (FFS) program aiming to deliver information and services that may facilitate hog farmers' decision‐making. Using survey data collected from 226 hog farms in Beijing, we employ probit models to examine the exit decisions of hog farmers based on their FFS participation and its effect on hog farm size. We find evidence that FFS participation significantly reduces hog farmers' exit rates, and that this effect increases as farm scale decreases. The findings suggest that such a program may be an effective policy tool to support and improve the resilience of small‐ and medium‐scale hog farms, thereby alleviating the volatility in China's hog industry and those of other developing countries where small‐ and medium‐scale hog farms play an important role. [EconLit Citations: C21, D13, Q16, Q18].

Date: 2023
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Citations: View citations in EconPapers (2)

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https://doi.org/10.1002/agr.21783

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