Three essays on price risk mitigation, market barriers and livelihood strategies of smallholder farmers
Authors:   , Leiva Lopez Ervin Francisco 
Published: October 2023

[EMBARGOED UNTIL 8/1/2024] The three essays in this dissertation offer perspectives on different elements of agricultural markets and the obstacles encountered by small farmers in Nicaragua, Missouri, and Michigan. While each study concentrates on a unique context, collectively they contribute to new knowledge on price risk mitigation, market entry barriers, and the cultural obstacles farmers and agricultural service providers face in the field of farming. The findings provide farmers, traders, policymakers, and service providers with vital insights for enhancing their decision-making, support services, and institutional arrangements. The first essay examines the factors that influence the feeder cattle basis in Nicaragua. Weight, lot size, livestock category, and season significantly influenced the Nicaraguan feeder cattle basis. These results provide crucial information for feeder cattle traders and policymakers, allowing them to make informed ex-ante marketing decisions, manage price risk, and optimize policy initiatives that correspond with the seasonal behavior of the basis. The second essay uncovers the barriers Latinx immigrant farmers face to entering markets and selling agricultural output in the Midwest. The results indicate that agricultural investment and the number of training courses in agricultural production and financial management significantly increase the probability of market entry. Conversely, both Anglo and Spanish acculturation, which reflect the use of English and Spanish, respectively, significantly decrease the probability of market participation. Furthermore, factors such as the number of planted acres, the number of employees and contracted labor, personal and household income, and the number of hours spent working on the farm significantly increase agricultural sales. However, Anglo acculturation and farmers' perceptions of community environment significantly decrease agricultural sales. The third essay implements a qualitative case study research design. A theoretical framework based on Bourdieu's concepts of habitus and field as well as the concept of acculturation guided the conduct of participatory field research through focus groups and interviews with Latinx farmers and focus groups with resource providers. Findings from this study show that there is a limited connection between service providers and Latinx farmers, that these groups have different farming cultures, and that Latinx immigrant farmers have diverse livelihood strategies compared to mainstream farmers. Latinx farmers have a unique set of barriers to entering markets, including culture and acculturation to the U.S. field of farming due to limited knowledge about farm-related services, commercial acumen, limited farming expertise, and eligibility for government programs and financing. The study recommends finding mechanisms for service providers that allow for inclusive institutions that comprehend Latinx farmers' livelihood strategies and habitus, as well as new methods for altering perceptions between service providers and Latinx farmers.