Market participation of small-scale rice farmers in Eastern Bolivia

Lopera, D.C.; Gonzalez, C.; Martinez, J.M. (2023) Market participation of small-scale rice farmers in Eastern Bolivia. Journal of Agricultural and Applied Economics 55(3) p. 471-491. ISSN: 1074-0708

Using a double-hurdle approach, we assess factors associated with the extent of participation in the rice market with data for small-scale farmers drawn from a nationally representative dataset. The results suggest that larger endowments and assets, animal farming and commercialization, and alternative off-farm income make farmers less likely to participate. Conversely, having access to credit, larger farm sizes, and being part of a farmers’ association all increase the likelihood of participation. Farms with better technological resources are also those with higher sales volumes. Further understanding market participation dynamics should prove useful for deriving evidence-based policy recommendations to strengthen this Bolivian sector.