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Impact of Agricultural Policy Fluidity on Trust Among Youth Coffee Farmers in Tanzania: An Application of Difference in Difference Method

Received: 2 January 2022    Accepted: 17 January 2022    Published: 21 January 2022
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Abstract

The present paper assesses impact of agricultural policy fluidity on youths’ trustworthiness in abiding to contracts with private investors in the coffee sector in Tanzania. In the 2018/19 coffee season, the government provided onset directives on marketing to institutionalize cooperatives to be a sole coffee collector from farmers unlike before the 2018/19 coffee season whereby farmers groups and private traders dominated. This paper defines trust as upkeep of the agreements between youth coffee farmers (a principal) and farmers groups and private investors (an agent) to supply coffee to private investors through groups albeit regulation fluidity created loopholes for youth farmers to diverge coffee to other cooperatives. Data used were collected from coffee farmers and respective cooperatives in the Southern highland of Tanzania and the Difference in Difference (DID) method was applied to analyze the impact of agricultural policy fluidity on trust among youth coffee farmers. The results indicate that the agricultural policy fluidity deterred trust among youth coffee farmers relative to elders. The results indicate that the 2018/19 coffee marketing changes impacted the decline in coffee collection with an Average Treatment effect on the Treated (ATT) of about 18.2kg of coffee parchment among youths relative to elders. In addition, it was revealed that farmers groups (new cooperatives) which had no obligations to pay back loans experienced a boom in coffee collection relative to their counterparts. It is recommended that since agricultural investments are long term, any change in agricultural policies, laws and regulations has to have preparatory phase to allow investors, cooperatives, farmers and government units participating in the value chain to determine possible negative effects and develop strategies of mitigating such effect. Cooperatives have to work with responsible department at district level to institutionalize mistrust measures restricting farmers from selling coffee to other cooperatives. One of the measures will be restricting cooperatives from receiving coffee from non-member farmer.

Published in International Journal of Economic Behavior and Organization (Volume 10, Issue 1)
DOI 10.11648/j.ijebo.20221001.12
Page(s) 7-16
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Impact, Trust, Policy Fluidity, Difference in Difference, Youth Farmers, Coffee, Tanzania

References
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  • APA Style

    Rogers Andrew, Provident Dimoso, Judith Namabira. (2022). Impact of Agricultural Policy Fluidity on Trust Among Youth Coffee Farmers in Tanzania: An Application of Difference in Difference Method. International Journal of Economic Behavior and Organization, 10(1), 7-16. https://doi.org/10.11648/j.ijebo.20221001.12

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    ACS Style

    Rogers Andrew; Provident Dimoso; Judith Namabira. Impact of Agricultural Policy Fluidity on Trust Among Youth Coffee Farmers in Tanzania: An Application of Difference in Difference Method. Int. J. Econ. Behav. Organ. 2022, 10(1), 7-16. doi: 10.11648/j.ijebo.20221001.12

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    AMA Style

    Rogers Andrew, Provident Dimoso, Judith Namabira. Impact of Agricultural Policy Fluidity on Trust Among Youth Coffee Farmers in Tanzania: An Application of Difference in Difference Method. Int J Econ Behav Organ. 2022;10(1):7-16. doi: 10.11648/j.ijebo.20221001.12

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  • @article{10.11648/j.ijebo.20221001.12,
      author = {Rogers Andrew and Provident Dimoso and Judith Namabira},
      title = {Impact of Agricultural Policy Fluidity on Trust Among Youth Coffee Farmers in Tanzania: An Application of Difference in Difference Method},
      journal = {International Journal of Economic Behavior and Organization},
      volume = {10},
      number = {1},
      pages = {7-16},
      doi = {10.11648/j.ijebo.20221001.12},
      url = {https://doi.org/10.11648/j.ijebo.20221001.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20221001.12},
      abstract = {The present paper assesses impact of agricultural policy fluidity on youths’ trustworthiness in abiding to contracts with private investors in the coffee sector in Tanzania. In the 2018/19 coffee season, the government provided onset directives on marketing to institutionalize cooperatives to be a sole coffee collector from farmers unlike before the 2018/19 coffee season whereby farmers groups and private traders dominated. This paper defines trust as upkeep of the agreements between youth coffee farmers (a principal) and farmers groups and private investors (an agent) to supply coffee to private investors through groups albeit regulation fluidity created loopholes for youth farmers to diverge coffee to other cooperatives. Data used were collected from coffee farmers and respective cooperatives in the Southern highland of Tanzania and the Difference in Difference (DID) method was applied to analyze the impact of agricultural policy fluidity on trust among youth coffee farmers. The results indicate that the agricultural policy fluidity deterred trust among youth coffee farmers relative to elders. The results indicate that the 2018/19 coffee marketing changes impacted the decline in coffee collection with an Average Treatment effect on the Treated (ATT) of about 18.2kg of coffee parchment among youths relative to elders. In addition, it was revealed that farmers groups (new cooperatives) which had no obligations to pay back loans experienced a boom in coffee collection relative to their counterparts. It is recommended that since agricultural investments are long term, any change in agricultural policies, laws and regulations has to have preparatory phase to allow investors, cooperatives, farmers and government units participating in the value chain to determine possible negative effects and develop strategies of mitigating such effect. Cooperatives have to work with responsible department at district level to institutionalize mistrust measures restricting farmers from selling coffee to other cooperatives. One of the measures will be restricting cooperatives from receiving coffee from non-member farmer.},
     year = {2022}
    }
    

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  • TY  - JOUR
    T1  - Impact of Agricultural Policy Fluidity on Trust Among Youth Coffee Farmers in Tanzania: An Application of Difference in Difference Method
    AU  - Rogers Andrew
    AU  - Provident Dimoso
    AU  - Judith Namabira
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    DO  - 10.11648/j.ijebo.20221001.12
    T2  - International Journal of Economic Behavior and Organization
    JF  - International Journal of Economic Behavior and Organization
    JO  - International Journal of Economic Behavior and Organization
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    PB  - Science Publishing Group
    SN  - 2328-7616
    UR  - https://doi.org/10.11648/j.ijebo.20221001.12
    AB  - The present paper assesses impact of agricultural policy fluidity on youths’ trustworthiness in abiding to contracts with private investors in the coffee sector in Tanzania. In the 2018/19 coffee season, the government provided onset directives on marketing to institutionalize cooperatives to be a sole coffee collector from farmers unlike before the 2018/19 coffee season whereby farmers groups and private traders dominated. This paper defines trust as upkeep of the agreements between youth coffee farmers (a principal) and farmers groups and private investors (an agent) to supply coffee to private investors through groups albeit regulation fluidity created loopholes for youth farmers to diverge coffee to other cooperatives. Data used were collected from coffee farmers and respective cooperatives in the Southern highland of Tanzania and the Difference in Difference (DID) method was applied to analyze the impact of agricultural policy fluidity on trust among youth coffee farmers. The results indicate that the agricultural policy fluidity deterred trust among youth coffee farmers relative to elders. The results indicate that the 2018/19 coffee marketing changes impacted the decline in coffee collection with an Average Treatment effect on the Treated (ATT) of about 18.2kg of coffee parchment among youths relative to elders. In addition, it was revealed that farmers groups (new cooperatives) which had no obligations to pay back loans experienced a boom in coffee collection relative to their counterparts. It is recommended that since agricultural investments are long term, any change in agricultural policies, laws and regulations has to have preparatory phase to allow investors, cooperatives, farmers and government units participating in the value chain to determine possible negative effects and develop strategies of mitigating such effect. Cooperatives have to work with responsible department at district level to institutionalize mistrust measures restricting farmers from selling coffee to other cooperatives. One of the measures will be restricting cooperatives from receiving coffee from non-member farmer.
    VL  - 10
    IS  - 1
    ER  - 

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Author Information
  • Department of Rural Development and Regional Planning, Institute of Rural Development Planning, Dodoma, Tanzania

  • Department of Rural Development and Regional Planning, Institute of Rural Development Planning, Dodoma, Tanzania

  • Department of Development Finance and Management Studies, Institute of Rural Development Planning, Dodoma, Tanzania

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