Farmers’ response to COVID-19 disruptions: The case of cropland allocation decision

Abstract

This study provides new evidence on the determining factors of cropland allocation decisions within the context of the COVID-19 pandemic by using the seemingly unrelated regression (SUR) model on 309 farm households. The results reveal that socio-economic, production, institutional, and political factors significantly influence the choice and size of cropland allocation decisions among legumes and cereals. Beyond these factors, we find that COVID-19 education increases land area allocated to staples while perception of disruptive effect of COVID-19 on agriculture positively correlates with the area under commercial crop (soybean) production. The implications of the results are discussed.

Keywords

• COVID-19 pandemic
• Crop land allocation
• Commercial and staple crops
• Seemingly unrelated regression