Financial capacity of rice based farming households in the context of climate change in the Mekong Delta, Vietnam

Author:

Dung, Le Canh; Ha, Vo Van; Tuan, Vo Van; Nhan, D.K.; Ward, John; Brown, Peter

Date of Publication:

2017-06-22

Publication Type:

Journal Article

Journal Title:

Asian Journal of Agriculture and Development

Volume:

14

Issue:

1

Pages:

73-87

Abstract:

Financial capability is one livelihood resource crucial for a Mekong delta farming household to adapt to climate change. In this study, the financial capacity of rice based farming households was elicited and quantified through interviews of 449 households practicing rice based farming systems in four agro–ecological zones of the Mekong Delta. Household net income, long standing debt and savings represent the three key parameters of household financial capacity. Analysis of farm size classes indicated that household financial capacity is weak especially in farms of less than one hectare. Agricultural production is the primary component of household net income while the level of diversity of non-rice crops does not significantly contribute to increased household income. Net household income is positively correlated with farmsize, land used circle (number of crops in a field), and non-farm activities. Mean household savings accounted for 27% of total net income of household and mean long term debt was 11% of household savings. Low financial capacity of rice based farming households introduces substantial challenges for Mekong delta farmers to recover production costs caused by irregular weather patterns associated with climate change.

Publisher:

Southeast Asian Regional Center for Graduate Study and Research in Agriculture

Keywords:

financial capacity; rice-based farming system; household; Mekong Delta

Field Of Research:

Agriculture, Land and Farm Management not elsewhere classified

URL:

Link to Publisher's Version

Funding Sources:

Funding Body Name	Project/Grant ID
Australian Centre for International Agricultural Research (ACIAR)	SMCN/2009/021

Identifier:

EP174764

Publication Sub Type:

Journal article - Refereed

Language:

English

Attribution Statement:

Dung, Le Canh; Ha, Vo Van; Tuan, Vo Van; Nhan, D.K.; Ward, John; Brown, Peter. Financial capacity of rice based farming households in the context of climate change in the Mekong Delta, Vietnam. Asian Journal of Agriculture and Development. 2017; 14(1):73-87. http://hdl.handle.net/102.100.100/88443?index=1