Factors Affecting Smallholder Farmers' Well-being: A Systematic Review

Abstract

The agricultural management challenges faced by smallholders differ between developed and developing countries and can significantly impact their well-being. This study aims to identify the factors that affect the well-being of smallholders by conducting a systematic literature review using the Preferred Reported Item for Systematic Review and Meta-Analysis (PRISMA) methodology. The authors selected 30 articles from Scopus and Web of Science that identified three main factors driving well-being: technology, optimal resource utilization, and insurance. Two additional factors were also identified: market pricing and tax policy. Our findings indicate that these factors primarily affect economic well-being, followed by social well-being. However, the COVID-19 pandemic had an additional impact on smallholders' well-being, as it disrupted the food chain and caused labor shortages due to travel restrictions. Smallholders had to rely on e-commerce to sell their products, which resulted in losses and difficulty obtaining agricultural inputs. The absence of agricultural insurance worsened the impact on smallholders' well-being. To safeguard their well-being, this study suggests encouraging local labor participation, increasing investment in human capital, adopting e-commerce marketing, offering agricultural insurance against disasters, and providing or increasing subsidies to smallholders.