Could farmer interest in a diversity of seed attributes explain adoption plateaus for modern maize varieties in Malawi?

This study uses new data from a household survey (n = 179) in Mulanje District, Malawi to examine whether the observed adoption plateaus for modern maize varieties in Malawi partly reflect farmer interest in a diversity of maize seed attributes. Regression results for the study area indicate that specific attributes of different maize varieties are an important influence on their use. The benefits to growing hybrid maize appear to be yield and drought tolerance. Open pollinated varieties are selected by farmers who value early maturity. Local maize varieties are popular among farm households owing to a number of favourable processing and consumption characteristics: storability, poundability, flour-to-grain ratio, and taste. Further research using nationally representative data is needed to assess whether findings for Mulanje District can be generalized to Malawi as a whole. If future studies agree with the results herein then maize breeding research programs in Malawi should consider a diversity of traits beyond grain yield to encompass the range of production, processing, and consumption attributes that are valued by farmers.     

ICT-based market information and adoption of agricultural seed technologies: Insights from Uganda

Access to ICT-based market information is crucial to the adoption of agricultural seed technologies for maize, beans and groundnut and to improve smallholder farmer yields and income. This ICT-based market information is provided by FM radio stations and by market information centers through media such as mobile phones and internet facilities, etc. Factors that positively affect the probability of access to ICT-based market information include access to microfinance loans, membership in a farmer association, government awareness campaigns, and wealth. Distance to the trading centers or district capital negatively affects this access. The likelihood of access to ICT-based market information declines with female-headed households. Access to market information has a positive and significant impact on the intensity of adopting improved seed for all crops. Adoption of improved seed has a positive and significant effect on farm yields and gross farm returns. This research shows that in order to generate meaningful improvements in food security and farm incomes, there must be commensurate efforts to promote ICT-based market information along with yield-augmenting agricultural seed technologies.     

Combining participatory crop trials and experimental auctions to estimate farmer preferences for improved common bean in Rwanda

Participatory crop improvement raises the prospects for developing seed varieties that meet the needs of subsistence farmers but may face challenges regarding preference elicitation, particularly in complicated policy environments. We integrate binding experimental auctions with participatory variety selection to elicit farmers’ preferences for improved common bean varieties in Rwanda. We find that auctions reveal farmer preferences more accurately than stated nonbinding rankings in this context and that participatory on-farm crop research is essential to understanding how farmers evaluate tradeoffs between multiple crop attributes. We also find that farmers highly value intercrop yield despite government policy that encourages farmers to monocrop.     

Competitiveness and technical efficiency: Determinants in the groundnut oil sector of India

India imports about half of its domestic consumption needs of edible oils. Groundnuts are a major source of edible oils in India. One of the central problems of groundnut production and processing is huge inefficiencies due to an uncertain production environment owing to rainfed cultivation, the low resource base of smallholder farmers and processors, and the low adoption rates of improved technology. This paper addresses critical issues that impair the groundnut sector’s international competitiveness and efficiency. The paper uses primary data collected from Indian farmers and processors of groundnuts to measure efficiency, and it suggests policies for reducing yield gaps and increasing efficiency. Specific policies suggested from the study are (a) the harnessing of improved varieties with attributes like drought tolerance, high oil content, high productivity for large-scale seed multiplication and distribution by public and private agencies; (b) viable village seed banks and seed networks through cycles of post-rainy season seed multiplication to meet the seed requirements in the rainy season and vice versa; (c) adoption of low-cost technologies to increase profitability and reduce risk; (d) oilseed clusters to facilitate scale and scope economies in processing units; and (e) capital subsidies to accelerate technological upgrading to shed inefficiency in the processing sector. The expected gains in efficiency in the production and processing of oilseeds are expected to result in producer and consumer gains which would justify the proposed incentives for seeds and for technological upgrading in the processing sector.     

US agriculture and the environment

Prospective increases in demand for US agricultural output suggest rising economic and environmental costs. Among environmental costs, those resulting from erosion appear most threatening. Policy alternatives for restraining the increase in erosion include limiting the growth of demand for crops, strengthening policies to induce farmers to adopt erosion control practices, and investing in research to develop higher yielding, less erosive technologies. Limiting exports faces severe domestic political difficulties and probably is not consistent with other US interests in foreign trade. And inducing wider farmer adoption of erosion control practices probably would prove expensive. This approach should not be abandoned, but it should be accompanied by a policy to develop new technologies.     

Estimating the adoption of Bt eggplant in India: Who Benefits from public–private partnership?

The study analyzes ex ante the adoption of insect-resistant Bt eggplant technology in India. Farmers’ willingness to pay (WTP) is estimated using the contingent valuation method. Given the economic importance of insect pests in eggplant cultivation, the average WTP for Bt hybrids is more than four times the current price of conventional hybrid seeds. Since the private innovating firm has also shared its technology with the public sector, proprietary hybrids will likely get competition through public open-pollinated Bt varieties after a small time lag. This will reduce farmers’ WTP for Bt hybrids by about 35%, thus decreasing the scope for corporate pricing policies. Nonetheless, ample private profit potential remains. Analysis of factors influencing farmers’ adoption decisions demonstrates that public Bt varieties will particularly improve technology access for resource-poor eggplant producers. The results suggest that public–private partnership can be beneficial for all parties involved.     

Sustainable intensification among smallholder maize farmers in Ethiopia: Adoption and impacts under rainfall and unobserved heterogeneity

In addition to experimental data, using information collected from farmers is vital to assess the performance of candidate farming technologies. The latter provides the basis for farmers’ assessments and adoption decisions. Using detailed georeferenced plot and household level data from Ethiopia, this paper estimates the impact of a set of sustainability-enhancing agronomic practices on maize yields and implied net maize income with the aid of multinomial endogenous regime-switching regression that corrects for unobserved heterogeneity. The treatments’ effects on yield ranged from 29.5% for the fertilizer-dominant strategy to 88% in the case of fertilizer, maize-legume diversification, and soil and water conservation combinations. Second, while the impacts of the agronomic packages are significant in almost all states of the world, there were considerable heterogeneity effects conditioned on observed rainfall deviations from the historical average with levels effects of up to 92% and heterogeneity effects of 33–64%. The heterogeneous and rainfall-conditioned impacts point to the role of local biophysical modifiers of the impacts of agricultural practices. Investments in context-appropriate adaptation in agricultural research and extension is suggested.     

Agricultural technology adoption and household welfare: Measurement and evidence

Previous studies on the adoption and impacts of improved crop varieties have relied on self-reported adoption status of the surveyed households. However, in the presence of weak variety maintenance and poorly functioning seed certification system, measurement errors in self-reported adoption status can be considerable. This paper investigates how such measurement errors can lead to biased welfare estimates. Using DNA-fingerprinting based varietal identification as a benchmark, we find that misclassification in self-reported adoption status is considerable, with significant false negative and positive response rates. We empirically show that such measurement errors lead to welfare estimates that are biased towards zero and substantially understate the poverty reduction effects of adoption. While the empirical evidence suggests attenuation bias, our theoretical exposition and simulations demonstrate that upward bias and sign reversal effects are also possible. The results point to the need for improved monitoring of the diffusion process of improved varieties through innovative adoption data collection approaches to generate robust evidence for prioritizing and justifying investments in agricultural research and extension.     

Realigning research and extension to focus on farmers’ constraints and opportunities

This paper argues that research and extension have failed to (1) develop technologies that take into account farmers’ resource constraints and risks; and (2) improve farmers’ capacity to adapt technologies to their own situations. The paper critiques continued use of blanket, high-dose fertilizer recommendations, arguing for approaches that teach farmers how to maximize returns from smaller, more affordable input purchases. Developing such technologies requires that researchers integrate a wider range of stakeholders (farmers, extension agents, agricultural exporters and processors) into research activities at an earlier point in time than has been the case. Although evidence that these new approaches are increasing the use of purchased inputs remains weak, a number of important lessons are emerging about how research and extension outcomes are influenced by institutional culture and incentives. The authors conclude that developing recommendations for small, affordable input doses and training farmers so they can adapt recommendations to their particular circumstances is as much an institutional challenge as a technology challenge.     

The impact of cooperatives on agricultural technology adoption: Empirical evidence from Ethiopia

Using cross-sectional data and a propensity score matching technique, this paper investigates the impact of cooperatives on adoption of agricultural technologies. Our analysis indicates that cooperative members are more likely to be male-headed households, have better access to agricultural extension services, possess oxen, participate in off-farm work, and have leadership experience. We also found that geographic location and age of household head are strongly associated with cooperative membership. Our estimation results show that cooperative membership has a strong positive impact on fertilizer adoption. The impact on adoption of pesticides turns out to be statistically significant when only agricultural cooperatives are considered. Further analysis also suggests that cooperative membership has a heterogeneous impact on fertilizer adoption among its members. The results suggest that cooperatives can play an important role in accelerating the adoption of agricultural technologies by smallholder farmers in Ethiopia.     

New institutional arrangements and standard adoption: Evidence from small-scale fruit and vegetable farmers in Thailand

GlobalGAP is the most important private standard for producers in the Thai horticultural sector concerning access to high-value markets, especially to Europe. This paper presents an analysis of GlobalGAP adoption by small-scale fruit and vegetable farmers in Thailand focusing on GlobalGAP group certification, the costs and perceived benefits of GlobalGAP adoption, and the factors influencing standard adoption. In our research area, GlobalGAP group certification has encouraged the formation of new institutional arrangements between farmers, exporters and donors. Farmers participating in a development program were organized in certification groups where the Quality Management System (QMS) was either run by the donor, by the exporter, or by farmers themselves. Results of our adoption model suggest that support by donors, exporters and public–private partnerships are vital to enable small-scale farmers to adopt the standard. Furthermore, farmers are more likely to adopt if they are better educated and more experienced, and if they have access to female family labor, improved farming technology, and information and extension services.     

Switching costs in the US seed industry: Technology adoption and welfare impacts

We evaluate the role of brand and technology switching costs in the US soybean seed industry using a unique dataset of actual seed purchases by about 28,000 farmers from 1996 to 2016. Using a random coefficients logit model of demand, we estimate brand and technology switching costs, characterize the distributions of buyers’ willingness to pay for seed brands and the glyphosate tolerance (GT) trait, and assess the implications of brand and technology switching costs for farmers’ welfare, technology adoption, firm profits, and firm market shares. We find that farmers are willing to pay large premiums for brand labels, and even larger premiums for the GT trait, although there is considerable heterogeneity in these values. Switching costs play an important role in the soybean seed industry. Eliminating these costs would significantly increase buyers’ welfare, reduce seed prices and firm profits, decrease adoption of the GT trait, and impact industry consolidation by expanding smaller firms’ market shares.     

The effect of household wealth on the adoption of improved maize varieties in Zambia

Production and price risks that could render input use unprofitable sometimes prevent rural households from benefiting from input technological change. The household’s ability to cope with such risks and hence benefit from input technological change is often positively related to its wealth or stock of productive assets. Empirical evidence, however, suggests a non-linear relationship between wealth and adoption of new agricultural technologies so that within a rural community, households on the lower wealth continuum behave differently from those on the higher level. Using farm level data collected from 300 randomly selected households in three districts of Zambia in 2004/2005 crop season, this paper first stratifies households into poorly- and well-endowed households based on their access to productive assets and estimates separate double-hurdle models for the adoption of improved, high yielding maize (IHYM) varieties for each group. The results show that factors influencing the adoption and use intensity of IHYM varieties differ between the two groups. This draws attention to the need for recommending wealth group-specific interventions to increase the adoption and use intensity of such varieties and their subsequent impacts on food security and general livelihoods of the households. The explicit testing for the possibility that differences in household wealth affect the way in which other variables influence adoption decisions is the paper’s unique contribution to the adoption literature.     

Can biotechnology reach the poor? The adequacy of information and seed delivery

The paper examines the expectation that biotechnology can provide significant benefits for smallholder farmers. It uses evidence from current seed systems and variety choice in developing countries. In particular, it examines the adequacy of information flow and the performance of seed markets. Many of the biotechnology innovations proposed for use by smallholders feature qualities that may not be immediately obvious to farmers; implications are drawn for the potential demand for these transgenic varieties. The adequacy of seed systems is also examined, including the characteristics of local seed diffusion and the experience of commercial seed enterprises. The paper concludes that investments in public biotechnology must be accompanied by policies that encourage commercial seed system development and that empower farmers to be able to take full advantage of new technology.     

Technology adoption and value chains in developing countries: Evidence from dairy in India

Adoption of modern technologies in agriculture is crucial for improving productivity and welfare of poor farmers in developing countries. Not much is known about how value chains do (not) affect technology transfer and/or adoption in food chains in developing countries. We analyze farm-level technology adoption in the dairy chain in India, using unique survey data. The dairy chain in India is an important case because the Indian government has promoted development of the dairy sector for its potential for ‘pro-poor’ growth, and because value chain initiatives had strong effects on dairy farm technology in other countries with imperfect markets and growth in demand. We find that despite rapid growth in milk consumption and production, technology adoption in the form of better hygienic practices, better feed and improved livestock was mixed, and low for certain regions and technologies. So far, the role of value chains in the adoption of new technologies seems to be minor.     

Climate risk management strategies and food security: Evidence from Cambodian rice farmers

This study investigates the adoption of three climate-resilient strategies (3CRS), drought/flood-resistant rice varieties, integrated pest management (IPM) practices, and weather advisory; the impact of 3CRS on food security, namely, productivity and profits of the Cambodian paddy farmers. Using endogenous switching regression (ESR) approach and household survey from Cambodian farmers, the study finds a low adoption rate (14%) of 3CRS. The low adoption of 3CRS means missing opportunities for rice farmers. Access to information through training and input suppliers is found to increase the adoption of 3CRS. The adoption of 3CRS increases rice yields and profits by 36% and 45%, respectively. Additionally, if nonadopters adopted 3CRS, rice yields and profits would increase by 55% and 52%, respectively. Findings suggest the development of institutional capacity, implementation, and dissemination of knowledge of climatic changes, and adaptation strategies to increase food security.     

Adoption of improved maize varieties in Southern Ethiopia: Factors and strategy options

This paper identifies factors that influence the decision behavior of farmers in Southern Ethiopia in adopting improved maize varieties by estimating a logistic regression. Data for this study came from 222 farmers interviewed as part of a national adoption survey conducted in three selected maize growing administrative zones of Southern Ethiopia in 1998. The paper also assesses the impact of pure and mixed strategy options on the probability of adoption of improved maize varieties through simulation under different scenarios. As far as pure strategies are concerned, the credit strategy is more powerful than the others in terms of raising the probability of adoption. However, results from the analysis of pure versus mixed strategies imply that mixed strategies are no necessarily much better than pure strategies.     

Impact of modern agricultural technologies on smallholder welfare: Evidence from Tanzania and Ethiopia

This paper evaluates the potential impact of adoption of improved legume technologies on rural household welfare measured by consumption expenditure in rural Ethiopia and Tanzania. The study utilizes cross-sectional farm household level data collected in 2008 from a randomly selected sample of 1313 households (700 in Ethiopia and 613 in Tanzania). The causal impact of technology adoption is estimated by utilizing endogenous switching regression. This helps us estimate the true welfare effect of technology adoption by controlling for the role of selection problem on production and adoption decisions. Our analysis reveals that adoption of improved agricultural technologies has a significant positive impact consumption expenditure (in per adult equivalent terms) in rural Ethiopia and Tanzania. This confirms the potential role of technology adoption in improving rural household welfare as higher consumption expenditure from improved technologies translate into lower poverty, higher food security and greater ability to withstand risk. An analysis of the determinants of adoption highlighted inadequate local supply of seed, access to information and perception about the new cultivars as key constraints for technology adoption.     

New technology introduction in a marginal coffee area of Colombia

Income stagnation in the downward cycle of primary product prices is a problem for small farmers in developing countries. The recent abrupt price decline in coffee poses a large adjustment problem in marginal production areas. One method of farm income stabilization for marginal export crop production areas is diversification into food crops with improved technology. The potential for a cushioning of this farm income decline via the introduction of improved food crop technology was examined. A substantial moderating effect was obtained even without uprooting the improved coffee technology. Moreover, an analysis of the constraints to the earlier introduction of the Caturra coffee variety helped identify some of the components of farmer decision making relevant to adoption of new technology.     

Demand for farm animal welfare and producer implications: Results from a field experiment in Michigan

This study utilizes a Becker-DeGroot-Marschak (BDM) mechanism to assess Michigan consumer demand for animal welfare practices. Results are examined in the context of changing farm production costs and producer marketing margins. We find that while consumers are willing to pay significant premiums for animal welfare standards, failing to account for the costs associated with producing the entire animal under the new system could lead to suboptimal policy that negatively affects producer welfare. Our results suggest that consumer premiums for animal welfare are product specific and that WTP estimates should not be generalized to the entire animal. We discuss policy implications of our findings and highlight the importance of considering producer costs when evaluating consumer demand for farm animal welfare practices.