The impact of conservation tillage on maize yield and input demand: the case of smallholder farmers in north‐west Ethiopia

This study analyses the economics of conservation tillage (CT) with respect to its effect on maize yield and chemical fertiliser, herbicide, and female and male labour demand. We estimate production and input demand functions using seemingly unrelated regressions on plot‐level cross‐sectional farm household data collected in the north‐west of Ethiopia. A two‐step control function is applied to address potential endogeneity bias due to the inclusion of the CT adoption decision as an explanatory variable. Our results show that CT increases maize yield and chemical fertiliser demand. Additionally, the results show that the adoption of CT reduces female and male labour required for crop production. However, this is achieved through the increased use of herbicides, which might have an undesirable health and environmental effects.     

Productivity impact of drought tolerant maize varieties under rainfall stress in Malawi: A continuous treatment approach

Drought tolerant (DT) maize varieties have received massive support in sub‐Saharan Africa because of their potential to protect smallholder farmers against drought‐related maize yield losses. Using four waves of household farm panel data from six districts in Malawi, we examine the impact heterogeneity of this technology on maize productivity using a continuous treatment approach. We find strong evidence of positive correlation between maize yield and adoption of DT maize varieties. On average, an increase by one hectare in the area allocated to DT varieties increases maize yield by 547 Kg/ha representing a 44% increase from the average maize yield of 1,254 Kg/ha for our sample. Our findings give evidence that DT maize technology has potential to protect smallholder farmers against drought‐related production losses. Policies that promote increased allocation of maize area to DT maize hold potential to enhance food security. Smallholder farmers especially in drought‐prone areas should be encouraged to allocate at least one‐third of the maize plot to DT varieties while breeders continue with the efforts of breeding a DT variety that is not only drought tolerant but also adapted to all weather conditions. More importantly, the government should ensure provision of timely ex ante weather information to guide farmers on decision‐making with respect to maize varietal choices.     

Economic impacts of smallholder farmers’ adoption of drought-tolerant maize varieties

Drought and high temperatures are major threats to sustainable food production and consequently the livelihoods of the majority of Africans who depend on fragile agricultural systems. As a response to these threats, climate-smart agricultural technologies, such as drought-tolerant maize (DTM) varieties, have been developed and promoted on the continent. It is well-known that the adoption of improved technologies generally impacts positively on the wellbeing of adopters. Nevertheless, the magnitude of the impact of any technology or intervention is always an empirical question. Therefore, this study sought to determine the factors that influence the adoption of DTM and subsequently estimate how yield, commercialization intensity, and farm income are affected by adoption. To establish causation, we relied on observations from 200 farm households in the Northern Region of Ghana and estimated an instrumental variable regression. Consistent with findings reported in the literature, we found that DTM adoption is primarily driven by access to seed, extension service, labor availability, and location of farm households. In addition, we found that DTM adoption positively impacts on yield and commercialization intensity. The magnitude of impact is not trivial. For example, the yield of farm households increased by more than 150% (936 kg/ha) following DTM adoption. These results imply that policy-makers and development practitioners must support research and promotion of climate-smart agriculture to improve adoption and welfare indicators, such as yield and commercialization.     

A study of farmer’s decision and incentive scheme to reduce highland maize farming in Thailand

During the past 15 years, there has been a considerable increase in highland maize farming in Nan, a province in northern Thailand. The increase in farming area causes an excessive forest encroachment and environmental problems, e.g. soil degradation, landslide, and pesticide contamination. This research explores the mechanism and factors which drive a sustainable transformation from highland maize farming to reforestation. We survey 107 farmers in Nammeed and Sopsai watersheds in where the reverses of growing trend of deforestation in Thailand have been observed. Comparative statistical analysis and regression are used to analyse factors affecting farmer’s decisions and compare differences between the two sites. We find that the fundamental mechanism driving a sustainable transformation from highland maize farming to reforestation comprises 3 pillars. These are 1) realization of adequate economic, health or environmental benefits derived from the alternatives; 2) a sense of belonging and attachment towards the forest and 3) effective enforcements of communal rules and regulations. While natural transformation in Nammeed area highlights the roles of flatland as key driver of the change, subsidy schemes can supplement the transformation during transitional period as seen in Sopsai area.     

Measuring Farm and Market Level Economic Impacts of Improved Maize Production Technologies in Ethiopia: Evidence from Panel Data

While it is often recognised that agricultural technology adoption decisions are intertwined and best characterised by multivariate models, typical approaches to examining adoption and impacts of agricultural technology have focused on single technology adoption choice and ignored interdependence among technologies. We examine farm‐ and market‐level impacts of multiple technology adoption choices using comprehensive household survey data collected in 2010/11 and 2012/13 in Ethiopia. Economic surplus analysis combined with panel data switching endogenous regression models are used to compute the supply shift parameter (K‐shift parameter), while at the same time controlling for the endogeneity inherent in agricultural technology adoption among farmers. We find that our improved technology set choices have significant impacts on farm‐level maize yield and maize production costs, where the greatest effect appears to be generated when various technologies are combined. The change in maize yield and production costs results in an average 26.4% cost reduction per kilogram of maize output (the K‐shift parameter). This increases the producer and consumer surpluses by US$ 140 and US$ 105 million per annum, respectively. These changes in economic surplus help to reduce the number of poor people by an estimated 788 thousand per year. We conclude that deliberate extension efforts and other policies that encourage integration of technologies are important for maize technologies to yield their full potential at both farm and market levels.     

The Costs of Coexistence Measures for Genetically Modified Maize in Germany

We estimate the perceived costs of legal requirements (‘coexistence measures’) for growing genetically modified (GM) Bt maize in Germany using a choice experiment. The costs of the evaluated ex‐ante and ex‐post coexistence measures range from zero to more than €300 per measure and most are greater than the extra revenue the farmers in our survey expect from growing Bt maize or than estimates in the literature. The cost estimates for temporal separation, the highest in our evaluation, imply that the exclusion of this measure in Germany is justified. The costliest measures of the ones that are currently applied in Germany are joint and strict liability for all damages. Our results further show that neighbours do not cause a problem and opportunities for reducing costs through agreements with them exist. Finally, we find that farmers’ attitudes towards GM crops affect the probability of adoption of Bt maize. Our results imply that strict liability will deter the cultivation of Bt maize in Germany unless liability issues can be addressed through other means, for example, through neighbours agreements.     

Estimating the Enduring Effects of Fertiliser Subsidies on Commercial Fertiliser Demand and Maize Production: Panel Data Evidence from Malawi

Most studies of input subsidy programmes confine their analyses to measuring programme effects over a one‐year period. This article estimates the potential longer‐run or enduring effects of fertiliser subsidy programmes on smallholder farm households' demand for commercial fertiliser and maize production over time. We use four waves of panel data on 462 farm households in Malawi for whom fertiliser use can be tracked for eight consecutive seasons between 2003/2004 and 2010/2011. Panel estimation methods are used to control for potential endogeneity of subsidised fertiliser acquisition. Results indicate that farmers acquiring subsidised fertiliser in three consecutive prior years are found to purchase slightly more commercial fertiliser in the next year. This suggests a small amount of crowding in of commercial fertiliser from the receipt of subsidised fertiliser in prior years. In addition, acquiring subsidised fertiliser in a given year has a modest positive impact on increasing maize output in that same year. However, acquiring subsidised fertiliser in multiple prior years generates no statistically significant effect on maize output in the current year. These findings indicate that potential enduring effects of the Malawi fertiliser subsidy programme on maize production are limited. Additional interventions that increase soil fertility can make using inorganic fertiliser more profitable and sustainable for smallholders in sub‐Saharan Africa and thereby increase the cost‐effectiveness of input subsidy programmes.     

Faidherbia albida on the Tonga Plateau of southern Zambia: an agroecological analysis

Faidherbia albida is a tree species indigenous to semi-arid regions of Africa that reportedly substantially increases maize (Zea mays) yields in its immediate vicinity. In southern Zambia, F. albida is widely used in indigenous maize farming systems and this has apparently increased over the past two decades. Using a combination of interviews, group meetings, and observations, this study sought to understand why this species seems to have recently been embraced, while other technological innovations apparently have not. We observed a bimodal age distribution of the trees in agricultural fields and posit that the missing cohorts were removed as weeds as a result of evolving notions of what constituted modern farming practices in the emerging maize economy. With subsequent research and social promotion of the beneficial effects of F. albida, farmers now allow the trees to grow in their fields. A holonic analysis points to the important relationship of F. albida to contexts that shaped past and current uses of the tree by farmers on the Tonga Plateau: information, maize, cattle, land tenure, and government policy. Advice promulgated by social promotion activities took root in farmer knowledge contexts because of positive regard for F. albida and timeless injunctions against cutting mature specimens. Furthermore, cultivation of the tree was highly compatible with other important contexts in which farmers operate. However, our research also revealed the potential for adoption of the tree to create new tensions arising from the strong gendering of work and crops in the region.     

Incomplete Credit Markets and Commodity Marketing Behaviour

We use a simple theoretical model of seasonal market participation in the presence of liquidity constraints and transaction costs to explain the ‘sell low, buy high’ puzzle in which some households do not take advantage of inter‐temporal price arbitrage through storage and sell output postharvest at prices lower than observed prices for purchases in the subsequent lean season. We test our model with data from western Kenya using maximum likelihood estimation of a multivariate sample selection model of market participation. Access to off‐farm income and credit indeed seem to influence crop sales and purchase behaviours in a manner consistent with the hypothesised patterns.