The impact of social networks on hybrid seed adoption in India

This article adds to the literature about the impact of social networks on the adoption of modern seed technologies among smallholder farmers in developing countries. The analysis centers on the adoption of hybrid wheat and hybrid pearl millet in India. In the local context, both crops are cultivated mainly on a subsistence basis, and they provide examples of hybrid technologies at very different diffusion stages: while hybrid wheat was commercialized in India only in 2001, hybrid pearl millet was launched in 1965. The analysis is based on surveys of wheat and millet farmers in the state of Maharashtra. Comprehensive data on farmer characteristics and social interactions allow for identifying individual networks, thereby improving upon previous research approaches that employed village-level variables as proxies for network effects. Using econometric models, we find that individual social networks play an important role for technology adoption decisions. While village-level variables may be used as suitable proxies at later diffusion stages, they tend to underestimate the role of individual networks during early phases of adoption.     

Impact of land fragmentation and resource ownership on productivity and efficiency: The case of rice producers in Bangladesh

The paper analyzes the impact of land fragmentation and ownership of resources on productivity and technical efficiency in rice production in Bangladesh using farm level survey data. Results reveal that land fragmentation has a significant detrimental effect on productivity and efficiency as expected. The elasticity estimates of land fragmentation reveal that a 1% increase in land fragmentation reduces rice output by 0.05% and efficiency by 0.03%. On the other hand, ownership of key resources (land, family labour, and draft animals) significantly increases efficiency. The mean elasticity estimates reveal that a 1% increase in family labour and owned draft animal improve technical efficiency by 0.04% and 0.03%, respectively. Also, a 1% increase in the adoption of modern technology improves efficiency by 0.04%. The mean technical efficiency in rice production is estimated at 0.91 indicating little scope to improve rice production per se using existing varieties. Policy implications include addressing structural causes of land fragmentation (e.g., law of inheritance and political economy of agrarian structure), building of physical capital (e.g., land and livestock resources), improvements in extension services and adoption of modern rice technology.     

Eco‐efficiency of high‐yielding variety rice cultivation after accounting for on‐farm environmental damage as an undesirable output: an empirical analysis from Bangladesh

This study computes the eco‐efficiency of high‐yielding variety (HYV) rice production by including an on‐farm environmental damage index (OFEDI) as an undesirable output using data envelopment analysis. It then identifies its determinants by applying an interval regression procedure on a sample of 317 farmers from north‐western Bangladesh. Results reveal that the mean level of the OFEDI‐adjusted production efficiency (i.e. eco‐efficiency) is 89 per cent, whereas ignoring OFEDI adjustment (i.e. with OFEDI = 0) reduces the mean level of efficiency to 69 per cent, implying that the production of undesirable output or on‐farm environmental damage induces an efficiency loss of 20 per cent with significant differences across regions. The proportion of farmers’ income from HYV rice agriculture, land ownership, extension services and socio‐environmental living standard are the significant determinants of improving eco‐efficiency. Policy implications include investments in extension services and land reform measures to increase land ownership, which will synergistically improve eco‐efficiency of HYV rice production in Bangladesh.     

Neighbors follow early adopters under stress: panel data analysis of submergence‐tolerant rice in northern Bangladesh

The benefits of a stress‐tolerant crop become visible under the stresses that the crop is tolerant against. We investigate the adoption of submergence‐tolerant rice in northern Bangladesh by using panel data of 461 households, interviewed in 2013 and 2015. The sample households were randomly selected in 31 villages where submergence‐tolerant rice seeds were given to a small number of farmers in each village. The results from the household fixed‐effects model indicate that submergence in the previous year increased the adoption of submergence‐tolerant rice. The adoption impact was larger among farmers who were neighbors of early seed recipients. Our results suggest that being neighbors of early seed recipients may have helped the neighboring farmers observe the benefits of the submergence‐tolerant rice under submergence. The results indicate the importance of the information flow from early recipients to neighboring farmers.     

Seed Market Privatisation and Farmers’ Access to Crop Technologies: The Case of Hybrid Pearl Millet Adoption in India

In India, pearl millet is a typical subsistence crop. Nonetheless, use of hybrid seeds is widespread. The first pearl millet hybrids were introduced in 1965 by the public sector. Yet, starting in the late 1980s, market liberalisation led to an increasing role of private companies in seed development and distribution. Although several studies showed that proprietary pearl millet hybrids are more productive than public hybrids and open‐pollinated varieties, the impacts of privatisation on farmers’ technology access and overall innovation rates are not yet well understood. This paper analyses the dynamics of adoption using duration models and farm survey data collected in the state of Maharashtra. The results show that education, short distances to main information sources and good market infrastructure speeded up the adoption of pearl millet hybrids. Likewise, the increasing role of private seed companies had a positive and accelerating effect on technology diffusion in the small farm sector.     

The impact of floods on the adoption rate of high-yielding rice varieties in Bangladesh

This paper analyses econometrically the impact of floods on the rate of adoption of high-yielding varieties (HYVs) of rice in Bangladesh. It uses a small model combining a modified logistic adoption function with a model of the process generating expectations errors by the farmers which encompasses most other expectation hypotheses. Using pooled cross-section and time-series data at the district level, the econometric results show a significant negative impact of expected flood damage on the HYV adoption rate of ‘aman’ rice. Moreover, it is shown that the adoption of HYV ‘boro’ rice is governed by essentially the same equation.     

Market integration between surplus and deficit rice markets during global food crisis period

Applying the maximum‐likelihood method of co‐integration, this study analysed spatial market integration between an adjacent rice surplus market (India) and deficit markets (Bangladesh and Nepal). The main focus is on the government policies of these three rice‐producing countries which have been imposed to reduce domestic price volatilities in rice markets during the recent ‘global food crisis’ in 2007–2008. The co‐integration tests find that domestic rice prices of India, Bangladesh and Nepal are integrated both in short‐run and long‐run periods despite the imposition of export restriction policies by India. The reason that prices are transmitted so effectively is most likely to be the widespread informal cross‐border trade through the porous borders among India, Bangladesh and Nepal.     

Why did farmers stop cultivating NERICA upland rice varieties in central Benin?

New Rice for Africa (NERICA) was developed by the Africa Rice Center by crossing high-yielding Asian rice (Oryza sativa L.) with locally adapted African rice (Oryza glaberrima Steud.). Community-based seed production of NERICA varieties was introduced in a village in central Benin in 2006 through seed dissemination projects. It was reported that high-adoption rates of these varieties were mainly due to high demand by development projects for seed dissemination, and to incentives (i.e. selling the rice seed at a higher than local market price to a local extension service) for farmers to grow NERICA varieties. A follow-up survey was undertaken after the seed dissemination projects ended to examine the change in the cultivation of NERICA varieties. About half of the farmers had ceased cultivation of NERICA varieties in 2011. The reasons for abandonment were the combined effects of reduced seed demand and low yields, which were attributed to a lack of access to credit and training on NERICA cultivation practices. The majority of the farmers did not abandon rice cultivation, but grew other high-yielding varieties, including one aromatic variety for which there was market demand. We conclude that to avoid immediate reductions in the adoption of new varieties after projects are terminated and to enhance agricultural sustainability, the varieties should be introduced in conjunction with appropriate group training on their cultivation, and the project should target farmers who do not have off-farm businesses. Furthermore, access to credit should also be enhanced, and the marketability of the varieties should be assessed.     

Market imperfections,access to information and technology adoption in Uganda: challenges of overcoming multiple constraints

Limited empirical evidence exists on how multiple binding constraints influence the adoption of improved technologies by smallholder farmers. This article uses the case of groundnut variety adoption in Uganda to investigate the role of information, seed supply, and credit constraints in conditioning technology uptake. New data from a household survey in seven groundnut growing districts (n = 945) indicate that 8% of farmers lack information on new varieties, while 18% and 6% of farmers, respectively, cannot adopt mainly due to seed supply and capital constraints. A tobit‐type specification that considers all nonadopters as being uninterested in the technology (i.e., corner solutions) would lead to inconsistent parameter estimates and incorrect conclusions in this context. We therefore estimate a modified multi‐hurdle specification of demand for new varieties, taking into account how information, seed supply, and capital constraints jointly determine adoption probability and intensity. The study reveals new empirical insights on why agricultural technology adoption in Africa has lagged behind: slow uptake is not mainly due to a lack of economic incentives, but rather a reflection of information, seed supply, and credit constraints that prevent farmers from translating their desired demand into adoption of modern varieties. Policy implications are discussed.     

A Case of Mistaken Identity? Measuring Rates of Improved Seed Adoption in Tanzania Using DNA Fingerprinting

Studies of improved seed adoption in developing countries are almost always based on household surveys and are premised on the assumption that farmers can accurately self-report their use of improved seed varieties. However, recent studies suggest that farmers’ reports of seed varieties planted, or even whether the seed is local or improved, are sometimes inconsistent with the DNA fingerprinting results of those crops. We use household survey data from Tanzania to test the alignment between farmer-reported and DNA-identified maize seed types planted. In the sample, 70% of maize seed observations are correctly reported as local or improved, while 16% are type I errors (falsely reported as improved) and 14% are type II errors (falsely reported as local). Type I errors are more likely to have been sourced from other farmers, rather than formal channels. An analysis of input use, including seed, fertiliser, and labour allocations, reveals that farmers tend to treat improved maize differently, depending on whether they correctly perceive it as improved. This suggests that errors in farmers’ seed type awareness may translate into suboptimal management practices. The average yield of seed that is correctly identified as improved is almost 700 kg per hectare greater than that of type I errors. This indicates that investments in farmers’ access to information, seed labelling, and seed system oversight are needed to complement investments in seed variety development.     

Adoption of improved maize varieties in the hills of Nepal

Maize (Zea mays L.) is the most important cereal crop in the hills of Nepal, where the grain is used for human consumption and the stover for animal fodder. Maize farms are small, and population pressure necessitates the intensification of existing farming systems. Maize research directed at developing technologies for maize production began in Nepal in 1965. In 2000, a survey was carried out in two districts to determine the current level of adoption of improved maize production practices. In each of these districts, remote and accessible village development committees (VDCs) were surveyed. Questionnaires were administered to 54 randomly selected households in each VDC. A Tobit analysis was used to determine socio‐economic, physical and technology factors that influence the use of improved varieties by farmers. All households use composted farmyard manure, and in the more accessible areas, urea as part of their soil fertility management strategy. Use of improved varieties was less than 60% for all VDCs and only 15% in the most remote VDC. In three of the four VDCs, adoption of improved varieties primarily occurred during the past 5 years. Based on a Tobit analysis, Khet land area, ethnic group, years of fertiliser use, off‐farm income, and contact with extension significantly and positively affected adoption of improved varieties. Farmers in VDCs in central Nepal reported lack of seed to be the major constraint to the adoption of improved varieties, while lack of knowledge of new varieties was the major constraint for farmers in the western VDCs. The results from this survey suggest that the strategy for improving the adoption of new varieties will differ depending on infrastructure and the socio‐economic conditions of the farmers in a given area.     

Insurance for Technology Adoption: An Experimental Evaluation of Schemes and Subsidies with Maize Farmers in Mexico

For farmers in developing countries, the combination of both risk aversion and the lack of insurance is often a major impediment to adoption of productivity‐enhancing technologies, such as higher yielding hybrid seed. In a framed field experiment with Mexican maize farmers, we investigate whether bundling hybrid seed with an insurance scheme can increase its adoption, while also controlling for risk aversion. We test insurance schemes with different levels of risk coverage and premium subsidies and find that (1) all schemes significantly increase the degree of adoption of the higher yielding seed, (2) partial insurance schemes perform worse than full insurance, (3) weather index insurance with geographical basis risk performs no worse than indemnity insurance, and (4) premium subsidies significantly increase the adoption effect of indemnity insurance, but not that of index insurance.     

Impact of hybrid rice on input demand and productivity

This paper uses farm-level data collected from a sample of 500 households in Hunan province, China, to analyze the impact of hybrid rice on input demand and productivity. Based on regression analyses, it is found that, compared with conventional modern varieties, hybrid rice uses about 4% less labor inputs, 2% less draft animal services, and 6% more chemical fertilizers. The lesser requirements for labor and draft animal services probably arise from hybrid rice's lower seeding rate. Due to heterosis and high seed costs, the use of F₁ seed is economized to about one-third to one-fourth that of conventional varieties. Therefore, less labor and animal power is needed for seed-bed preparation and transplanting. It is also found that, given the same level of inputs, the yield advantage of hybrid rice over the conventional modern varieties is about 19%. Because of the productivity potential, hybrid rice is a candidate for the second-generation “Green Revolution” in other parts of Asia.     

Economics of erosion-control and seed-fertilizer technologies for hillside farming in Honduras

With population growth still at very high rates and large-scale commercial farmers and cattle ranchers owning much of the more fertile valley land, small-scale farmers are concentrated on increasingly marginal, steeply sloping hillsides in Central America. The continuing soil erosion and land degradation in these low-input staple crop production hillside farming systems lead many to be pessimistic about increasing the agricultural incomes of these farmers. However, this study shows that the appropriate combination of improved technologies and agricultural policy or alternative production diversification strategies can improve the incomes of small-scale hillside farmers in southern Honduras by over 50%. The technology components considered are stone walls and ditches combined with living tree barriers to prevent erosion of the hillsides, and a package of improved sorghum seed, seed treatment, and modest doses of nitrogenous fertilizer. A whole-farm mathematical programming framework is used to determine the potential farm-level income effects of the soil-conservation and seed-fertilizer technologies. The main conclusion is that erosion-control devices and yield-increasing crop varieties and fertilizer are an effective technology introduction strategy for the erosion-prone hillside landholdings found in many areas of Central America. If policy actions or diversification strategies for disposal of surplus grain are found which are effective in reducing the risk of low income from cereal price reductions in high-production years, adoption of the improved technologies is shown to be profitable for small-scale farmers. Another benefit not explicitly considered would be to slow the very rapid growth of urban poverty in these countries. Sensitivity analysis results indicated that neither risk aversion nor the increased availability of crop land or initial cash have any substantial effects on the predicted adoption level of the improved technologies, or on their income impacts for these farmers.     

Socioeconomic aspects of rice‐fish farming in Bangladesh: opportunities,challenges and production efficiency*

In spite of the potential for rice‐fish farming in Bangladesh, it has been adopted by relatively few farmers because of socioeconomic, environmental, technological and institutional constraints. Rice monoculture remains the main farming system in Bangladesh even though integrated rice‐fish farming is the best farming system in terms of resource utilisation, diversity, productivity, production efficiency and food supply. Only a small number of farmers involve in integrated rice‐fish farming. This study concludes that rice‐fish farming is as production efficient as rice monoculture and that integrated performs better in terms of cost and technical efficiency compared with alternate rice‐fish farming. Integrated rice‐fish farming can help Bangladesh keep pace with the current demand for food through rice and fish production. However, a lack of technical knowledge of farmers, high production costs and risks associated with flood and drought are inhibiting more widespread adoption of the practice.     

INTER-REGIONAL VARIATION IN THE SPEED OF ADOPTION OF MODERN CEREAL CULTIVARS IN INDIA

Speed of adoption of modern cereal cultivars in India is measured and its inter-regional variation is investigated. Adoption speed varies widely across regions and between cereals. While profitability and production risk have been important determinants of adoption speed of high-yielding wheat and rice varieties, such factors fail to explain adequately the uptake of modern cultivars of sorghum, pearl millet and maize. A comparison with the results of other studies confirms the responsiveness of Indian farmers to economic opportunities.     

政府培训、技术认知与农户生态农业技术采纳行为以稻虾共养技术为例

[目的]农户作为生态农业技术最直接的采纳者,其对生态农业技术有着独立的选择权,农户是否采纳生态农业技术直接影响到该技术的推广效率。稻虾共养技术实现了水稻种植和小龙虾养殖相协调,该技术符合生态农业技术的要求。因此,文章以稻虾共养技术为例,通过分析江苏省和湖北省稻虾共养技术推广情况,以期提高农户对稻虾共养技术的采纳行为,并重点从政府培训、农户技术认知、农户个体特征、家庭经营特征和社会网络等五方面研究其对农户采纳稻虾共养技术的影响。[方法]运用二元Logistic模型和Bootstrap方法,基于江苏省和湖北省共612份农户的微观调研数据,实证分析了政府培训、技术认知对农户稻虾共养技术采纳行为的影响及其内在作用机制。[结果](1)政府培训次数和政府培训有效性对农户稻虾共养技术采纳行为有显著的正向影响,政府培训及时性对农户稻虾共养技术采纳行为的影响效果不显著;(2)其内在作用机制主要体现在,政府培训有效性可以提高农户技术认知水平,降低其技术应用风险,最终促使农户产生技术采纳行为;(3)户主是否村干部、是否加入合作社等对农户采纳稻虾共养技术有显著的正向影响,而户主年龄和耕地块数对其技术采纳行为有显著的负向影响。[结论]政府培训能够提高农户对生态农业技术的采纳行为,并且政府通过技术培训,可以提高农户对生态农业技术的认知,进而对农户技术采纳行为产生显著的正向影响。     

A household hedonic model of rice traits: economic values from farmers in West Africa

New crop varieties often have been promoted in developing countries based upon superior yield vis-a-vis locally available varieties. This research presents a hedonic price model for upland rice by drawing upon the input characteristics and consumer good characteristics model literature. Model specification tests determine that a combination of production and consumption characteristics best explains the willingness to pay for new upland rice varieties. The household model specification determined that five traits explain the willingness to pay for new rice varieties: plant cycle length, plant height, grain colour, elongation/ swelling and tenderness. Yield was not a significant explanatory variable of the willingness to pay for seed. The implications of this model are two-fold. First, varietal development and promotion must include post-harvest characteristics in addition to production traits when determining which varieties to promote for official release. Secondly, non-yield production characteristics such as plant height and cycle length are significant factors in producer's assessments of the value of a new variety. Overall, this paper provides an alternative explanation for limited adoption of modern upland rice varieties in West Africa: varietal evaluation programs have focused too narrowly on yield evaluation and have not promoted varieties with superior non-yield characteristics than locally available varieties.     

Information Barriers to Adoption of Agricultural Technologies: Willingness to Pay for Certified Seed of an Open Pollinated Maize Variety in Northern Uganda

We examine smallholder farmers’ willingness to pay for agricultural technology and whether information is a constraint to adoption of certified maize seed in Northern Uganda. The uptake of improved maize varieties by smallholder farmers in Uganda remains persistently low, despite the higher yield potential compared to traditional varieties. A recently growing body of literature identifies information constraints as a potential barrier to adoption of agricultural technologies. We used incentive compatible Becker‐DeGroot‐Marschak auctions to elicit willingness to pay for quality assured improved maize seed by 1,009 smallholder farmers, and conducted a randomised evaluation to test the effect of an information intervention on farmers’ knowledge of seed certification. Our results show that the randomised information treatment enhanced farmers’ knowledge of certified seed. However, using the information treatment as an instrumental variable for knowledge, we find no evidence of a causal effect of knowledge on willingness to pay, suggesting that even though farmers are information constrained, this constraint does not affect adoption of certified seed directly. Nevertheless, only 14% of sampled farmers were willing to pay the market price, which corresponds closely with actual observed demand for certified seed in the previous season. This suggests that there are other barriers to adoption than information and awareness.     

Farmers’ perceptions and management of risk in rice/shrimp farming systems in South-West Coastal Bangladesh

Farmers in Bangladesh face considerable risk due to fluctuations in biophysical and economic conditions, but the response to these risks is poorly understood. In particular, there is a need to better understand the endogenous management of risk in the rice/shrimp farming systems that have emerged in the inner coastal zone of Bangladesh. This paper draws on a case study of a typical rice/shrimp farming village in Khulna District to explore: (a) farmers’ perceptions of risks and their management responses, (b) risk-return trade-offs within small-, medium-, and large-farm households, and (c) the role of other farm and non-farm activities in mitigating risks to household livelihoods. Farm-level data were collected through a reconnaissance survey, a village census, household case studies, and a sample survey of 73 households. Representative farm budgets were constructed for the three farm-size classes. The key performance indicators calculated were gross margin (GM), net income (NI), and GM per workday of family labour. The riskiness of the rice/shrimp system was assessed for each farm type using farmers’ estimates of low, normal, and high yields and prices to specify triangular distributions. Cumulative distribution functions (CDFs) for GM, NI, and GM per workday were generated. A whole-farm economic analysis was also conducted to assess the relative contributions of different sources of income for each farm type. With access to saline water for shrimp farming in the dry season and fresh water for rice in the wet season, farmers have developed and progressively adapted an alternating rice/shrimp farming system that has minimised the trade-offs between the two crops and provides a good return to household and village resources for all farm types. The system is subject to significant production and market risks, especially the shrimp component. However, farmers have clearly perceived these risks and ameliorated them through a range of production, marketing, and management strategies. With these risk management practices, the rice/shrimp cropping system is economically viable, given the current variation in yields and prices. The greater risk associated with the shrimp component was offset by the renewed stability of the rice component over the past decade, and the risks of the whole cropping system were offset by other farm and non-farm sources of livelihood. Development interventions need to work with farmers to provide further options (suitable rice varieties, solutions to shrimp disease, improved village and transport infrastructure) if this resilience is to be maintained.