Big is efficient: Evidence from agricultural cooperatives in Ethiopia

In Ethiopia, there is a renewed interest in agricultural cooperatives as an institutional tool to improve the welfare of smallholder farmers. One of the pathways through which cooperatives benefit their members is scale economies. However, the establishment of cooperatives in Ethiopia seems to pay little attention to the size of the organizations. This article aims at investigating the effect of size on cost efficiency of agricultural cooperatives. More specifically, the purpose is to examine whether a single cooperative can serve a given number of farmers at a lower cost than two or more smaller cooperatives could. We employ the concept of cost subadditivity to compare the cost efficiency of large versus small cooperatives, and by extension unilateral actions. We estimate a flexible production technology using cross‐sectional cooperative‐level data. Findings show that costs would drop by 78% to 181% if farmers join hands in relatively large rather than small cooperatives.     

The impact of water conservation and intensification technologies: empirical evidence for rice farmers in Ghana

This study employs the propensity score matching model to examine the impact of the adoption of water conservation and intensification technologies on farm output and income among small-scale lowland rice farmers in the Northern Region of Ghana. The matching was conducted based on the Mahalanobis distance combined with the propensity score. Balancing tests by checking the mean standardized absolute bias in the matched sample were conducted as well as a sensitivity analysis was conducted to check for hidden bias due to unobservable selection. The empirical results show a positive and significant impact of the adoption of bunds technology on input demand as well as a positive but insignificant impact on output supply and net returns. Adopters of the dibbling technology were found to have higher output supply, whereas no statistically significant difference was found between the incomes of adopters and nonadopters of dibbling seed method. The results, however, reveal a positive and significant effect on output and net returns when the dibbling method is combined with intensified weeding. The estimates were found to be relatively insensitive to hidden bias.     

Decomposition of gender differentials in agricultural productivity in Ethiopia

A number of studies document gender differentials in agricultural productivity. However, they are limited to region and crop‐specific estimates of the mean gender gap. This article improves on previous work in three ways. First, data representative at the national level and for a wide variety of crops is exploited. Second, decomposition methods—traditionally used in the analysis of wage gender gaps—are employed. Third, heterogeneous effects by women's marital status and along the productivity distribution are analyzed. Drawing on data from the 2011–2012 Ethiopian Rural Socioeconomic Survey, we find an overall 23.4 percentage point productivity differential in favor of men, of which 13.5 percentage points (57%) remain unexplained after accounting for gender differences in land manager characteristics, land attributes, and access to resources. The magnitude of the unexplained fraction is large relative to prior estimates in the literature. A more detailed analysis suggests that differences in the returns to extension services, land certification, land extension, and product diversification may contribute to the unexplained fraction. Moreover, the productivity gap is mostly driven by non‐married female managers—particularly divorced women—; married female managers do not display a disadvantage. Finally, overall and unexplained gender differentials are more pronounced at mid‐levels of productivity.     

Evaluating the impact of agricultural extension on farms' performance in Crete: a nonneutral stochastic frontier approach

This article attempts to integrate the production‐ and the efficiency‐based approaches for evaluating the impact of extension on farms' performance. For this purpose the nonneutral production frontier model is used, and the empirical analysis refers to a sample of farms from Crete, Greece. The empirical results support the proposed formulation instead of either the production‐ or the efficiency‐based formulations as extension was found to have a statistically significant effect on closing both the technology and management gaps. Public and private extension services were found to be competitive in the production function and complementary in the technical inefficiency effect function. In addition, farms using both public and private extension services achieved a higher degree of technical efficiency than those using either public or private extension services, and farms with no extension services were found to be the least efficient.     

The impact of the use of new technologies on farmers’ wheat yield in Ethiopia: evidence from a randomized control trial

In 2013, Ethiopia's Agricultural Transformation Agency introduced the Wheat Initiative to increase smallholder productivity. In this article, we measure the impacts of the Wheat Initiative package of technologies, and its marketing assistance component alone, on yields among a promotional group of farmers. The package includes improved techniques, improved inputs, and a guaranteed market for the crop. Relying on crop‐cut measures and farmers’ own assessments, we find that full package led to an average 14% higher yields. Implementation of the Wheat Initiative was successful in making certified seed and fertilizer accessible to farmers and increasing their uptake, though only 61% of the intervention group adopted row planting and few farmers received marketing assistance. The measured yield difference may underestimate the true yield difference associated with the technology because of incomplete adoption of the recommended practices by intervention farmers and adoption of some practices by control farmers.     

Modern variety adoption and risk management in drought prone areas: insights from the sorghum farmers of eastern Ethiopia

Adoption rates of improved or modern varieties (MV) of sorghum in eastern Ethiopia are generally low. Although these MV may represent an effective means of coping with droughts, given their early maturing traits, landraces could prove to be more drought‐tolerant and better adapted to marginal production conditions. Whether MV adoption is a risk reducing technology is very much an empirical question which this article investigates using a unique dataset from eastern Ethiopia in a year of extreme weather conditions. Results show that risk‐factors coupled with access to markets and social capital drive farmers’ decisions to adopt MVs. On the one hand, it appears that farmers use MVs to mitigate moderate risks. On the other hand, farmers who have been most vulnerable to extreme weather events are less likely to use MVs suggesting that MV adoption does not necessarily represent an effective means of coping with drought. Finally, findings show that MV growers are more likely to be affected by sorghum failure once controlling for exogenous production factors.     

Are small‐scale rice farmers in eastern India really inefficient? Examining the effects of microtopography on technical efficiency estimates

The article analyzes how controlling for differences in land types (defined by position on a low‐scale toposequence) affects estimates of farm technical efficiency for rice farms in eastern India. Contrasting previous research, we find that farms are considerably more technically efficient when efficiency estimates are carried out at the plot level and control for plot characteristics rather than at the farm level without such controls. Estimates show farms cultivating modern varieties are technically efficient and plots planted with traditional varieties on less productive lands (upland and midupland) operate close to the production frontier. Significant technical inefficiency is found on more productive lands (medium and lowland plots) planted with traditional rice varieties. The finding that these smallholder rain‐fed rice farms are efficient cultivators on some plots contrasts with previous findings of farm‐level inefficiency (i.e., rejects overarching explanations linked to farm operator ignorance or lack of motivation) and suggests more complex explanations are required to address the inefficiency that is present.     

Roles of extension and ethno-religious networks in acceptance of resource-conserving agriculture among Ethiopian farmers

This article analyses roles of social and extension networks in adoption of resource-conserving practices among Ethiopian farmers. We gathered data from 297 randomly sampled households on their agricultural practices, social networks, access to the extension, and geographical location. After examining general determinants of practising resource-conserving agriculture, we employ a two-stage regression with full-maximum likelihood correction for selection bias to establish the roles of general social networks and external professionals in acceptance of conservation techniques. In accordance with previous research, probit regression in the first stage shows that the access to extension increases with farmers’ wealth and the size of their personal networks, and decreases with the distance of their households from village centres. However, after accounting for this unequal access to extension, the second-stage linear regression shows that regardless of education, wealth or geographical location, those whose religion and ethnicity match with their agent, report learning more about conservation from extension sources. Furthermore, farmers who are socially well connected within the community tend to be less receptive to agents’ recommendations regarding resource conservation. Dissemination policy of conservation agriculture should consider the ethnic and religious affinity between farmers and their extension agents. It also needs to pay more attention to socially and geographically isolated individuals.     

Technology adoption,impact, and extension in developing countries’ agriculture: A review of the recent literature

Given the stagnant agricultural productivity and persistent food insecurity in low-income countries—notably in sub-Saharan Africa (SSA)—there has been continued interest in the adoption of new technology and its impact on productivity in these regions. To increase crop yields and sustain yield gains, recent case studies of technology adoption unanimously recommend the adoption of integrated farm management systems, particularly in SSA. On the other hand, there have been increasing numbers of studies on social network or farmer-to-farmer technology extension. These studies explore more efficient extension systems than traditional public-sector extension approaches. This article reviews both recent case studies of technology adoption and its productivity impacts as well as studies on agricultural extension to identify common findings, shortcomings, and major remaining issues.     

Adoption and welfare impacts of multiple agricultural technologies: evidence from eastern Zambia

Using plot level panel data and multinomial endogenous switching regression, this article analyzes the adoption and welfare impacts of multiple agricultural technologies in eastern Zambia. We adapt a multinomial endogenous switching/treatment effect regression framework to correct for selection bias and endogeneity originating from both observed and unobserved heterogeneity. Results indicate that joint adoption of multiple agricultural technologies had greater impacts on crop yields, household incomes, and poverty than the adoption of individual components of the technology package. Our findings suggest that efforts aimed at raising household incomes and reducing poverty should focus on promoting the adoption of multiple agricultural technologies through provision of improved support services such as extension and input supply.     

Access to credit and heterogeneous effects on agricultural technology adoption: Evidence from large rural surveys in Ethiopia

Modern agricultural technologies hold huge potential for increasing productivity and reducing poverty in developing countries. However, adoption levels of these technologies have remained disappointingly low in Africa. This paper analyzes the effect of access to credit on the likelihood of adoption and use intensity of chemical fertilizers using data from large rural surveys in Ethiopia. Using a heteroscedasticity-based identification strategy to address the endogenous nature of access to credit, we find that access to credit has significant positive effects on adoption and intensity of use of chemical fertilizers. However, important heterogeneities are observed. Credit obtained from formal sources is more important for the intensity of use than for the decision to adopt chemical fertilizers. Credit taken with the primary purpose of financing agricultural inputs is more likely to promote adoption of chemical fertilizers than credit taken per se. Furthermore, reported credit effects are larger when estimated against the sample of credit-constrained non-users as compared with the pool of the whole sample of credit non-users. The results remain robust to several sensitivity analyses. Our results yield useful implications for the design, promotion, and targeting of credit services to leverage their effect on adoption of agricultural technologies.     

The impact of coffee certification on small‐scale producers’ livelihoods: a case study from the Jimma Zone,Ethiopia

What is the impact of product certification on small‐scale farmers’ livelihoods? To what extent does the participation of Ethiopian small‐scale coffee farmers in certified local cooperative structures improve their socioeconomic situation? To answer these questions, this article employs household data of 249 coffee farmers from six different cooperatives collected in the Jimma zone of Southwestern Ethiopia in 2009. Findings show that the certification of coffee cooperatives has in total a low impact on small‐scale coffee producers’ livelihoods mainly due to (1) low productivity, (2) insignificant price premium, and (3) poor access to credit and information from the cooperative. Differences in production and organizational capacities between the local cooperatives are mirrored in the extent of the certification benefits for the smallholders. “Good” cooperatives have reaped the benefits of certification, whereas “bad” ones did not fare well. In this regard the “cooperative effect” overlies the “certification effect.”     

Explaining gender differentials in agricultural production in Nigeria

This article uses data from the General Household Survey Panel 2010–2011 to analyze differences in agricultural productivity across male and female plot managers in Nigeria. The analysis utilizes the Oaxaca‐Blinder decomposition method, which allows for decomposing the unconditional gender gap into: (i) the portion caused by observable differences in the factors of production (endowment effect) and (ii) the unexplained portion caused by differences in returns to the same observed factors of production (structural effect). The analysis is conducted separately for the North and South regions, excluding the west of the country. The findings show that in the North, women produce 28% less than men after controlling for observed factors of production, while there are no significant gender differences in the South. In the decomposition results, the structural effect in the North is larger than the endowment at the mean. Although women in the North have access to less productive resources than men, the results indicate that even if given the same level of inputs, significant differences still emerge. However, for the South, the decomposition results show that the endowment effect is more important than the structural effect. Access to resources explains most of the gender gap in the South and if women are given the same level of inputs as men, the gap will be minimal. The difference in the results for the North and South suggests that policy should vary by region.     

Agricultural input subsidies,extension services,and farm labour productivity nexus: Evidence from maize farmers in Tanzania

This paper examines the effect of agricultural input subsidies (AIS) and agricultural extension services (AES) on farm labour productivity in plots planted with maize in Tanzania, using panel data from the National Panel Survey in Tanzania. To control for the endogeneity of the two programmes, a control function and instrumental variable approach is used to estimate the effects of AIS and AES on farm labour productivity. The results show that AIS and AES are significant in raising labour productivity in maize-planted plots. Similarly, AIS and AES are also effective in increasing land productivity in these plots. Moreover, each programme has comparable effects on land productivity and farm labour productivity. These findings imply that public investments in AIS and AES are effective in raising farm productivity.     

Sharecropping efficiency in Ethiopia: threats of eviction and kinship

We tested a theoretical model with the Marshallian inefficiency (H1) and threat of eviction (H2) hypotheses having opposite effects on land productivity on sharecropped plots. The model also assumes that kinship contracts may eliminate or reduce the Marshallian inefficiency (H3) and threat of eviction (H4) effects on land productivity. Our empirical findings were consistent with H2 and H4 being true. We found higher land productivity on sharecropped plots than on share tenants' own plots and higher land productivity on sharecropped plots of nonkin than of kin tenants. The nature of the data allowed controlling for unobservable household characteristics through household fixed effects and for observable plot characteristics. Analyses with and without plot characteristics revealed that these findings were stronger with plot characteristics than without them. Based on the plausible assumption that observable plot characteristics are positively correlated with unobservable plot characteristics this strengthens our conclusion. The results are also supported by first-order stochastic dominance analysis. Sharecropped plots' output value distribution unambiguously dominated the output value distribution from share tenants' own plots. Nonkin sharecropped plots' output value distribution also first-order stochastically dominated the output value distribution from kin sharecrop plots.     

The impact of coffee price changes on rural households in Uganda

Employing household survey data covering the periods 1992–1993, 1995–1996, and 1999–2000, this article shows for the case of Uganda that a coffee market liberalization followed by a price boom was associated with substantial reductions in poverty, which could even be sustained when prices went down again. Coffee is not planted by the richest farmers and the gains from higher coffee prices accrued to poorer and richer coffee farmers alike. Nor were poorer farmers hurt disproportionately when prices fell. In addition, we find strong spillovers from coffee production to other agriculture, which tends to favor the poor, and to nonagricultural activities. These multiplier effects are concentrated in coffee regions. In an economic environment characterized by a booming agricultural sector, coffee farmers were able to accommodate the negative price shock, in particular through agricultural diversification. General agricultural growth also cushioned possible negative multiplier effects in coffee regions. Overall, the case of coffee in Uganda thus lends support to the view that agricultural trade liberalization is beneficial for the poor.     

Gender and agricultural productivity: implications of the Farm Input Subsidy Program in Malawi

Alleviating gender differences in agricultural productivity is vital for poverty reduction. While numerous studies suggest that gender differences in agricultural productivity are a result of female farmers having limited access to resources, few studies investigate the role of agricultural interventions in alleviating the constraints to input use and subsequently the gender gap in productivity. This study investigates whether there are gendered gains in agricultural productivity from participating in an input subsidy program and if these gains help reduce the gender gap. Using nationally representative data that is disaggregated at the plot level, this study analyzes the large‐scale voucher‐based Farm Input Subsidy Program in Malawi. Focusing on the total value of output per hectare, relationships are identified using weighted estimators, where the weights are constructed from propensity scores, and spatial fixed effects, to address the unobservable factors that may confound the relationship between program participation and productivity. The findings suggest that participation in the program improves agricultural productivity for both male and female farmers but it does not provide disproportionate help to female famers to overcome gender disparities in agricultural productivity. This suggests that female farmers face additional constraints to productivity apart from nonlabor input use.     

The impact of integrated aquaculture–agriculture on small-scale farms in Southern Malawi

Sustainable agricultural intensification is an urgent challenge for Sub-Saharan Africa. One potential solution is to rely on local farmers' knowledge for improved management of diverse on-farm resources and integration among various farm enterprises. In this article, we analyze the farm-level impact of one recent example, namely the integrated aquaculture–agriculture (IAA) technologies that have been developed and disseminated in a participatory manner in Malawi. Based on a 2004 survey of 315 respondents (166 adopters and 149 nonadopters), we test the hypothesis that adoption of IAA is associated with improved farm productivity and more efficient use of resources. Estimating a technical inefficiency function shows that IAA farms were significantly more efficient compared to nonadopters. IAA farms also had higher total factor productivity, higher farm income per hectare, and higher returns to family labor.     

Agricultural technology and child labor: evidence from India

Child labor continues to be a major problem in developing countries, particularly in agricultural countries. The latest ILO global report points out that nine out of every ten child laborers is involved in the agricultural sector. The focus of this article is on the rural sector in India, a country where child labor continues to be prevalent. A number of factors have been found to significantly influence the extent of child labor. This article will focus on the type of technology utilized in the agricultural sector. Technology is divided into two types: biochemical and mechanical. The empirical results indicate that biochemical technology has both positive and negative effects on child labor. However, mechanical technology is found to have a statistically significant and negative impact on child labor.     

Markets and pro-poor agricultural growth: insights from livelihood and informal rural economy models in Malawi

This article presents the development of a set of programming models describing the major features of different rural livelihoods and of the informal rural economy they together make up in Malawi. The models allow for differentiated responses by different household types to change and for the partial equilibrium effects of consequent supply, demand, and price adjustments in labor and grain markets. The models provide insights into the relations between own‐farm and nonown‐farm activities in different households' livelihoods and in the informal rural economy as a whole, and are used to investigate possible impacts of increasing cash crop prices and of a more open rural economy. Impacts of these changes on the poor are found to be critically dependent upon supply and demand elasticities in labor and grain markets, but the poor could potentially suffer significant losses from increased openness of the local economy leading to increased expenditure by less poor households on imported goods and services.