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.     

Impact of information and communication technologies on agricultural households’ welfare in Benin

Information technologies are very important to transform the agricultural sector and improve economic performance. Nevertheless, does the use of information and communication technologies (ICT) improve agricultural households' welfare? To answer this, the study used a nationally representative household survey, the Comprehensive Food Security and Vulnerability Analysis (CFSVA) carried out in 2017 in Benin. The survey covered a sample of 15 000 households, however, the analysis focused on the 6502 agricultural households. An endogenous switching regression model was employed to control for selection bias and endogeneity issues. Results indicated that the use of ICT increases households' consumption expenditure by 89.6%. This implies that the use of ICT improves agricultural households' welfare. Other variables that affect agricultural households’ welfare include age, marital status, farm size, access to credit, ownership of livestock, membership in a farmer-based organization, and region of residence. Furthermore, the decision to use ICT in agricultural households depends on the level of education, age, sex, marital status, farm size, access to credit, ownership of livestock, membership in a farmer based organization, and location. These findings suggest that policies that promote the use of ICT are key to improving welfare of agricultural households in Benin. These policies must consider demographic, socio-economic, and institutional characteristics of households.     

Assessing farm performance by size in Malawi,Tanzania, and Uganda

Many Sub-Sahara African countries have long endured sluggish agricultural productivity growth and a farm structure dominated by smallholders. This prevailing structure has led to public policies focusing on access to land and its distribution as ways to boost agricultural supply. Drawing on data from the Living Standards Measurement Study–Integrated Surveys on Agriculture (LSMS-ISA) for three East African countries (Malawi, Tanzania, and Uganda), our purpose is to: test whether smaller farms in these countries are more productive than larger ones; examine how managerial performance varies with farm size; and assess how public policy may improve farm performance. We adopt the Random Parameters Stochastic Production Frontier model to estimate and then decompose Total Factor Productivity (TFP) across different farm size classes. In doing so, we test for possible measurement errors of farmer self-reported land area using Global Positioning System (GPS) data, and explore the imperfect factor markets hypothesis. The results show that across the three countries TFP is higher for smaller farms than for larger ones. Overall, managerial performance is low suggesting that programs designed to enhance managerial capacity would promote farm productivity across all sizes. Other policies are size specific. Access to agricultural input markets improves the productivity of the small farms, while greater spending on transportation infrastructure and extension services enhances the productivity of the large.     

Knowing is half the battle: Seasonal forecasts,adaptive cropping systems,and the mediating role of private markets in Zambia

This paper examines how smallholders living in regions where a drought is forecasted adapt their farm practices in response to receiving seasonal forecast information. The article draws on a unique longitudinal dataset in Zambia, which collected information from farm households before and after a significant drought caused by the 2015/2016 El-Niño Southern Oscillation. It finds that farmers residing in areas forecasted to be drought-affected and receiving seasonal forecast information are significantly more likely to integrate drought tolerant crops into their cropping systems compared to similar households not receiving this information. Moreover, the probability that a farmer implements these adaptive farm management strategies in response to seasonal forecast information is found to increase substantially as the number of private grain buyers in the farmers’ village increases. This suggests that climate change adaptation and resilience strategies that integrate the generation and dissemination of weather information with agricultural market development can achieve greater impact on farmers’ adaptive responses than approaches that treat these activities in isolation.     

Lead-farmer extension and smallholder valuation of new agricultural technologies in Tanzania

Encouraging the widespread adoption and use of new on-farm technologies is an important part of productivity-led strategies to promote agricultural transformation. While many interventions have been designed to promote adoption through extension and education, little is known about how these efforts influence farmer willingness-to-pay (WTP) for new technologies. We use a Becker-DeGroot-Marschak (BDM) mechanism to elicit farmer WTP for two improved seed varieties and a new seed treatment product, Apron Star, under two different lead-farmer extension treatments in Tanzania: (i) a demonstration plot showcasing the technologies within a village; and (ii) a demonstration plot coupled with distribution of trial packs enabling some farmers to test the technologies on their own land. In the BDM, farmers were presented with six products – the two bean varieties: without Apron Star, with Apron Star already applied, and with a sachet of Apron Star for the farmer to treat the seed him/herself. Our results suggest that neither extension treatment significantly affects WTP for these technologies. However, we find that farmers are willing to pay more for seed that is pre-treated with Apron Star than for seed bundled with a sachet of Apron Star for self-treatment.     

Assessing the impact of improved agricultural technologies on household income in rural Mozambique

In many areas of Africa, rural livelihoods depend heavily on subsistence farming. Using improved agricultural technologies can increase productivity in smallholder agriculture and thus raise household income and reduce poverty. Data from a nationally representative rural household survey from 2005 is used to assess the impact of four technologies – improved maize seeds, improved granaries, tractor mechanization, and animal traction – on household income in Mozambique. To ensure the robustness of the results, three econometric approaches were used: the doubly-robust estimator, sub-classification and regression, and matching and regression. The results show that, overall, using an improved technology did not have a statistically significant impact on household income. This may be associated with a widespread drought that occurred in 2005. Despite drought, distinguishing between households based on propensity score quintiles revealed that using improved technologies, especially improved maize seeds and tractors, significantly increased the income of those households who had better market access. Thus, to allow households to benefit from the use of improved technologies, policy makers need to reduce structural impediments to market participation by ensuring adequate road infrastructure and enabling access to markets.     

Does a cassava research-for-development program have impact at the farm level? Evidence from the Democratic Republic of Congo

This paper evaluates the impact of a cassava research-for-development program on farm level outcomes. The program was implemented in the Democratic Republic of Congo from 2001 to 2009. We apply propensity score matching, Rosenbaum bounds on treatment effects, Altonji et al. method of selection on observables and unobservables and endogenous switching regression to farm survey data collected during the 2009 cropping season. We use these methods to test whether the R4D program has a statistically significant effect on outcomes of interest and if these are not driven by selection on unobservables. Using propensity score matching, we find statistically significant positive effects on household participation in cassava markets, adoption of improved varieties and crop management practices and household food adequacy; and no statistically significant effects on yields and profits. The results show that bias due to selection on unobservables is not severe enough to invalidate the impact estimates. Bias may still be a problem that is present in the analysis. But there is evidence that it is not substantial. Although the program does not have a statistically significant positive effect on yields and profits, the significant program effects on market participation, variety adoption, and food adequacy merit further promotion of the program since these positive outcomes tend to be pre-conditions for realizing long-term yield and profit benefits.     

Agricultural inputs and nutrition in South Asia

There are a number of potential pathways leading from agricultural input decisions to nutrition outcomes of farm households. These have special resonance in less developed areas of South Asia given widespread undernutrition problems, market failures and restricted access to land and other key assets and inputs, as well as ongoing debates around the implications that the green revolution has held for nutritional outcomes. A number of initiatives, including the Leveraging Agriculture for Nutrition in South Asia (LANSA) project have been undertaking research that addresses these linkages. The objectives of this paper are to systematically review the recent evidence on linkages between agricultural inputs and diet and nutrition outcomes of farm households in South Asia, place relevant LANSA research within the context of this review, and draw implications for policy, practice and the future research agenda. We focus on land and livestock assets and the set of productivity enhancing inputs in the form of irrigation, seed and agrochemicals. We report on a systematic review of recent evidence based on observational data on the links between these agricultural inputs and assets and diet and nutrition outcomes of farm households in India, Pakistan, Bangladesh, Afghanistan and Nepal. We find that the literature has slowly but steadily grown since previous reviews conducted in the early 2010s, but that there is still a long way to go. Review results suggest that while there is no indication that land ownership or size by themselves have clear associations with farm household dietary or nutrition outcomes, land productivity is more clearly associated with improved outcomes. Yet the literature linking specific inputs such as improved seeds or irrigation with nutrition remains very thin. The literature appears strongest for the case of links between livestock keeping and dietary and nutrition outcomes. This is particularly the case with animals reared for milk, with the evidence indicating milch animal ownership improves household milk intakes and thereby influences the growth of children. Priorities for future research include the formulation and testing of more specific hypotheses relating to input-nutrition linkages and more strenuous efforts to improve causal identification in this literature.     

Impact of contracts in high yielding varieties seed production on profits and yield: The case of Nepal

Nepal’s population continues to grow, but the agricultural sector’s performance remains almost stagnant. This has led to a decline in the per capita availability of food. Increasing agricultural productivity is the key to agricultural growth, and one strategy for increasing agricultural productivity is to use improved seeds. This study investigates the impact of contract farming (CF) in high yielding varieties (HYV) of paddy seed production on costs, yield, and profits of smallholder farms in Nepal. Using farm-level data and a non-parametric propensity score matching estimator, the study finds a significant positive impact of contract HYV seed farming on revenues, profits, and yield, and a significant negative impact on total costs of production. Additionally, very small farms (⩽0.43 ha) with CF in HYV paddy seeds tend to gain the most when it comes to yield per hectare. Our estimates reveal that the average smallholder household in Nepal engaged in CF with input conditions receives higher profits. However, farmers engaged in CF with output conditions tend to have higher yields but smaller profits. Finally, farmers engaged in CF in HYV paddy seeds with both input and output conditions have the highest yield gains and significantly higher profits.     

How does population density influence agricultural intensification and productivity? Evidence from Ethiopia

This study uses household-level panel data on smallholder farmers in Ethiopia to estimate how rural population density (RPD) affects agricultural intensification and productivity. Our results suggest that higher RPD is associated with smaller farm sizes, and has a positive effect on input demand, represented by increased fertilizer use per hectare. Overall, increased input use does not lead to a corresponding increase in staple crop yields, and thus farm income declines as population density increases. This suggests a situation where farmers in areas of high RPD may be stuck in place, unable to sustainably intensify in the face of rising RPD and declining farm sizes.     

Policies to promote cereal intensification in Ethiopia: The search for appropriate public and private roles

Over the past decade, policymakers have been searching for an appropriate blend of public and private sector roles to accelerate the intensification of food staple production, smallholder commercialization, and sustainable market development in sub-Saharan Africa. In Ethiopia, steps taken to liberalize markets in the 1990s and promote fertilizer and seed packages have yet to generate payoffs in terms of higher cereal yields, lower food prices, or reduced dependency on food aid. This raises concern about the performance of the agricultural sector, specifically in terms of the systems for providing improved seed, fertilizer, credit, and extension services. This paper examines the evolving roles of the public and private sectors in intensifying cereal production in Ethiopia. Findings suggest that while Ethiopia has an admirable record of supporting agriculture, its state-led policies has now outlived their usefulness. These findings for Ethiopia offer lessons that are potentially applicable to other sub-Saharan African countries facing similar challenges.     

Traceability adoption at the farm level: An empirical analysis of the Portuguese pear industry

Traceability is becoming a condition to operate in European food markets. Retailers impose more stringent standards than what is mandatory. An example is EurepGAP, a quality standard for good agricultural practices that imposes traceability as a main obligation. This research investigates the choice of traceability at the farm level in the Portuguese pear industry. Results suggest that in this industry farm-level adoption of EurepGAP traceability is best explained by the choice to sell to the United Kingdom (UK). For farmers selling to the UK, the odds of choosing the EurepGAP traceability level are significantly linked to membership in particular producer organizations, farm productivity, producing products under a protected designation of origin (PDO), and farmer’s age. While retailers and farmer organizations seem to drive traceability, policy adjustments may be required to reduce adoption costs upstream and extend compliance among producers that sell directly to consumers and market independently.     

Farmer organization,collective action and market access in Meso-America

Farmer organization and collective action are often seen as key factors in enhancing farmers’ access to markets. Often, too little attention is directed at (a) the most appropriate types of organization; (b) whether organization makes less or more sense in the case of producers of an undifferentiated commodity or a higher value product; (c) whether the public or private sector is best placed to support farmer organizations; and (d) the conditions necessary for ensuring their economic viability. Research in Mexico and Central America explored these issues for commodity maize and high value vegetables, respectively. The benefits of farmer organization are more evident in the vegetable sector, characterized by high transaction costs associated with market access. However, horticultural farmer organizations in Honduras and El Salvador include less than 5% of total horticultural producers. This is possibly due to farmer organizations’ limited business skills and non-replicable organizational models. There is less incentive for maize farmers to organize to access output markets as the transaction costs are relatively low. The benefits of maize farmer organization are clearer when it comes to accessing inputs such as credit, seed and fertilizer. Farmer organization is a critical factor in making markets work for the poor, but the role and timing of public and private investment in these organizations is poorly understood.     

Agriculture versus fish – Norway in WTO

The Norwegian agriculture is highly protected and subsidised. The opposite is the case for fisheries and fish farming which suffer from foreign market restrictions. Using a computational general equilibrium model, the gain for Norway of a complete elimination of food subsidies and tariffs is estimated to be in the range of 1.2–2.7 per cent of GDP. Most of this gain stems from domestic farm sector liberalisation. The gain from free market access for seafood is estimated to 4.4 per cent of the seafood export value. Consequently, Norway has much to gain from offering other countries market access for agricultural products. By pursuing such a policy, Norway may also strengthen the case for fisheries and fish farming in trade talks.     

The Green thumb videotex experiment: Evaluation and policy implications

The authors report on an evaluation of Green Thumb, a videotex experiment carried out by the Cooperative Extension Service and the US Department of Agriculture. Green Thumb provided marketing, weather and other information to 200 farm families in Kentucky. The experiment was a successful demonstration of the concept of providing farming information via new communication technologies, but the specific configuration and organizational arrangements will have to be improved in future systems. Policy issues concerning the role of USDA in future agricultural systems are discussed.     

Can mobile phones improve gender equality and nutrition? Panel data evidence from farm households in Uganda

Since 2000, mobile phone technologies have been widely adopted in many developing countries. Existing research shows that use of mobile phones has improved smallholder farmers’ market access and income. Beyond income, mobile phones can possibly affect other dimensions of social welfare, such as gender equality and nutrition. Such broader social welfare effects have hardly been analyzed up till now. Here, we address this research gap, using panel data from smallholder farm households in Uganda. Regression results show that mobile phone use is positively associated with household income, women empowerment, food security, and dietary quality. These results also hold after controlling for possible confounding factors. In addition to the household-level analysis, we also look at who within the household actually uses mobile phones. Gender-disaggregation suggests that female mobile phone use has stronger positive associations with social welfare than if males alone use mobile phones. We cautiously conclude that equal access to mobile phones cannot only foster economic development, but can also contribute to gender equality, food security, and broader social development. Further research is required to corroborate the findings and analyze the underlying causal mechanisms.     

Exploring the relationship between farm size and productivity: Evidence from the Australian grains industry

The effect of farm size on productivity remains to be one of the longest standing debates in the agricultural development literature. In this paper, we use farm level data for the Australian grains industry from 1989 to 2004 to investigate the relationship between farm size and total factor productivity and its potential determinants. We show that a positive farm-size productivity relationship could be linked to farmer capital choice. In particular, the productivity advantage of larger farms is likely to diminish as farms use contract services to replace self–owned capital, suggesting that the hire of capital services (hereafter ‘capital outsourcing’) may lift the productivity level of small farms compared to their larger counterparts.     

Persistent myths about emergency seed aid

Seed interventions are the major agricultural response during emergency and recovery phases of humanitarian relief. They are implemented by diverse agencies, and widely promoted: for instance the FAO alone managed 400 such projects between 2003 and 2005. However, seed aid suffers from a lack of critical attention, perpetuating widespread myths among practitioners, policymakers, and the larger humanitarian community. This paper challenges five predominant myths about seed aid: (1) seed aid is needed whenever food aid is; (2) seed aid can do no harm; (3) disasters wipe out seed systems; (4) effective implementation is a straightforward logistical exercise, and; (5) improved seed is the best form of aid. These myths are juxtaposed with recent empirical work across a range of countries, particularly in Eastern and Southern Africa. The perpetuation of such myths highlights a serious absence of scrutiny of emergency seed aid, and helps explain why such aid is repeated year after year in many sites, with little apparent positive effect. The paper argues that the invisibility of seed aid is a major cause for the lack of oversight and concludes that donors and farmer beneficiaries must become centrally involved in seed aid governance.     

农业经营组织演化的经济学解释

对农业经营组织演化的经济学机理进行了系统梳理和分析。研究表明：农业生产特性使得公司化和集体化模式面临高监督和组织协调成本,中国农村土地安排的社会保障功能,使得农业家庭经营具有一定的合理性。然而,农业家庭经营本身难以克服农业资本和技术服务约束、市场准入困难和市场风险威胁,农业经营正在经历一个组织化的过程。“公司＋农户”在克服市场进入障碍和降低市场风险的同时,面临着由于合同不完全性、不公平性和机会主义导致的合约不稳定窘境;农户合作社通过农户之间的合作,能够克服农户资本和技术服务农业生产约束,通过组织化农户与企业签定合约,提升了契约稳定性,但传统的农户合作存在“搭便车”等内在缺陷,限制了服务的规模,必须进行内部制度创新,向新一代合作社演化。农业经营的外部环境和内在技术变化,必然会引起农业组织本身的变化,农业经营组织演化的经济因素和演化方向,是值得进一步关注的问题。     

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.