The impact of strengthening agricultural extension services on women farmers: Evidence from Ethiopia

This paper evaluates the effect of the Rural Capacity Building Project (RCBP), which aimed at promoting growth by strengthening the agricultural service systems in Ethiopia, and by making them more responsive to smallholders’ needs, in particular women farmers. We examine the gender‐differentiated impact of the RCBP using panel data on 1,485 geographically dispersed households in project and control kebeles. We find that women farmers’ access and satisfaction with extension services increased significantly immediately after the start of the project, but that effect did not last into the medium term. The project led to an increase in the adoption of high‐value crop farming, area of land cultivated, and economic participation of household members, benefiting male‐ and female‐headed households equally. Results point to the positive impact of incorporating women's needs and constraints in the design of the agricultural extension system. However, the project was not able to reduce the preexisting gender gap in agricultural outcomes.     

Sustainable agricultural intensification in forest frontier areas

The Lore Lindu region in Indonesia—as in many forest frontier areas in Southeast Asia—has experienced rapid deforestation due to agricultural expansion in the uplands, at the forest margins. This has resulted in aggravated problems of erosion and water availability, threatening agricultural productivity growth. At the same time, technical progress is promoting agricultural intensification in the lowlands. In this article, we examine how improved technologies for paddy rice cultivation in the lowlands have affected agricultural expansion and deforestation in the uplands. The question of a “forest‐saving” or “forest‐clearing” effect related to technical innovation is important from a sustainable development perspective and remains a controversial issue in the literature. We address this question for the Lore Lindu region with an empirical model in which expansion in the lowlands and the uplands is estimated simultaneously. We use data from an extensive village survey conducted in the region, combined with GIS data. To guide the empirical analysis, we develop a theoretical framework based on a Chayanov‐type agricultural household model. The model analyzes farmers' land allocation decisions, taking into account the lowland–upland dichotomy in the agricultural sector. The empirical findings, corroborated by the analytically derived results, show how technical progress for lowland production affects land use at the forest margins and how these effects depend on the factor‐intensity of the technology. The findings imply specific rural development policies for sustainable agricultural intensification in forest frontier areas.     

Assessing the impact of NERICA on income and poverty in central and western Uganda

Persistent food shortage and poverty in sub-Saharan Africa (SSA) are major development issues. New Rice for Africa (NERICA) was developed to boost crop yield and income of rural households in SSA. Although its high-yielding traits have become fairly well known, there is no empirical analysis of its impact on income and poverty. By taking the case of Uganda where a NERICA promoting program was initiated as one of the major poverty eradication measures, this study attempts to compare actual income with the hypothetical income without NERICA. We found that introduction of NERICA decreases poverty to a significant extent without deteriorating income distribution.     

Measuring technical efficiency in the stochastic varying coefficient frontier model

Due to the assumption that the best practice methods refer to each input separately instead of the whole set of inputs used by a firm, the benchmark technology as defined in the stochastic varying coefficient frontier model may be infeasible and theoretically improper whenever the maximum response coefficients are not coming from the same production unit. To overcome this problem, we propose alternative measures of output-oriented and single-factor technical efficiencies inspired from the maximum likelihood formulation of the nonneutral frontier model. The empirical results indicate that there are significant differences between the two in terms of the estimated efficiency scores but not significant differences we detected in terms of the efficiency ranking.     

Improving the speed of adoption of agricultural technologies and farm performance through farmer groups: evidence from the Great Lakes region of Africa

The article examines the effect of membership in farmer groups (MFG) on adoption lag of agricultural technologies and farm performance in Burundi, the Democratic Republic of Congo and Rwanda. We use duration and stochastic production frontier models on farm household data. We find that the longer the duration of MFG, the shorter the adoption lag and much more so if combined with extension service delivery. Farmer groups function as an important mechanism for improving farm productivity through reduced technical inefficiency in input use. We discuss policy implications under which farmer groups are a useful channel to reduce adoption lag, and the means through which improved farm performance can be achieved.     

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.     

Technological and policy options for sustainable agricultural intensification in eastern Uganda

This article presents a bio‐economic household model, which has been developed to assess the potential impacts of agricultural intensification efforts on economic and ecological indicators in eastern Uganda. A study region in the Lake Victoria Crescent was selected with comparative advantages for intensive agricultural production: high agricultural potential, high market access, and high population density. However, current production is characterized by low input–output systems revealing a discrepancy between development opportunities and actual development outcomes. Based on a farmer participatory research approach, production methods were introduced in the study region aimed at fostering sustainable agricultural development. Data from two community surveys, two comprehensive household and plot level surveys, and farm‐trial data were used to develop and calibrate bio‐economic models for four representative household types. Model scenarios reveal that farm households in eastern Uganda would not pursue sustainable intensification under current socio‐economic conditions. The market environment has to be improved substantially, i.e., transaction and transportation costs have to be reduced, innovative credit schemes for smallholders have to be introduced, and alternative forms of labor acquisition have to be promoted, to provide sufficient economic incentives for the adoption of environmentally sound production methods. In addition, agricultural service provision needs to be reformed and more agricultural research is needed for new and better‐targeted technologies.     

Linkages between the farm and nonfarm sectors at the household level in rural Ghana: a consistent stochastic distance function approach

This article explores the effects within households of an expanding rural nonfarm (RNF) sector in Ghana. We ask whether the growing RNF sector allows for economies of diversification within farms, how it affects household input demands, and whether it has measurable effects in overall household production efficiency. We explore the intrahousehold linkages between agricultural and RNF activities, first assuming perfectly competitive input and output markets and then with market failures, in particular missing labor and credit markets. We then measure these linkages using a household level input distance function, finding high levels of inefficiency in Ghanaian farms. Also, there are cost-complementarities between the RNF sector and the agricultural sector, particularly with food crops in which the poorest tend to specialize. The expansion of the RNF sector increases demand for most inputs including agricultural land. Finally, we show that smaller farms tend to be more efficient, and that RNF output is helping the farm household to become more efficient, but the latter result is not robust.     

CAP MTR versus environmentally targeted agricultural policy in marginal arable areas: impact analysis combining simulation and survey data

On June 2003 the final version of the Common Agricultural Policy Mid‐Term Review (CAP MTR) was published. The driving forces of this policy change include inter alia the compliance with World Trade Organization (WTO) negotiations' requirements, improvement of social support for agricultural policy, adjustment to budget constraints and adaptation of agricultural practices to environmental requirements. This article reviews how this policy performs in marginal areas regarding one of those objectives: the provision of environmental outputs related to agricultural activity. As an alternative to this reform, a policy based on agri‐environmental measures designed to maximize environmental outputs, is proposed. Both options are evaluated from a cost‐effectiveness point of view. Data from a farm survey and a positive mathematical programming model for a cereal steppes agro‐system in Spain are combined in order to simulate the effects of this reform and our alternative instrument on several environmental indicators. Results show that in marginal areas, where land abandonment is a clear threat, more environmental output can be achieved for the same cost, while maintaining, if not increasing, the levels of achievement for the other goals.     

Evaluating research and education performance in Indian agricultural development

India's agricultural research spending has long been regionally uneven. Regional research intensity ratios, which account for size differences, indicate research spending has consistently favored southern and western states over northern, central, and eastern ones. Farm production patterns have, however, changed in recent years and regional output growth is being driven by new commodity mixes. In this article, we ask which region had the highest factor productivity growth and rate of return to investments in public agricultural research and higher education. Our analysis relies on a 1980–2008 Indian agricultural production and policy data set together with a dual heteroscedastic production frontier to decompose total factor productivity (TFP) growth into formal technical progress and efficiency elements. The model's regional flexibility affords region‐to‐region comparison of multiple research return rates, TFP growth, and the elements influencing them. Regardless of return‐rate measure or allocation scenario evaluated, the North has enjoyed the highest return to research spending, and the Central and East the lowest. Factor productivity growth has however been strongest in the South, primarily on account of efficiency gains. Overall, though, the technical progress and productivity growth easily attributable to government‐supported research has accounted for about one‐quarter of the sector's TFP growth.     

Metamodelling phosphorus best management practices for policy use: a frontier approach

This article presents a modelling system for synthesising heterogeneous productivity and nutrient loading potentials inherent in agricultural cropland for policy use. Phosphorus abatement cost functions for cropland farmers in a southeastern Minnesota watershed are metamodelled using frontier analysis. These functions are used to evaluate policies aimed at reducing nonpoint phosphorus discharges into the Minnesota River. Results indicate an efficiently targeted policy to reduce phosphorus discharge by 40% would cost US$167,700 or 844 per farm.     

Valuing animal genetic resources: a choice modeling application to indigenous cattle in Kenya

In an effort to improve productivity and profits, many farmers have replaced traditional livestock breeds with higher yielding alternatives. While such changes may bring about short‐term economic gains, the loss of traditional livestock breeds could result in the loss of an important genetic resource as a variety of important genetic traits adapted to local conditions gradually become less common in the population. This is a particular problem in Africa, where livestock make a substantial contribution to human livelihoods. Using the example of cattle in Kenya's pastoral livestock markets this study uses a choice experiment approach to investigate buyers' preferences for indigenous breeds such as the Maasai Zebu. The analysis employs a latent class approach to characterize heterogeneity in valuations both within and across respondents buying cattle for breeding, slaughter, or resale. The results show that there are at least three classes of buyers with distinct preferences for cattle traits and that most buyers favor exotic rather than indigenous breeds. Such preferences have implications for the conservation of indigenous cattle in Kenya and in other developing countries and suggest that some form of intervention may be required to ensure the preservation of this important animal genetic resource.     

The impact of safety nets on technology adoption: a difference‐in‐differences analysis

This article contributes to a growing body of empirical literature relating credit constraints and incomplete insurance to investment decisions. We use panel data from rural Ethiopia to investigate whether participation in a safety net program enhances fertilizer adoption. Using a difference‐in‐differences estimator and inverse propensity score weighting, we find that participation in Ethiopia's food‐for‐work (FFW) program increased fertilizer adoption in the short run, but not in the long run. Results also indicate that the intensity of fertilizer usage increased with livestock holdings for FFW‐participant households, providing some evidence that the intervention helped asset‐rich farm households more than asset‐poor households. We find no significant effects of free distribution on fertilizer adoption or intensification. Our results are consistent with the hypothesis that safety nets can be viewed as mechanisms that allow households to take on more risk to pursue higher profits. The results highlight the importance of safety net programs, their effectiveness in ensuring farmers that they will be protected against uninsured shocks, and how that assurance can translate into productivity‐enhancing behavior.     

The impact of the 1999 CAP reforms on the efficiency of the COP sector in Spain

The cereal, oilseeds, and protein crop sector (COP) occupies a prominent position within the European Union's agricultural sector. Within Spain, the COP sector accounts for almost a third of total Agricultural Guidance and Guarantee Fund expenses, and half of the utilized agricultural area (UAA). The COP sector is not only relevant because of its physical and economic magnitude, but also because of the political attention it receives. The Common Agricultural Policy (CAP) reforms that occurred during the 1990s paid special attention to this sector. This article aims to determine the impacts of Agenda 2000 on a sample of Spanish COP farmers' production decisions by using an output-oriented stochastic distance function. The distance function allows for an assessment of the reform-motivated changes on total output, input used, input composition, and crop mix. It also permits an assessment of the impacts of the reform on farms' technical efficiency.
Results show that the reform has shifted the production frontier inward and changed output composition in favor of voluntary set-aside land. With respect to input composition, Agenda 2000 induced a decrease in land, fertilizers, pesticides, and other inputs in favor of labor. In addition, Agenda 2000 has had a negative impact on technical efficiency.     

Effect of information formats on information services: analysis of four selected agricultural commodities in the USA

We analyze sources of information in agricultural markets to understand patterns of demand for decision support services and the division of labor in the supply of these services. Information formatting—qualitative variation that determines accessibility and relevance of information in specific contexts—prohibits universal access to informational content. Information formats give rise to both transaction costs and complementarities reflected in patterns of information exchange in commodity systems. Controlling for actors' structural roles and levels of education, we develop a hedonic model of information demand such that actors seek information that is formatted to meet their needs and capabilities. Employing survey data, we explain elements of observed patterns of information exchange in four commodity systems in the USA. Results point to opportunities to expand our understanding of socioeconomic processes underlying production and consumption of decision support.     

Estimating overall returns to international agricultural research in Africa through benefit-cost analysis: a "best-evidence" approach

This study offers a "best evidence" approach to summarizing recent benefit-cost analyses of international agricultural research in Africa. First, from an extensive literature review and the resulting global inventory of impact studies, 23 studies are identified that calculate aggregate rates of return for Consultative Group on International Agricultural Research (CGIAR) and partner investments in Sub-Saharan Africa (SSA). These studies are then appraised against a review framework consisting of principles, criteria, and indicators for study rigor. Subsequently, the economic benefits reported by studies grouped on the basis of its analytical rigor are aggregated and set against total investment by the CGIAR and national agricultural research systems to determine if the total investment to date can be justified by documented benefits under a range of assumptions. As a result, the study finds that aggregate investment is justified under a fairly wide range of suppositions. Under all scenarios, the vast majority of documented benefits stem from a relatively limited array of activities with a majority of benefits stemming from biological control (80%). Close to 20% of total benefits result from crop genetic improvement, and less than 1% result from all other activities. The implications of these results for research investment strategies in SSA and impact assessment are discussed.     

Irrigation technology adoption and its implication for water conservation in the Texas High Plains: a real options approach

Water shortage has been a significant issue for several decades in the Texas High Plains. Agriculture has been identified as the main activity contributing to this shortage. To address this issue, many efforts have been focused on the possible adoption of sophisticated irrigation systems with high levels of water application efficiency. In this study, the entry and exit thresholds for the low‐energy precision application (LEPA) system are analyzed simultaneously in cotton farming in the Texas High Plains using a real options approach. The results show that the LEPA system is profitable only when cotton price is set above $1.59/kg. The exit (entry) threshold is consistently low (high) over a range of values for parameter changes including investment cost, exit cost, variable cost, risk‐adjusted discount rate, and volatility rate, so it is unlikely that farmers with irrigation systems in place would leave them easily. This implies that to attain the goal of saving water, Lubbock County needs to focus on convincing current farmers to replace old irrigation systems with new ones.     

Technical efficiency and impact of environmental regulations in farrow-to-finish swine production in Taiwan

This article demonstrates how technical efficiency and the impact of environmental regulations of Taiwanese farrow‐to‐finish swine production can be estimated in the presence of undesirable outputs. The issue of measuring technical efficiencies while considering undesirable outputs has been addressed by past studies. But the proper method of including undesirable outputs has always been a subject of debate. This article develops a data envelopment analysis (DEA)‐based model that includes undesirable outputs. The technologies of desirable output production and undesirable output control are considered simultaneously. This allows one to transform undesirable output into desirable output, whereby a traditional Shephard distance function can be used to measure technical efficiencies. An approach to measuring the impacts due to environmental regulations is then derived. Empirical results show that larger farms are more technically efficient than small‐sized farms, but no clear conclusions can be reached for the measures of regulatory impact among farms with different sizes. On average, the sample farms incurred an opportunity cost due to environmental regulations equivalent to 9.8% of market value. Opportunity costs rise with efficiency.