Showing papers in "African Journal of Agricultural and Resource Economics in 2014"

From failure to success in South African land reform.

Abstract: This article assesses the achievement of land reform in South Africa with respect to the number of beneficiaries relative to rural employment and the demand for land and increases in livelihoods and agricultural output. Even though there are islands of success, for the past twenty years the Land Reform Programme has not satisfied these criteria. Implementation has been poor and farm workers’ and farm dwellers’ rights have not been protected. This failure is primarily attributed to the use of group or co-operative farming; inadequate participation by the beneficiaries; the absence, late arrival or poor quality of post-settlement support; and capacity problems in the civil service. Success requires radical change in design and implementation. A reformed programme should be based primarily on family farmer models, from the provision of housing and gardens for supplementary food production to small commercially oriented family farms, and on intensive participation of the beneficiaries or their groups in the identification, planning, implementation and financial management of their projects. This will allow civil servants to focus on the identification of land to be acquired, the approval of land acquisition and investment plans, and the supervision of financial management and implementation of the projects, thereby relieving their capacity constraints. Before scaling up these approaches they should be tested in pilots on a significant scale, sponsored by any group with the required commitment and capabilities. Pilots should be evaluated independently, based on the number of livelihoods created, household food security and agricultural production.

Measuring the impacts of Malawi’s farm input subsidy programme

Abstract: We measured the farm-level impacts of Malawi’s Farm Input Subsidy Programme (FISP) on fertiliser use and maize yields in central and southern Malawi. Using multiple rounds of panel data and an instrumental variable regression strategy to control for endogenous selection into the subsidy programme, we found positive and statistically significant correlations between participation in the FISP and fertiliser-use intensity. The results are broadly robust to the inclusion of previous fertiliser intensity to control for household-specific differences in fertiliser use. We combined these results with those from a maize production function to calculate programme-generated changes in average maize availability, accounting for estimated subsidy-induced changes in crop area. Our findings have implications for the way input subsidy programmes are designed and implemented.

Effects of land tenure systems on resource-use productivity and efficiency in Ghana’s rice industry

Abstract: This study examines the effects of land tenure systems on resource-use productivity and efficiency in the Upper East region of Ghana with data drawn from the Ghana Agricultural Production Survey. A stochastic frontier model is employed to analyse resource-use productivity and efficiency of the rice farms. The study establishes that rice farms under the various land tenure systems are technically inefficient. Technical efficiency for the pooled sample was 61.80%. The estimated technical efficiencies for the farms under owned, rented and sharecropping were 68.19%, 61.61% and 45.17% respectively. The rice production frontier is influenced by farm size, fertiliser, seed and labour. Furthermore, owned land and fixed rent reduce the inefficiency of rice production. Other factors, such as dibbling and credit access, increase inefficiency, while marital status, extension contact and broadcasting decrease inefficiency in rice production. The study suggests that the formulation of appropriate land policies should gear towards ensuring secure rights to farmlands.

The effect of the adoption of yam minisett technology on the technical efficiency of yam farmers in the forest-savanna transition zone of Ghana

Abstract: This paper uses cross-sectional data collected from 375 smallholder yam farmers in Ghana in 2010 to examine whether the adoption of yam minisett technology had an effect on the technical efficiency of production of the yam farmers. We correct for endogeneity in adoption and employ stochastic frontier analysis to investigate the effect of adoption of the technology on the technical efficiency of production. Our analysis suggests average technical efficiencies of 85.4% and 89.2% in the Ashanti and Brong Ahafo regions respectively. In addition, the effect of adoption of the technology on the technical efficiency of smallholder farmers was positive and significant in the Ashanti region, but negative in the Brong Ahafo region. Our results provide information to improve the uptake of production technologies and their effect on smallholder yam farmers in Ghana.

Gender impacts on adoption of new technologies: the case of improved groundnut varieties in Uganda.

Abstract: Peanuts are a key crop in Uganda and are grown by both male and female farmers, although there is a strong inclination for resource-use decisions to be performed by specific genders. This paper identifies opportunities and participation by women and men in the decision to adopt improved peanut varieties in Uganda using a unique dataset from 20 leading peanut-growing districts in the country. The results indicate that there are gender differences in adopting improved varieties of peanuts. In addition, women in female-headed households are less likely to adopt improved varieties compared to women and men in male-headed households, suggesting that they may have less access to resources than women in male-headed households. The gender of the household head has implications for the adoption of improved technologies by women. Moreover, this imbalance in resource access and income-improving decision-making ability by women may have implications for the adoption of other technologies that could improve household welfare.

Drivers of land-use change in the Southern Nations, Nationalities and People’s Region of Ethiopia

Abstract: The present study employed an econometric framework of land-use shares at the scale of a district to analyse the effects of different socio-economic, bio-physical and climatic factors on land-share allocations to agriculture, forest and grass shrubland in the Southern Nations, Nationalities and People’s Region of Ethiopia. The results of the empirical analysis confirmed the significant role played by access to credit, access to markets, population density and road density in the allocation of land to competing uses. The results have important implications for the sustainability of current agricultural intensification policies and rural development strategies in Ethiopia, such as the sustainable land management (SLMP) initiative. For example, it is important to include densely populated regions in the SLMP target areas, as high population pressure remains a major cause of land conversion to agriculture and hence needs to be addressed. It will be necessary to create income and employment opportunities outside farming to reduce the pressure of population growth on land. Care must be taken in identifying routes for the construction of rural road networks with minimal environmental impact. Credit provision must consider other, more capital-intensive technologies such as the irrigation needed to reduce pressure on the land through improved productivity. In addition to the promotion of higher adoption of modern technologies to levels that allow the realisation of the land-saving effects of intensification and productivity gains, strategies and policies are needed to encourage intensification of agricultural production in non-forested land. Furthermore, forest policies that facilitate the capturing of forest rents are important for the preservation of forests. Programmes and strategies to exploit multiple benefits from the various forest ecosystems’ services, such as clear and secure land and forest property rights, and land use and forest policies that give carbon rights to land users and allow communal administration of forests, are prerequisites to enhance forest benefits as the main incentive for conservation.

Consumer valuations of the quality and safety attributes of milk and meat in Kenya

Abstract: This study assesses the importance of the quality and safety attributes of dairy and meat products to identify strategies for value addition. It uses product profiles generated by conjoint experiments in a consumer survey applied to 287 households in Nairobi and Eldoret. The results indicate the respondents’ willingness to pay more for improved safety and quality attributes for meat and milk products, and also show that consumers value hygiene more than packaging and colour, and are willing to pay a higher premium for clean milk compared to sealed and creamy milk. They value smell more than any other attribute, given the high premium not smelly commands compared to clean, creamy or sealed package. For meat, the premium paid for each attribute varies, with the presence of an official stamp commanding the highest premium, followed by clean, soft texture and low fat content. The valuation of these attributes varies across income strata and between the two cities.

Impact of integrated pest management technologies on farm revenues of rural households: the case of smallholder Arabica coffee farmers.

Abstract: Enhancing farmers’ incomes through the utilisation of improved agricultural technologies is an important step towards poverty eradication among rural households in developing countries. Using empirical data from small-scale Arabica coffee farmers in Manafwa district in Uganda, this paper assesses the effect of integrated pest management (IPM) on net coffee revenue. The study also estimates the rural income multiplier of IPM adoption. After controlling for endogeneity and selection bias, we found that the multiplier effect of IPM use is positive and significant. The increase in income arising from the use of IPM leads to a more than proportional increase in demand for farm non-tradable and non-farm non-tradable commodities. Hence, coffee farming with IPM has a higher rural income multiplier than conventional coffee farming. These findings provide evidence that the incomes of smallholder coffee farmers and rural community economies can be raised through the use of production technologies that are less environmentally invasive than conventional coffee-growing technologies.

The demand for dairy products in Malawi

Abstract: In this paper a multi-stage almost ideal demand system with censoring was estimated to assess Malawians’ demand for six dairy products (viz. fresh milk, powdered milk, margarine and butter, chambiko, yogurt and cheese). We found that the consumption of dairy products depended on whether the household was rural or urban, the region of the country (viz. North, Centre, South) and the household poverty status. The results also show that the demand for fresh and powdered milk, butter and margarine, cheese and yogurt was price inelastic, although the demand for chambiko was price elastic. Fresh milk and powdered milk were found to be gross substitutes and the consumption of milk was found to increase with household income.

Food consumption patterns and distributional welfare impact of import tariff reduction on cereals in Kenya

Abstract: This study determines household food consumption patterns in Kenya using a QAIDS framework employing 2005/2006 household budget data. The results are used to evaluate the distributional welfare effects of import tariff reduction on three important staple cereals, namely maize, wheat and rice. The results indicate that food prices, income and demographic factors influence patterns of rural and urban household food demand. Furthermore, import tariff reduction has a progressive welfare effect on urban and upper-income rural households, but a regressive effect on lowerincome rural households. The study recommends policies that will improve income generation and widen the tariff reduction bracket.

The Brazilian experience with the occupation of the cerrado: the dynamics of large farms vs small farms

Abstract: In this paper we analyze the occupation of the Brazilian Center-West, focusing on how the appearance of large modern commercial farms devoted mostly to planted pastures and soybeans plantations affected the existence of small farms, and shaped the actual pattern of production in those regions. We will focus on the “traditional” agricultural frontiers of the seventies, comprising the present states of Mato Grosso do Sul, Mato Grosso, Goias and Tocantins . For the sake of easy of exposition, however, data will be shown in the state definition of the seventies: the present states of Mato Grosso (MT) and Mato Grosso do Sul (MS) will be aggregated (MS+MT, the Center-West frontier), and the present states of Goias (GO), the Federal District (DF) and Tocantins (TO) will be shown as another aggregate (GO+DF+TO, the Central-East frontier). We will refer to the individual states on the text only when required to clarify particular points. And finally, we will not approach in this text the evolution of agriculture in the more recent Northeast frontier, the MAPITO (Maranhao, Piaui and Tocantins states) region, in which the occupation process goes beyond the scope of this paper.

Farm viability of (semi)subsistence smallholders in Sierra Leone

Abstract: This paper explores how different theoretical viewpoints on market integration and socioinstitutional settings alter farm viability assessments based on (semi)subsistence farm income measurements. The measurement of net farm income (NFI) is presented under two approaches: one based on Neoclassical Economics, and another from a Neo-Institutional perspective. Using data from Sierra Leone it is demonstrated that the assumptions about (output and input) market integration/participation, labour usage accounting and other institutional arrangements of (semi)subsistence farming affect NFI calculations. As a consequence, different farm viability readings emerge, directly influencing the outcome of policy decisions.

Commercialising agriculture in Africa: economic, social and environmental impacts

Abstract: The previous Presidential Addresses at the AAAE (Oluoch-Kosura 2007; Adesina 2010) both set out to tell a story about African agricultural development at large, rather than about one particular aspect of the sector, or one particular part of Africa. Both, in other words, tried to give a bird’s-eye view without generalising to the point where it becomes meaningless. In this address, I try to follow in their footsteps. I start with a note on nomenclature: Africa is a large continent that is easily recognisable on maps. Sub-Saharan Africa is only a part of Africa, and we should stop outsiders using this as a descriptor of our continent. Furthermore, Africa is not a continent of HIV/AIDS, coups d’A©tat, weak states and corrupt governments. It has all of these, but is a big place that has a lot of other, more positive, features. In this address I discuss elements of two issues that are important to the future of agriculture across the continent: the ways in which the structure of farming is expected to change over time, and the future shape of food retail. Section 3 concludes.

Labour savings of Roundup Ready maize: Impact on cost and input substitution for South African smallholders

Abstract: This study examines the impact of genetically modified maize on labour, cost and input substitutability for smallholders in South Africa. Producers of Roundup Ready® (RR) maize use significantly less child, female and male labour than non-RR producers, resulting in lower costs despite significantly higher herbicide, seed and fertiliser costs. A treatment effects model controlling for selection bias shows that the entire cost advantage and more can be attributed to the Roundup Ready® technology. These results are supported using a nonparametric kernel density estimator. Elasticities of factor substitution indicate strong substitutability among inputs; however, a lack of statistical significance limits the interpretation of the results.

Legitimacy and ethics or deterrence factors: which are more important for compliance with regulations among the artisanal fishers of Sudan?

Abstract: This study applied a modified deterrence model to evaluate the effectiveness of legitimacy and ethical factors compared to deterrence measures for compliance with mesh size regulation in the Jebel Aulia Reservoir of Sudan. The ordered probit and zero-truncated negative binomial models were employed to examine influences of determining factors on the choice between typologies of violators and non-violators, and then on frequency of violations (extent) respectively. Reported violation rates were high (87.5%), combined with weak enforcement and effective evasion used by almost all (97%) violators, leading to a low probability of detection, as only 28% of violators were caught. This is consistent with widely observed phenomena in developing countries, calling for increased efficacy of detection, monitoring and enforcement of regulations and higher penalties to fight non-compliance. The study also confirmed the high importance of legitimacy and ethical factors, suggesting that the involvement of stakeholders in the process of designing, monitoring and enforcing regulations is crucial as a process factor that may be more important than mere deterrence measures. This advocates for participatory co-management systems that are most likely to be more effective than top-down mechanisms in promoting compliance. The study also suggests that investments in the education of fishermen, the provision of alternative income and employment opportunities outside of fishing, access to credit to finance the acquisition of legal nets, and the effective regulation of importation of illegal nets will be necessary for enhancing compliance with mesh size regulation in Sudan.

Are modern varieties always better? An economic analysis of maize varietal selection

Abstract: Numerous high-yielding modern maize varieties have been developed for Malawi However, their performance and returns when managed under real-world conditions are generally unknown We have used new cross section data to generate insights into the performance of these maize varieties We first determined optimal portfolios of maize using expected utility maximisation models under a variety of smallholder preference structures The analysis revealed a trade-off between expected returns and their variability Modern varieties are high yielding but also pose relatively more downside risk than traditional varieties, perhaps because they are more sensitive to optimal management conditions Despite this risk, too many smallholders focus exclusively on traditional varieties, and in particular they exclude any modern variety from their portfolio Factors inhibiting the adoption of modern varieties were examined econometrically With respect to policy implications, the results suggest that a mix of modern and traditional varieties could be appropriate for many smallholders, and that extension efforts could target specific groups, such as femaleheaded farm households of low socioeconomic status, which face severe constraints in the adoption of modern varieties

Farmers’ risk attitudes to influence the productivity and planting decision: A case of rice and maize cultivation in rural Uganda

Abstract: The effects of Ugandan farmers’ attitudes toward risk on their decisions about rice production are closely analysed and discussed. A three-step procedure is proposed: 1) farmers’ characteristics determine farmers’ risk attitudes, 2) their risk attitudes influence yield, and 3) yield affects decisions on acreage. This procedure is based on the assumption that acreage decisions are a reflection of farmers’ actual yields, which are associated with risk-averting farming practices. The estimation results show that age and religion are significantly correlated with farmers’ risk attitude, that risk-averse farmers perform better in terms of yield, and that higher yields subsequently increase acreage for production. These attitudes partly account for the diminishing increase in rice production. The results imply that effective ways to increase rice acreage are to increase the potential yield of rice and to promote rice cultivation for lands that are suited to rice cultivation.

Willingness to pay to avoid the consumption of pesticide residues in Uganda: an experimental auction approach.

Abstract: This research was funded by the Peanut Collaborative Research Support Program (Peanut CSRP) USAID Grant No. LAG-4048-G-00-6013-00, and the Integrated Pest Management (IPM CRSP) USAID Grant No. LWA EPP-A-00-04-00016-001

To sell or not to sell – Maasai milk marketing in Ngerengere, Tanzania

Abstract: In Maasai culture, responsibilities and labour are divided between the genders. Men are in charge of the herd and thus control the main income source. Women take care of the family and are responsible for milking. Milk sales provide the women’s main income source. In this paper, using olmarei- (= household) and enkaji- (= sub-household) data from the milk catchment area of a collection centre in Ngerengere, Tanzania, we assess the potential impact of milk sales on enkaji income. We estimate the effect by employing propensity score-matching procedures. Our findings suggest that milk sellers earn significantly higher average income per capita than non-sellers. This appears to be especially true for enkajijik selling milk to other buyers rather than to the collection centre. Other buyers reach more remote areas, usually offer higher prices, but only purchase limited amounts of milk. The collection centre, on the other hand, is a guaranteed market with large capacity.

Old Foods and New Consumers in Mexico, Under Economic Reforms

Abstract: In the 1980s, the Mexican government instituted wide-ranging market-oriented policies. With respect to the food, agriculture and rural sectors, the reforms ranged from constitutional changes to enhance private property rights in rural “communal” lands, to the elimination of price supports granted to farmers producing staple crops. Policy changes included agricultural trade liberalisation: in 1985, Mexico joined the General Agreement on Trade and Tariffs (GATT), and January 1994 saw the start of the implementation of the North American Free Trade Agreement (NAFTA). At the same time, transitional agricultural policies were being implemented and a comprehensive social programme was initiated to alleviate rural poverty.