Agricultural Economics

Permanent URI for this collection

https://publication.aercafricalibrary.org/handle/123456789/2

Browse

Now showing 1 - 20 of 56

Adjustment programmes and agricultural incentives in Sudan: A comparative study
(African Economic Research consortium, 1997-03-04) Elamin, Nasredin A. Hag; El Mak, Elsheikh M.
This study analyses the impact on agricultural price incentives of the main adjustment programmes implemented by the Sudanese government during the period 1978-1993, notably the Economic Recovery Programme (ECRP) 1978-1985 and the national economic Salvation programme (NESP), 1990-93. The study addresses two basic questions: Did these programmes provide any tangible incentives to agriculture? And are improved price incentives an efficient and sufficient condition for increasing aggregate agricultural output? The effects of the programmes on the level and stability of price incentives were measured, both at the sectoral (direct) and economywide (indirect) levels. The results indicate that both programmes failed to improve either the level or the stability of real farm prices. Poor macroeconomic policies appear to be the main cause. With regard to the efficacy of price incentives in stimulating aggregate agricultural output, the findings tend to confirm the predominant view that increases in real farm prices have positive but limited overall effect on agriculture. Non-price factors appear to play a greater role in determining aggregate agricultural output. The analysis implies that without the provision of adequate credit, public investments and improvement in infrastructure, the aggregate response of agriculture to price incentives would be minimal.
Agricultural credit under economic liberalization and Islamization in Sudan
(African Economic Research consortium, 1998-02-05) Elhiraika, Adam B.; Ahmed, Sayed A.
This study uses survey data to examine the operations of the agrarian credit market, formal and informal, in Sudan under conditions of recent economic liberalization and Islamization; the latter does not allow interest rate fixing. In addition to descriptive analysis, the study specifies and estimates a model of farm household participation in the credit market. The survey results show a substantial increase in formal borrowing in agriculture, but relatively low informal credit. Implicit interest rates are found to be high in the formal segment compared with their previous levels, and the levels of formal and informal agrarian rates of interest are comparable. The research concludes that there is a need for enhanced institutional financial intermediation in the agrarian credit market as well as scope for the promotion of savings and credit associations among farmers.
Analysis of factors affecting the technical efficiency of arabica coffee producers in Cameroon
(The African Economic Research Consortium, 2007-01) Nchare, Amadou
This study analyses the factors influencing the technical efficiency of arabica coffee farmers in Cameroon. To carry out this analysis, a translog stochastic production frontier function, in which technical inefficiency effects are specified to be functions of socioeconomic variables, is estimated using the maximum-likelihood method. The data used were collected from a sample of 140 farmers during the 2004 crop year. The results obtained show some increasing returns to scale in coffee production. The mean technical efficiency index is estimated at 0.896, and 32% of the farmers surveyed have technical efficiency indexes of less than 0.91. The analysis also reveals that the educational level of the farmer and access to credit are the major socioeconomic variables influencing the farmers’ technical efficiency. Finally, the findings prove that further productivity gains linked to the improvement of technical efficiency may still be realized in coffee production in Cameroon.
Analysis of Substitute Products in the Demand for Food Products in Côte d'Ivoire
(African Economic Research consortium, 2017-01-22) Beke, Tite Ehuitché
This study analyses the demand for staple foods in Côte d’Ivoire and assesses the impact of fluctuations in food prices on household well-being. It focuses on the priceand income elasticities of food demand, as they are useful parameters for measuring households’ reaction to the changes in prices and incomes, and for improving food policies. The study also assesses the loss in well-being arising from food crises with a view to recommending more effective measures for supporting households. It uses an approach that measuresa Quadratic Almost Ideal Demand System (QUAIDS) in order to highlight price and expenditure elasticities. The data used in the study were obtained from the National Household Living Standards Survey (ENV) conducted by the National Institute of Statistics (INS) in 2008. The estimated expenditure and price elasticities show that the four food clusters under analysis (cereals, root crops and tubers, fruit and vegetables, and animal products) were staple foods that were price inelastic for all the households. A substitutability relationship is observed between cereals, and root crops and tubers. However, animal products and vegetables are found to be complementary to each other and complementary to cereals and root crops and tubers.
Analysis of Technical Efficiency Differentials among Maize Farmers in Nigeria
(African Economic Research consortium, 2011-11-30) Olarinde, Luke Oyesola
This study analyses technical efficiency differentials and their determinants among maize farmers in Nigeria. A total sample of 300 maize farmers from Oyo and Kebbi States (150 from each) was selected, and data on input-output and socioeconomic variables were collected and analysed using descriptive statistical methods and by applying a translog frontier production function to the data. Results show that in the two states surveyed, the sizes of farms were small, and they were mostly managed by hired labour in Oyo State, and by family labour in Kebbi State. The results also indicate that the sampled farmers are not technically efficient, with mean technical efficiencies of only 0.5588 and 0.5758 in Oyo and Kebbi states, respectively. However, there are increasing returns to scale in both states. The main determinants of technical efficiency were found to include extension services and farm distance in the two states, farming experience in Oyo State, and credit accessibility, number of other crops grown and rainfall (precipitation) in Kebbi State. Furthermore, the study found that the differences in the mean technical efficiency levels of the farmers did not emanate from the absolute differences in the individual efficiencies among the farmers in the various farming communities. Nonetheless, there were significant absolute differences in the mean efficiencies among farmers in the zones of each of the two states, and the difference in the mean technical efficiencies of the two states was found to be highly significant. The study concludes that there is considerable room for improving the technical efficiencies in the two states. This, however, calls for the motivation of the farmers by making available more production inputs. It is suggested that these farmers are empowered with appropriate financial means to acquire these inputs and to hire more labour. In this way, farmers will be able to allocate more land to maize cultivation. When this is done, farmers’ productivity will improve, resulting in maximum return of farmers’ output (in quantity and value terms) per input use and, consequently, increasing their income. This will ultimately reduce hunger and alleviate poverty.
An analysis of the Impact of Land Tenure Security on Agricultural Productivity in Burkina Faso
(African Economic Research Consortium, 2021-09-17) Coulibaly, Doubahan Adeline
This article examines the impact of land tenure security on agricultural productivity in Burkina Faso through a two-stage approach, using data from the Permanent Agricultural Survey (EPA) of the agricultural campaign (2011/2012) of the Ministry of Agriculture. First, productivity scores are calculated using the scholastic frontier method, then an interval regression model is used which combines the endogenous variable with an endogenous treatment variable to estimate the impact of land tenure on agricultural productivity. This method allows us to specifically cater for the double censorship of the levels of productivity and the endogeneity of land tenure security . The analyses show that, on average, farmers in Burkina Faso are not efficient (0.408). The results demonstrate that land tenure security has a positive and significant impact on agricultural production of farms in Burkina Faso to the order of 0.661. This impact could be explained through the adoption of water and soil conservation techniques. The direct impact of land tenure security on productivity is to the order of 0.308.
Climate Change and Agricultural Trade in Sub-Saharan Africa
(2022-05) Mahofa, Godfrey
Climate change is a threat to the agricultural sector and food security of many countries in sub-Saharan Africa (SSA). However, changes in climate across the continent are not expected to be consistent as some countries will experience huge declines in rainfall and increases in temperature. This implies that changes in agricultural productivity due to climate change will not be uniform and this is likely to affect trade patterns on the continent. Using a combination of climate change scenarios from the Food and Agriculture Organization of the United Nations’ Global Agro-Ecological Zones (FAO-GAEZ), cereals production data from the Food and Agriculture Organization of the United Nation’s FAOSTAT, and trade data from the United Nation’s UN Comtrade database, this study explores the impact of climate change on agricultural trade, particularly trade in major cereals, within SSA. Results show that by the 2050s, climate change will lead to a majority of countries experiencing an increase in their need to import cereals. However, some countries such as Burundi, Tanzania and Zambia could have the potential to increase their exports. This suggests that trade flows are likely to be important in strengthening the resilience of African food systems from shocks emanating from climate change. For example, countries in East Africa such as Tanzania could export maize to countries in Southern Africa that could experience maize deficits. Delivering food from surplus to deficit areas is likely to be important in the future, hence the need to improve the movement of food products across borders. Policies to be adopted may include improving trade facilitation, reducing intra-SSA tariffs, avoiding trade policy uncertainty, removing export bans, and encouraging the production of cereal crops where countries have gained a comparative advantage.
Contingent Valuation in Community-Based Project Planning: The Case of Lake Bamendjim Fishery Restocking in Cameroon
(AERC, 2011-01) Fonta, William M.; . Ichoku, Hyacinth E; Nwosu, Emmanuel
The study examined the usefulness and relevance of the contingent valuation method (CVM) in community-based (CB) project planning and implementation. To elicit willingness to pay (WTP) values for the restocking of Lake Bamendjim with Tilapia nilotica and Heterotis niloticus fish species, the study used pre-tested questionnaires interviewer-administered to 1,000 randomly selected households in the Bambalang The region of Cameroon.The data were elicited with the conventional referendum sign and analysed using a referendum model. Empirical findings indicated that about 85% of the sampled households were willing to pay about CFAF1,054 (US$2.1) for the restocking project. This amount was found to be significantly related to the starting price used in the referendum design, household income, the gender of the respondent, the age of the respondent, household poverty status, and previous participation of a household in a community development project.The findings prompted the following recommendations. Firstly, in order to reduce community burden due to cash constraints, it is advisable for the mean estimate obtained for the scheme to be split into four instalments over a year. Secondly, since the success of the scheme largely depends on the governing roles of the scheme, it is further advisable for the community to allowthemanagement of the scheme to be handled by the elderly community members. Finally, it will be important during the financing of the scheme, to levy wealthier household heads an amount sufficient to subsidize poorer household heads who cannot afford to pay the threshold price.
Crop Diversification and Nutrition Outcomes in Smallholder Households: Panel Data Evidence from Southwestern and Northern Uganda
(African Economic Research Consortium, 2021-11-25) Namulondo, Racheal; Bashaasha, Bernard
This study examined the effect of adopting crop diversification on nutrition outcomes of smallholder households in southwestern and northern Uganda. We constructed three models of correlates of household dietary diversity, minimum dietary diversity for women, and stunting of children aged 6–59 months. A three-year panel multi topic dataset collected in 2012, 2014 and 2016 by USAID’s Feed the Future Nutrition Innovation Laboratory in southwestern and northern Uganda was utilized. Crop diversification was found to be positively and strongly associated with household dietary diversity, and with the probability of achieving the minimum dietary diversity for women, although the effect sizes were rather small. There was no clear association found between crop diversification and child stunting. Our findings point to an integrated approach that simultaneously addresses increasing crop diversification, access to improved farm production technology, access to nutritional knowledge, increasing formal education of mothers, increasing opportunities to do off-farm work, livestock diversification and food security to improve the nutritional outcomes of smallholder households.
Determinants of agricultural exports: The case of Cameroon
(AERC, 2020-04-27) Gbetnkom, Daniel; Khan, Sunday A.
This paper investigates the determinants of three agricultural exports from Cameroon between 1971/72 and 1995/1996. Export supply functions are specified and estimated for the three export crops chosen: cocoa, coffee and banana. Quantitative estimates obtained from the ordinary least squares (OLS) estimation procedure indicate the following: the response of export supply of all the crops to relative price changes is positive, but fairly significant. This can be attributed to the price constraining nature of the international markets for these commodities. Changes in the nature of the road network positively affect the export supply of cocoa, coffee and banana. More credit to crop exporters has a significant and positive influence on the export supply of all the crops. Equally, rainfall’s influence on the growth of the three commodities is positive, but significant only for cocoa and coffee. Finally, structural adjustment dummies show a positive effect on the export supply of crops for policies implemented. These results point to two conclusions. First, the marginal sensitivity of crops to the relative price changes means that the price incentives are not sufficient to generate desired export supply of agricultural commodities in Cameroon. Second, the significant sensitivity of crops under consideration to the availability of credit to exporters, the improved road networks and the specific policy changes implemented in the framework of the SAP implies that attempts to increase the export supply of agricultural crops in Cameroon should focus on these variables.
Determinants of technical efficiency differentials amongst small- and medium-scale farmers in Uganda: A case of tobacco growers
(African Economic Research consortium, 2006-10-04) Obwona, Marios
It is argued that technical efficiency is determined by individual farm- and farmer-specific characteristics. Such characteristics may be divided into two groups – demographic characteristics, which dominate the decision making process of the farmer, and socioeconomic and institutional characteristics, which influence a farmer’s capacity to apply the decisions at the farm level. The principal objectives of this study are to explore the potential for improving production efficiencies of farmers and to identify factors that influence such efficiencies. The study uses cross-section data from a sample of 65 small- and medium-scale farmers. A stochastic production frontier approach is used to estimate the farmer-specific technical efficiencies. The estimated efficiencies are then explained by socioeconomic and demographic factors. It is shown that education, credit accessibility and extension services contribute positively towards the improvement of efficiency. These results therefore suggest that if more resources are invested in extension services, the availability of credit is improved and there is less fragmentation of land, then there will be an improvement in technical efficiency of farmers in Uganda.
Econometric Analysis of the Perception and Adaptation to Climate Change Risks Among Farmers in Congo-Brazzaville
(AERC, 2021-04-19) Mfere, Wolf Ulrich Akiana
This study analyzes the experience of farmers under Agri-Congo with regard to perception and adaptation to climate change. It is based on a field survey of 201 farmers, comprising 101 in Brazzaville and 100 in Pointe-Noire, the two largest cities in Congo. The statistical results show that most farmers perceive climate change (98.5% of responses) and practise adaptation (85.4% of responses). The high rates of perception and adaptation among farmers are due to their experience in farming activity, and due to their determination to maintain their farming business despite the current risks related to climate change. The problem coping index has shown that lack of experience, limited access to inputs and credit facilities are the main constraints in terms of adaptation. Crop diversification, adjustment of the farm calendar and substitution of crops within the same farm area are the strategies most developed by farmers. The study identified the determinants of perception and adaptation to climate change through the application of the Probit model. Indeed, age, level of education and number of farm employees are the main variables that increase farmers' awareness of climate change, while input donations, farming experience, property rights, engagement in a subsidiary activity and membership in an organization are the key determinants of farmers' adaptation to climate change. Finally, special attention from Agri-Congo should be directed to training, enhancement of farm inputs, fertilizer and input subsidies and issuing of land titles to strengthen the adaptive capacity of farmers.
The Economic Impact of Climate Change on Plantation Agriculture in Nigeria: Implication for Enhanced Productivity
(African Economic Research consortium, 2017-11-30) Fonta, William M.; Bossa, Aymar Y.; Sylla, Mouhamadou B.; Urama, Nathaniel E.; Edame, Greg E.
This study used the Ricardian analytical framework to examine the relative importance of climate normals (average long-term temperature and precipitation) in explaining net revenue per hectare (NRh) for cocoa farms in Nigeria under supplementary irrigated and rainfed conditions. A farm-household survey involving 280 cocoa farmers across seven cocoa-producing states in Nigeria was carried out. Net revenue per cocoa hectare was regressed on climate, household socioeconomic characteristics and other control variables. The results indicate high sensitivity of NRh to climate normals in Nigeria, depending on whether cocoa farms are supplementary irrigated or not. On the average, annual increases in temperature and decreasing precipitations are associated with NRh losses for rainfed farms, whereas it increases for irrigated cocoa farms. Projections of future climate change impacts using different climate scenarios (i.e., 6 CORDEX Regional Climate Models [RCMs] Ensemble between 2036-2065 and 2071-2100, and a 2.50 C increase in temperature only, a 5% decrease in rainfall only, and a uniform 2.50 C increase in temperature and a 5% reduction in precipitation from 2050-2100), suggest a wide range of outcomes on NRh for both rainfed and supplementary irrigated cocoa farms. Specifically, the various climate scenarios predict a fall in NRh for rainfed farms, compared to net gains for irrigated cocoa farms. This clearly shows irrigation as an important adaptation strategy by farmers in Nigeria to reduce the harmful effects of climate change.
Economic liberalization and privatization of agricultural marketing and input supply in Tanzania: A case study of cashewn uts
(African Economic Research consortium, 1998-11-30) Mwase, Ngila
Since 1991 massive restructuring and liberalization of agricultural marketing have been undertaken in Tanzania. The study examines this process in the context of SAP and the need to ensure a more economically viable private sector driven agricultural marketing system. Private firms and traders are increasingly marketing agricultural inputs and outputs, hitherto a preserve of marketing boards and cooperatives. The study uses interviews and a questionnaire to examine the impact of these changed on smaliholder cashew producers, with special emphasis on the producers' views and expectations. We conclude that despite some financial and logistical problems, and vested interest, some positive results are discernible. Given favourable pricing, marketing and processing policies, the persistent decline in cashew production has been reversed, and producer prices have increased. The challenge is to develop a privatised and sustainable cashew marketing system that is responsive to producers' needs and expectations.
The Effect of Remittances on Sorghum Production
(African Economic Research Consortium, 2021-08-06) Dedewanou, Finagnon A.; Tossou, Rolande C. B. Kpekou
The large increase in remittances from migrants has generated optimism about the potential development benefits of these capital flows in rural communities where capital market failures are prevalent. This paper examines the causal effect of remittances on sorghum production by using the 2014 Living Standards Measurement Study (LSMS) dataset on Burkina Faso. We use a Bayesian instrumental variables approach to explore several specific pathways. The results show that land size, the number of workers and the quantity of herbicide used are the factors that significantly improve sorghum production in Burkina Faso. We also find that a 1% increase in the amount of remittances leads to a 0.938% decrease in production of sorghum. We suggest that public policies aimed at improving agricultural productivity will be more effective if there is a remittance use scheme in place, along with the transparency of decision-making concerning land allocation.
Effects of Agricultural Extension Services on Farm Productivity in Uganda
(African Economic Research consortium, 2020-06-22) Sebaggala, Richard; Matovu, Fred
Improving agricultural productivity in Uganda remains a major policy objective given the key role of agriculture in the economy. In this study we evaluate the impact of access to extension services on farm productivity. We use comprehensive baseline survey data collected for monitoring and evaluation of the Agricultural Technology and Agribusiness Advisory Services (ATAAS) project. Applying the ivtreatreg Stata command, and probit 2-stage least squares (2SLS) model that addresses the selection and endogenous bias, we found that access to extension services does not significantly improve the crop productivity of farmers. The finding is consistent with similar studies that control for selection and endogenous bias when estimating treatment effects. We argue that the insignificance of extension contact on productivity when selection and endogenous effects are addressed may reflect the inefficiency of the current extension services in improving farmers’ productivity. In conclusion, the study shows that increasing extension impact on farm productivity will require efforts to improve the quality of extension services that directly translate into productivity effects.
Effects of Deforestation on Household Time Allocation among Rural Agricultural Activities: Evidence from Western Uganda
(African Economic Research consortium, 2012-08-05) Okwi, Paul Okiira; Muhumuza, Tony
Effects of Temperature and Rainfall Variability on the Net Income of Cereal Crops in Togo: Semiparametric Approach
(AERC, 2021-05-06) Yevessé, Dandonougbo
This paper analyses the economic effects of temperature and rainfall variability on the net income of the main cereal crops in Togo based on a semi-parametric specification of the Ricardian model. The model provides a flexible functional form of the non-linear relationship between farmers' net income and climatic variables and evaluates the effect of climate variability on the net income of these crops. Using data from the National Agricultural Census in Togo, temperature and rainfall data from spatial interpolation over all prefectures and soil type data for each locality, the results of the semi-parametric estimates reveal a complex non-linear relationship of temperature and rainfall variability on the net income of crops. In addition, a combination of crops and agro-forestry practices reduce the effects of climate variability on net income from cereal crops. Furthermore, variations in temperature and rainfall under socio-economic scenarios result in lower net income from cereal crops. The projections show that long-term variability in temperature and rainfall will have a negative impact on net income and that the impact will be greater in 2050 for all crops.
Effects of Trade Liberalization and Exchange Rate Changes on Prices of Carbohydrate Staples in Nigeria
(African Economic Research consortium, 2014-01-05) A.I Achike, I Achike M; C.J. Arene, C.J.
An Empirical Analysis of Livelihood Strategies and Food Insecurity in Turkana County, Kenya
(African Economic Research consortium, 2017-09-04) Gathiaka, John Kamau; Muriithi, Moses Kinyanjui
The pastoral communities of Turkana in northern Kenya have for ages satisfied their economic, social and cultural needs through nomadic pastoralism. But due to increasing frequency of drought and market shocks, the ability of age-old strategies to shield these pastoralists from poverty and food insecurity has declined. With only livestock and social capital as the main assets in a communal property regime, it is not clear which of the various livelihood strategies that these pastoralists pursue can shield households from drought and market shocks and guarantee their food security. This study investigates the livelihood strategies as pursued by pastoralists in Turkana County with a view to identify strategies that can effectively shield households from shocks. Data for the study is sourced from the Kenya Integrated Household Budget Survey (KIHBS) 2005/06. Available literature is used to identify livelihood strategies in Turkana, while the KIHBS data is used to establish the population of people pursuing each strategy. Anova and Bonferroni tests give evidence of the existence of four livelihood strategies using food expenditure ratio as the categorizing variable. Probit regression is used to estimate the determinants of food insecurity in Turkana, while multinomial logit regression is used to do further analysis on the determinants of livelihood strategies. The findings suggest correlation between food insecurity and livelihood strategies. Policies that target livelihood strategies may have implications on food security in Turkana. However, further analysis is required to confirm the reverse causality between livelihood strategies and food insecurity.

Browse

Browsing Agricultural Economics by Title

Results Per Page

Sort Options