Economic Analysis of Climate-Smart Agriculture Technologies in Maize Production in Smallholder Farming Systems

Abstract Background Traditional cost–benefit analysis of soybean production tends to largely focus on financial benefits to farmers, and less so on non-market co-benefits in sustaining smallholder farming systems. Relying solely on the standard financial analysis undermines the actual benefit of soybean production, which often results in ineffectual policy designs. An economic analysis that incorporates key non-pecuniary co-benefits of soybean production provide vital insight that contributes to improving productivity and overall economic well-being of farmers. Cross-sectional data were collected from 271 farmers to estimate the overall economic benefit of soybean that captures both market and non-market attributes in three major producing districts (Sissala-West, Wa-East, and Dafiama-Busie-Issa (DBI)) of Ghana. Results When non-market co-benefits were omitted, soybean production was not profitable (−Gh¢103.10/ha or −US$22.91) in DBI while Sissala-West and Wa-East had modest profit margins. However, the financial analysis changed dramatically when an average non-market value of Gh¢345.69 (US$76.82) was incorporated in the analysis. The soybean system was, therefore, financially viable for all the districts when the non-market attributes of the crop were considered. Conclusions The findings demonstrate the importance of the non-pecuniary benefits of soybean in smallholder farming systems for policy decision-making. For instance, farmers’ motivation for soybean production is closely linked to those ancillary benefits like the biological nitrogen fixed in the soil for cultivation of other crops. Similarly, crop administrators and policy makers’ support for conservation agriculture and green environment is tied to these non-market co-benefits.

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Challenges of Smallholder Farming in Ethiopia and Opportunities by Adopting Climate-Smart Agriculture

Agriculture ◽

10.3390/agriculture11030192 ◽

2021 ◽

Vol 11 (3) ◽

pp. 192

Author(s):

Gebeyanesh Zerssa ◽

Debela Feyssa ◽

Dong-Gill Kim ◽

Bettina Eichler-Löbermann

Keyword(s):

Land Tenure ◽

Crop Production ◽

Crop Yields ◽

Smallholder Farmers ◽

Farming Systems ◽

Greenhouse Gas Mitigation ◽

Extreme Weather Events ◽

Smallholder Farming ◽

Smallholder Farming Systems ◽

Smart Agriculture

Agriculture is the backbone of the Ethiopian economy, and the agricultural sector is dominated by smallholder farming systems. The farming systems are facing constraints such as small land size, lack of resources, and increasing degradation of soil quality that hamper sustainable crop production and food security. The effects of climate change (e.g., frequent occurrence of extreme weather events) exacerbate these problems. Applying appropriate technologies like climate-smart agriculture (CSA) can help to resolve the constraints of smallholder farming systems. This paper provides a comprehensive overview regarding opportunities and challenges of traditional and newly developed CSA practices in Ethiopia, such as integrated soil fertility management, water harvesting, and agroforestry. These practices are commonly related to drought resilience, stability of crop yields, carbon sequestration, greenhouse gas mitigation, and higher household income. However, the adoption of the practices by smallholder farmers is often limited, mainly due to shortage of cropland, land tenure issues, lack of adequate knowledge about CSA, slow return on investments, and insufficient policy and implementation schemes. It is suggested that additional measures be developed and made available to help CSA practices become more prevalent in smallholder farming systems. The measures should include the utilization of degraded and marginal lands, improvement of the soil organic matter management, provision of capacity-building opportunities and financial support, as well as the development of specific policies for smallholder farming.

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