scholarly journals Willingness to pay for Rainfall based Insurance by Smallholder Farmers in Central Rift Valley of Ethiopia: The Case of Dugda and Mieso Woredas

2014 ◽  
Vol 1 (2) ◽  
pp. 117-152
Author(s):  
Hiwot Teshome Abebe ◽  
Ayalneh Bogale
Keyword(s):  
Willingness To Pay ◽  
Smallholder Farmers ◽  
Household Head ◽  
Insurance Premium ◽  
Tobit Model ◽  
Farm Income ◽  
The Mean ◽  
Income Variability ◽  
Risk Insurance ◽  
Small Holder

Current climate variability is already imposing significant challenge to Ethiopia. Therefore,  farmers  have  faced  income  variability  in  almost  every  production  season. Problems associated with dependence on rain fed agriculture are common in Ethiopia. Smallholder farmers’ vulnerability from such income variability is also common. Over the years, a range of risk management strategies have been used to reduce, or to assist farmers to absorb, some of these risks. Since insurance is potentially an important instrument to transfer part of the risk, this study try to describe the nature of weather related risks faced by smallholder farmers, assess small holder farmers willingness to pay for the rainfall risk insurance and examine factors that affect the maximum farmers are willing to pay for the rainfall risk insurance. The data was collected from 161 sample households from the two woredas of the study area using closed ended value elicitation format followed by open ended follow up questions. The study uses Logit model to estimate the mean willingness to pay in the close ended format in addition with Tobit model to examine factors that affecting small holder farmer willingness to pay as well as intensity of payment. The mean willingness to pay values are found to be 129.98 and 183.41 birr per hectare for the open and close ended formats respectively. The total willingness to pay for the study area was found to be birr 5,740,244 per year. The tobit model shows six potential explanatory variables affect the willingness to pay value. Income of household and ownership of radio have positive and significant effect on the value of willingness to pay, whereas off-farm income, age of household head, number of livestock owning and availability of public and private gifts have negative and significant effect on willingness to pay value. If the rainfall risk insurance premium is affordable and households have enough information about the service they are willing to pay for the service. Eventually policy makers need to be aware that socio-economic and institutional characteristics of households influence the willingness to pay for rainfall risk insurance services.

scholarly journals Production Efficiency of Major Crops among Smallholders Farmers in Central Ethiopia

2021 ◽  
Vol 61 (3) ◽  
Author(s):  
Masresha Y. Eskeziaw ◽  
Mengistu Ketema ◽  
Jema Haji ◽  
Ketema Bekele
Keyword(s):  
Agricultural Production ◽  
Smallholder Farmers ◽  
Addis Ababa ◽  
Household Head ◽  
Primary Data ◽  
Farm Income ◽  
Programming Technique ◽  
Central Ethiopia ◽  
The Mean ◽  
Economic Efficiencies

Agricultural production of most smallholders in Ethiopia is dependent with recurrent rainfall resulted in production variations. Limited input availability and precarious environmental conditions determine smallholders’ decisions on their production and the production efficiencies vary from farmer to farmer. This study was carried out with the aim of analyzing the technical, allocative and economic efficiencies of smallholder farmers in the production of major crops and their determinants in central Ethiopia, Oromia special zone surrounding Addis Ababa. Multistage sampling technique was employed to randomly and proportionally select 386 smallholders from ten PAs. Primary data were collected from smallholders through a semi structured questionnaire using face to face interview. Cross sectional data collected from sampled households in the study area were analyzed using mathematical and econometric methods. Mathematical programming technique selected for this study was Data Envelopment Analysis (DEA) using linear programming technique assuming multi-input and multi-outputs were handled. Tobit regression model was regressed against the socioeconomic, demographic, and institutional variables that are expected to affect the technical, allocative and economic efficiencies of sampled households. The results of estimated efficiency scores show the mean technical, allocative and economic efficiencies were 0.75, 0.60 and 0.45 respectively. The mean scores of efficiencies show underutilization of resources and the possibilities of smallholders to increase their agricultural production by 25%, and reduce cost of production by 40% and total cost by 55%. Marital status, level of education, farming experience, access to credit, cooperative membership, access to farming information, and off/non-farm income has positive influence on the technical, allocative and economic efficiencies. While age of the household head, access to training and livestock size has negative relations to efficiencies. Delivery of agricultural inputs and trainings on time by the government is the key policy implication to improve the efficiencies of smallholders.  

scholarly journals Factors Influencing Smallholder Crop Diversification: A Case Study of Manicaland and Masvingo Provinces in Zimbabwe

2016 ◽  
Vol 3 (2) ◽  
pp. 1 ◽  
Author(s):  
Lighton Dube
Keyword(s):  
Smallholder Farmers ◽  
Diversity Index ◽  
Tobit Model ◽  
Crop Diversification ◽  
Factors Associated ◽  
Head Of Household ◽  
The Mean ◽  
Female Headed Households ◽  
Extension Support

<p>This study analyzes the degree of crop diversification and factors associated with crop diversification among 479 smallholder farmers in Manicaland and Masvingo provinces of Zimbabwe. The Herfindahl index used to estimate diversification, while the Tobit model evaluated factors associated with crop diversification.  The mean crop diversity index is 0.54. On average households in Nyanga and Bikita are the most diversified with indices of 0.48 and 0.49 respectively. The most specialized households are in Mutasa and Chiredzi with indices of 0.62. An analysis by gender shows that male headed households are slightly more diversified than female headed households. The Tobit model indicates that gender of head of household, education, number of livestock units, access to irrigation, membership to a farmers group, access to markets, farming experience, farms on flat terrain, farmer to farm extension, routine extension, agro-ecological zone and household income are significant contributors to increasing crop diversification. In turn, crop specialization is significantly associated with off-farm employment, soil fertility, farmers who are happy with extension contacts per year, farmers trained using the farmer field school approach and farmers who receive NGO extension support.</p>

Determinants of Households Vulnerability to Food Insecurity: Evidence from Southern Ethiopia

2020 ◽  
Vol 9 (1) ◽  
pp. 35-61
Author(s):  
Fassil Eshetu ◽  
Adem Guye
Keyword(s):  
Food Insecurity ◽  
Household Head ◽  
Safety Net ◽  
Least Square ◽  
Farm Income ◽  
Southern Ethiopia ◽  
Small Scale ◽  
The Mean ◽  
The Government ◽  
Semi Arid

This study examines the level and determinants of households’ vulnerability to food insecurity using feasible generalised least square method. Data were collected using structured questionnaires from a random sample of 574 households. Descriptive results indicated that the incidence, depth and severity of food insecurity were 68, 31 and 18 per cent, respectively, while mean vulnerability to food insecurity was 73.34 per cent. The mean level of vulnerability to food insecurity at Chencha (humid), Demba Gofa (semi-arid) and Kamba (arid) districts were 77, 55 and 84 per cent, respectively. In addition, the mean kilocalorie deficiency gap in the study areas was 682 Kcal per adult equivalent per day, while the mean kilocalorie deficiency gaps which would be needed to lift households out of food insecurity were 462, 440 and 506 Kcal per adult equivalent per day at Chencha (humid), Demba Gofa (semi-arid) and Kamba (arid) districts, respectively. Regression results revealed that the age of household head, family size, safety net programmes, distance from healthcare and death of household members significantly increase households’ vulnerability to food insecurity. But farm income, irrigation use and credit use significantly decrease households’ vulnerability to food insecurity. The government needs to provide credit, viable off-farm employment, small-scale irrigation services and road infrastructure to rural poor to reduce vulnerability to food insecurity. Population control and family planning would also increase resource and consumption per capita and will lead to lower vulnerability.

scholarly journals Farmer Demand and Willingness-To-Pay for Sweetpotato Silage-Based Diet as Pig Feed in Uganda

2020 ◽  
Vol 12 (16) ◽  
pp. 6452
Author(s):  
Marsy Asindu ◽  
Emily Ouma ◽  
Gabriel Elepu ◽  
Diego Naziri
Keyword(s):  
Willingness To Pay ◽  
Smallholder Farmers ◽  
Secondary Data ◽  
Market Potential ◽  
Sub Saharan Africa ◽  
Structured Interviews ◽  
Livestock Feed ◽  
The Mean ◽  
Pig Feed ◽  
Sub Saharan

Smallholder livestock farmers across Sub-Saharan Africa are racing against time to find cheaper, nutritious, and sustainable feed alternatives to the more pronounced and expensive commercial concentrates amidst the increasing global demand for livestock products. Lately, many prominent feed conservation technologies have been developed, with a notable example being the sweetpotato silage technology that turns wasted sweetpotato components into a palatable and nutritious livestock feed. However, despite the potential benefits associated with these technologies, the level of demand and acceptance among smallholder farmers remains largely unknown. Thus, this paper assesses the farmer demand and willingness-to-pay (WTP) for sweetpotato silage-based diet as pig feed by smallholder farmers in Uganda. The information for the study was collected through secondary data review and semi-structured interviews to assess farmer WTP. The 256 semi-structured interviews were randomly drawn from 16 purposive clusters formed at a radius of 3 km around 16 farmers piloting sweetpotato silage-based diets for pig feed. The results show that pig farming is mainly the responsibility of women, with farmers’ mean willingness-to-pay price amounting to 0.20 USD per kilogram of sweetpotato silage-based diet. At the mean price, the annual demand for silage was estimated at 17,679 tons, with a market potential of approximately 3.59 million USD. The study concludes that, at the mean willingness-to-pay price, there is a substantial market potential that can be exploited by small and medium-sized enterprises (SMEs) venturing in the livestock feed industry.

scholarly journals Determinants of smallholder farmers’ adaptation strategies to the effects of climate change: Evidence from northern Uganda

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Francis Atube ◽  
Geoffrey M. Malinga ◽  
Martine Nyeko ◽  
Daniel M. Okello ◽  
Simon Peter Alarakol ◽  
...  
Keyword(s):  
Climate Change ◽  
Smallholder Farmers ◽  
Household Head ◽  
Adaptation Strategy ◽  
Positive Influence ◽  
Adaptation Strategies ◽  
Farm Income ◽  
Extension Services ◽  
Access To Credit ◽  
Resistant Varieties

Abstract Background Climate change poses a threat to the sustainability of food production among small-scale rural communities in Sub-Saharan Africa that are dependent on rain-fed agriculture. Understanding farmers’ adaptations and the determinants of their adaptation strategies is crucial in designing realistic strategies and policies for agricultural development and food security. The main objectives of this study were to identify the adaptation strategies used by smallholder farmers to counter the perceived negative effects of climate change in northern Uganda, and factors influencing the use of specific adaptation strategies. A cross-sectional survey research design was employed to collect data from 395 randomly selected smallholder farmers’ household heads across two districts by the administration of a semi-structured questionnaire. Binary logistic regression was used to analyze the factors influencing farmers’ adaptation to climate change. Results The three most widely practiced adaptation strategies were planting of different crop varieties, planting drought-resistant varieties, and fallowing. Results of the binary logit regression model revealed that marital status of household head, access to credit, access to extension services, and farm income influenced farmers’ adoption of planting drought-resistant varieties as an adaptation strategy while access to credit, annual farm income, and time taken to market influenced adoption of planting improved seeds. Gender of household head and farm income had a positive influence on farmers’ adoption of fertilizer and pesticide use. Farming experience, farm income, and access to extension services and credit influenced farmers’ adoption of tree planting. Household size, farming experience, and time taken to market had positive influence on the use of fallowing, while size of land cultivated significantly influenced farmers’ planting of different crop varieties as an adaptation strategy. Conclusion Findings of the study suggest there are several factors that work together to influence adoption of specific adaptation strategies by smallholder farmers. This therefore calls for more effort from government to strengthen the provision of agricultural extension services by improving its climate information system, providing recommended agricultural inputs and training farmers on best agronomic practices to enhance their holistic adaptation to the effect of climate change.

scholarly journals A Stochastic Frontier Analysis of Technical Efficiency of Maize Production Under Minimum Tillage in Zambia

2015 ◽  
Vol 4 (2) ◽  
pp. 31 ◽  
Author(s):  
John Ng'ombe ◽  
Thomson Kalinda
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Agricultural Sector ◽  
Smallholder Farmers ◽  
Stochastic Frontier ◽  
Household Head ◽  
Exponential Model ◽  
Farm Income ◽  
Frontier Analysis ◽  
Minimum Tillage

<p>Minimum tillage and other conservation agriculture practices are not only associated with income gains but are also claimed to be the panacea to the declining agricultural productivity and soil degradation problems in Africa and across the world. The few studies on technical efficiency related to the agricultural sector performance in Zambia have not attempted to determine how technically efficient smallholder farmers that produce maize under minimum tillage are. This study used stochastic frontier analysis based on both the half-normal and exponential model distributions on 2008 cross-sectional nationally representative data of 160 smallholder maize farm households that adopted minimum tillage in Zambia. Results indicate that maize farmers face increasing returns to scale (1.074) implying that there were opportunities for them to improve their technical efficiency as they were operating in stage I of their production functions. The half-normal and exponential model distributions indicate average technical efficiency scores of 60 and 71.7 percent, respectively. Their respective lowest efficiency scores were 9.3 and 8.5 percent. The highest efficiency scores for the half-normal and exponential model distributions were 89.3 and 90.9 percent. Maximum likelihood estimation results show that marital status, level of education of household head, square of household size, off farm income, agro-ecological region III, distance to vehicular road and access to loans are statistically significant factors that affect technical efficiency of smallholder maize farmers that practice minimum tillage in Zambia. The study calls for increased infrastructural development through construction of improved road network, schools and colleges in remote areas as a means to increasing accesss to knowledge and other agricultural services in order to enhance their technical efficiency levels. It also recommends promotion of minimum tillage practices in recommended agro-ecological regions to improve their technical efficiency. The study further acclaims for increased access to loans by smallholder maize farmers that practice minimum tillage as this would in one way induce them to invest in improved varieties and equipment that would help enhance their technical efficiency in Zambia.</p>

scholarly journals Climate Change Awareness and Joint Decision to Adopt Agroforestry and Conservation Agriculture Practices in Zambia

2017 ◽  
Vol 10 (4) ◽  
pp. 107 ◽  
Author(s):  
Moses C. Tembo ◽  
Elias Kuntashula ◽  
Thomson Kalinda
Keyword(s):  
Climate Change ◽  
Smallholder Farmers ◽  
Household Head ◽  
Policy Research ◽  
Conservation Agriculture ◽  
Sub Saharan Africa ◽  
Adoption Process ◽  
Adoption Studies ◽  
Joint Decision ◽  
Small Holder

Climate change is one of the biggest challenges that small holder farmers face in Sub-Saharan Africa, including Zambia. In response to this, various interventions such as Agroforestry (AF) and Conservation Agriculture (CA) have been promoted within the country so as to enhance uptake among farmers and ultimately mitigate climate change. However, the adoption rates of these technologies has been low. To understand the adoption process several adoption studies have focused on the effects of socio-economic and other institutional factors on adoption of the technologies. The direct link between small holder farmer’s climate change awareness and the uptake of both AF and CA is an area that has received less attention among these studies. This paper estimates the effect of climate change awareness on the adoption of AF and CA, and establishes whether the adoption of the two technologies is jointly determined in Zambia. Data used emanated from the Indaba Agricultural Policy Research Institute (IAPRI) and University of Zambia (UNZA) Climate Change and Land Use Project that implemented a supplemental climate change survey in 2013 on Rural Agricultural Livelihood Survey (RALS 2012) panel sample of 1,231 households in six districts of Zambia. Results showed that the majority of farmers (77.2 %) were aware of climate change issues and their consequences on agriculture production and the environment. It was also observed that holding other factors constant, a farmer aware of climate change and its consequences was 6% more likely to adopt both AF and CA compared to those not aware. The decision to adopt AF and CA was found to be jointly determined by farmers. In addition to climate change awareness, the other factors affecting the joint decision to adopt the two technologies included gender, farmer group membership of the household head as well as ownership of radio sets and rippers. There is need therefore to deliberately increase climate change awareness among smallholder farmers and promote the simultaneous uptake of both AF and CA through the mass media and the provision of an environment that increases accessibility to tools that ease up the uptake of these technologies.

scholarly journals Factors Influencing Smallholder Farmers Participation in Collective Marketing and the Extent of Participation in Improved Indigenous Chicken Markets in Baringo, Kenya

2020 ◽  
pp. 1-12
Author(s):  
Emmanuel Kiprop ◽  
Cedric Okinda ◽  
Samuel Wamuyu ◽  
Xianhui Geng
Keyword(s):  
Collective Action ◽  
Smallholder Farmers ◽  
Household Head ◽  
Education Level ◽  
Farm Size ◽  
Farm Income ◽  
Market Participation ◽  
Indigenous Chicken ◽  
Cost Of Transport ◽  
Market Opportunities

Smallholder farmer collective action not only provides a solution to farmer’s constraints such as lack of market accessibility and inability to take advantage of available market opportunities but also holds the potential to diversify their incomes and increase agricultural productivity translating to enhanced food security and poverty eradication. This research aimed at investigating the role of farmer marketing groups in smallholder market participation using a sample of 198 farmers, sampled from a population of 395 smallholder improved indigenous chicken farmers in Baringo, Kenya, using Probit and Tobit models. The study findings established that farmers' involvement in collective action is predominantly determined by; Education level, household size, distance to extension, cost of transport, and the price per chicken. The extent of participation in improved indigenous chicken markets was positively related to; education level of the household head and farm size while negatively and significantly influenced by off-farm income and the cost of farming. The results of this study provide evidence that farmer collective action has the potential of strengthening market participation among smallholder farmers.

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