Policy brief No. 2. The majority of the world’s poor are smallholder farmers in developing countries. These smallhol- ders face several obstacles that limit their produc- tivity and profits, such that their incomes remain low. Institutional changes in the agricultural value chains are required to reduce poverty rates among smallholder farmers, and to stimulate agricultural growth.
Smallholder farmers in developing countries often suffer from high risk and limited market access. Contract farming may improve the situation under certain conditions. Several studies analyzed effects of contracts on smallholder productivity and income with mixed results. Most existing studies focused on one particular contract scheme. Contract characteristics rarely differ within one scheme, so little is known about how different contract characteristics may influence the benefits for smallholders.
The Centre for Development Research (CDR), in collaboration with local partnership managed by the Bangladesh Agricultural University worked to establish a platform (i.e. a participatory rural video centre) that acts upon fostering rural women’s capacity for agricultural innovation in the north-west and north-east region of Bangladesh. In this paper, the authors elaborate principles of establishing the centre, and some evidences on Farmers’ Participatory Research (FPR) in the community.
This study analysed the effects of the participation of farmers to innovation platforms on their livelihood in Humidtropics West Africa Flagship. Results showed that higher livelihood asset capital was found among the participants than non-participants. The study thus revealed further investment should be made in the establishment and strengthening of innovation platforms that enable the development, effective dissemination and adoption of agricultural innovations, thus fostering improved livelihood, alleviate poverty and reduce food insecurity.
The latest turmoil of production and price volatility in the global food sector has put agriculture back to the top of the development agenda. Population growth, changing consumer preferences, bioenergy demand and climate change are some of the huge challenges for agricultural production today and in the future. In the last decades, productivity has been constantly improved through the introduction of improved crop varieties and the greater use of mechanization, irrigation, chemical fertilizer and pesticides.
Mobile phone based money services have spread rapidly in many developing countries. We analyze micro level impacts using panel data from smallholder farmers in Kenya. Mobile money use has a large positive net impact on household income. One important pathway is through remittances, which contribute to income directly but also help to reduce risk and liquidity constraints, thus promoting agricultural commercialization. Mobile money users apply more purchased inputs, market a larger proportion of their output, and have higher farm profits.
Since the early 1990s, liberalization of the seed market in Tanzania has attracted several foreign companies that now market maize hybrids in the country. In this article, we analyze the impacts of proprietary hybrids on maize yields, production, and household living standards. We build on a recent survey of smallholder maize farmers in two zones of Tanzania. Hybrid adoption rates are 48% and 13% in the North and East, respectively. Average net yield gains of hybrids are 50-60%, and there are also significant profit effects.
Supermarkets and high-value exports are currently gaining ground in the agri-food systems of many developing countries. While recent research has analyzed income effects in the small farm sector, impacts on farming efficiency have hardly been studied. Using a survey of Kenyan vegetable growers and a stochastic frontier approach, we show that participation in supermarket channels increases mean technical efficiency by 19%. This gain is bigger at lower levels of efficiency, suggesting the potential for positive income distribution effects.
Classical innovation adoption models implicitly assume homogenous information flow across farmers, which is often not realistic. As a result, selection bias in adoption parameters may occur. We focus on tissue culture (TC) banana technology that was introduced in Kenya more than 10 years ago. Up till now, adoption rates have remained relatively low.
In the existing literature, the effects of contract farming on household welfare were examined with mixed results. Most studies looked at single contract types. This paper contributes to the literature by comparing two types of contracts – simple marketing contracts and resource- providing contracts – in the Ghanaian oil palm sector. We investigate the effects of both contracts on farm income, as well as spillovers on other household income sources. We use survey data collected with an innovative sampling design and a control function approach to address possible issues of endogeneity.