Farm input subsidies are often criticised on economic and ecological grounds. The promotion of natural resource management (NRM) technologies is widely seen as more sustainable to increase agricultural productivity and food security. Relatively little is known about how input subsidies affect farmers’ decisions to adopt NRM technologies. There are concerns of incompatibility, because NRM technologies are one strategy to reduce the use of external inputs in intensive production systems.

Background

Weather risk is a serious issue in the African small farm sector that will further increase due to climate change. Farmers typically react by using low amounts of agricultural inputs. Low input use can help to minimize financial loss in bad years, but is also associated with low average yield and income. Increasing small farm productivity and income is an important prerequisite for rural poverty reduction and food security. Crop insurance could incentivize farmers to increase their input use, but indemnity-based crop insurance programs are plagued by market failures.

Sustainable intensification of agriculture will have to build on various innovations, but synergies between different types of technologies are not yet sufficiently understood. We use representative data from small farms in Kenya and propensity score matching to compare effects of input-intensive technologies and natural resource management practices on household income. When adopted in combination, positive income effects tend to be larger than when individual technologies are adopted alone.

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.

Despite the rapid international development of biotechnology, we still lack knowledge and information about how low- and middle-income countries can best access this promising technology. Nor are the socioeconomic repercussions of applying biotechnology in these countries’ agricultural sectors well understood. This study seeks to fill in some of the gaps in our knowledge by analyzing a biotechnology transfer project that provided proprietary recombinant potato technology to Mexico.

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.

This paper shows that the current generation of transgenic crop varieties has significant potential to improve economic welfare in low-income countries. These varieties might increase crop yields in low-income countries in cases when pesticides have not been used. They will reduce negative health effects of chemicals when they replace them. With low transaction costs, appropriate infrastructure, and access to intellectual property, multiple varieties of transgenics will be introduced.

It is often assumed that voluntary sustainability standards – such as Fairtrade – could not only improve the socioeconomic wellbeing of smallholder farmers in developing countries but could also help to reduce negative health and environmental impacts of agricultural production. The empirical evidence is thin, as most previous studies on the impact of sustainability standards only focused on economic indicators, such as prices, yields, and incomes.

Despite substantial research on the economic effects of transgenic insect-resistant Bacillus thuringiensis (Bt) cotton, there is still limited work on this technology’s impacts on human health. Due to the inbuilt insect resistance, Bt cotton requires fewer pesticide sprays than conventional cotton, which is not only advantageous from economic and environmental perspectives, but may also result in health benefits for farmers.