Smallholder marketed surplus and input use under transactions costs: maize supply and fertilizer demand in Kenya

This paper assessed the effects of transactions costs—relative to price and non-price factors—on smallholder marketed surplus and input use in Kenya. A selectivity model was used that accounts not only for the effects of fixed and variable transactions costs but also for the role of assets, technology, and support services in promoting input use and generating a marketable surplus. Output supply and input demand responses to changes in transactions costs and price and non-price factors were estimated and decomposed into market entry and intensity. The results showed that while transactions costs indeed have significant negative effects on market participation, cost-mitigating innovations—such as group marketing—are also emerging to mitigate the costs of accessing markets. Output price has no effect on output market entry and only provides incentives for increased supply by sellers. On the other hand, both price and non-price factors have significant influence on adoption and intensity of input use. Overall, the findings suggest that policy options are available other than price policies to promote input use and agricultural surplus.Commercialization, Marketed surplus, Fertilizer use, Transactions cost, Kenya, Agricultural and Food Policy, Agricultural Finance, Consumer/Household Economics, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Institutional and Behavioral Economics, International Relations/Trade, Marketing, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods,

Determinants of adoption and intensity of use of balanced nutrient management systems technologies in the northern Guinea savanna of Nigeria

As part of a major effort to address soil fertility decline in West Africa, a project on Balanced Nutrient Management Systems (BNMS) has since 2000 been implemented in the northern Guinea savanna (NGS) of Nigeria. The project has tested and promoted two major technology packages, including a combined application of inorganic fertilizer and manure (BNMS-manure) and a soybean/maize rotation practice referred to as BNMS-rotation. This study employed Tobit model to examine factors that influence the adoption and intensity of utilization of BNMS technologies in the NGS of Nigeria. Results showed that less than 10% of the sample households adopted at least one of the two components of the technology package by the end of 2002. However, by 2005 the adoption of BNMS-rotation had reached 40% while that of BNMS-manure had reached 48%. A number of factors such as access to credit, farmers’ perception of the state of land degradation, and assets ownership were found to be significant in determining farmers’ adoption decisions on BNMS-manure while off-farm income was found to be significant in determining farmers’ adoption decisions on BNMS-rotation. Extension services and farmer-to-farmer technology diffusion channels were the major means of transfer of BNMS technologies.Adoption, BNMS-manure, BNMS-rotation, Northern Guinea Savanna (NGS)., Agricultural and Food Policy, Community/Rural/Urban Development, Crop Production/Industries, Environmental Economics and Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Health Economics and Policy, Institutional and Behavioral Economics, International Relations/Trade, Livestock Production/Industries, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods,

Smallholder marketed surplus and input use under transactions costs: maize supply and fertilizer demand in Kenya

This paper assessed the effects of transactions costs—relative to price and non-price factors—on smallholder marketed surplus and input use in Kenya. A selectivity model was used that accounts not only for the effects of fixed and variable transactions costs but also for the role of assets, technology, and support services in promoting input use and generating a marketable surplus. Output supply and input demand responses to changes in transactions costs and price and non-price factors were estimated and decomposed into market entry and intensity. The results showed that while transactions costs indeed have significant negative effects on market participation, cost-mitigating innovations—such as group marketing—are also emerging to mitigate the costs of accessing markets. Output price has no effect on output market entry and only provides incentives for increased supply by sellers. On the other hand, both price and non-price factors have significant influence on adoption and intensity of input use. Overall, the findings suggest that policy options are available other than price policies to promote input use and agricultural surplus

Determinants of adoption and intensity of use of balanced nutrient management systems technologies in the northern Guinea savanna of Nigeria

As part of a major effort to address soil fertility decline in West Africa, a project on Balanced Nutrient Management Systems (BNMS) has since 2000 been implemented in the northern Guinea savanna (NGS) of Nigeria. The project has tested and promoted two major technology packages, including a combined application of inorganic fertilizer and manure (BNMS-manure) and a soybean/maize rotation practice referred to as BNMS-rotation. This study employed Tobit model to examine factors that influence the adoption and intensity of utilization of BNMS technologies in the NGS of Nigeria. Results showed that less than 10% of the sample households adopted at least one of the two components of the technology package by the end of 2002. However, by 2005 the adoption of BNMS-rotation had reached 40% while that of BNMS-manure had reached 48%. A number of factors such as access to credit, farmers’ perception of the state of land degradation, and assets ownership were found to be significant in determining farmers’ adoption decisions on BNMS-manure while off-farm income was found to be significant in determining farmers’ adoption decisions on BNMS-rotation. Extension services and farmer-to-farmer technology diffusion channels were the major means of transfer of BNMS technologies