Does program linking with insurance makes agriculture insurance sustainable?

Agriculture insurance is most common forms of risk transfer in agriculture. It is often compulsory for borrowers of agricultural loans in low and middle income countries. This study tries to find out the status of compulsory agriculture insurance in Nepal and its sustainability through answering question “are compulsory agriculture insurance programs making agricultural insurance sustainable? Or we have to think differently for its sustainability. Household survey were conducted using pre-tested semi structured questionnaire in eight districts. Altogether 377 insurer farmers (132 crop and 245 livestock farmers) were selected from the list of target population using simple random sampling technique. Similarly, five cases were selected from the study districts. Result shows that Government of Nepal (GoN) has developed both cost of production and value based insurance products based on farmers demand. Basically, premium rate is fixed as five percent to cost of production based and seven percent to value based insurance for most of crops and livestock. Different governments programs such as youth self-employment program, youth focused program, spring rice promotion program and other grant/subsidy programs under different mega projects of GoN have started to link agriculture insurance with their programs. Insurance has been made mandatory to get such any subsidy support from the government for promoting agriculture insurance simultaneously. However, this study found that this strategy did not adequately work. But if they feel the enterprises is risky and realize the importance of agriculture insurance and can get higher returns from the enterprises, they were willing to participate in agriculture insurance. Most of farmers who participated in government grant program have limited understanding of crop insurance so that they have discontinued insurance after the end of grant/subsidy program. Therefore, it is necessary to revisit the existing provision of grant linked insurance and need to focus more on creating awareness on importance of agriculture insurance for its sustainability

Decision to use herbicide in wheat production by the farm households in Nepal: A probit regression analysis

The use of herbicides in wheat production is increasing in Nepal mainly due to labor shortage and higher wage rates, even if available. However, little information is available on what factors determine the use of herbicides. This study explored the major factors that affect the decision to use herbicide by the wheat farmers. The semi-structured interview schedule was administered to 343 farmers from four major wheat-growing districts. The study employed a probit regression model to identify the factors that influenced the decision to use herbicides. Educations, membership, migration, wheat cultivated area, amount of urea use were identified as the significant factors influencing the decision of farmers to use herbicides. Herbicides user farmers produced 220 kg more wheat grain yield from one hectare of land compared to non-users. This study suggests that the wheat yield of Nepal could be increased through adopting better weed management techniques

Technical efficiency of hybrid maize production in eastern terai of Nepal: A stochastic frontier approach

Maize is the second most important crop after rice in terms of area and production in Nepal. This article analyzes the technical efficiency and its determinants of hybrid maize production in eastern Nepal. Using a randomly selected data from 98 farmers (41 from Morang and 57 from Sunsari) in eastern Nepal, the study employed a stochastic frontier production model to find the production elasticity coefficients of inputs, determinants of efficiency and technical efficiency of hybrid maize farmers. The results showed that maize production responds positively to increase in amount of urea, DAP and the area planted, where as it is negative to seed quantity. The study indicate that farmers are not technically efficient with a mean technical efficiency 79 %. Socioeconomic variable age had a negative and significant while the household size had a positive and significant related to maize output. The younger farmers were observed more technically efficient than older farmers. Larger the members in the household higher the maize production. It is recommended that farmers should increase their fertilizer dose and farm size while they should decrease their seed rate for efficient production

Adoption of improved wheat varieties in eastern and western Terai of Nepal

The research was conducted from March to May 2019 for assessment on adoption of improved wheat varieties in two major wheat growing districts of Nepal, Sunsari, and Kailali; one representing eastern and another western Terai. A pre-tested interview schedule was used to collect the primary information; in addition, two Key Informant Surveys were performed. Furthermore, relevant literatures were reviewed for secondary information. The simple random method of sampling was used within the selected areas that were identified in consultation with Agriculture Knowledge Centre and agricultural officials of the local government. Altogether, 194 samples were taken for the purpose of the study, omitting the outliers and incomplete responses. Descriptive statistics, probit regression, and indexing were used for data analysis. Probit econometric model revealed that membership dummy (1% level), age (1% level) number of family members involved in agriculture (1% level), subsidy dummy (5% level), number of schooling years (5%) and loan dummy (10% level) significantly determined the adoption of improved wheat varieties developed after NARC establishment. Furthermore, indexing identified- lack of availability of quality improved seeds (I= 0.80) as the major problem associated with the wheat production followed by poor availability of fertilizers (0.77), labour shortage (0.57), lack of proper irrigation (0.46) and lack of agricultural machines (0.39). The government agricultural institutions should assure access to quality seeds and fertilizers to the farmers; in addition, subsidy on irrigation and agricultural machines allied with agricultural loan to the educated youths could be the point of attraction  for wheat cultivation which leads to increased wheat productivity

Socio-economics of wheat production in Kailali and Sunsari districts of Nepal

For socio-economic assessment on wheat production, research was conducted from March to June, 2019 in two major wheat growing districts of Nepal, Kailai and sunsari. The primary information was collected by face to face interview using the pre-tested semi-structured interview schedule, two Key Informant Surveys were also done.In addition, the secondary information were collected from the review of related literatures. The survey areas were selected by consultating with Agriculture Knowledge Centre and agricultural officials of the local government; sample were selected by using simple random sampling. All total, 194 samples were selected for this study; the outliers and incomplete responses were omitted. The descriptive statistics revealed that Nepal 297 (66.16 %) has the highest area coverage in Sunsari while Gautam (36.50%) has the highest coverage in Kailali. Multiple regression model revealed that wheat cultivated area (p= 0.000), adoption of NARC released varieties (p= 0.000), gender of the household head (p= 0.017), age of the household head (p= 0.040), membership of organization (p= 0.094) and number of family members between age group 15 to 59 years (p= 0.085) have significant effect on wheat production. Furthermore, the unpaired t-test showed that the mean productivity of wheat in Kailali (2.99 Mt./ha) is significantly higher than that of Sunsari (2.81t./ha) at 5% level of significance. To increase the wheat productivity, the concerned government agricultural institutions should: assure access to NARC released improved varieties, make policy to consolidate the fragmented land, encourage the economically active population and the household heads towards wheat production by providing the efficient technical and financial support

Returns to Potato Research Investment in Nepal

Agricultural research plays a significant role in increment in productivity and contributes to food security. Very few studies on the impact of public research spending on different sectors and commodities in Nepal has been documented. This study was designed to estimate the adoption lags of improved potato varieties and benefits generated by potato improvement research in Nepal. More specifically, the study answers two basic questions: (i) whether investment in potato research is justifiable? and (ii) how long is it taking to replace old improved varieties? We took public annual potato research investments of Nepal from the Fiscal year 2001 to 2017 from Nepal Agricultural Research Council (NARC). The household survey was carried out to estimate the potato varieties coverage in Nepal in 2017. Other secondary data were sourced from the Ministry of Finance, Ministry of Agricultural and Livestock Development, FAO stat, Nepal Rastra Bank and NARC to complement the analysis. We have used a simple economic framework to estimate the benefits generated from agricultural research. The estimated benefit and cost streams were used to calculate Benefit-Cost Ratio (BCR) and Net Present Value (NPV).  Results showed that the majority of the potato researchers had done research related to crop husbandry (seed production and crop managements); while the limited number of researchers had specialized in breeding activities. The annual growth rate of potato productivity was 214.49 kg per annum per ha which had increased at the rate of 1.76 percent per annum compound growth rate. The results revealed that the average weighted age of improved potato varieties was 21.83 years and each NPR. investment on potato research has given 508 NPR. and NPR. 13760 million NPV at a 12 percent discount factor during the last 17 years. Similarly, the contribution of potato research to GDP and AGDP was found 0.323% and 0.989% respectively. Therefore, future investment and focus should be concentrated on potato research and scaling up activities, and reducing variety adoption lag to obtain additional benefits from potato research investment

Technical Efficiency of Hybrid Maize Production in Eastern Terai of Nepal: a Stochastic Frontier Approach

Maize is the second most important crop after rice in terms of area and production in Nepal. This article analyzes the technical efficiency and its determinants of hybrid maize production in eastern Nepal. Using a randomly selected data from 98 farmers (41 from Morang and 57 from Sunsari) in eastern Nepal, the study employed a stochastic frontier production model to find the production elasticity coefficients of inputs, determinants of efficiency and technical efficiency of hybrid maize farmers. The results showed that maize production responds positively to increase in amount of urea, DAP and the area planted, where as it is negative to seed quantity. The study indicate that farmers are not technically efficient with a mean technical efficiency 79 %. Socioeconomic variable age had a negative and significant while the household size had a positive and significant related to maize output. The younger farmers were observed more technically efficient than older farmers. Larger the members in the household higher the maize production. It is recommended that farmers should increase their fertilizer dose and farm size while they should decrease their seed rate for efficient production

Behavioural science principles for scaling-up zero tillage wheat and maize in the Eastern Terai region of Nepal

Farmers have a set of convictions and tend to do what their forefathers had practiced. By identifying their beliefs and designing appropriate ways of upscaling to convince them of new and improved practices, we can improve the adoption of zero tillage technology for maize and wheat. Small and fragmented landholdings that resulted from the cultural system of distributing land to heirs are diverse in their cropping requirements. Moreover, farmers are risk-averse and do not believe easily in new technologies. Traditional extension approaches have not been effective in upscaling these technologies. A new way of thinking based on behavioural science can provide some insights and guidelines for improving the effectiveness of technology adoption. Understanding farmers' socioeconomic circumstances and their decision-making system at the household and society level can help in designing upscaling approaches. Approaches such as capitalising on social bonding, use of established technology leaders, and use of farmers' organizations can improve adoption. Recommended strategies include encouraging a comprehensive contracting system of service provision, using active community influential local leaders in technology expansion, taking group and social identity approaches in technology extension, and capacity building programs for service providers/operators and farmers to help raise confidence and to remove perceived barriers to technology adoption. &nbsp

Lessons for promotion of new agricultural technology: a case of Vijay wheat variety in Nepal

Abstract Background Wheat is the third important cereal after rice and maize in Nepal. Its yield suffers from several factors such as lack of reliable irrigation, inclement weather, incidence of disease and lack of improved technology. New virulence race Ug99 (Uganda-99) has threatened all available commercial wheat varieties around the world and Asia. Some of the popular varieties of wheat in Nepal are also getting susceptible to different diseases. Vijay is one of the recently released first Ug99-resistant improved wheat varieties for Terai region in Nepal. Nepal has put special emphasis on the seed production and diffusion of this variety to promote rapidly in the farmers’ fields to mitigate the potential epidemics of newly emerging pathotype of stem rust (Ug99). This variety is being promoted by several organizations and seed companies’ before and after its release. Therefore, this study was undertaken to know the seed supply of Vijay and identify the factors that are contributing for its commercialization. Methods Sunsari, Morang, Rupandehi, Banke and Kailali districts were selected purposely representing Eastern, Western, Mid-western and Far-Western Terai regions of Nepal, respectively. Seed companies, agro-vets (input dealers) and cooperatives involved in Vijay seed multiplication and distribution in the respective districts were selected for the purpose of the study. From the list of agro-vets in respective study sites, a total of 87 wheat seed selling agro-vets were selected randomly as a sample. The sample survey covered 44% of the target population in both categories (dealers and non-dealers of national seed company). Out of total samples, 40% were national seed company dealer agro-vets, while 60% were non-dealers. Multivariate regression analysis was used to find out different factors responsible for commercialization of Vijay seed. Results Results indicate that about 67% of the agro-vets were involved in Vijay seed trading and their average time of involvement was 2.65 years. Majority of the agro-vets perceived this variety performed better than other existing popular varieties such as Gautam, Bhrikuti, Aditya and Nepal 297. However, there was still gap in timely supply of the seed. Based on the estimated Certified-1 seed production in 2015/16, Vijay must cover 56.88% (11,943 ha) of total wheat area in Terai, but share of Vijay seed was about 22% of the total wheat seed sold by agro-vets in 2015/16. Nevertheless, it seems that this variety is getting popular in the study area compared to other improved wheat varieties in short time period. The factors influencing commercialization of Vijay were: agro-vets having dealership of national seed company, perception on comparative better performance of Vijay with Nepal 297, total quantity of wheat seed sold by agro-vets and total business transaction of the agro-vets. Moreover, other factors such as pre-release multiplication of Vijay variety by private seed companies and participation on seed related training have found positive contribution on its commercialization. Conclusion It seems that the current production of Vijay’s breeder seed is more than enough to cultivate in total wheat area in Terai of Nepal if proper seed cycle is maintained. But this is not in reality. NARC should decentralized foundation seed to private actors such as private seed companies, national seed companies and community-based organizations to maximize the resource use efficiency in the seed cycle through introducing effective monitoring and technical backstopping mechanism from public sector. Therefore, the close coordination and commitment of the public and private seed companies, community seed groups, cooperatives and public extension agencies to multiply seeds in subsequent cycles is required. Moreover, awareness program about superiority of Vijay with other improved wheat varieties should be emphasized for the rapid commercialization of the Vijay seed which would be an instrumental to mitigate the potential epidemics of newly emerging pathotype of stem rust (Ug99) in the future

Credit's Use Performance and Its Determinants on Farm Household: a Case of Chitwan District of Nepal

Credit has been considered to play a pivotal role in the agricultural development of Nepal. A large number of institutions are involved in the disbursement of credit to agriculture. In this backdrop, the present study has examined the performance of agricultural credit and has identified the determinants of increased use of credit at the farm household level in Nepal. The study was based on survey data consisting of 107 samples collected randomly from the Chitwan district. The study has revealed that the quantum of credit availed by the farming households is affected by several socio-demographic factors which include caste, economically active population, food sufficiency, and membership in an organization. The research revealed that if the household is Brahmin/ Chettri, the probability of borrowing loans decreased by 32% as compared to other castes. Similarly, if the household's economically active population increased by one unit, the probability of taking a loan increased by 16%. The results also show that, if household food sufficiency increased by one month the probability of taking loans decreased by 4 % but if the household head is a member of an organization, the probability of taking a loan increased by 28%. The congenial environment to increase the involvement of the household head to an organization like cooperative and farmers group, increasing the food self-sufficiency through productivity enhancement program and creating awareness on credit utilization helps to increase credit use performance in Agriculture