Duncan M. Chembezi

Estimating fertilizer demand and output supply for Malawi's smallholder agriculture

Abstract Implementing both a two-step procedure to separate substitution and expansion effects and a single equation method, the demand for fertilizer and output (maize and tobacco) response for Malawis smallholder farmers have been estimated. The own-price elasticities for fertilizer, maize and tobacco are −0·82,1·08 and 0·46 from the two-step procedure compared with −1·08, 1·60 and 0·60, respectively, using the single equation procedure derived from the indirect profit function. Even though the expansion effects are not of the same order of magnitude as the substitution effects, the results demonstrate that, indeed, some adjustment in input or output occurs through expansion effects. The econometric analysis also reveals that the response of fertilizer demand and output supply to own prices is much higher than cross-price responses. This study finds insignificant statistical effect of fertilizer price on maize and tobacco outputs. However, the prices of these products significantly influence fertilizer consumption.

An analysis of supply response among cotton growers in Malawi

Abstract Cotton is a traditional smallholder cash crop in Malawi. Its production in recent years has stagnated as the area under the crop has declined considerably since 1975. Much of the criticism for the stagnant production and declining acreage has been levelled at producer prices. This paper investigates the responsiveness of cotton producers to changes in these producer prices. A Nerlovian partial adjustment model is used to test the response. The results indicate that producers are responsive to price incentives but that their response is inelastic. Both short- and long-run price elasticity estimates are less than unity (0·13 and 0·46, respectively) and the coefficient of adjustment which measures the speed of adjustment is only 0·212. Prices of cotton and competing crops, area under cotton in the preceding season and weather conditions are found to be important factors to the producers in their land allocation decision making process.

Assessment of Animal Waste Management Practices at Limited Resource Farms in Alabama

The EPA has set forth new and more stringent laws relating to waste management on large farms. However, small or limited resource livestock farms are overlooked when it comes to waste management because they individually do not seem to pose real threats to water sources or supply. However, collectively, this may not be so. Alabama has a number of small livestock farm operations with less than 300 animal units. Many of these farm operations may have a collective impact on the water supply. Logistic regression analysis was employed to determine the demographic and socioeconomic factors affecting the use of a waste management plan by farmers. The findings in this study have significant implications regarding Alabama’s water supply and quality. The results do suggest that waste management practices of small farmers may collectively have adverse impact on water quality. However, these results are preliminary and must be viewed with caution. More research on this topic is needed to better understand the impact of small livestock operations and their waste management practices and, ultimately, their impact on the water supply.

Modeling acreage response with risk consideration: The case of estate tobacco in Malawi

Abstract Employing a simple econometric model with risk consideration, the behavior of Malawis estate or commercial farmers is investigated. The results indicate that commercial farmers are both price responsive and risk-averse. The short- and long-run price elasticity estimates are 0.33 and 0.91, respectively. The response to price risk is −0.11, in the short-run and −0.30, in the long run. These estimates imply an inelastic but significant response. The analysis has also demonstrated the extent of bias in parameter estimates and overall model performance associated with the omission of risk variables.