Paswel Marenya

Relative Preferences for Soil Conservation Incentives among Smallholder Farmers: Evidence from Malawi

This paper uses framed choice experiments to examine the preferences of smallholder farmers in Malawi regarding alternative policy-based incentives to adopt conservation practices that reduce soil erosion and increase yields. The policy incentives offered in the choice experiments included an ideal index-based crop insurance contract, an index insurance contract with basis risk, cash payments, and fertilizer subsidies. Prior to implementing the choice experiments, the farmers participated in a workshop utilizing small group-based dynamic learning games that demonstrated how index-based crop insurance contracts function. The choice experiment results indicate that most farmers preferred cash payments to index insurance contracts, even when the insurance contracts offered substantially higher expected returns. Further, more risk averse farmers were more likely to prefer cash payments than less risk averse and risk loving farmers.

Measuring Farm and Market Level Economic Impacts of Improved Maize Production Technologies in Ethiopia: Evidence from Panel Data

While it is often recognised that agricultural technology adoption decisions are intertwined and best characterised by multivariate models, typical approaches to examining adoption and impacts of agricultural technology have focused on single technology adoption choice and ignored interdependence among technologies. We examine farm†and market†level impacts of multiple technology adoption choices using comprehensive household survey data collected in 2010/11 and 2012/13 in Ethiopia. Economic surplus analysis combined with panel data switching endogenous regression models are used to compute the supply shift parameter (K†shift parameter), while at the same time controlling for the endogeneity inherent in agricultural technology adoption among farmers. We find that our improved technology set choices have significant impacts on farm†level maize yield and maize production costs, where the greatest effect appears to be generated when various technologies are combined. The change in maize yield and production costs results in an average 26.4% cost reduction per kilogram of maize output (the K†shift parameter). This increases the producer and consumer surpluses by US

Impact of improved maize adoption on household food security of maize producing smallholder farmers in Ethiopia

140 and US

Maize Market Participation among Female- and Male-Headed Households in Ethiopia

105 million per annum, respectively. These changes in economic surplus help to reduce the number of poor people by an estimated 788 thousand per year. We conclude that deliberate extension efforts and other policies that encourage integration of technologies are important for maize technologies to yield their full potential at both farm and market levels.

Understanding the adoption of a portfolio of sustainable intensification practices in eastern and southern Africa

In recent years, maize has gained prominence as an important staple crop in Ethiopia second only to teff in terms of acreage. Most of this is grown by semi-subsistence farm households whose livelihoods are tied to crop production and some livestock keeping. Therefore, an important policy question concerns the impact that the reported maize revolution has had on household food security. This paper answers that question by examining the empirical regularities that explain the adoption of improved maize varieties (IMVs) and how this has impacted household food security in a sample of 2327 maize producing households in 39 districts of Ethiopia. An endogenous switching regression model supported by the dose-response continuous treatment effect method was used to empirically assess the impact of IMV adoption on per capita food consumption expenditure and perceived household food security status. Results show that IMV adoption has a robust and positive impact on per capita food consumption and also significantly increases the probability of a smallholder being in food surplus. The advances in the adoption of improved maize has thus contributed significantly to the food security of maize producing smallholders, confirming the role of crop improvement in contributing to food security of agrarian households.

Production Risks and Food Security under Alternative Technology Choices in Malawi: Application of a Multinomial Endogenous Switching Regression

ABSTRACT This paper examines the market participation gaps and their causes between female-headed households (FHHs) and male-headed households (MHHs) in Ethiopia using an Oaxaca-Blinder decomposition approach. The results showed that structural/coefficient effects accounted for 74 per cent (65%) of the differences between FHH and MHH in the net buyer (net seller) maize market positions. The gap between FHH and MHHs regarding quantities of maize sold was largely explained by endowment effects. The results imply that closing the observed market participation gaps will require policy interventions that facilitate equal access for both FHHs and MHHs to resources and other supportive social networks.