Tesfamicheal Wossen

Social network effects on the adoption of sustainable natural resource management practices in Ethiopia

Soil loss, nutrient depletion and land degradation contribute to the skimpy performance of smallholder agriculture and pose serious policy challenges in developing countries. Surprisingly, natural resource management practices that enhance sustainability while improving productivity have not been fully adopted despite continuous efforts of promotion. Using data collected from 2901 farm households in the Farmers Innovation Fund (FIF) of the World Bank, this study examines factors delaying adoption of resource management and farming practices from the perspective of social learning and network size. Specifically, the study aims at identifying the extent to which differences in network structure matter in providing opportunities to learn about new ways of sustainable resource management practices using regression analysis. The result confirms that social network size plays a significant role in enhancing adoption of natural resource management practices. Moreover, external sources of information such as extension provision play a crucial role in enhancing adoption of resource management practices. Thus, future endeavours should link extension services to informal networks to enhance adoption of sustainable natural resource management practices.

Impacts of extension access and cooperative membership on technology adoption and household welfare

This paper examines the impacts of access to extension services and cooperative membership on technology adoption, asset ownership and poverty using household-level data from rural Nigeria. Using different matching techniques and endogenous switching regression approach, we find that both extension access and cooperative membership have a positive and statistically significant effect on technology adoption and household welfare. Moreover, we find that both extension access and cooperative membership have heterogeneous impacts. In particular, we find evidence of a positive selection as the average treatment effects of extension access and cooperative membership are higher for farmers with the highest propensity to access extension and cooperative services. The impact of extension services on poverty reduction and of cooperatives on technology adoption is significantly stronger for smallholders with access to formal credit than for those without access. This implies that expanding rural financial markets can maximize the potential positive impacts of extension and cooperative services on farmers’ productivity and welfare.

Measuring the impacts of adaptation strategies to drought stress: the case of drought tolerant maize varieties

This study measured the impacts of drought tolerant maize varieties (DTMVs) on productivity, welfare, and risk exposure using household and plot-level data from rural Nigeria. The study employed an endogenous switching regression approach to control for both observed and unobserved sources of heterogeneity between adopters and non-adopters. Our results showed that adoption of DTMVs increased maize yields by 13.3% and reduced the level of variance by 53% and downside risk exposure by 81% among adopters. This suggests that adoption had a “win-win” outcome by increasing maize yields and reducing exposure to drought risk. The gains in productivity and risk reduction due to adoption led to a reduction of 12.9% in the incidence of poverty and of 83.8% in the probability of food scarcity among adopters. The paper concluded that adoption of DTMVs was not just a simple coping strategy against drought but also a productivity enhancing and welfare improving strategy. The results point to the need for policies and programs aimed at enhancing adoption as an adaptation strategy to drought stress in Nigeria and beyond.

You are not alone: social capital and risk exposure in rural Ethiopia

This paper examines the impact of shocks on food security and the insurance role of social capital and informal social networks. In particular, by combining household panel data, weather data, self-reported shocks and detailed social capital information, the paper investigates the insurance role of social capital against covariate and idiosyncratic shocks. Our results suggest that both covariate and idiosyncratic shocks increase the prevalence of food insecurity. However, households with a higher stock of social capital were able to smooth consumption. We also found that food consumption is not insured through social capital when a shock affects the whole risk-sharing network. Moreover, we show that formal policy interventions such as access to consumption credit and safety nets are the only effective ways of insuring food consumption when a shock affects the entire risk-sharing network.

Productivity and Welfare Effects of Nigeria's e-Voucher-Based Input Subsidy Program

Highlights • The productivity and welfare effects of an e-voucher subsidy program are evaluated.• Instrumental variable regression employed to control for endogeneity.• The program is effective in improving productivity and welfare outcomes.• No heterogeneity effects based on gender and farm land size.• The program has a modest benefit–cost ratio.

Forest dependence and income inequality in rural Ethiopia: evidence from Chilimo-Gaji community forest users

The aim of the study was to examine the determinants of forest dependence and the role of community forest on income inequality in rural Ethiopia. Regression results, using Heckman’s two-stage estimation method, suggest that the probability of households’ participation in low-return forest activities is determined by farm size, number of male members in the household and distance from the forest plot to the household’s homestead. Further, the likelihood of households’ participation in high-return forest activities is determined by the number of male household members, the distance from the households’ homestead to the community forest block and being a member of the forest user group’s executive committee. Using instrumental variable method, we found that, in relative terms, households with more non-forest income are less likely to depend on forest commons for their livelihood. Further, wealthier households are less dependent on forest products for their livelihood. We also found that forest products play a crucial role in reducing income inequality in the study area. Income inequality increases by 24% when we exclude forest income from the calculation of inequality measure (Gini coefficient).

Estimating the Productivity Impacts of Technology Adoption in the Presence of Misclassification

Abstract This article examines the impact that misreporting adoption status has on the identification and estimation of causal effects on productivity. In particular, by comparing measurement error‐ridden self‐reported adoption data with measurement‐error‐free DNA‐fingerprinted adoption data, we investigate the extent to which such errors bias the causal effects of adoption on productivity. Taking DNA‐fingerprinted adoption data as a benchmark, we find 25% “false negatives” and 10% “false positives” in farmers’ responses. Our results show that misreporting of adoption status is not exogenous to household characteristics, and produces a bias of about 22 percentage points in the productivity impact of adoption. Ignoring inherent behavioral adjustments of farmers based on perceived adoption status has a bias of 13 percentage points. The results of this article underscore the crucial role that correct measurement of adoption plays in designing policy interventions that address constraints to technology adoption in agriculture.

Do land transfers to international investors contribute to employment generation and local food security? : Evidence from Oromia Region, Ethiopia

Purpose - – Like many countries in the developing world, Ethiopia has leased out a huge amount of land to foreign investors. However, empirical evidence on the contribution of international investments to employment generation and food security is limited. The purpose of this paper is to examine the contribution of large-scale farms to local-level food security in Bako Tibe District, Oromia Region. Design/methodology/approach - – Primary data were collected from 200 randomly selected households from two purposefully selected villages in the district. Secondary data were collected from government offices and the literature. Propensity score matching was used to match households based on observable characteristics. Using the World Food Programme (WFP) approach, the food consumption score (FCS) of households was calculated. Finally, the Average Treatment effect for the Treated was determined. Findings - – Findings indicate that foreign land deals increase the odds of households falling into food insecurity and that the employment opportunities are both temporal and marginal. Furthermore, these land deals result in a decline of households’ FCS and thus have a negative effect on households’ food security. Research limitations/implications - – The result is based on a case study which is not generalizable to the whole of Ethiopia. Practical implications - – The result implies that future endeavours should resort to substantial changes in the principles of investment as well as the design and enforcement of contracts on land transfers so that international investors can commit to objectives beyond private profit. Originality/value - – It examines the effect of large-scale land transfers commonly termed as land grabbing on local food security. The paper makes an important contribution to the current policy debates regarding land grabbing in Ethiopia as research about the contribution of land deals to the food security is limited.

Poverty Reduction Effects of Agricultural Technology Adoption: The Case of Improved Cassava Varieties in Nigeria

We use DNA‐fingerprinting to estimate the poverty reduction effect of adoption of improved cassava varieties in Nigeria. We estimate the counterfactual household income distribution of cassava producers by combining farm‐level treatment effects with a market‐level model. Our results suggest that adoption of improved cassava varieties has led to a 4.6 percentage point reduction in poverty, though this is sensitive to the measurement of adoption status. Therefore, accurate measurement of adoption is crucial for a more credible estimate of the poverty reduction effect of adoption. Our analysis also suggests that farmers who are more likely to be adopters are also likely to face higher structural costs. Addressing structural barriers that make improved technologies less profitable for the poor would therefore be important to increase the poverty reduction effect of improved cassava varieties.

Incidence and farmers’ knowledge of aflatoxin contamination and control in Eastern Democratic Republic of Congo

Abstract Despite efforts to reduce aflatoxin contamination and associated mycotoxin poisoning, the phenomenon continues to pose a public health threat in food and feed commodity chains. In this study, 300 samples of cassava, maize, and groundnut were collected from farmers’ households in Eastern DRC and analyzed for incidence of aflatoxins. In addition, the farmers’ level of knowledge of the causes and consequences of contamination and the measures for prevention were also examined by administering questionnaires to a cross section of 150 farmers. The results showed the presence of aflatoxins in all samples, with levels ranging from 1.6 to 2,270 μg/kg. In 68% of all samples, total aflatoxin contamination was above 4 μg/kg, the maximum tolerable level set by the European Union. Farmers ranked high humidity, improper storage practices, and poor soils as potential causes of aflatoxin contamination and changes in color, smell, and taste, and difficulty in selling crops as consequences. They identified crop management practices as the most effective way to control contamination. The results also revealed that most farmers apply preharvest crop management practices as a means of controlling contamination. More educated households were more knowledgeable about aflatoxins. Female‐headed and married households were less likely to be willing to pay for aflatoxin control. About 28% of farmers claimed to be willing to allocate resources to seed intervention while a smaller proportion agreed to pay for training and information services. The result further suggests that an adoption of pre‐ and postharvest technologies together with awareness creation is still required to reduce aflatoxin contamination in the country.