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Do Credit Constraints Affect Agricultural Technology Adoption Evidence From Nigeria
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Book Synopsis Do credit constraints affect agricultural technology adoption? Evidence from Nigeria by : Balana, Bedru
Download or read book Do credit constraints affect agricultural technology adoption? Evidence from Nigeria written by Balana, Bedru and published by Intl Food Policy Res Inst. This book was released on 2020-09-08 with total page 5 pages. Available in PDF, EPUB and Kindle. Book excerpt: The agricultural sector in Nigeria is characterized by low productivity that is driven in part by low use of modern agricultural technologies. Poor access to credit is seen by many observers to be one of the key barriers to adoption of these technologies. Literature suggests that credit constraints impede individuals from investing in productivity enhancing agricultural technologies and, thus, poor farmers are unable to engage in high-return agricultural activities. Much policy discourse and research literature associates agricultural credit constraints with supply-side factors, such as farmers not having access to credit sources or high costs of borrowing, and, thus, recommend that such supply-side constraints be addressed to improve smallholders’ access to credit. However, demand-side factors, such as borrower’s risk-averse behavior, financial illiteracy, collateral requirements, or perceived high transactions costs, can also play important roles in credit-rationing for smallholder farmers.
Book Synopsis Credit constraints and agricultural technology adoption: Evidence from Nigeria by : Balana, Bedru
Download or read book Credit constraints and agricultural technology adoption: Evidence from Nigeria written by Balana, Bedru and published by Intl Food Policy Res Inst. This book was released on 2020-08-19 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: The agricultural sector in Nigeria is characterized by low productivity that is driven by low use of modern agricultural technologies, such as improved seed, chemical fertilizer, agrochemicals, and agricultural machinery. Poor access to credit is claimed to be one of the key barriers to adoption of these technologies. This study examines the nature of credit constraints among smallholder farmers – whether smallholders are credit constrained or not and the extent to which credit constraints emanate from supply-side or demand-side factors. Using multinomial probit and seeming unrelated simultaneous equations econometric models with data from the 2018/19 Living Standards Measurement Study-Integrated Surveys on Agriculture (LSMS-ISA) for Nigeria, the study investigates the factors affecting credit access and the effects of these credit constraints on adoption of four agricultural technologies – inorganic fertilizer, improved seed, agrochemicals, and mechanization. The results show that about 27 percent of survey households were found to be credit constrained – 12.8 percent due to supply-side factors and 14.2 percent due to demand-side factors. Lack of access to information and communication technology, extension services, and insurance coverage are the major demand-side factors negatively affecting smallholder’s access to credit. Registered land tiles and livestock ownership enhance credit access. Credit constraints manifests themselves differentially on the adoption of different agricultural technologies. While adoption of inorganic fertilizer and improved seed are significantly affected by credit constraints from both the supply and the demand-sides; use of agricultural machinery is affected only by demand-side factors, while use of agrochemicals is not affected from either supply or demand-side credit factors. From a policy perspective, our findings indicate that improving credit access via supply-side interventions alone may not necessarily boost use of modern agricultural technologies by smallholder farmers in Nigeria. Demand-side factors, such as access to information, extension services, and insurance cover, should equally be addressed to mitigate the credit constraints faced by smallholders and increase their adoption of modern agricultural technologies and improve their productivity.
Book Synopsis Consumption Risk, Technology Adoption, and Poverty Traps by : Stefan Dercon
Download or read book Consumption Risk, Technology Adoption, and Poverty Traps written by Stefan Dercon and published by World Bank Publications. This book was released on 2007 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: Much has been written on the determinants of input and technology adoption in agriculture, with issues such as input availability, knowledge and education, risk preferences, profitability, and credit constraints receiving much attention. This paper focuses on a factor that has been less well documented-the differential ability of households to take on risky production technologies for fear of the welfare consequences if shocks result in poor harvests. Building on an explicit model, this is explored in panel data for Ethiopia. Historical rainfall distributions are used to identify the counterfactual consumption risk. Controlling for unobserved household and time-varying village characteristics, it emerges that not just ex-ante credit constraints, but also the possibly low consumption outcomes when harvests fail, discourage the application of fertilizer. The lack of insurance causes inefficiency in production choices.
Book Synopsis Consumption Risk, Technology Adoption, and Poverty Traps by : Stefan Dercon
Download or read book Consumption Risk, Technology Adoption, and Poverty Traps written by Stefan Dercon and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Much has been written on the determinants of input and technology adoption in agriculture, with issues such as input availability, knowledge and education, risk preferences, profitability, and credit constraints receiving much attention. This paper focuses on a factor that has been less well documented-the differential ability of households to take on risky production technologies for fear of the welfare consequences if shocks result in poor harvests. Building on an explicit model, this is explored in panel data for Ethiopia. Historical rainfall distributions are used to identify the counterfactual consumption risk. Controlling for unobserved household and time-varying village characteristics, it emerges that not just ex-ante credit constraints, but also the possibly low consumption outcomes when harvests fail, discourage the application of fertilizer. The lack of insurance causes inefficiency in production choices.
Book Synopsis Consumption Risk, Technology Adoption and Poverty Traps by : Stefan Dercon
Download or read book Consumption Risk, Technology Adoption and Poverty Traps written by Stefan Dercon and published by . This book was released on 2015 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Much has been written on the determinants of input and technology adoption in agriculture, with issues such as input availability, knowledge and education, risk preferences, profitability, and credit constraints receiving much attention. This paper focuses on a factor that has been less well documented: the differential ability of households to take on risky production technologies for fear of the welfare consequences if shocks result in poor harvests. Building on an explicit model, this is explored in panel data for Ethiopia. Historical rainfall distributions are used to identify the counterfactual consumption risk. Controlling for unobserved household and time-varying village characteristics, it emerges that not just exante credit constraints, but also the possibly low consumption outcomes when harvests fail, discourage the application of fertiliser. The lack of insurance causes inefficiency in production choices.
Book Synopsis The Adoption of Agricultural Technology by :
Download or read book The Adoption of Agricultural Technology written by and published by CIMMYT. This book was released on 1993 with total page 196 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Impact of Agricultural Technology Adoption on Small-holder Farmers by : Janet O. Olusi
Download or read book Impact of Agricultural Technology Adoption on Small-holder Farmers written by Janet O. Olusi and published by . This book was released on 2001 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Does Agricultural Financing Really Have an Impact on Farmers' Choices Between Different Farming Activities? Evidence from Nigeria by : Oghenovo A. Obrimah
Download or read book Does Agricultural Financing Really Have an Impact on Farmers' Choices Between Different Farming Activities? Evidence from Nigeria written by Oghenovo A. Obrimah and published by . This book was released on 2017 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: We find financing helps make up for deficiencies in farming experience and the absence of crop insurance, such that farmers that have less experience or do not have crop insurance are more likely to adopt productivity enhancing activities. We also find farmers are less likely to spend on output related items (additional farming acreage), as opposed to productivity enhancing items (such as hybrid seeds or fertilizers) as credit constraints become more severe. These findings provide evidence that financing increases farmers' willingness or ability to adopt productivity enhancing activities. Combined, our findings indicate the effectiveness of agricultural financing policies at achieving improvements in agricultural output and productivity can be enhanced by benchmarks of farmers' financing needs as functions of farmer characteristics such as land size, experience, or absence of crop insurance.
Book Synopsis Institutional versus noninstitutional credit to agricultural households in India: Evidence on impact from a national farmers’ survey by : Kumar, Anjani
Download or read book Institutional versus noninstitutional credit to agricultural households in India: Evidence on impact from a national farmers’ survey written by Kumar, Anjani and published by Intl Food Policy Res Inst. This book was released on 2017-03-02 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: A goal of agricultural policy in India has been to reduce farmers’ dependence on informal credit. To that end, recent initiatives have been focused explicitly on rural areas and have had a positive impact on the flow of agricultural credit. But despite the significance of these initiatives in enhancing the flow of institutional credit to agriculture, the links between institutional credit and net farm income and consumption expenditures in India are not very well documented. Using a large national farm household–level dataset and instrumental variables two-stage least squares estimation methods, we investigate the impact of institutional farm credit on farm income and farm household consumption expenditures. Our findings show that in India, formal credit is indeed playing a critical role in increasing both the net farm income and per capita monthly household expenditures of Indian farm families. We also find that, in the presence of formal credit, social safety net programs such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) may have unintended consequences. In particular, MGNREGA reduces both net farm income and per capita monthly household consumption expenditures. In contrast, in the presence of formal credit, the Public Distribution System may increase both net farm income and per capita monthly household consumption expenditures.
Book Synopsis Small-Scale Farming, Agricultural Productivity and Poverty Reduction in Nigeria by : Ojo Samuel
Download or read book Small-Scale Farming, Agricultural Productivity and Poverty Reduction in Nigeria written by Ojo Samuel and published by . This book was released on 2016 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: Existing literature affirms the importance of agricultural technology adoption on productivity, income and livelihood outcomes. Evidences subsists on the adoption of improved cassava varieties (ICVs) in Nigeria but little is known about its impact among the farmers. We used data from a survey conducted by International Institute of Tropical Agriculture (IITA) to explore this research gap. Propensity Score Matching and Heckman's two-stage model were the analytical tools. Given an estimated poverty line of (₦21717.53); 52.0% of the farmers were poor. We found that 75.6% of the respondents are adopters of ICVs. Primary occupation of household head and total non-production asset of farmers were key determinants for adoption. Adoption of improved cassava variety has positive effect on farmers' productivity and poverty reduction. The Average Treatment Effect on the Treated (ATT) for productivity increased by 70 percent among ICVs farmers. Income was also higher among the adopters than the non- adopters by ₦43463.77. In the same vein, the income of the adopters increased by 17%. Furthermore, adopters of ICVs have the probability of reducing poverty headcount by 20%. The empirical results suggest that improved agricultural innovation adoption can play a key role in strengthening and impacting agricultural productivity of smallholder farmers for increased income generation and food security.
Book Synopsis Access to Credit and Its Impact on Welfare in Malawi by : Aliou Diagne
Download or read book Access to Credit and Its Impact on Welfare in Malawi written by Aliou Diagne and published by Intl Food Policy Res Inst. This book was released on 2001 with total page 175 pages. Available in PDF, EPUB and Kindle. Book excerpt: The rural economy and microfinance institutions in Malawi; Survey design and description of the data; Econometric analysis of the impact of access to credit on household welfare; Results of the econometric analysis; Conclusions and implications for policy; Econometric methodology.
Book Synopsis Are Smallholder Farmers Credit Constrained? by : Bedru Babulo Balana
Download or read book Are Smallholder Farmers Credit Constrained? written by Bedru Babulo Balana and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Determining Factors and Impacts of Modern Agricultural Technology Adoption in West Wollega by : Merga Challa
Download or read book Determining Factors and Impacts of Modern Agricultural Technology Adoption in West Wollega written by Merga Challa and published by GRIN Verlag. This book was released on 2014-09-16 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2013 in the subject Agrarian Studies, Wollega University (School of graduate studies), language: English, abstract: This study analyzed factors affecting modern agricultural technology adoption by farmers and the impact of technology adoption decision on the welfare of households in the study area. The data used for the study were obtained from 145 randomly selected sample households in the study area. Binary logit model was employed to analyze the determinants of farmers’ decisions to adopt modern technologies. Moreover, the average effect of adoption on household incomes and expenditure were estimated by using propensity score matching method. The result of the logistic regression showed that household heads’ education level, farm size, credit accessibility, perception of farmers about cost of the inputs and off-farm income positively and significantly affected the farm households’ adoption decision; while family size affected their decision negatively and significantly. The result of the propensity score matching estimation showed that the average income and consumption expenditure of adopters are greater than that of non-adopters. Based on these findings it is recommended that the zonal and the woreda leaders extension agents farm and education experts, policy makers and other development oriented organizations have to plan in such a way that the farm households in the study area will obtain sufficient education, credit accessibilities and also have to train farmers to make them understand the benefits obtained from adopting the new technologies. These bodies have also to arrange policy issues that improve farm labour participation of household members and also to arrange the ways in which farmers obtain means of income outside farming activities.
Book Synopsis Credit Constraints and Agricultural Productivity by : Daniel Ayalew Ali
Download or read book Credit Constraints and Agricultural Productivity written by Daniel Ayalew Ali and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Economics of Land Degradation and Improvement – A Global Assessment for Sustainable Development by : Ephraim Nkonya
Download or read book Economics of Land Degradation and Improvement – A Global Assessment for Sustainable Development written by Ephraim Nkonya and published by Springer. This book was released on 2015-11-11 with total page 686 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume deals with land degradation, which is occurring in almost all terrestrial biomes and agro-ecologies, in both low and high income countries and is stretching to about 30% of the total global land area. About three billion people reside in these degraded lands. However, the impact of land degradation is especially severe on livelihoods of the poor who heavily depend on natural resources. The annual global cost of land degradation due to land use and cover change (LUCC) and lower cropland and rangeland productivity is estimated to be about 300 billion USD. Sub-Saharan Africa (SSA) accounts for the largest share (22%) of the total global cost of land degradation. Only about 38% of the cost of land degradation due to LUCC - which accounts for 78% of the US$300 billion loss – is borne by land users and the remaining share (62%) is borne by consumers of ecosystem services off the farm. The results in this volume indicate that reversing land degradation trends makes both economic sense, and has multiple social and environmental benefits. On average, one US dollar investment into restoration of degraded land returns five US dollars. The findings of the country case studies call for increased investments into the rehabilitation and restoration of degraded lands, including through such institutional and policy measures as strengthening community participation for sustainable land management, enhancing government effectiveness and rule of law, improving access to markets and rural services, and securing land tenure. The assessment in this volume has been conducted at a time when there is an elevated interest in private land investments and when global efforts to achieve sustainable development objectives have intensified. In this regard, the results of this volume can contribute significantly to the ongoing policy debate and efforts to design strategies for achieving sustainable development goals and related efforts to address land degradation and halt biodiversity loss.
Book Synopsis African Handbook of Climate Change Adaptation by : Walter Leal Filho
Download or read book African Handbook of Climate Change Adaptation written by Walter Leal Filho and published by Springer. This book was released on 2021-05-21 with total page 2838 pages. Available in PDF, EPUB and Kindle. Book excerpt: This open access book discusses current thinking and presents the main issues and challenges associated with climate change in Africa. It introduces evidences from studies and projects which show how climate change adaptation is being - and may continue to be successfully implemented in African countries. Thanks to its scope and wide range of themes surrounding climate change, the ambition is that this book will be a lead publication on the topic, which may be regularly updated and hence capture further works. Climate change is a major global challenge. However, some geographical regions are more severly affected than others. One of these regions is the African continent. Due to a combination of unfavourable socio-economic and meteorological conditions, African countries are particularly vulnerable to climate change and its impacts. The recently released IPCC special report "Global Warming of 1.5o C" outlines the fact that keeping global warming by the level of 1.5o C is possible, but also suggested that an increase by 2o C could lead to crises with crops (agriculture fed by rain could drop by 50% in some African countries by 2020) and livestock production, could damage water supplies and pose an additonal threat to coastal areas. The 5th Assessment Report produced by IPCC predicts that wheat may disappear from Africa by 2080, and that maize— a staple—will fall significantly in southern Africa. Also, arid and semi-arid lands are likely to increase by up to 8%, with severe ramifications for livelihoods, poverty eradication and meeting the SDGs. Pursuing appropriate adaptation strategies is thus vital, in order to address the current and future challenges posed by a changing climate. It is against this background that the "African Handbook of Climate Change Adaptation" is being published. It contains papers prepared by scholars, representatives from social movements, practitioners and members of governmental agencies, undertaking research and/or executing climate change projects in Africa, and working with communities across the African continent. Encompassing over 100 contribtions from across Africa, it is the most comprehensive publication on climate change adaptation in Africa ever produced.
Book Synopsis Agricultural Household Models by : Inderjit Singh
Download or read book Agricultural Household Models written by Inderjit Singh and published by . This book was released on 1986 with total page 360 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents the basic model of an agricultural household that underlies most of the case studies undertaken so far. The model assumes that households are price-takers and is therefore recursive. The decisions modeled include those affecting production and the demand for inputs and those affecting consumption and the supply of labor. Comparative results on selected elasticities are presented for a number of economies. The empirical significance of the approach is demonstrated in a comparison of models that treat production and consumption decisions separately and those in which the decisionmaking process is recursive. The book summarizes the implications of agricultural pricing policy for the welfare of farm households, marketed surplus, the demand for nonagricultural goods and services, the rural labor market, budget revenues, and foreign exchange earnings. In addition, it is shown that the basic model can be extended in order to explore the effects of government policy on crop composition, nutritional status, health, saving, and investment and to provide a more comprehensive analysis of the effects on budget revenues and foreign exchange earnings. Methodological topics, primarily the data requirements of the basic model and its extensions, along with aggregation, market interaction, uncertainty, and market imperfections are discussed. The most important methodological issues - the question of the recursive property of these models - is also discussed.
