Information asymmetry has traditionally constrained smallholder farmers' access to markets. Past studies indicate that it inhibits adoption of modern technologies that have the capacity to enhance productivity of smallholder farms. Hence, farm productivity and agricultural transformation is stifled, leaving smallholder famers in grinding poverty. Improved smallholder farmers' access to markets via an Information and Communication Technology (ICT) platforms could reverse this scenario. This study evaluates the impact of participation in ICT-based market information services (MIS) on farm input use and land productivity in Kenya, using Propensity Score Matching technique. It finds that participation in ICT-based MIS project has a positive and significant impact on the use of seeds and fertilizers and improves land and labour productivity, but has a negative and significant impact on the usage of hired and family labour. These findings highlight the need for scaling up of the coverage of ICT-based MIS to enhance smallholder productivity and market access.
Global poverty rates have declined considerably, but the number of people living in extreme poverty remains high. Many of the poor are smallholder farmers. Agricultural commercialization-meaning a shift from subsistence to more market-oriented farming-can play a central role in improving smallholder welfare. Previous studies evaluated the impact of agricultural commercialization on income poverty, but whether income gains from commercialization are really used for satisfying basic needs was hardly analyzed up till now. Here, we evaluate the effect of commercialization on income poverty, as well as on the multidimensional poverty index that looks at deprivations in terms of education, nutrition, health, and other dimensions of living standard. Using data from 805 farm households in Kenya, we estimate average treatment effects. We also analyze impact heterogeneity with quantile regressions. Results show that commercialization significantly reduces both income poverty and multidimensional poverty. The magnitude of the income gains is positively correlated with income level, meaning that special market-linkage support for marginalized farms may be required to avoid rising income inequality. However, the effect in terms of reducing basic needs deprivations is strongest among the poorest households, suggesting that agricultural commercialization contributes effectively to achieving the sustainable development goals.
Commercialisation of smallholder agriculture is important for rural economic growth. While previous studies have analysed effects of commercialisation on productivity and income, implications for farm household nutrition have received much less attention. We evaluate the effects of commercialisation on household food security and dietary quality with a special focus on calorie and micronutrient consumption. We also examine transmission channels by looking at the role of income, gender, and possible substitution effects between the consumption of own-produced and purchased foods. The analysis uses survey data from farm households in Kenya and a control function approach. Generalised propensity scores are employed to estimate continuous treatment effects. Commercialisation significantly improves food security and dietary quality in terms of calorie, zinc and iron consumption. For vitamin A, effects are insignificant. Commercialisation contributes to higher incomes and increased nutrients from purchased foods, but it does not reduce the consumption of nutrients from own-produced foods. Enhancing market access is important not only for rural economic growth, but also for making smallholder agriculture more nutrition-sensitive.
Background: Potato is a major food crop in the tropical regions of Africa. However, potato yields continue to remain very low in these regions mainly due to use of poor quality seed. The recent development of rapid seed multiplication technique has helped to shorten the duration of certified seed potato (CSP) production and increase the supply of seed. This study assessed the effect of using CSP on yield, input use, and food security among smallholder farmers. It focused on potato growers in central highlands of Kenya, who were in close proximity to a private seed multiplier that uses these new techniques. The study used the propensity score matching technique and data collected from 408 smallholder farmers through personal interviews. The farmers were stratified by use of CSP. Results: The study found positive effect of using certified seed on both yield and food security. There was also a slight increase in input usage, apparently due to pursuit by farmers to optimize the gains from CSP. Conclusion: The study concludes that using CSP has positive effect on smallholder farm households.
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