Commercialization of Urban Vegetable Farming

While total factor productivity (TFP) difference between the subsistence and commercial farm types is negligible, a large number of subsistence‐based farms remain outside the market economy, and national policies have emphasized the need to bring them into the fold of commercial agriculture. Improving market access may help induce greater farm commercialization and thus greater investment in agriculture. However, there is little empirical evidence on farm‐level factors that stimulate agricultural commercialization in SSA. Using a nationally representative panel data from the Living Standards Measurement Study‐Integrated Surveys on Agriculture, this article estimates the likelihood of being a commercial versus a subsistence farmer and the likelihood of transitioning from one farm type to another based on observable characteristics in Nigeria and Tanzania. The analysis demonstrates that although a substantial proportion of farms have no market participation in a given year, there are rich transition dynamics over time. The results from the probit regression show that resource endowments (land, labor, chemical use) and farm characteristics (multicropping system; irrigation; crop types such as fruits, vegetables, and cash crops; and animal traction use) do matter for market participation and the transitioning of subsistence farms into a market economy. These variables are positively correlated with farm commercialization and increase the likelihood of market participation. Overall, policies aimed at improving farmers' access to resources and promoting sustainable smallholder agriculture could be instrumental in raising productivity in agriculture and enhancing marketable agricultural output.

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“…See, for example, Akinlade et al. (2016), Awotide et al. (2016), Muriithi and Matz (2014), Mmbando et al.…”

Section: Introductionmentioning

confidence: 99%

Drivers of farm commercialization in Nigeria and Tanzania

Owusu

Iscan

2021

Agricultural Economics

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“…Market participation is the result of farmer' production-and marketing strategies, which have been subject of many studies (Barrett, 2008;Barrett et al, 2012;Dekker et al, 2011;Duncan et al, 2013;Gebremedhin and Jaleta, 2010;Schiere, 2001;Udo et al, 2011). Various authors have shown how farmer' market participation is affected by market access or market quality (Akinlade et al, 2016;Barrett et al, 2012;Gebremedhin and Jaleta, 2010;Omiti et al, 2006). In line with Duncan et al (2013), we define market quality as access to relevant in-and output markets, associated with proximity, quality, price, and reliability of supply of inputs.…”

Section: Key Conceptsmentioning

confidence: 99%

“…(1) Developed by authors based on (Akinlade et al, 2016;Bahta and Malope, 2014;Barrett et al, 2012;Gebremedhin and Jaleta, 2010;Hamilton-Peach and Townsley, 2004;Migose et al, 2018;Moll et al, 2007;Mugisha et al, 2014;Mutambara et al, 2013;Nanyeenya et al, 2009;Olwande et al, 2015;Omiti et al, 2009;Poole et al, 2013;Reardon et al, 2014;Somda et al, 2005;Udo et al, 2011;Vandercasteelen et al, 2018a;van de Steeg et al, 2010;van Melle et al, 2013;Voors and D'Haese, 2010). (2) Based on farmer responses, these were categorized as:…”

Section: Analytical Frameworkmentioning

confidence: 99%

“…Intensification of livestock production with stronger market participation of smallholder farmers is generally promoted as an important pathway to secure food supply to growing urban markets in developing countries (Paul et al, 2018;Reardon et al, 2014). Where pressure on land increases, following population growth and urbanization, it is considered essential to focus on increasing output per unit of land (Akinlade et al, 2016). Intensification of production per unit of land is associated with increased utilization of external inputs and services, with the aim of growth in marketable surplus (Barrett et al, 2012;Duncan et al, 2013).…”

Section: Introductionmentioning

confidence: 99%

“…Intensification of production per unit of land is associated with increased utilization of external inputs and services, with the aim of growth in marketable surplus (Barrett et al, 2012;Duncan et al, 2013). This trend toward commercialization of production usually leads to farm specialization and requires increasing market orientation, market participation and business skills (Akinlade et al, 2016;Udo et al, 2011).…”

Section: Introductionmentioning

confidence: 99%

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