The Commercialization of Smallholder Farming—A Case Study from the Rural Western Middle Hills of Nepal

Abstract

A vast majority of farmers in the rural middle hills of Nepal are smallholders who often use family labor and follow traditional agricultural and water management practices. This study examines a range of perspectives (from rural farmers to development experts) on the limited commercialization of rural agriculture in this region of Nepal and the potential approaches to promoting agricultural growth and commercialization among small landholders. An analysis of household surveys, key informant interviews, and focus group discussions in three wards of Kaski, Syangja, and Palpa districts of Nepal revealed that nearly one-third of farmers left their agricultural lands barren or only partly cultivated, and more than one-third were not motivated to engage in agricultural activities. This lack of motivation was found to be connected with limited or no access to irrigation water, poor production systems, a lack of access to markets, a low return on investment in agriculture, the low social status of farm-work, the incidence of crop infestations, and fear of production risks due to extreme climatic factors (such as low/high rainfall, droughts, etc.). Remittances related to outmigration were also found to be important factors limiting a farmer’s involvement in agriculture, which also creates labor shortages. This research confirms that, for agricultural production to be profitable and commercial, households need to receive qualified technical support to introduce new technologies, engage in markets, access input suppliers and service providers, and adopt high-value production crops and related techniques. Households that receive an income from government jobs, private sources, and remittances reported agriculture being a laborious and difficult task. Addressing these mediating factors along with the provision of effective crop insurance and subsides for the lower-income segments of the population, has the potential to (re)engage rural households in farming activities. Such an approach could provide a way to realize the government’s plans to commercialize smallholder farming.

Determinants of smallholder commercialization of livestock: A case study from Tigray, Ethiopia

“…Therefore, it can be said that non-livestock commercial activities are pioneers in advancing economic goals and achieving a successful market. It is consistent with previous findings by Gc and Hall (2020).…”

“…Therefore, it can be said that the presence of extension agents in the field of production can be very important in encouraging people to commercialize. The finding is consistent with Gc and Hall (2020) findings. The findings indicate a substantial gap at 5 percent between those who are engaged in livestock business and those who are engaged in non-livestock business.…”

Thinking beyond domestic water supply: approaches to advance multiple-use water systems (MUS) in the rural hills of Nepal

“…While the major share of participants in our focus groups reported MUS as a potentially important asset for rural communities, half of those engaged expressed concerns related to the risks of water-based production. They specifically cited possible crop failure, pest infestations, poor access to markets, low market prices, natural disasters and a lack of access to agricultural inputs, production technologies and financial services as concerns (GC & Hall, 2020). These factors had discouraged many small-scale farmers from adopting MUS.…”

Design and analysis of a hydro-powered water turbine pump: a sustainable irrigation infrastructure

“…It clearly shows the lack of commercialization in the agricultural sector of Nepal which is due to a massive share of smallholder farms. Here, 2.7 million smallholder farms account for 70% of the food produced with an average smallholder farm size of only 0.52 ha (Raj & Hall 2020). Among many other problems leading to the low productivity of the smallholder farms, lack of irrigation facilities and poor distribution of irrigation networks are major (JICA 2013).…”