ABSTRACT
The relationship between farm size and productivity has been studied extensively in the agricultural and development economics literature. However, most of the documented evidence in sub-Saharan Africa (SSA) is based on samples of small-scale farms operating 5 ha or less, with very little evidence assessing this relationship over a wider range of farm sizes. This omission is especially important considering the rapid expansion of medium-scale farms in much of Africa. This study examines the farm size-productivity relationship over a range of farms between zero and 40 ha in Nigeria. It also tests whether there is heterogeneity in productivity within medium-scale farms depending on how they came into being. Using four measures of productivity, empirical estimates reveal a U-shaped relationship where the IR holds between zero and about 22 ha, turning positive afterwards. Moreover, when medium-scale farms are distinguished between those who were actively engaged as small-scale farmers and stepped up/expanded their scale of operation and those who were primarily in non-farm employment and later stepped into medium-scale farming, the turning point for farmers who stepped up into medium-scale farming is at 11 ha, in contrast to 22 ha for those who stepped in. Further evidence suggests heterogeneity in productivity within medium-scale farms depending on whether the owner-operators stepped up or stepped into medium-scale farming. These findings imply that policies facilitating smallholders' ability to expand the scale of their activities could contribute substantially to growth in farm productivity, agricultural commercialization and increase in food security in Nigeria, although in most areas only a small proportion of smallholder households are in a position to do this.
ABSTRACT
This article addresses the question of whether subsidizing an entirely new agricultural technology for smallholder farmers can aid its adoption early in the diffusion process. Based on a theoretical framework for technology adoption under subjective uncertainty, we implemented a randomized field experiment among 1,200 smallholders in Uganda to estimate the extent to which subsidizing an improved grain storage bag crowds-out or crowds-in commercial buying of the technology. The empirical results show that on average, subsidized households are more likely to buy an additional bag at commercial prices relative to the households with no subsidy who are equally aware of the technology. This suggests that under certain circumstances, such as when there is uncertainty about the effectiveness of a new agricultural technology, and the private sector market for the technology is weak or nascent, a one-time use of subsidy to build awareness and reduce risk can help generate demand for the new technology and thus crowd-in commercial demand for it. In this context, a subsidy can allow farmers to experiment with the technology and learn from the experience before investing in it. JEL codes: C23, C93, O33, Q12, Q18.
ABSTRACT
We use panel data from a randomized controlled trial (RCT) administered among 1200 smallholders in Uganda to evaluate input use and food security impacts of an improved maize storage technology. After two seasons, households who received the technology were 10 percentage points more likely to plant hybrid maize varieties that are more susceptible to insect pests in storage than traditional lower-yielding varieties. Treated smallholders also stored maize for a longer period, reported a substantial drop in storage losses, and were less likely to use storage chemicals than untreated cohorts. Our results indicate that policies to promote soft kernel high-yielding hybrid maize varieties in sub-Saharan Africa should consider an improvement in post-harvest storage as a complementary intervention to increase adoption of these varieties.
