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Open Access
Article
Publication date: 31 October 2018

Franklin Simtowe and Kai Mausch

New agricultural technologies are continuously generated and promoted for adoption by farmers with the expectation that they bring about higher benefits than older…

1628

Abstract

Purpose

New agricultural technologies are continuously generated and promoted for adoption by farmers with the expectation that they bring about higher benefits than older technologies. Yet, depending on the perceived benefits, the user of the technology may choose to stop using it. This paper aims to analyze what drives farmers to dis-adopt climate smart sorghum varieties in Tanzania.

Design/methodology/approach

The study uses cross-sectional farm household level data collected in Tanzania from a sample of 767 households. The determinants of dis-adoption are explored using a bivariate probit with sample selection model.

Findings

The authors find that while farmers switch between different sorghum varieties, most farmers actually quit sorghum production. Older farmers and those facing biotic stresses such attacks by birds are more likely to dis-adopt sorghum.

Practical implications

These findings suggest that there is scope for improving and sustaining the adoption of sorghum varieties in Tanzania once extension services are strengthened. The findings also point to a well-founded theory on the role of markets in enhancing the overall sustainability of food systems.

Social implications

The study findings have broader implications for understanding the sustainability of improved technology adoption

Originality/value

Dis-adoption is also positively associated with the lack of access to markets underscoring the role of markets in enhancing the overall sustainability of technology adoption and food systems.

Details

International Journal of Climate Change Strategies and Management, vol. 11 no. 3
Type: Research Article
ISSN: 1756-8692

Keywords

Open Access
Article
Publication date: 15 May 2019

Emily Amondo, Franklin Simtowe, Dil Bahadur Rahut and Olaf Erenstein

Productivity and production risks affect the use of agricultural production practices and inputs, particularly in developing countries. This paper aims to investigate the…

2670

Abstract

Purpose

Productivity and production risks affect the use of agricultural production practices and inputs, particularly in developing countries. This paper aims to investigate the effects of adopting drought-tolerant maize varieties (DTMVs) on farm productivity, yield variance and downside risk exposure of maize growing households of Zambia.

Design/methodology/approach

The study uses household survey data collected from 11 maize producing districts of Eastern, Southern and Copperbelt provinces of Zambia using a structured questionnaire. The Antle’s flexible moment-based approach was used in specifying, estimating and testing a stochastic production function. The study further applied an endogenous switching regression model to control for both observable and unobservable sources of bias.

Findings

The study revealed that DTMV adoption increases maize yield by 15 per cent and reduces the risk of crop failure: reducing yield variance by 38 per cent and exposure to downside risk by 36 per cent.

Originality/value

This study establishes the benefits of DTMV adoption in Zambia with regards to productivity, yield stability and downside risk in the face of climate change. Results from this study underscore the need for more concerted efforts to scale-out DTMVs for both maize productivity enhancement and for risk mitigation against weather shocks.

Details

International Journal of Climate Change Strategies and Management, vol. 11 no. 4
Type: Research Article
ISSN: 1756-8692

Keywords

Article
Publication date: 1 November 2008

Franklin Simtowe, Aliou Diagne and Manfred Zeller

Using data from Malawi, this paper examines factors that influence a household’s likelihood of facing credit constraints. Households with larger land holdings have a…

Abstract

Using data from Malawi, this paper examines factors that influence a household’s likelihood of facing credit constraints. Households with larger land holdings have a higher probability of reporting credit constraints, apparently due to lack of secure land rights which could enable households to use land as collateral when borrowing. Households with a greater number of active male adults are also more likely to report credit constraints.

Details

Agricultural Finance Review, vol. 68 no. 2
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 8 August 2016

Minh Chau Tran, Christopher E.C. Gan and Baiding Hu

– The purpose of this paper is to identify factors affecting formal credit constraint status of rural farm households in Vietnam’s North Central Coast (NCC) region.

Abstract

Purpose

The purpose of this paper is to identify factors affecting formal credit constraint status of rural farm households in Vietnam’s North Central Coast (NCC) region.

Design/methodology/approach

Using the direct elicitation method (DEM), the authors consider both internal and external credit rationing.

Findings

Empirical evidences confirm the importance of household head’s age, gender and education to household’s likelihood of being credit constrained. In addition, households who have advantages in farm land size, labour resources and non-farm income are less likely to be credit constrained. Poor households are observed to remain restricted by formal credit institutions. Results from the endogenous switching regression model suggest that credit constraints negatively impact household’s consumption per capita and informal credit can act as a substitute to mitigate the negative influence of formal credit constraints.

Research limitations/implications

One limitation arises from the usage of the DEM to identify credit constrained households. The method cannot detect effective and ineffective constraints. Another limitation is the inability of cross-section data to capture long-term impacts of credit constraints on household welfare. Finally, causes of credit constraints from the lender’s view cannot be observed.

Practical implications

The results suggest that it is necessary to enhance the credit allocation regime to reduce the transaction cost and provide target households with sufficient credit. It should be emphasized that high transaction cost and the mismatch between credit demand and supply stemming from information asymmetry. The government can help formal financial institutions to reduce information cost by encouraging the active role of social organizations such as Women Unions, Youth Unions and Veteran Unions in bridging rural farm households with formal lenders.

Originality/value

There are limited studies focusing on determinants of credit constraints and their impacts on rural farm households. To the best of the knowledge, there is no study evaluating the impact of credit constraints on rural farm household welfare particularly in Vietnam. In addition, the studies related to credit constraints only considered full quantity rationing (households applied for the loan but were rejected), omitting the case of partly quantity rationing (loan obtained by the borrowers is less than their demand) and self-rationing.

Details

International Journal of Social Economics, vol. 43 no. 8
Type: Research Article
ISSN: 0306-8293

Keywords

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