Sources of efficiency, productivity and output growth in Botswanan agriculture
The purpose of this study is to explore reasons for the decline in agricultural performance in Botswana that has occurred during the implementation of a variety of policy measures, as well as the introduction of new technologies, and to identify ways in which it might be reversed. Panel data from six regions in Botswana (period 1979-2012) is analyzed with a stochastic output distance function and inefficiency effects model. We decompose agricultural output growth into; total factor productivity (TFP) and changes in input use (factors of production). TFP is further decomposed into scale effects, technical efficiency and technological change. The results show that over the study period agricultural output grew at a very low rate of 0.072 percent per year, which is largely due to a growth in factors of production at 0.071 percent per year rather than TFP growth (which declined at 0.003 percent per year). We found that the decline in productivity has been due to technological regress and low growth in technical efficiency and scale efficiency. Policy options aimed at improving agricultural productivity and output growth will require the strengthening of extension services; improving the agronomic and husbandry management skills of farmers through training; and by encouraging farmers to adopt and utilize technologies that have been provided under existing policy programs.
Agricultural Productivity, Efficiency and Growth in Botswana
Agriculture plays an important role in Botswana, providing food, income, employment and investment opportunities for the majority of the rural population. However, over the last two decades, the contribution of agriculture to the economy and rural development has declined leading to a progressive increase in food imports. Low growth in the agricultural sector has been attributed to low productivity, which could be attributed to the recurring drought conditions that prevail in many parts of the country, and partly by the small scale of farms. Remarkably, this decline in agricultural performance in Botswana has coincided with a period of major policy reform, the objective of which is to improve agricultural performance. This study measures the performance of the agricultural sector and investigates the reasons for continuing decline in spite of considerable public expenditure. Using panel data from 1979 to 2012, the study calculates various indicators to assess the different drivers of the performance of the sector across different agricultural districts, agro-ecological regions, production systems and sub-sectors. A nonparametric approach is employed to examine trends in agricultural productivity in six regions of Botswana. Measures of total factor productivity (TFP) are obtained and decomposed into various sources including efficiency change (technical, scale and mix efficiency) and technical change. The results show that TFP declined due to a fall in overall efficiency at 3.1 per cent per annum. Moreover, a parametric stochastic distance frontier approach is used to examine sources of efficiency, productivity and output growth and the possible reasons for the decline in productivity. It was found that the main driver of productivity is improvement in technical efficiency. The results show that various programs introduced during the study period did not lead to any improvement in productive efficiency. Results from both parametric and nonparametric approaches indicate that overall efficiency varies from region to region, which suggest that there is a scope for improving productivity by taking a differential regional approach to efforts aimed at increasing efficiency.
Farmers' Adaptive Responses to Climate Change: Evidence from the Small-Scale Rubber Sector in Southeast Vietnam
There is great need for research on climate change adaptation, especially for agricultural producers, including those involved in natural rubber production. Almost all of the traditional rubber growing areas in the world suffer from climate extremes, which have resulted from climate changes. The intensity of climate changes will vary across these areas, and it is difficult to anticipate exactly how these changes will occur in the future (RRII, 2010). In the meantime, the rubber industry is also highly vulnerable to market uncertainty (Viswanathan, 2008; Wijesuriya et al., 2007). These facts require special attention in formulating adaptation strategies (Wijesuriya & Dissanayake, 2009), and require rubber farmers to adapt (RRII, 2010). Many solutions through technologies and cultivation practices have been developed over time to offset losses caused by the negative effects of climate change on rubber plantations. They exist to improve latex yield and technical efficiency. These solutions are adopted in some regions, but not everywhere (Barlow & Muharminto, 1982). Assessment of the farm-level adoption of adaptation strategies available is crucial in order to provide information for the formulation of related policies (Charles & Rashid, 2007; Smit et al., 2001). There is a gap in farming systems research in developing countries regarding the comprehensive assessment of climate change adaptation at the farm level. The comprehensive approach used in this study, in terms of methods of analysis of climate change, climate variability, their negative impacts on crop performance, perception, vulnerability, adaptation and logical mechanisms of farmer adaptation, is a methodological contribution beyond what has been done in previous studies. Developing and applying a comprehensive analytical framework will allow local decision makers as well as related stakeholders to manage climate change adaptation in farming systems. The main purpose of this study is to investigate farmer households' adaptive responses, their preference patterns for climate change adaptation and the determinants of their adaptive responses. This knowledge is of great interest for designing climate change adaptation schemes; therefore, this research can assist local policy-makers to address the challenges of climate change and variability.
Economics of Improved Seed Yam Production: Implications for Food Security in Cameroon
Agricultural research technologies are usually developed and disseminated to farmers with the ultimate goal of increasing productivity, raising farmers’ incomes and for food security improvement. The minisett seed yam is one of such technologies which has been disseminated to yam farmers across Africa and Cameroon since the 1980s. The technology consists of using healthy ware yam to produce large quantities of ‘clean’ or disease-free, low-cost seed yam. In Cameroon policy incentives and programmes have been put in place by the government to scale-up the adoption and successful use of the minisett seed yam technology with the intent of increasing yam yields and output, farmers’ income and, to improve food security. Agricultural research and extension reforms were also taken by the state, including the creation or restructuring of the curricula of state universities, agricultural research and extension programmes and the promulgation of seed production enhancing policies. The Cameroon government, in collaboration with international funding and research agencies and the private sector, allocated funds and expertise to implement these policies and programmes. However, despite this favorable policy environment, yam production and productivity in Cameroon still lags behind that of most yam producing countries in Africa. Access to quality planting materials is one of the major constraints facing the yam industry, however, the adoption and use of quality seed yam technology by farmers, and the benefits it could make towards revitalizing the yam industry in the country has not been investigated. This is especially so because no empirical assessment has been carried out which examines the performance of seed yam enterprises in Cameroon, or that evaluates the extent of use of the technology, or which assesses its impact on yam production and livelihood. The aim of this research is therefore to assess the economic importance of the minisett seed yam production technology and its contribution to food security in Cameroon. Specifically, the study objectives are: i) determine the extent of use or adoption of minisett seed yam technology, ii) examine the performance of minisett seed yam production enterprises and iii) determine the impact of the uptake of the technology on yam productivity and the household income of smallholder yam farmers in Cameroon.
The results obtained using a two-part binary and fractional probit regression models (FRM) show that the adoption and intensity decisions are sequential and not entirely determined by the same factors. The common factors that negatively influence these decisions are farm size and person-day labour cost. The adoption and extent of use decisions are also positively driven by access to fertiliser. Unlike the decision to adopt the minisett seed yam technology, the extent of use of the technology was additionally influenced by training, hired and family labour. The extent of use of the technology was estimated at 0.14 thereby indicating that the adopters of the minisett seed yam allocate approximately 14% of their yam farm area for seed yam production. The probability and extent of adoption of the technology could be increased by 16% provided farmers have access to affordable labour and fertilisers. Training of farmers is also of prime importance to increase the extent of use of the technology. The services of existing community-based organisations could be used as labour saving mechanisms both for training, affordable labour services and outreach for farmers to adopt and use the minisett technique.
The performance of minisett seed yam enterprises was examined using stochastic frontier production analysis. A translog stochastic frontier production function and inefficiency effects model were jointly estimated and model results show that the average level of technical efficiency of seed yam production enterprises was 62%. This indicates that there is significant opportunity to increase seed yam production by 38% using the farmer’s existing resources. Cropping system, fertiliser use, access to markets, expected price hikes of mature tubers and the experience of farmers, positively and significantly increase the technical efficiency of seed yam production whilst a lack of access to credit was found to be a limiting factor to performance improvement. These results highlight the importance of technical support and extension services, improving access to markets and pricing in order to enhance the productivity of smallholder seed yam farmers in developing countries.
The assessment of the impact of adoption of minisett seed yam technology on yam yields and household income was done using various propensity score matching (PSM) algorithms. The results show that adoption of the technology has positive and significant causal effects on yam yields and household income of yam farmers in Cameroon. The results underscore the need to intensify and encourage the use of agricultural technologies to boost yam productivity and incomes of smallholder farmers. Good agronomic practices, access to inputs and more training - especially via farmers’ organisations - would enhance the impact of agricultural technology uptake on yam yields, incomes of smallholder farmers and implicitly then on food security and rural livelihoods.
Agricultural Productivity, Efficiency and Growth in a Semi-Arid Country: Case Study of Botswana, 1979-2012
To improve the welfare of the rural poor and to decrease the dependence of the national economy on minerals, the government of Botswana has been spending 40% of the value of agricultural GDP on agricultural support services. Despite this massive investment, there is evidence that agricultural productivity has declined in recent years. This paper attempts to explore the reasons for this decline. We use secondary data from six regions of Botswana (covering the period 1979 to 2012) to construct a Fare-Primont index of productivity following the approach proposed by O'Donnell (2012). The results of the analysis show that annual TFP has gradually declined over the period. This decline is predominantly due to technological regress which is offset by some increase in scale and mix efficiency.