Production risk and farm technology adoption in the rain-fed semi-arid lands of Kenya
AbstractThis study provides empirical evidence on the effects of production risk on smallholder farmersâ€™ adoption of farm technology, using plot-level data collected from two semi-arid districts in Kenya, Machakos and Taita Taveta. Using Mundlakâ€™s approach (1978), the study found that factors such as yield variability and the risk of crop failures indeed affect technology adoption decisions in low-income, rainfed agriculture. However, the direction and magnitude of effects depend on the farm technology under consideration. The results explain why poor farm households in rainfed and risky production environments are reluctant to adopt new farm technologies that could improve production: it is because the technologies involve enormous downside risks. This result underscores the fact that productivity gain is a necessary, but not sufficient, condition to attract farmers to adopt new technologies and agricultural innovations.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by NCERA-210 in its journal Journal of Cooperatives.
Volume (Year): 04 (2010)
Issue (Month): 2 (June)
Contact details of provider:
Postal: 342 Waters Hall, Manhattan, Kansas 66506
Web page: http://www.agecon.ksu.edu/accc/ncera210/JournalofCooperatives.htm
More information through EDIRC
farm productivity; production risk; farm technology adoption; Kenya; Farm Management; International Development; Research and Development/Tech Change/Emerging Technologies; D81; Q12; Q18;
Find related papers by JEL classification:
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stefan Dercon, 2003.
"Growth and Shocks: evidence from rural Ethiopia,"
Economics Series Working Papers
WPS/2003-12, University of Oxford, Department of Economics.
- Kim, Kwansoo & Chavas, Jean-Paul, 2003.
"Technological change and risk management: an application to the economics of corn production,"
Blackwell, vol. 29(2), pages 125-142, October.
- Kim, Kwansoo & Chavas, Jean-Paul, 2001. "Technological Change And Risk Management: An Application To The Economics Of Corn Production," 2001 Annual meeting, August 5-8, Chicago, IL 20605, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Koundouri, Phoebe & Nauges, Céline & Tzouvelekas, Vangelis, 2006. "Technology Adoption under Production Uncertainty: Theory and Application to Irrigation Technology," Open Access publications from University of Toulouse 1 Capitole http://neeo.univ-tlse1.fr, University of Toulouse 1 Capitole.
- Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-98, January.
- Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
- Kassie, Menale & Yesuf, Mahmud & Köhlin, Gunnar, 2008.
"The Role of Production Risk in Sustainable Land-Management Technology Adoption in the Ethiopian Highlands,"
dp-08-15-efd, Resources For the Future.
- Kassie, Menale & Yesuf, Mahmud & Köhlin, Gunnar, 2009. "The Role of Production Risk in Sustainable Land-Management Technology Adoption in the Ethiopian Highlands," Working Papers in Economics 407, University of Gothenburg, Department of Economics.
- Shively, Gerald E., 1997. "Consumption risk, farm characteristics, and soil conservation adoption among low-income farmers in the Philippines," Agricultural Economics, Blackwell, vol. 17(2-3), pages 165-177, December.
- Doss, Cheryl R., 2003. "Understanding Farm-Level Technology Adoption: Lessons Learned From Cimmyt'S Micro Surveys In Eastern Africa," Economics Working Papers 46552, CIMMYT: International Maize and Wheat Improvement Center.
- Ben Groom & Phoebe Koundouri & Celine Nauges & Alban Thomas, 2008. "The story of the moment: risk averse cypriot farmers respond to drought management," Applied Economics, Taylor & Francis Journals, vol. 40(3), pages 315-326.
- Shively, Gerald E., 2001. "Poverty, consumption risk, and soil conservation," Journal of Development Economics, Elsevier, vol. 65(2), pages 267-290, August.
- R. M. Hassan & A. Hallam, 1990. "Stochastic Technology In A Programming Framework: A Generalised Mean-Variance Farm Model," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(2), pages 196-206.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.