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Abstract

Farmers may grow crops for local consumption despite more profitable export options. DrumNet, a Kenyan NGO that helps small farmers adopt and market export crops, conducted a randomized trial to evaluate its impact. DrumNet services increased production of export crops and lowered marketing costs, leading to a 32% income gain for new adopters. The services collapsed one year later when the exporter stopped buying from DrumNet because farmers could not meet new EU production requirements. Farmers sold to other middlemen and defaulted on their loans from DrumNet. Such experiences may explain why farmers are less likely to adopt export crops. Copyright 2009, Oxford University Press.

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File URL: http://hdl.handle.net/10.1111/j.1467-8276.2009.01319.x
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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 91 (2009)
Issue (Month): 4 ()
Pages: 973-990

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Handle: RePEc:oup:ajagec:v:91:y:2009:i:4:p:973-990

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Find related papers by JEL classification:

• F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
• O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
• Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

References

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Cited by:

1. Msuya, E. E & Isinika, A. C., 2011. "Addressing food self-sufficiency in Tanzania: a balancing act of policy coordination," MPRA Paper 30886, University Library of Munich, Germany.
2. Jorge Balat & Irene Brambilla & Guido Porto, 2007. "Realizing the Gains From Trade: Export Crops, Marketing Costs, and Poverty," NBER Working Papers 13395, National Bureau of Economic Research, Inc.
   
   • Balat, Jorge & Brambilla, Irene & Porto, Guido, 2009. "Realizing the gains from trade: Export crops, marketing costs, and poverty," Journal of International Economics, Elsevier, vol. 78(1), pages 21-31, June.
   • Balat, Jorge & Brambilla, Irene & Porto, Guido, 2008. "Realizing the gains from trade : export crops, marketing costs, and poverty," Policy Research Working Paper Series 4488, The World Bank.
3. Bignebat, C. & Vagneron, I., 2011. "Cross-border coordination in the Madagascar-EU lychee chain: the role of GlobalGAP," Working Papers MOISA 201106, UMR MOISA : Marchés, Organisations, Institutions et Stratégies d'Acteurs : CIHEAM-IAMM, CIRAD, INRA, Montpellier SupAgro, IRD - Montpellier, France.
4. Mullally, Conner, 2011. "Development in the Midst of Drought: Evaluating an Agricultural Extension and Credit Program in Nicaragua," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 108723, Agricultural and Applied Economics Association.
5. Quisumbing, Agnes R. & Pandolfelli, Lauren, 2009. "Promising approaches to address the needs of poor female farmers: Resources, constraints, and interventions," IFPRI discussion papers 882, International Food Policy Research Institute (IFPRI).
   
   • Quisumbing, Agnes R. & Pandolfelli, Lauren, 2010. "Promising Approaches to Address the Needs of Poor Female Farmers: Resources, Constraints, and Interventions," World Development, Elsevier, vol. 38(4), pages 581-592, April.
6. Michelson, Hope C., 2012. "Small farmers, NGOs, and a Walmart World: Welfare effects of supermarkets operating in Nicaragua," MPRA Paper 42458, University Library of Munich, Germany.
7. Mullally, Conner, 2011. "Development in the Midst of Drought: Evaluating an Agricultural Extension and Credit Program in Nicaragua," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 108498, Agricultural and Applied Economics Association.
8. Mullally, Conner, 2011. "Development in the Midst of Drought: Evaluating an Agricultural Extension and Credit Program in Nicaragua," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 109664, Agricultural and Applied Economics Association.
9. Kijima, Yoko & Otsuka, Keijiro & Sserunkuuma, Dick, 2011. "An Inquiry into Constraints on a Green Revolution in Sub-Saharan Africa: The Case of NERICA Rice in Uganda," World Development, Elsevier, vol. 39(1), pages 77-86, January.

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