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Determinants of smallholder farmers’ demand for purchased inputs in Lilongwe District, Malawi: evidence from Mitundu extension planning area

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  • Maganga, Assa
  • Mehare, Abure
  • Ngoma, Kisa
  • Magombo, Elizabeth
  • Gondwe, Paul

Abstract

The aim of this study was to empirically determine the factors that affect smallholder farmers’ demand for purchased fertilizer and seed using cross section data from 160 farmers. Model solutions, which were created by using Translog Cost Function were carried out by Seemingly Unrelated Regression (SUR). To this end this study revealed that education, field size (plot of land cultivated) and household size have significant negative relationship with the share of fertilizer purchased and positively related with share of seed. Whereas price of output, seed, fertilizer and income of the household are found to be significant and positively related to share of fertilizer and negatively related with share of purchased seed.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 34590.

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Date of creation: 05 Jan 2011
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Handle: RePEc:pra:mprapa:34590

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Keywords: Translog; Cost; Purchase inputs; Demand;

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  1. Breusch, T S & Pagan, A R, 1979. "A Simple Test for Heteroscedasticity and Random Coefficient Variation," Econometrica, Econometric Society, vol. 47(5), pages 1287-94, September.
  2. Dalton, Timothy J. & Masters, William A. & Foster, Kenneth A., 1997. "Production costs and input substitution in Zimbabwe's smallholder agriculture," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 17(2-3), December.
  3. Obare, G. A. & Omamo, S. W. & Williams, J. C., 2003. "Smallholder production structure and rural roads in Africa: the case of Nakuru District, Kenya," Agricultural Economics, Blackwell, vol. 28(3), pages 245-254, May.
  4. Olwande, John & Ngigi, Margaret & Nguyo, Wilson, 2009. "Supply Responsiveness Of Maize Farmers In Kenya: A Farm-Level Analysis," 2009 Conference, August 16-22, 2009, Beijing, China 50786, International Association of Agricultural Economists.
  5. Kelly, Valerie A., 2005. "Farmers' Demand for Fertilizer in Sub-Saharan Africa," Staff Papers 11612, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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