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Interlinked credit and farm intensification: evidence from Kenya

  • Jayne, T.S.
  • Yamano, Takashi
  • Nyoro, James

This paper addresses the potential for interlinked credit/input/output marketing arrangements for cash crops to promote food crop intensification. Using panel survey data from Kenya, we estimate a household fixed-effects model of fertilizer use per hectare of food crops. Results indicate that households engaging in interlinked marketing programs for selected cash crops applied considerably more fertilizer on other crops (primarily cereals) not directly purchased by the cash crop trading firm. These findings suggest that, in addition to the direct stimulus that interlinked cash crop marketing arrangements can have on small farmer incomes, these institutional arrangements may provide spillover benefits for the productivity of farmers' other activities such as food cropping.

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Article provided by Blackwell in its journal Agricultural Economics.

Volume (Year): 31 (2004)
Issue (Month): 2-3 (December)
Pages: 209-218

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Handle: RePEc:eee:agecon:v:31:y:2004:i:2-3:p:209-218
Contact details of provider: Web page: http://www.blackwell-synergy.com/loi/agec

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  1. Kelley, Valerie A. & Diagana, Bocar N. & Reardon, Thomas & Gaye, Matar & Crawford, Eric W., 1996. "Cash Crop and Foodgrain Productivity in Senegal: Historical View, New Survey Evidence, and Policy Implications," Food Security International Development Policy Syntheses 11459, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  2. Feder, Gershon & Lau, Lawrence J. & Lin, Justin Y. & Xiaopeng Luo, 1991. "Credit's effect on productivity in Chinese agriculture : a microeconomic model of disequilibrium," Policy Research Working Paper Series 571, The World Bank.
  3. Govereh, Jones & Jayne, T.S., 2003. "Cash cropping and food crop productivity: synergies or trade-offs?," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 28(1), January.
  4. Anjini Kochar, 1997. "Does Lack of Access to Formal Credit Constrain Agricultural Production? Evidence from the Land Tenancy Market in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 754-763.
  5. Goetz, Stephan J, 1993. "Interlinked Markets and the Cash Crop-Food Crop Debate in Land-Abundant Tropical Agriculture," Economic Development and Cultural Change, University of Chicago Press, vol. 41(2), pages 343-61, January.
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