IDEAS home Printed from https://ideas.repec.org/p/ags/aaae23/365916.html
   My bibliography  Save this paper

To adopt or not to adopt? Examining the impact of climate-smart seeds varieties on production risks

Author

Listed:
  • Olagunju, Kehinde Oluseyi
  • Ogunniyi, Adebayo Isaiah
  • Oyetunde-Usman, Zainab
  • Omotayo, Abiodun Olusola

Abstract

While several studies have explored the yield-increasing effects of climate-smart seed varieties, little is known about the potential of these varieties to lower farmers' production risk. Using a nationally representative dataset collected from 2,216 maize-farming households in Nigeria, we fill this knowledge gap by analysing the treatment effects of adoption of drought-tolerant maize varieties (DTMVs) on production risk, measured by expected yield, yield variance (variability), and yield skewness (downside risk). To do so, we employ an endogenous switching regression model to sufficiently tackle selectively bias issue that may arise from observed and unobserved factors. Results show that DTMVs adoption increases maize yield by 26.61% and reduce variance and downside risk by 95% and 164%, respectively. The robustness of these findings is established by further analyses using the propensity score matching and inverse-probability-weighted regression adjustment approaches. We recommend that policy measures that seek to tackle dissemination constraints, such as promotion of informal seed sector, could enhance the adoption of climate-smart seeds that will eventually improve farm performance and reduce output risk.

Suggested Citation

  • Olagunju, Kehinde Oluseyi & Ogunniyi, Adebayo Isaiah & Oyetunde-Usman, Zainab & Omotayo, Abiodun Olusola, 2023. "To adopt or not to adopt? Examining the impact of climate-smart seeds varieties on production risks," 2023 Seventh AAAE/60th AEASA Conference, September 18-21, 2023, Durban, South Africa 365916, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae23:365916
    DOI: 10.22004/ag.econ.365916
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/365916/files/232.%20Seeds%20in%20Nigeria.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.365916?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. J. M. Antle & W. J. Goodger, 1984. "Measuring Stochastic Technology: The Case of Tulare Milk Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 342-350.
    2. Issahaku, Gazali & Abdulai, Awudu, . "Adoption of climate-smart practices and its impact on farm performance and risk exposure among smallholder farmers in Ghana," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(2).
    3. Gazali Issahaku & Awudu Abdulai, 2020. "Adoption of climate‐smart practices and its impact on farm performance and risk exposure among smallholder farmers in Ghana," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(2), pages 396-420, April.
    4. Mauro Vigani & Jonas Kathage, 2019. "To Risk or Not to Risk? Risk Management and Farm Productivity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(5), pages 1432-1454.
    5. MI Na & Fu CAI & Yushu ZHANG & JI Ruipeng & Shujie ZHANG & Yang WANG, 2018. "Differential responses of maize yield to drought at vegetative and reproductive stages," Plant, Soil and Environment, Czech Academy of Agricultural Sciences, vol. 64(6), pages 260-267.
    6. Manda, J. & Gardebroek, C. & Kuntashula, E. & Alene, A.D., 2018. "Impact of Improved Maize Varieties on Food Security in Eastern Zambia: a doubly robust analysis," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277004, International Association of Agricultural Economists.
    7. Antle, John M, 1983. "Testing the Stochastic Structure of Production: A Flexible Moment-based Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 1(3), pages 192-201, July.
    8. Mukasa, Adamon N., 2018. "Technology adoption and risk exposure among smallholder farmers: Panel data evidence from Tanzania and Uganda," World Development, Elsevier, vol. 105(C), pages 299-309.
    9. Tahirou Abdoulaye & Tesfamicheal Wossen & Bola Awotide, 2018. "Impacts of improved maize varieties in Nigeria: ex-post assessment of productivity and welfare outcomes," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(2), pages 369-379, April.
    10. Richard S J Tol, 2018. "The Economic Impacts of Climate Change," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 12(1), pages 4-25.
    11. Ngango, Jules & Hong, Seungjee, 2021. "Impacts of land tenure security on yield and technical efficiency of maize farmers in Rwanda," Land Use Policy, Elsevier, vol. 107(C).
    12. Bezu, Sosina & Kassie, Girma T. & Shiferaw, Bekele & Ricker-Gilbert, Jacob, 2014. "Impact of Improved Maize Adoption on Welfare of Farm Households in Malawi: A Panel Data Analysis," World Development, Elsevier, vol. 59(C), pages 120-131.
    13. Monica Fisher & Tsedeke Abate & Rodney Lunduka & Woinishet Asnake & Yoseph Alemayehu & Ruth Madulu, 2015. "Drought tolerant maize for farmer adaptation to drought in sub-Saharan Africa: Determinants of adoption in eastern and southern Africa," Climatic Change, Springer, vol. 133(2), pages 283-299, November.
    14. Menale Kassie & Paswel Marenya & Yohannis Tessema & Moti Jaleta & Di Zeng & Olaf Erenstein & Dil Rahut, 2018. "Measuring Farm and Market Level Economic Impacts of Improved Maize Production Technologies in Ethiopia: Evidence from Panel Data," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(1), pages 76-95, February.
    15. Julius Manda & Cornelis Gardebroek & Elias Kuntashula & Arega D. Alene, 2018. "Impact of improved maize varieties on food security in Eastern Zambia: A doubly robust analysis," Review of Development Economics, Wiley Blackwell, vol. 22(4), pages 1709-1728, November.
    16. César Salazar & John Rand, 2016. "Production risk and adoption of irrigation technology: evidence from small-scale farmers in Chile," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 25(1), pages 1-37, December.
    17. Hyman, Glenn & Fujisaka, Sam & Jones, Peter & Wood, Stanley & de Vicente, M. Carmen & Dixon, John, 2008. "Strategic approaches to targeting technology generation: Assessing the coincidence of poverty and drought-prone crop production," Agricultural Systems, Elsevier, vol. 98(1), pages 50-61, July.
    18. Michael Lokshin & Zurab Sajaia, 2004. "Maximum likelihood estimation of endogenous switching regression models," Stata Journal, StataCorp LLC, vol. 4(3), pages 282-289, September.
    19. Mauro Vigani & Jonas Kathage, 2019. "To Risk or Not to Risk? Risk Management and Farm Productivity," American Journal of Agricultural Economics, John Wiley & Sons, vol. 101(5), pages 1432-1454, October.
    20. Asfaw, Solomon & Shiferaw, Bekele & Simtowe, Franklin & Lipper, Leslie, 2012. "Impact of modern agricultural technologies on smallholder welfare: Evidence from Tanzania and Ethiopia," Food Policy, Elsevier, vol. 37(3), pages 283-295.
    21. Khonje, Makaiko & Manda, Julius & Alene, Arega D. & Kassie, Menale, 2015. "Analysis of Adoption and Impacts of Improved Maize Varieties in Eastern Zambia," World Development, Elsevier, vol. 66(C), pages 695-706.
    22. Renato Villano & Boris Bravo-Ureta & Daniel Solís & Euan Fleming, 2015. "Modern Rice Technologies and Productivity in the Philippines: Disentangling Technology from Managerial Gaps," Journal of Agricultural Economics, Wiley Blackwell, vol. 66(1), pages 129-154, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Olagunju, Kehinde Oluseyi & Olagunju, Kehinde Ademola & Ogunniyi, Adebayo Isaiah & Omotayo, Abiodun Olusola & Oyetunde-Usman, Zainab, 2023. "To own or not to own? Land tenure security and production risk in small-scale farming," Land Use Policy, Elsevier, vol. 127(C).
    2. Kapoor, Shreya & Pal, Barun Deb, 2024. "Impact of adoption of climate smart agriculture practices on farmer's income in semi-arid regions of Karnataka," Agricultural Systems, Elsevier, vol. 221(C).
    3. Wanglin Ma & Hongyun Zheng & Peng Yuan, 2022. "Impacts of cooperative membership on banana yield and risk exposure: Insights from China," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(2), pages 564-579, June.
    4. Kazushi Takahashi & Rie Muraoka & Keijiro Otsuka, 2020. "Technology adoption, impact, and extension in developing countries’ agriculture: A review of the recent literature," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 31-45, January.
    5. Martey, Edward & Etwire, Prince Maxwell & Abdoulaye, Tahirou, 2020. "Welfare impacts of climate-smart agriculture in Ghana: Does row planting and drought-tolerant maize varieties matter?," Land Use Policy, Elsevier, vol. 95(C).
    6. Wanjira, John K. & Mburu, John I. & Nzuve, Felister M. & Makokha, Stella & Emongor, Rosemary A. & Taracha, Catheline, . "Impact of climate-smart maize varieties on household income among smallholder farmers in Kenya: The case of Embu County," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 17(3).
    7. Awotide, Bola Amoke & Ogunniyi, Adebayo & Olagunju, Kehinde Oluseyi & Manda, Julius & Alene, Arega & Nguena, Christian Lambert & Manyong, Victor & Abdoulaye, Tahirou, 2021. "Does Adoption of Improved Agricultural Technologies Impact Welfare, Poverty and Food Security in the Sahelian Region of West Africa?," 2021 Conference, August 17-31, 2021, Virtual 315119, International Association of Agricultural Economists.
    8. Gideon Danso-Abbeam & Lloyd J. S. Baiyegunhi & Mark D. Laing & Hussein Shimelis, 2022. "Productivity and Welfare Impacts of Dual-Purpose Sweetpotato Varieties’ Adoption Among Smallholder Farmers in Rwanda," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(2), pages 1097-1117, April.
    9. Faruque As Sunny & Linlin Fu & Md Sadique Rahman & Zuhui Huang, 2022. "Determinants and Impact of Solar Irrigation Facility (SIF) Adoption: A Case Study in Northern Bangladesh," Energies, MDPI, vol. 15(7), pages 1-17, March.
    10. Felister Y. Tibamanya & Mursali A. Milanzi & Arne Henningsen, 2021. "Drivers of and Barriers to Adoption of Improved Sun- flower Varieties amongst Smallholder Farmers in Singida, Tanzania: the Double-Hurdle Approach," IFRO Working Paper 2021/03, University of Copenhagen, Department of Food and Resource Economics.
    11. Birthal, Pratap S. & Hazrana, Jaweriah & Negi, Digvijay S. & Mishra, Ashok K., 2022. "Assessing benefits of crop insurance vis-a-vis irrigation in Indian agriculture," Food Policy, Elsevier, vol. 112(C).
    12. Martey, Edward & Etwire, Prince M. & Mockshell, Jonathan, 2021. "Climate-smart cowpea adoption and welfare effects of comprehensive agricultural training programs," Technology in Society, Elsevier, vol. 64(C).
    13. Hongyun Zheng & Wanglin Ma & Gucheng Li, 2021. "Adoption of organic soil amendments and its impact on farm performance: evidence from wheat farmers in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(2), pages 367-390, April.
    14. Tufa, Adane Hirpa & Alene, Arega D. & Manda, Julius & Akinwale, M.G. & Chikoye, David & Feleke, Shiferaw & Wossen, Tesfamicheal & Manyong, Victor, 2019. "The productivity and income effects of adoption of improved soybean varieties and agronomic practices in Malawi," World Development, Elsevier, vol. 124(C), pages 1-1.
    15. Goundan, Anatole & Faye, Amy & Henning, Christian H. C. A. & Collins-Sowah, Peron A., 2020. "Investing in risky inputs in Senegal: Implications for farm profit and food production," Working Papers of Agricultural Policy WP2020-07, University of Kiel, Department of Agricultural Economics, Chair of Agricultural Policy.
    16. Manda, Julius & Alene, Arega D. & Tufa, Adane H. & Abdoulaye, Tahirou & Wossen, Tesfamicheal & Chikoye, David & Manyong, Victor, 2019. "The poverty impacts of improved cowpea varieties in Nigeria: A counterfactual analysis," World Development, Elsevier, vol. 122(C), pages 261-271.
    17. Okyere, Charles Yaw & Kornher, Lukas, 2023. "Carbon farming training and welfare: Evidence from Northern Ghana," Land Use Policy, Elsevier, vol. 134(C).
    18. Ahmed, Haseeb & Correa, Juan Sebastian & Sitko, Nicholas J., 2025. "Climate adaptation, perceived resilience, and household wellbeing: Comparative evidence from Kenya and Zambia," Ecological Economics, Elsevier, vol. 235(C).
    19. Federico Antonioli & Simone Severini & Mauro Vigani, 2023. "Visa for competitiveness: foreign workforce and Italian dairy farms’ performance," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(1), pages 115-150.
    20. Ruzzante, Sacha & Labarta, Ricardo & Bilton, Amy, 2021. "Adoption of agricultural technology in the developing world: A meta-analysis of the empirical literature," World Development, Elsevier, vol. 146(C).

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaae23:365916. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaaeaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.