IDEAS home Printed from https://ideas.repec.org/p/ags/iaae18/277288.html
   My bibliography  Save this paper

Can Big Companies' Initiatives to Promote Mechanization Benefit Small Farms in Africa? A Case Study from Zambia

Author

Listed:
  • Birner, R.
  • Adu-Baffour, F.
  • Daum, T.

Abstract

After many years of neglect, there is a renewed interest in agricultural mechanization in Africa. This paper analyzes an initiative of the company John Deere and its dealer AFGRI to promote smallholder mechanization in Zambia. The analysis focuses on the impact of this initiative on smallholder farmers who receive tractor services and on the demand for hired labor. The results of a Propensity Score Matching (PSM) analysis indicate that farmers who access tractor services for land preparation can almost double their income by cultivating a much larger share of the land that they own. The analysis also suggests that the increased income is used for children s education and for purchasing more food, but does not result in increased food diversity. The findings indicate that the demand for hired labor increases due to the expansion of the cultivated area and due to a shift from family labor, including that of children, to hired labor. Questions that require further investigation are identified, including strategies to increase the incentives of tractor owners to provide services to smallholders; and strategies to avoid new forms of dependency of agricultural laborers that may result from a shift in the timing of the labor demand. Acknowledgement : We would like to thank all persons who were interviewed for this study. We gratefully acknowledge the financial support, which was provided by the "Program of Accompanying Research for Agricultural Innovation (PARI)", a program funded by the German Federal Ministry of Economic Cooperation and Development (BMZ). We are also grateful to The Deere & Company, which enabled this study and funded the fieldwork of two Master students.

Suggested Citation

  • Birner, R. & Adu-Baffour, F. & Daum, T., 2018. "Can Big Companies' Initiatives to Promote Mechanization Benefit Small Farms in Africa? A Case Study from Zambia," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277288, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277288
    DOI: 10.22004/ag.econ.277288
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/277288/files/1556.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.277288?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hazell, Peter & Poulton, Colin & Wiggins, Steve & Dorward, Andrew, 2010. "The Future of Small Farms: Trajectories and Policy Priorities," World Development, Elsevier, vol. 38(10), pages 1349-1361, October.
    2. Klaus Deininger & Derek Byerlee & Jonathan Lindsay & Andrew Norton & Harris Selod & Mercedes Stickler, 2011. "Rising Global Interest in Farmland : Can it Yield Sustainable and Equitable Benefits?," World Bank Publications - Books, The World Bank Group, number 2263, December.
    3. Nazaire Houssou & Xinshen Diao & Frances Cossar & Shashidhara Kolavalli & Kipo Jimah & Patrick Ohene Aboagye, 2013. "Agricultural Mechanization in Ghana: Is Specialized Agricultural Mechanization Service Provision a Viable Business Model?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(5), pages 1237-1244.
    4. Birner, Regina & Resnick, Danielle, 2010. "The Political Economy of Policies for Smallholder Agriculture," World Development, Elsevier, vol. 38(10), pages 1442-1452, October.
    5. Shahidur R. Khandker & Gayatri B. Koolwal & Hussain A. Samad, . "Handbook on Impact Evaluation : Quantitative Methods and Practices," World Bank Publications, The World Bank, number 2693, September.
    6. Davis, Benjamin & Di Giuseppe, Stefania & Zezza, Alberto, 2017. "Are African households (not) leaving agriculture? Patterns of households’ income sources in rural Sub-Saharan Africa," Food Policy, Elsevier, vol. 67(C), pages 153-174.
    7. White, Howard, 2009. "Theory-Based Impact Evaluation," 3ie Publications 2009-3, International Initiative for Impact Evaluation (3ie).
    8. Diao, Xinshen & Cossar, Frances & Houssou, Nazaire & Kolavalli, Shashidhara & Jimah, Kipo & Aboagye, Patrick, 2012. "Mechanization in Ghana: Searching for sustainable service supply models:," IFPRI discussion papers 1237, International Food Policy Research Institute (IFPRI).
    9. Thomas Daum & Regina Birner, 2017. "The neglected governance challenges of agricultural mechanisation in Africa – insights from Ghana," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(5), pages 959-979, October.
    10. Diao, Xinshen & Cossar, Frances & Houssou, Nazaire & Kolavalli, Shashidhara, 2014. "Mechanization in Ghana: Emerging demand, and the search for alternative supply models," Food Policy, Elsevier, vol. 48(C), pages 168-181.
    11. Derek Byerlee & Klaus Deininger, 2013. "The Rise of Large Farms in Land-Abundant Countries: Do They Have a Future?," Palgrave Macmillan Books, in: Stein T. Holden & Keijiro Otsuka & Klaus Deininger (ed.), Land Tenure Reform in Asia and Africa, chapter 14, pages 333-353, Palgrave Macmillan.
    12. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    13. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
    14. Sheahan, Megan & Barrett, Christopher B., 2017. "Ten striking facts about agricultural input use in Sub-Saharan Africa," Food Policy, Elsevier, vol. 67(C), pages 12-25.
    15. World Bank, 2010. "Gender and Governance in Rural Services : Insights from India, Ghana, and Ethiopia," World Bank Publications - Books, The World Bank Group, number 2410, December.
    16. Olmstead, Alan L. & Rhode, Paul W., 1995. "Beyond the Threshold: An Analysis of the Characteristics and Behavior of Early Reaper Adopters," The Journal of Economic History, Cambridge University Press, vol. 55(1), pages 27-57, March.
    17. Tembo, Solomon & Sitko, Nicholas, 2013. "Technical Compendium: Descriptive Agricultural Statistics and Analysis for Zambia," Food Security Collaborative Working Papers 155988, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    18. Pingali, Prabhu, 2007. "Agricultural Mechanization: Adoption Patterns and Economic Impact," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 54, pages 2779-2805, Elsevier.
    19. Binswanger, Hans, 1986. "Agricultural Mechanization: A Comparative Historical Perspective," The World Bank Research Observer, World Bank, vol. 1(1), pages 27-56, January.
    20. Steven Haggblade & Jeffrey Hammer & Peter Hazell, 1991. "Modeling Agricultural Growth Multipliers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 361-374.
    21. Juma, Calestous, 2016. "Innovation and Its Enemies: Why People Resist New Technologies," OUP Catalogue, Oxford University Press, number 9780190467036.
    22. T.S. Jayne & Shahidur Rashid, 2013. "Input subsidy programs in sub-Saharan Africa: a synthesis of recent evidence," Agricultural Economics, International Association of Agricultural Economists, vol. 44(6), pages 547-562, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kubitza, Christoph & Dib, Jonida Bou & Kopp, Thomas & Krishna, Vijesh V. & Nuryartono, Nunung & Qaim, Matin & Romero, Miriam & Klasen, Stephan, 2019. "Labor savings in agriculture and inequality at different spatial scales: The expansion of oil palm in Indonesia," EFForTS Discussion Paper Series 26, University of Goettingen, Collaborative Research Centre 990 "EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)".
    2. Charlton, Diane & Hill, Alexandra E. & Taylor, J. Edward, 2022. "Automation and social impacts: winners and losers," ESA Working Papers 330793, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).

    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. Adu-Baffour, Ferdinand & Daum, Thomas & Birner, Regina, 2019. "Can small farms benefit from big companies’ initiatives to promote mechanization in Africa? A case study from Zambia," Food Policy, Elsevier, vol. 84(C), pages 133-145.
    2. Thomas Daum & Regina Birner, 2017. "The neglected governance challenges of agricultural mechanisation in Africa – insights from Ghana," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(5), pages 959-979, October.
    3. Daum, Thomas & Villalba, Roberto & Anidi, Oluwakayode & Mayienga, Sharon Masakhwe & Gupta, Saurabh & Birner, Regina, 2021. "Uber for tractors? Opportunities and challenges of digital tools for tractor hire in India and Nigeria," World Development, Elsevier, vol. 144(C).
    4. Qinan Lu & Xiaodong Du & Huanguang Qiu, 2022. "Adoption patterns and productivity impacts of agricultural mechanization services," Agricultural Economics, International Association of Agricultural Economists, vol. 53(5), pages 826-845, September.
    5. Mockshell, Jonathan & Birner, Regina, 2020. "Who has the better story? On the narrative foundations of agricultural development dichotomies," World Development, Elsevier, vol. 135(C).
    6. Meilin Ma & Jessie Lin & Richard J. Sexton, 2022. "The Transition from Small to Large Farms in Developing Economies: A Welfare Analysis," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 111-133, January.
    7. Larson,Donald F. & Muraoka,Rie & Otsuka,Keijiro, 2016. "On the central role of small farms in African rural development strategies," Policy Research Working Paper Series 7710, The World Bank.
    8. Zhang, Xiaobo & Yang, Jin & Reardon, Thomas, 2020. "Mechanization outsourcing clusters and division of labor in Chinese agriculture," IFPRI book chapters, in: An evolving paradigm of agricultural mechanization development: How much can Africa learn from Asia?, chapter 2, pages 71-96, International Food Policy Research Institute (IFPRI).
    9. Wendimu, Mengistu Assefa & Henningsen, Arne & Gibbon, Peter, 2016. "Sugarcane Outgrowers in Ethiopia: “Forced” to Remain Poor?," World Development, Elsevier, vol. 83(C), pages 84-97.
    10. Houssou, Nazaire & Chapoto, Anthony, 2015. "Adoption of Farm Mechanization, Cropland Expansion, and Intensification in Ghana," 2015 Conference, August 9-14, 2015, Milan, Italy 211744, International Association of Agricultural Economists.
    11. Takeshima, Hiroyuki & Houssou, Nazaire & Diao, Xinshen, 2018. "Effects of tractor ownership on returns-to-scale in agriculture: Evidence from maize in Ghana," Food Policy, Elsevier, vol. 77(C), pages 33-49.
    12. Frances Warren, 2023. "Population density, urbanisation and agricultural mechanisation in modern Ghana," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1605-1629, August.
    13. Belton, Ben & Win, Myat Thida & Zhang, Xiaobo & Filipski, Mateusz, 2021. "The rapid rise of agricultural mechanization in Myanmar," Food Policy, Elsevier, vol. 101(C).
    14. Mockshell, Jonathan & Birner, Regina, 2021. "Agricultural Policy Processes: Influential Actors, Policy Networks and Competing Narratives," 2021 Conference, August 17-31, 2021, Virtual 315323, International Association of Agricultural Economists.
    15. Ostapchuk, Igor & Gagalyuk, Taras & Curtiss, Jarmila, 2021. "Post-acquisition integration and growth of farms: the case of Ukrainian agroholdings," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(4), April.
    16. Solomon Asfaw & Silvio Daidone & Benjamin Davis & Josh Dewbre & Alessandro Romeo & Paul Winters & Katia Covarrubias & Habiba Djebbari, 2012. "Analytical Framework for Evaluating the Productive Impact of Cash Transfer Programmes on Household Behaviour – Methodological Guidelines for the From Protection to Production Project," Working Papers 101, International Policy Centre for Inclusive Growth.
    17. Isabel Lambrecht & Monica Schuster & Sarah Asare Samwini & Laura Pelleriaux, 2018. "Changing gender roles in agriculture? Evidence from 20 years of data in Ghana," Agricultural Economics, International Association of Agricultural Economists, vol. 49(6), pages 691-710, November.
    18. Aryal, Jeetendra Prakash & Rahut, Dil Bahadur & Thapa, Ganesh & Simtowe, Franklin, 2021. "Mechanisation of small-scale farms in South Asia: Empirical evidence derived from farm households survey," Technology in Society, Elsevier, vol. 65(C).
    19. Zegar, Józef S., 2012. "Gospodarstwa Rodzinne Wobec Wyzwań Wyżywienia I Ochrony Środowiska – Ujęcie Globalne," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 4(157).
    20. Yukichi Mano & Kazushi Takahashi & Keijiro Otsuka, 2020. "Mechanization in land preparation and agricultural intensification: The case of rice farming in the Cote d'Ivoire," Agricultural Economics, International Association of Agricultural Economists, vol. 51(6), pages 899-908, November.

    More about this item

    Keywords

    Agribusiness;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:iaae18:277288. 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/iaaeeea.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.