Onset risk and draft animal investment in nigeria:
Onset risk, the uncertainty in the onset of rainy season, is an important element of weather risk for African farmers with little access to formal insurance who engage in traditional rainfed farming. A knowledge gap still exists empirically on how onset risk may affect the investment decisions of these farmers. In particular, farm productivity in Africa still depends on substantial labor inputs at the onset of the rainy season, sometimes involving seasonal migration to rural areas. With credit and insurance market failure, poor access to weather-related information, and high labor mobility costs, high and increasing onset risk may affect farmersâ€™ demand for farm mechanization. We test this hypothesis by investigating the effect of onset risk on farmersâ€™ investment in draft animals in northern and central Nigeria. We use the example of a public project providing farmers with financial support for the acquisition of productive assets. We calculate the onset of the rainy season using daily rainfall data in various locations across Nigeria and identify locations that have experienced increasing, decreasing, or constant onset risk in the past few decades. We then exploit the panel structure of our dataset and employ stratified propensity score matching to estimate the average treatment effect on the treated, differentiated by the onset risk and its change. The results support our hypothesis. Farmers in areas with higher, increasing, or constant onset risk were more likely to invest in draft animals, and such effects are clearer among larger-scale farmers. Linkages are also clearer with onset risk compared to annual rainfall risk.
|Date of creation:||2012|
|Contact details of provider:|| Postal: 2033 K Street, NW, Washington, DC 20006|
Web page: http://www.ifpri.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rosenzweig, Mark R & Stark, Oded, 1989.
"Consumption Smoothing, Migration, and Marriage: Evidence from Rural India,"
Journal of Political Economy,
University of Chicago Press, vol. 97(4), pages 905-926, August.
- Rosenzweig, Mark R. & Stark, Oded, 1987. "Consumption Smoothing, Migration and Marriage: Evidence from Rural India," Bulletins 7515, University of Minnesota, Economic Development Center.
- Takeshima, Hiroyuki & Yamauchi, Futoshi, 2012.
"Risks and farmers’ investment in productive assets in Nigeria,"
2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil
126690, International Association of Agricultural Economists.
- Hiroyuki Takeshima & Futoshi Yamauchi, 2012. "Risks and farmers’ investment in productive assets in Nigeria," Agricultural Economics, International Association of Agricultural Economists, vol. 43(2), pages 143-153, 03.
- Phillip, Dayo & Nkonya, Ephraim & Pender, John L. & Oni, Omobowale Ayoola, 2009. "Constraints to increasing agricultural productivity in Nigeria: A review," NSSP working papers 6, International Food Policy Research Institute (IFPRI).
- Salvatore Di Falco & Jean-Paul Chavas, 2007. "On Crop Biodiversity, Risk Exposure, and Food Security in the Highlands of Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 599-611.
- Nkonya, Ephraim & Phillip, Dayo & Mogues, Tewodaj & Pender, John & Yahaya, Muhammed Kuta & Adebowale, Gbenga & Arokoyo, Tunji & Kato, Edward, 2008.
"From the ground up: Impacts of a pro-poor community-driven development project in Nigeria,"
IFPRI discussion papers
756, International Food Policy Research Institute (IFPRI).
- Nkonya, Ephraim & Phillip, Dayo & Mogues, Tewodaj & Pender, John & Kato, Edward, 2010. "From the ground up: Impacts of a pro-poor community-driven development project in Nigeria," Research reports Ephraim Nkonya, et al., International Food Policy Research Institute (IFPRI).
- Seema Jayachandran, 2005.
"Selling Labor Low: Wage Responses to Productivity Shocks in Developing Countries,"
UCLA Economics Online Papers
370, UCLA Department of Economics.
- Seema Jayachandran, 2006. "Selling Labor Low: Wage Responses to Productivity Shocks in Developing Countries," Journal of Political Economy, University of Chicago Press, vol. 114(3), pages 538-575, June.
- Jansen, Hans G. P., 1993. "Ex-ante profitability of animal traction investments in semi-arid Sub-Saharan Africa: Evidence from Niger and Nigeria," Agricultural Systems, Elsevier, vol. 43(3), pages 323-349.
- Paul A. Lewin & Monica Fisher & Bruce Weber, 2012. "Do rainfall conditions push or pull rural migrants: evidence from Malawi," Agricultural Economics, International Association of Agricultural Economists, vol. 43(2), pages 191-204, 03.
When requesting a correction, please mention this item's handle: RePEc:fpr:ifprid:1198. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.