Agricultural Productivity Growth and Poverty Alleviation

Abstract

How important is agricultural growth to poverty reduction? This article first sets out the theoretical reasons for expecting agricultural growth to reduce poverty. Several plausible and strong arguments apply -including the creation of jobs on the land, linkages from farming to the rest of the rural economy, and a decline in the real cost of food for the whole economy -but the degree of impact is in all cases qualified by particular circumstances. Hence, the article deploys a cross-country estimation of the links between agricultural yield per unit area and measures of poverty. This produces strong confirmation of the hypothesised linkages. It is unlikely that there are many other development interventions capable of reducing the numbers in poverty so effectively.How important is agricultural growth to alleviating poverty in a world in which farming's share of total output is in decline?We can assess the impact of agricultural growth on poverty in general and rural poverty in particular, in two ways. One draws on theory, building plausible arguments about how changes in agricultural production may affect the numbers of poor and the depth of their poverty. The other takes an empirical approach, by observing directly changes in agricultural productivity and poverty, and then estimating the degree to which they are related. This article deploys both approaches.

Adoption of New Rice for Africa (NERICA) technology in Ogun State, Nigeria

“…There is suggestion that the promotion of NERICA cultivation can contribute to improving expenditure/income of farmers and consequently to poverty reduction. This is consistent with the study of Irz et al (2001), who show that a close relationship exists between farm productivity and household poverty.…”

Determinants of Adoption of Improved Technologies in Rice Production in Imo State, Nigeria

“…In this regard, Mendola (2007) observes that the adoption of high yielding varieties has had a positive effect on household well-being. In addition, empirical studies show that gains from new agricultural technology influenced the poor directly, by raising incomes of farm households and, indirectly, by raising the employment and wage rates of functionally landless laborers, and by lowering the price of food staples (de Janvry and Sadoulet, 2002;Irz et al, 2002;Bellon et al, 2006;Evenson and Gollin, 2003;Diagne et al, 2009).…”

Agricultural Modernization, Structural Change and Pro-poor Growth: Policy Options for the Democratic Republic of Congo

“…The reason is that productivity improvement "pushes" labor out of agriculture and increases farmers' real wages; "pulls" jobs in sectors that use agriculture as inputs; and increase supply of affordable food in the economy. The empirical literature reports strong and robust effects of agriculture productivity on poverty (Thirtle et al 2003;Irz et al 2001;de Janvry and Sadoulet 2010). However, the magnitude of poverty reduction due to agricultural productivity growth varies largely across countries, depending on the way they developed and used new technologies (de Janvry and Sadoulet 2010).…”