Cost-benefit analysis of prioritized climate-smart agricultural practices among smallholder farmers: evidence from selected value chains across sub-Saharan Africa

Akinyi, Devinia Princess; Ng’ang’a, Stanley Karanja; Ngigi, Margret; Mathenge, Mary K.; Girvetz, Evan H.

doi:10.1016/j.heliyon.2022.e09228

Cited by 16 publications

(19 citation statements)

References 21 publications

(31 reference statements)

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“…This shows that artificial dryer method has the highest financial viability compared to the other methods. Because investment in each dryer method is non-mutually exclusive, the company is advised to continue employing all the three methods provided that their NPV remains above zero (Akinyi et al, 2022;Chandra, 2014;Gittinger, 1982;Karim et al, 2019).…”

Section: Discussionmentioning

confidence: 99%

“…Selecting independent projects in the order of their net benefit-investment ratio maximizes the return per unit of available investment. This, in turn, maximizes the net present worth of the group of projects chosen, and thus maximizes the income stream that is the objective of the program of project investments (Akinyi et al, 2022;Gittinger, 1982).…”

Section: Benefit Cost Ratio (Bcr)mentioning

confidence: 99%

“…Accordingly, the switching values methodology was also used to justify the net present value and benefit cost ratio analysis results. In the switching values, one variable was changed at a time until the NPV reached zero (Akinyi et al, 2022;Gittinger, 1982). The difference between both the base value and the switching value was calculated to determine which variable had the least/most influence on the project viability.…”

Section: Sw Itching Value Analysismentioning

confidence: 99%

“…Sensitivity analysis depicts the impact of a shift in a parameter on the NPV and the other financial viability indicators. The treatment of unpredictability is critical in any CBA study, particularly when dealing with comparison of different projects (Akinyi et al, 2022). In order to conduct the sensitivity analysis, the study used three different discount rates: 1) taking the current average bank loan of 18.5 percent; 2) assuming pessimistic discount rate scenario of 21.5 percent and; 3) the optimistic discount rate scenario of 15.5 percent and recalculated NPV, BCR and NBC describe above.…”

Section: Sensitivity Analysismentioning

confidence: 99%

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Cost Benefit Analysis of Alternative Coffee Drying Methods at Limmu Kossa and Gomma I of Horizon Coffee Plantation PLC

Eshetu¹,

Huluka

2023

Preprint

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Around 40% of coffee quality is determined in the field, with the remaining 60% determined by post-harvest processing procedures. This demonstrates the significance of coffee processing in improving quality and value. As a result, this article examines the economic viability of Horizon Coffee Plantation Farm's three coffee drying methods: solar tunnel dryer, artificial dryer, and sun dryer. Several economic viability assessments and cost-benefit analyses are used. Furthermore, for each strategy, switching values and sensitivity analysis were done. According to the findings, the gross margin rate for the solar tunnel is Birr 35 per kg of green, followed by Birr 34.75 for the artificial drier machine and Birr 34.2 for the sun dryer method. Similarly, the artificial dryer method was found to be the most viable, with the highest NPV of Birr 89,292,673, followed by Birr 10,016,909 for the solar tunnel method and Birr 175,295 for the sun dryer method, implying that the firm's methods are all economically viable. The BCR and IRR criteria also confirm the same conclusion. The viability of all drying methods remains nearly constant regardless of the potential in costs of production and sales prices. Because investments in all drying methods are non-mutually exclusive, it is advised that the corporation continue to invest in all three drying methods as long as their NPV is greater than zero. However, this finding should be interpreted with caution because the present rise in fuel prices may make the use of artificial dryer methods more expensive and unviable.

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Section: Discussionmentioning

confidence: 99%

Section: Benefit Cost Ratio (Bcr)mentioning

confidence: 99%

Section: Sw Itching Value Analysismentioning

confidence: 99%

Section: Sensitivity Analysismentioning

confidence: 99%

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Cost Benefit Analysis of Alternative Coffee Drying Methods at Limmu Kossa and Gomma I of Horizon Coffee Plantation PLC

Eshetu¹,

Huluka

2023

Preprint

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“…Numerous studies have been carried out for understanding the relationship between the climatic parameters and cropping status from the perspective of the Indian climatic situation (Singh et al, 2010 , 2016 ; Swaminathan and Kesavan, 2012 ; Mondal et al, 2015 ; Mall et al, 2018 ) along with dependence of its economy upon agricultural sector (Preethi and Ravedkar, 2012 ). However, farmers are still in need of guidelines for investing in particular climate-smart agricultural (CSA) practices offering better cost-benefit-risk profiles (Akinyi et al, 2022 ). This calls for climate-smart financial inclusion encompassing all possible financial channels toward farmers so that the scope of farm investments could be increased, vulnerability arising from climate risk could be mitigated, and stability, both in terms of income as well as output, could be achieved.…”

Section: Introductionmentioning

confidence: 99%

Climate change and vulnerability of agribusiness: Assessment of climate change impact on agricultural productivity

Mohapatra

Mohapatra²,

Han³

et al. 2022

Front. Psychol.

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The current study has mapped the impact of changes in different climatic parameters on the productivity of major crops cultivated in India like cereal, pulses, and oilseed crops. The vulnerability of crops to different climatic conditions like exposure, sensitivity, and adaptive indicators along with its different components and agribusiness has been studied. The study uses data collected over the past six decades from 1960 to 2020. Analytical tools such as the Tobit regression model and Principal Component Analysis were used for the investigation which has shown that among climatic parameters, an increase in temperature along with huge variations in rainfall and consistent increase in CO2 emissions have had a negative impact by reducing crop productivity, particularly cereals (26 percent) and oilseed (35 percent). Among various factors, adaptive factors such as cropping intensity, agricultural machinery, and livestock density in combination with sensitivity factors such as average operational land holding size and productivity of cereals, and exposure indicators like Kharif (June-September) temperature, heavy rainfall, and rate of change in maximum and minimum Rabi (October-February) temperature have contributed significantly in increasing crop vulnerability. The agribusiness model needs to be more inclusive. It should pay attention to small and remote farmers, and provide them with inclusive finance that can facilitate the adoption of climate-smart financial innovations, serve the underserved segments, and help them reach the target of a sustainable and inclusive agribusiness model. Though the social, technological, and economic initiatives can enhance the adaptive capacity of farmers, political measures still have a major role to play in providing a healthy climate for agriculture in India through tailored adaptive approaches like the adoption of craft climate adaptation program, dilating the irrigation coverage and location-centric management options. Hence, multidisciplinary and holistic approaches are worth emphasizing for evaluating the future impacts of change in climate on Indian agriculture.

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Influence of climate-smart technologies on the success of livestock donation programs for smallholder farmers in Rwanda

Kandulu,

Zuo,

Wheeler

et al. 2024

Mitig Adapt Strateg Glob Change

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Climate change threatens the livelihoods of Sub-Saharan African farmers through increased droughts. Livestock donation programs offer a potential solution, but their effectiveness under climate stress remains unclear. This study assesses the economic viability of integrating climate-smart technologies (cowsheds and biogas plants) into these programs in Rwanda. Using a stochastic benefit–cost analysis from the beneficiary perspective, we evaluate the net gains for households receiving heifers compared to the current program. Our findings reveal that integrating climate-smart technologies significantly enhances economic viability. Households with cows and climate-smart technologies can possibly realise net benefits 3.5 times higher than the current program, with benefit–cost ratios reaching 5:1. Beyond economic benefits, adopting biogas reduces deforestation, greenhouse gas emissions, and respiratory illness risks. This study demonstrates that integrating climate-smart technologies into livestock donation programs can generate positive economic, environmental, and health benefits, leading to more resilient and sustainable smallholder systems. However, overcoming implementation challenges requires tailored policy packages addressing local barriers.

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Cost-benefit analysis of prioritized climate-smart agricultural practices among smallholder farmers: evidence from selected value chains across sub-Saharan Africa

Cited by 16 publications

References 21 publications

Cost Benefit Analysis of Alternative Coffee Drying Methods at Limmu Kossa and Gomma I of Horizon Coffee Plantation PLC

Cost Benefit Analysis of Alternative Coffee Drying Methods at Limmu Kossa and Gomma I of Horizon Coffee Plantation PLC

Climate change and vulnerability of agribusiness: Assessment of climate change impact on agricultural productivity

Influence of climate-smart technologies on the success of livestock donation programs for smallholder farmers in Rwanda

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