Economic Analysis of Climate-Smart Agriculture Technologies in Maize Production in Smallholder Farming Systems

Abstract

Smallholder farmers who grow the staple maize crop rely mainly on rain-fed agricultural production, and yields are estimated to have decreased by over 50% largely due to climate change. Climate-smart agriculture (CSA) technologies, as adaptive strategies, are thus increasingly being promoted to overcome problems of declining agricultural productivity and reduced technical efficiency. This study analyzed profitability and profit efficiency in maize (Zea mays) production as a result of CSA technology adoption using cost-benefit analysis and stochastic profit frontier model. The study used data from a cross-sectional household survey of 386 households drawn from 4 districts in Mashonaland East province located in the northeastern part of Zimbabwe. Results from the cost-benefit analysis reveal that maize performs best under CSA technologies. The profit inefficiency model shows that extension contact, number of local traders, and adoption of CSA had significant negative coefficients indicating that as these variables increase, profit efficiency among maize-growing farmers increases. This implies that profit inefficiency in maize production can be reduced significantly with improvement in extension contact, access to farm gate/local markets, and adoption of CSA. The findings call for development practitioners to incorporate market linkages that bring buyers closer to the farmers, support for extension to be able to have frequent contacts with farmers, and promotion of CSA adoption.

Responding to inefficiencies on smallholder maize farms: Can sustained adoption of sustainable agricultural practices make a difference?

“…Research on the effect of adopting SAPs on the productivity and efficiency of smallholder agriculture is growing (Adimassu et al 2017;Ekman 2021;McCarthy et al 2021;Mujeyi & Mudhara 2021;Pangapanga-Phiri & Mungatana 2021). Nonetheless, the evidence remains inconclusive.…”

“…Nonetheless, the evidence remains inconclusive. Pangapanga-Phiri and Mungatana (2021), for instance, noted an 18% improvement in technical efficiency for farmers adopting organic manure; Ekman (2021) found that intercropping and organic manure improve productivity by 59% and 54% respectively, whilst Mujeyi and Mudhara (2021) noted that the adoption of mulching, organic manure, crop rotation and intercropping improved profit efficiency. In contrast, Adimassu et al (2017) found that the adoption of SAPs, including stone bunds, significantly reduced maize yields.…”

“…Furthermore, Bell et al (2018 note that farmers tend to reduce the acreage of land under the practice over time and still report to have adopted SAPs. To that extent, past studies that have modelled SAPs have overlooked these two key aspects in their focus on adoption in a one-time survey period, hence the inconclusive findings (Adimassu et al 2017;Ekman 2021;McCarthy et al 2021;Mujeyi & Mudhara 2021;Pangapanga-Phiri & Mungatana 2021).…”