SUPPLY RESPONSIVENESS OF MAIZE FARMERS IN KENYA: A FARM-LEVEL ANALYSIS (original) (raw)
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Agricultural development policy in Kenya has emphasised the use of incentives towards increased production and therefore self-sufficiency in maize which is a basic staple for most households. The channels used to provide incentives to maize farmers over the years include setting higher producer prices; subsidisation of inputs; provision of agricultural credit, research and extension services; construction and maintenance of roads, development of irrigation and water systems; legislative, institutional and macroeconomic reforms. Despite these efforts outputof maize has remained below domestic requirements in most years and the country continues to rely on imports to meet the deficits. Studies have assessed the responsiveness of maize to output price and reported inelastic responses and have recommended policies targeting non-price incentives to complement prices for the required increased production of maize. The studies, however, did not analyse the influence of the non-price incent...
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The recent hike in food prices has been of great concern to policymakers, international organisations and donor agencies. In this paper we discuss, both from a partial and general equilibrium perspective, the impact of the recent price increase on maize on Kenyan households. Simulating a 100% increase in maize prices, we find that the headcount ratio in urban areas increased by 3-4 percentage unit points, depending on the size of windfall gain to producers. Based on the assumption that the price shock is passed through in total to the farmers, food poverty in the rural areas could be reduced by almost 14%. If incomes are not passed through, rural food poverty would increase quite significantly in some provinces. It is the poorest of the poor in both urban and rural areas who are most adversely affected. Policy reforms, which would reduce marketing margins and fertiliser prices, would be important factors in promoting a positive impact on performance in the maize sector. The regional maize trade within East Africa seems to have a role to play, and exploring the impact of total integration of the maize markets could be a topic of further research.
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Maize is a key food crop in Kenya. While maize yields increased from 1.25 t ha-1 in early 1960s to over 2 tonnes in 1982, they fell below 1.5 t ha-1 in 2000. Given the limited land area, there is no doubt that Kenya will have to rely more on modern technologies for increased yields .Use of improved maize varieties and fertilizers will therefore continue to be critical inputs for improving productivity. To improve production, it is important to understand factors determining adoption and intensity of use of modern technologies. A stratified 2-stage sampling design was used to select 1800 households, subsequently interviewed by means of structured questionnaire. Econometric models were used to explore factors influencing adoption and intensity of use of the improved varieties and fertilizer. Access to credit was positively related to adoption and intensity of use of the two inputs. Extension contacts positively influenced the likelihood of adoption of improved maize seed, while amount of planting fertilizer used positively influenced both the adoption and intensity of use of improved varieties. Distance to market negatively determined the adoption and intensity of use of fertilizer. In addition gender and access to hired labour had negative impacts on the intensity of use of fertilizer. There is need to think of alternative sources of credit to farmers and also revamp the existing extension service (including privatization in the long term) for efficient delivery of information.