Tibamanya, Felister Y. Milanzi, Mursali A. Henningsen, Arne
Year of Publication:
IFRO Working Paper No. 2021/03
Purpose: Yield-enhancing agricultural technologies such as improved crop varieties are widely promoted by public and private agencies in developing countries because they are important for improving food security, income and welfare of farm households. Nonetheless, the low rate of adoption of these technologies by farm households is still a less-understood phenomenon. We thus investigate the drivers of and the barriers to adoption of improved sunflower varieties by smallholder farmers in Tanzania as an empirical example. Undertaking this study can help to improve policies, development programmes and business decisions, which are geared towards enhancing agricultural productivity and farm household welfare. Methodology: Our empirical study applies the double-hurdle econometric model to a cross-sectional survey data set of 416 smallholder farmers in Singida region, Tanzania. Findings: Our results suggest that risk aversion and liquidity constraints are significant barriers to the adoption of improved sunflower varieties, while radios, extension service and farmers' groups are important channels for farmers for receiving information about new technologies. Originality: Compared to earlier studies of the adoption of improved oilseeds varieties, our study distinguishes two dimensions of the adoption, i.e. the decision to adopt or not and, in case of adoption, the extent of adoption. Furthermore, our analysis investigates the roles of market constraints, liquidity constraints and contract farming for adoption of improved varieties, which are largely ignored in previous adoption studies.
improved crop varieties sunower smallholder farmers market and liquidity constraints double-hurdle model Tanzania