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Smallholder farmers’ crop production and input risk analysis in rural Ethiopia
Department of Economics, Arsi University, Oromia, Asella, Ethiopia.
Jönköping University, Jönköping International Business School, JIBS, Economics. Jönköping University, Jönköping International Business School, JIBS, Centre for Entrepreneurship and Spatial Economics (CEnSE).ORCID iD: 0000-0002-7902-4683
2023 (English)In: Applied Economics, ISSN 0003-6846, E-ISSN 1466-4283, Vol. 55, no 6, p. 671-689Article in journal (Refereed) Published
Sustainable development
Sustainable Development
Abstract [en]

Different types of risks are inherent in agricultural production. This study examines agricultural input risks faced by smallholder farmers in rural Ethiopia. It uses data from farm household surveys covering the period 1995?2015. The study uses a stochastic production function approach for estimating the mean production and risks of agricultural inputs. The mean production estimation results are consistent with the economic theory of conventional inputs. Land and labour have higher elasticities than the other inputs. The variance or risk estimation results show that fertilizers and labour are risk-decreasing inputs, while land is a risk-increasing input. Crop diversification has a risk-decreasing impact. The more farmers diversify their crops, the less is the yield variability. However, the risk variation effects of farm inputs vary across regions in the country. For example, risk-decreasing effects of fertilizers are high in the Oromia region, moderate in the Southern Nations and Nationalities and low in the Amhara regional state. Variations in regional input risks need to be considered in national agriculture risk management and food security efforts. The risk variation effects of these inputs decreased over time.

Place, publisher, year, edition, pages
Taylor & Francis, 2023. Vol. 55, no 6, p. 671-689
Keywords [en]
agriculture; Ethiopia; Input risks; production function
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-58039DOI: 10.1080/00036846.2022.2094327ISI: 000820703800001Scopus ID: 2-s2.0-85133442449Local ID: HOA;intsam;58039OAI: oai:DiVA.org:hj-58039DiVA, id: diva2:1684395
Available from: 2022-07-25 Created: 2022-07-25 Last updated: 2023-02-17Bibliographically approved

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Heshmati, Almas

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