Conservation Agriculture as a commercialization tool for small holder farmers

1. Conservation
Agriculture as a
Commercialisation Tool
for Small Holder
Farmers
Michael Jenrich, SAT & GIZ
ACCA, Lusaka, 2014

2. SMALL HOLDER FARMING
• Smallholder farming in Africa is largely subsistence based, rural
families do not see farming as a way to generate income
• Farmers not generating income from their farms, productivity is
low and unreliable
• Most land is used (overused) for food crops
• No investments (inputs, infrastructure)
• Private sector has no incentive (interest) to invest
• Government/donor support focus on seasonal inputs, (food
security) without much –lasting- impact
• Short term, often without agronomy component
• Lacking extension and improvement of farming practices
• Missing of cash crops and market support
• Lack of capacity support

4. CA background*
 Developed and rolled out by large scale farmers
 Promoted by donors and NGO’s to address food
insecurity/poverty in the smallholder sector
 Often in humanitarian context
 Improving household food security (cereal yield increase)
 Climate change and drought mitigation tool
 Supporters ‘reported’ huge yield increases , ‘quick fix’, often
the universal solution to small holder farming (‘panacea’)
 discussion on yield impact alone may overlooked the main
impacts
 Quick expansion due to donor support, but decline when that
ceased (donors focus on another flavour)
 Limited PS involvement
* Incomplete and biased view

6. PS in the small holder context
Private sector (PS) involvement is very limited
 Small holder sector is problematic and high
risk
 PS did (does not) not see the need to invest
in small holder sector
 small areas, low yields, poor infrastructure
 Farmers not organized (no bulking)
 Insecure tenure, no credit, poor track record
 Very little incentive to change
 Cemented structures and approaches without
vision

7. Global Farming Outlook
 Increasing demand (shortage) for agric produce
results in higher prices and new options
 Economic need and potential to include small
holders in main stream (commercial) agriculture
 Improved productivity will make small holders
competitive
 Many small holders’ lands holdings are sufficient
to generate income, if utilized efficiently
 Overall production in many countries could be
increased significantly
 PS needs production potential of small holders

8. Agric Opportunities
 Currently low production (maize yields of > 1 MT, Cotton >
0.5, cattle off take of > 5%) can be improved easy
 If public and private sector identify best options quick
return in the small holder sector is feasible (low fixed costs)
 Many small holders can and will commercialize swift if
selected and supported appropriately
 Small holders can generate sufficient income from their
farms and produce surplus
 PS can utilize the vast potential of small holder areas
 Farmers, private sector and national economies would
benefit

9. Agronomy (CA) is not enough
Main issues have to be address simultaneously
1. Productivity
 Agronomy (CA), crop, land management, seed, fertilizer,
extension, etc.
1. Organisational set up (from formal or informal groups)
 Economy of scale, bulking, group access, training and
extension
1. Input & Output systems
 Access to markets, improved input & output practices
 Market information
1. Policy
 Appropriate support form policy for small holders
(Groups, finance, security, incentives)

11. CA Benefit: (improved productivity)
 Timing and precision also for farmers without tillage and
machine access, at low costs
 Reduced costs of planting (seeding) through zero till, for
farmers with machines
 Reduced risk of small holder production and improved
planning-ability
 Improved productivity, establishment of crops timely and
precise, Better land and crop management (CA +)
 Highly appropriate for market based crop interventions
 CA as central pillar,
 provides quick & reliable way to increase and stabilize productivity
(reduce tillage costs and stabilize yields)
 without large capital investments
 Farmers are achieving higher productivity and production
security (reduced risks), which will attract private sector
 Improved productivity opens opportunities to participate in
markets and generating better incomes
 Extension extensive

12. Maize yields at different planting date*
3,0
2,3
1,5
1,1
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
Mid November 0Kg D 0Kg AN Late November 0Kg D 0Kg AN Mid December 0Kg D 0Kg AN Late December 0Kg D 0Kg AN
Planting Date
Yield(THa-1)
Data FAO trial 2008/09, no fertilizer

13. IN PRACTICE

15. Conventional CA
yield target (MT/ha) yield target
0.5 1 2.5 0.8 1.5 3.0
Ploughing (animal drawn) 75 75 75
Discing (animal drawn) 50 50 50
Planting (hand) 25 25 25
Spraying (x 1, conv, x 2 CA) 25 25 25 50 50 50
Direct seeding (animal or 2 wheel tractor) 60 60 60
Costs to planting, spraying , harvesting 225 250 250 160 185 185
Total Cost/ha 266 367 494 207 302 429
Return (@ $400/MT) 200 400 1000 320 600 1200
Profit, Loss/ha -66 34 506 113 299 771
Cost profit CA vs. conventional (hand)

16. Conventional CA
yield target (MT/h) yield target
3.5 5 6 3.5 5 6
Ploughing 150 150 150
Discing 100 100 100
Planting 50 50 50
Spraying (x 2, conv, x 3 CA) 50 50 50 75 75 75
harvesting 150 150 150 150 150 150
Direct seeding 100 100 100
Costs to planting, spraying ,
harvesting
500 500 500 325 325 325
Inputs (seed fertilizer etc.) 408 523 653 408 523 653
Total Cost/ha 1158 1316 1482 983 1141 1307
Return (@ $300/MT) 1050 1500 1800 1050 1500 1800
Profit, Loss/ha -108 184 318 67 359 493
Cost profit CA vs. conventional (mech.)

18. PS links and involvement
Sustainable CA uptake need to be PS driven (CA lobbying by PS)
 Increased viability of PS investments, also supported through:
 Incentives (subsidies, e.g. for PS supporting CA), support and
incentivise PS to invest in the small holders sector
 Affordable credits for farmers, farmers groups and PS
 Coordinate interventions (e.g. demos, mechanisation)
 Set up support structures (e.g. CA tillage units, plant
protection and harvest contracting)
 (no hand outs, farming support should not be mixed with
social welfare)
 Long term development strategy (e.g. credits, infrastructure)
and investment plans (small holder policy)
 Involvement of private sector is key, but does require
productivity increases as entry

20. Summary
 Through CA small holder farmers will improve
productivity and become more attractive
partners for PS
 Reduced risk
 Improved productivity
 Low capital investment
 Given the vast potential of small holders in
South and Eastern Africa, CA in combination
with market linkages is central to unlock this
 CA is a key part to increase very low income and
economic contribution of small holders in crop
farming, but, CA alone (agronomy) will not have
large impacts
 PS will need to endorse and promote CA

21. thanks
Michael Jenrich
michael@msjenrich.com