Does water harvesting irrigationtechnologies induce fertilizer use amongsmallholders? Evidence from Ethiopia[Agricultural ...
MotivationCrop production in Ethiopia: largely rain-fed (~ 95% of the cultivated land)Rainfall shortage, unpredictabilit...
motivation…But, could not succeed to bring radicalchanges on yield. Yield is low even by SSAstandard. Why is the low yiel...
motivation…To remedy rainfall shortage (reduceweather risk), WHTs introduced 2000sWHTs has several advantages:affordable...
motivation…4/15Types of WHTs: ponds,shallow-wells, diversions
motivation… Previous studies: focused on non-waterfactor/inputs (e.g. fertilizer price) Especially, microeconomic studie...
ObjectiveInvestigate if the use of water harvestinginduces the use of fertilizer use bysmallholder farmers;See if fertil...
Theoretical highlight Microeconomic theory: Input demand is afunction of input and output prices In developing countries...
Methods Descriptive analysis: No. of fertilizer user andnon user households-(than the fert. quantity) Econometric analys...
Results9/15Users of fertilizer Non-users offertilizer TotalOnly onirrigatedplotsOn bothirrigated &rain-fedplotsOnly onrain...
results…The RE estimate indicated that:WHTs increase the probability of usingfertilizer (in any of the estimates)Signifi...
results…Farm-size, farm capital, education:increase the probability of usingfertilizer but fertilizer price, distance tom...
Discussions with farmers (facts on the field)12/15
discussions …13/15
ConclusionsLow fertilizer use rate (39%) might notonly be due to price and otherconventional factorsWater as a precondit...
conclusions…To lift the low fertilizer use rate,encourage irrigation, (similar to otherboth developed and developingcount...
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Does water harvesting irrigation technologies induce fertilizer use among smallholders? Evidence from Ethiopia

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Sustainable Land & Watershed Management Interventions and Impact Workshop. Hilton Hotel, Addis Ababa, May 10, 2013.

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Does water harvesting irrigation technologies induce fertilizer use among smallholders? Evidence from Ethiopia

  1. 1. Does water harvesting irrigationtechnologies induce fertilizer use amongsmallholders? Evidence from Ethiopia[Agricultural systems 114(1): 54-63]ESSP-IFPRI Workshop on:Sustainable Land and WatershedManagement Interventions and ImpactMay 10, 2013
  2. 2. MotivationCrop production in Ethiopia: largely rain-fed (~ 95% of the cultivated land)Rainfall shortage, unpredictability:production riskConsequences: food shortage, povertyEthiopia implemented several programsto improve food security since 1970sCommunity soil-water conservation; R&Dto increase yield (e.g. seed varieties fromEARO)1/15
  3. 3. motivation…But, could not succeed to bring radicalchanges on yield. Yield is low even by SSAstandard. Why is the low yield?low modern input use (e.g. low fertilizeruse: (39% in 2007/08, Spielman et al 2011)Various factors precondition the use offertilizer (e.g. price, access/SS, water)Rainfall shortage could be a reason for theineffectiveness of fertilizer & theimproved seed varieties from R&D2/15
  4. 4. motivation…To remedy rainfall shortage (reduceweather risk), WHTs introduced 2000sWHTs has several advantages:affordable, locatable, individuallyowned, fit to the tenure systemIf so, does WHTs induce the use ofmodern input e.g. fertilizer?3/15
  5. 5. motivation…4/15Types of WHTs: ponds,shallow-wells, diversions
  6. 6. motivation… Previous studies: focused on non-waterfactor/inputs (e.g. fertilizer price) Especially, microeconomic studies neglectedthe interaction between water use andfertilizer use (requires explicit investigation)5/15
  7. 7. ObjectiveInvestigate if the use of water harvestinginduces the use of fertilizer use bysmallholder farmers;See if fertilizer use stimulates the use ofWH; and, the other way round as well6/15
  8. 8. Theoretical highlight Microeconomic theory: Input demand is afunction of input and output prices In developing countries: imperfect marketand weather risk (e.g. Sadoulet & de Janvry) So, fertilizer demand depends not only onits price and other factors Von Liebig’s Agronomic principle of Lawof the Minimum (de Wit; Paris: 1992) Theory of technology adoption and theagronomic principle (control the timing offertilizer application) again: joint adoption 7/15
  9. 9. Methods Descriptive analysis: No. of fertilizer user andnon user households-(than the fert. quantity) Econometric analysis:a) analyzing the effect of WHT onfertilizer use: RE probit with WHdummy, conditional on other factorb) Analyzing the joint adoption of WHTand fertilizer: bivariate probit model(simultaneous equation) Data: panel data- 2005 & 2010 (400hhs)8/15
  10. 10. Results9/15Users of fertilizer Non-users offertilizer TotalOnly onirrigatedplotsOn bothirrigated &rain-fedplotsOnly onrain-fedplotsYear 2005Users of WHTs 12 33 102 185 332Non-users ofWHTs- - 15 53 68Total 12 33 117 238 400Year 2010Users of WHTs 6 51 119 59 235Non-users ofWHTs- - 90 75 165Total 6 51 209 134 400
  11. 11. results…The RE estimate indicated that:WHTs increase the probability of usingfertilizer (in any of the estimates)Significant parameter estimates(positive marginal effect of WHT)In the estimate that tested joint adoption:Past WHT use increases the probabilityof current fertilizer use but past fertilizeruse does not affect current WHT use;10/15
  12. 12. results…Farm-size, farm capital, education:increase the probability of usingfertilizer but fertilizer price, distance tomarket decreaseMarket, perennial, education, distanceto water source affect adoption of WHTOn the other hand, the hypothesis thatfertilizer use induces the use of WHTs isrejected11/15
  13. 13. Discussions with farmers (facts on the field)12/15
  14. 14. discussions …13/15
  15. 15. ConclusionsLow fertilizer use rate (39%) might notonly be due to price and otherconventional factorsWater as a precondition to modern inputuse is critically importantThe affordable, replicable and locatableWHTs induce fertilizer use, in line withboth the agronomic & economicprinciples14/15
  16. 16. conclusions…To lift the low fertilizer use rate,encourage irrigation, (similar to otherboth developed and developingcountries’ experiences) e.g….To sustain the WHTs: Role of R&D, PS,the govt., NGOs, local institutes, farmersThe effect of road infrastructure andeducation: urge the need to continuewith the investments15/15
  17. 17. Thank you.

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