Do soil and water conservation practices influence crop productivity and household welfare? Evidence from rural Nigeria.

One of the most serious challenges threatening agricultural sustainability in Nigeria is land degradation. Although this issue has received little attention, soil and water conservation practices have been identified as a possible pathway out of the potential problems posed by land degradation. Therefore, the central research question that this paper tries to address is the following: Do adoption of soil and water conservation (SWC) practices affect crop productivity and household welfare? This paper uses data collected by the International Institute of Tropical Agriculture (IITA) from maize farmers in rural Nigeria. We usedemploy the propensity score matching (PSM), inverse probability weighting adjusted regression model (IPWRA) approach, and the linear regression with endogenous treatment effect (LRETE) model to incorporate the typologies of SWC practices, and tested how the model affects crop productivity and household welfare. Additionally, multinomial logit was used to estimate the factors influencing the decision to adopt single and multiple SWC practices. The estimates show that education, age of the household head, access to credit, experience of drought, soil fertility, and occupational stress contribute to the decision to adopt SWC practices. The casual effect estimates reveal that both single and multiple adoptions of SWC practices had a positive and significant relationship with the crop productivity and welfare of the adopters. The results show that the adoption of combined SWC practices has a higher impact on crop productivity and welfare than single SWC practices. For instance, the adoption of a combination of three SWC practices was found to increase crop productivity and household welfare by 27.55% and 38.23%, respectively versus 13.91% and 15.11% in the case of single SWC practices. The study suggests that profile-raising agenda and efforts that focus on promoting the adoption of combination of SWC practices should be designed and implemented to enhance crop productivity and hence the welfare of the maize farming households in rural Nigeria.

Does agricultural cooperative membership impact technical efficiency of maize production in Nigeria: An analysis correcting for biases from observed and unobserved attributes.

The formation of agricultural cooperatives has been widely promoted as an agricultural development policy initiative to help smallholder farmers cope with multiple production and marketing challenges. Using a nationally representative survey dataset of smallholder maize producers from rural Nigeria, this study assesses the impact of agricultural cooperative membership on technical efficiency (TE). We based our estimation approach on the combination of a newly developed sample selection stochastic production frontier model with propensity score matching to control for possible selectivity biases from both observables and unobservables. We estimate stochastic meta-frontiers to examine TE differences between cooperative members and non-members. Our results reveal that TE levels of members are consistently higher than that of non-members. This calls for continued policy incentives targeted at encouraging farmers to form as well as participate in agricultural cooperatives.

Productivity and Welfare Effects of Nigeria's e-Voucher-Based Input Subsidy Program.

In an attempt to go beyond the so called "smart" subsidies, Nigeria has embarked on a potentially innovative mobile phone-based input subsidy program that provides fertilizer and improved seed subsidies through electronic vouchers. In this article, we examined the productivity and welfare effects of the program using household-level data from rural Nigeria. The article employed instrumental variable regression approach to control for the potential endogeneity of the input subsidy program. Our results suggest that the program is effective in improving productivity and welfare outcomes of beneficiary smallholders. The size of the estimated effects suggests a large improvement in productivity and welfare outcomes. Moreover, the distributional effects of the program suggest no heterogeneity effects based on gender and farm land size. These results are robust to using alternative measurements of program participation. The benefit-cost ratio of 1.11 suggests that the program is marginally cost-effective. Overall, our results suggest that while improving average productivity is a good outcome for improving food security, improving the distributional outcome of the program by targeting the most disadvantaged groups would maximize the program's contribution to food security and poverty reduction.