Is Dirt Cheap? : The Economic Costs of Failing to Meet Soil Health Requirements on Smallholder Farms

Agricultural productivity is hindered in smallholder farming systems due to several factors, including farmers’ inability to meet crop-specific soil requirements. This paper focuses on soil suitability for maize production and creates multidimensio...

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Main Authors: Gourlay, Sydney, Kilic, Talip
Format: Working Paper
Language:English
en_US
Published: Washington, DC : World Bank 2022
Subjects:
Online Access:http://documents.worldbank.org/curated/en/099025206272226611/IDU0ee487ee70a84304c8c08b8a031ef5894a785
http://hdl.handle.net/10986/37627
id okr-10986-37627
recordtype oai_dc
spelling okr-10986-376272022-07-06T05:10:34Z Is Dirt Cheap? : The Economic Costs of Failing to Meet Soil Health Requirements on Smallholder Farms Gourlay, Sydney Kilic, Talip SOIL AGRICULTURAL PRODUCTIVITY CROP YIELDS TECHNICAL EFFICIENCY HOUSEHOLD SURVEYS SMALLHOLDERS UGANDA SUB-SAHARAN AFRICA Agricultural productivity is hindered in smallholder farming systems due to several factors, including farmers’ inability to meet crop-specific soil requirements. This paper focuses on soil suitability for maize production and creates multidimensional soil suitability profiles of smallholder maize plots in Uganda, while quantifying forgone production due to cultivation on less-than-suitable land and identifying groups of farmers that are disproportionately impacted. The analysis leverages the unique socioeconomic data from a subnational survey conducted in Eastern Uganda, inclusive of plot-level, objective measures of maize yields and soil attributes. Stochastic frontier models of maize yields are estimated within each soil suitability class to understand differences in returns to inputs, technical efficiency, and potential yield. Only 13 percent of farmers are cultivating soil that is highly suitable for maize production, while the vast majority are cultivating only moderately suitable plots. Farmers cultivating highly suitable soil have the potential to increase their observed yields by as much as 86 percent, while those at the opposite end of the suitability distribution (with marginally suitable land) operate closer to the production frontier and can only increase yields by up to 59 percent, given the current technology set. There is heterogeneity in potential gains across the wealth distribution, with poorer households facing more heavily constrained potential. Assuming no change in technologies and management practices used by Ugandan farmers, there are limited economic gains tied to closing suitability class-specific productivity gaps, or even at the extreme reaching the average potential productivity levels observed in the high suitability class. 2022-07-05T19:56:19Z 2022-07-05T19:56:19Z 2022-06 Working Paper http://documents.worldbank.org/curated/en/099025206272226611/IDU0ee487ee70a84304c8c08b8a031ef5894a785 http://hdl.handle.net/10986/37627 English en_US Policy Research Working Paper;10108 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC : World Bank Publications & Research Publications & Research :: Policy Research Working Paper Africa Eastern and Southern (AFE) Africa Sub-Saharan Africa Uganda
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic SOIL
AGRICULTURAL PRODUCTIVITY
CROP YIELDS
TECHNICAL EFFICIENCY
HOUSEHOLD SURVEYS
SMALLHOLDERS
UGANDA
SUB-SAHARAN AFRICA
spellingShingle SOIL
AGRICULTURAL PRODUCTIVITY
CROP YIELDS
TECHNICAL EFFICIENCY
HOUSEHOLD SURVEYS
SMALLHOLDERS
UGANDA
SUB-SAHARAN AFRICA
Gourlay, Sydney
Kilic, Talip
Is Dirt Cheap? : The Economic Costs of Failing to Meet Soil Health Requirements on Smallholder Farms
geographic_facet Africa Eastern and Southern (AFE)
Africa
Sub-Saharan Africa
Uganda
relation Policy Research Working Paper;10108
description Agricultural productivity is hindered in smallholder farming systems due to several factors, including farmers’ inability to meet crop-specific soil requirements. This paper focuses on soil suitability for maize production and creates multidimensional soil suitability profiles of smallholder maize plots in Uganda, while quantifying forgone production due to cultivation on less-than-suitable land and identifying groups of farmers that are disproportionately impacted. The analysis leverages the unique socioeconomic data from a subnational survey conducted in Eastern Uganda, inclusive of plot-level, objective measures of maize yields and soil attributes. Stochastic frontier models of maize yields are estimated within each soil suitability class to understand differences in returns to inputs, technical efficiency, and potential yield. Only 13 percent of farmers are cultivating soil that is highly suitable for maize production, while the vast majority are cultivating only moderately suitable plots. Farmers cultivating highly suitable soil have the potential to increase their observed yields by as much as 86 percent, while those at the opposite end of the suitability distribution (with marginally suitable land) operate closer to the production frontier and can only increase yields by up to 59 percent, given the current technology set. There is heterogeneity in potential gains across the wealth distribution, with poorer households facing more heavily constrained potential. Assuming no change in technologies and management practices used by Ugandan farmers, there are limited economic gains tied to closing suitability class-specific productivity gaps, or even at the extreme reaching the average potential productivity levels observed in the high suitability class.
format Working Paper
author Gourlay, Sydney
Kilic, Talip
author_facet Gourlay, Sydney
Kilic, Talip
author_sort Gourlay, Sydney
title Is Dirt Cheap? : The Economic Costs of Failing to Meet Soil Health Requirements on Smallholder Farms
title_short Is Dirt Cheap? : The Economic Costs of Failing to Meet Soil Health Requirements on Smallholder Farms
title_full Is Dirt Cheap? : The Economic Costs of Failing to Meet Soil Health Requirements on Smallholder Farms
title_fullStr Is Dirt Cheap? : The Economic Costs of Failing to Meet Soil Health Requirements on Smallholder Farms
title_full_unstemmed Is Dirt Cheap? : The Economic Costs of Failing to Meet Soil Health Requirements on Smallholder Farms
title_sort is dirt cheap? : the economic costs of failing to meet soil health requirements on smallholder farms
publisher Washington, DC : World Bank
publishDate 2022
url http://documents.worldbank.org/curated/en/099025206272226611/IDU0ee487ee70a84304c8c08b8a031ef5894a785
http://hdl.handle.net/10986/37627
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