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Can information help reduce imbalanced application of fertilizers in India?
The imbalanced application of chemical fertilizers in India is widely blamed for low yields, poor soil health, pollution of water resources, and large public expenditures on subsidies. To address the issue, the government of India is investing in a large-scale, expensive program of individualizedsoil testing and customized fertilizer recommendations, with the hope that scientific information will lead farmers to optimize the fertilizer mix. We conducted a randomized controlled trial in the Indian state of Bihar in what we believe to be the first evaluation of the effectiveness of the program as currently implemented. We found no evidence of any impact of soil testing and customized fertilizer recommendations on actual fertilizer use or the willingness to pay for lacking nutrients (elicited using aBecker-DeGroot-Marschak mechanism). Several factors could be driving these results, including a lack of understanding, lack of confidence in the information’s reliability, or the costs of the recommended fertilizer mixes. We provide evidence that suggestslack of confidence is the main factor inhibiting farmers’ response
Do grassroots interventions relax behavioral constraints to the adoption of nutrition-sensitive food production systems?
In many developing countries, agricultural policies and programs are often designed in a way to promote productivity growth with modern inputs and technologies, and with limited reference to the nutrition gains that can be made through production diversification. We test whether grassroots programs can relax behavioral constraints inhibiting the adoption of diversified nutrition-sensitive production systems. We use a series of lab-in-field experiments and survey instruments in Odisha, India to elicit male and female farmers’ preferences for risk, aversion to loss, empowerment and aspirations for one’s self and children. We find that respondents in villages where grassroots interventions were promoted showed significantly lower levels of risk aversion, higher levels of loss aversion and higher aspirations for themselves and their children, along with improvements in production and consumption diversity. Insights into the prevalence of behavioral constraints and interventions that relax such constraints fills an important knowledge gap in how to design programs that promote more nutrition-sensitive food production systems.
What is the intrinsic value of fertilizer? Experimental value elicitation and decomposition in the hill and terai regions of Nepal
The government in Nepal faces double burden of enhancing fertilizer application rates in the country by investing in efforts to boost demand and at the same time, managing its dependence on global markets to fulfill the supply of important nutrients such as Urea and DAP. Without an understanding of the true valuation of fertilizers for farmers, achieving this balance would be difficult. We use Becker-DeGroot-Marshak value elicitation methods to derive the intrinsic value that farmers in Nepal place on fertilizers. Eliciting values under three distinct procurement scenarios, we are able to decompose the total intrinsic value of fertilizer into a willingness-to-pay (WTP) to travel to procure f...
Risk and Ambiguity Preferences and the Adoption of New Agricultural Technologies
Advances in agricultural development have largely been a direct result of increased usage of new technologies. Among other important factors, farmers perceptions of risks associated with the new technology as well as their ability or willingness to take risks greatly influences their adoption decisions. In this paper we conduct a series of field experiments in rural India in order to measure preferences related to risk, potential loss, and ambiguity. Disaggregating by gender, we find that on average women are significantly more risk averse and loss averse than men, though the higher average risk aversion arises due to a greater share of women who are extremely risk averse.
Can agricultural aspirations influence preferences for new technologies?
In the face of increasing environmental stresses, there is a critical need to improve water-use efficiency in many arid and semiarid agroclimatic zones. Drip irrigation is a high-efficiency irrigation technology that can improve water-use efficiency in currently irrigated areas and transform areas that are not otherwise irrigable in practice. Although adoption of drip irrigation is growing rapidly in India, adoption is low in neighboring Pakistan. The authors of this paper undertook a discrete choice experiment framed around the hypothetical subsidized purchase of a drip irrigation system in four districts of Punjab, Pakistan. The nonrepresentative sample of adopters and nonadopters in the s...
Who are the entrepreneurs? A case for accelerated service economy for agricultural machinery in Odisha
In this note, we discuss the traits of machine owners that are associated with entrepreneurial behavior and ways in which information about these traits could be used to improve the targeting of mechanization subsidies to better foster the emergence of custom-hire services for farm machinery in Odisha.
A gender-responsive approach to designing agricultural risk management bundles
o Bundling agricultural insurance with risk-reducing agricultural technologies can lower the cost of insurance for farmers, but before implementing bundled solutions, it is important to analyze how these bundles would impact men and women differently. o Using a survey with 900 men and women farmers in Odisha, India, we find that women and men have similar farming practices and input use in general, but women face more difficulties in hiring labor and transplant rice later than men. o Using biophysical crop models, we show that this delay in transplanting lowers expected yields and increases risk exposure for women farmers. o Direct-seeded rice (DSR) is a promising alternative method for establishing rice that can help to mitigate the risks posed by climate change. Our findings indicate DSR is especially beneficial for women farmers. o Gender-responsive policies are needed to ensure that women farmers have equitable access to agricultural insurance and risk-reducing technologies.
Understanding compliance in programs promoting conservation agriculture
Land degradation and soil erosion have emerged as serious challenges to smallholder farmers throughout southern Africa. To combat these challenges, conservation agriculture (CA) is widely promoted as a sustainable package of agricultural practices. Despite the many potential benefits of CA, however, adoption remains low. Yet relatively little is known about the decision-making process in choosing to adopt CA. This article attempts to fill this important knowledge gap by studying CA adoption in southern Malawi. Unlike what is implicitly assumed when these packages of practices are introduced, farmers view adoption as a series of independent decisions rather than a single decision. Yet the adoption decisions are not wholly independent. We find strong evidence of interrelated decisions, particularly among mulching crop residues and practicing zero tillage, suggesting that mulching residues and intercropping or rotating with legumes introduces a multiplier effect on the adoption of zero tillage.
New modalities for managing drought risk in rainfed agriculture
In this paper we explore the potential for a new approach to managing drought risk among rainfed rice producers in Odisha, India. Droughts have historically been a serious constraint to agricultural production in rainfed agricultural systems, with droughts resulting in significant reductions in both yields and cultivated area, in turn leading to significant impacts on rural livelihoods and food security. Scientists and policy makers have proposed various strategies for managing risks, with limited success. In this study we consider two such strategies, specifically drought-tolerant rice and weather index insurance. While neither drought-tolerant cultivars nor weather index insurance products...
Cooperation and the management of local common resources in remote rural communities: Evidence from Odisha, India
It is widely recognized that local management of common pool resources can be more efficient and more effective than private markets or top-down government management, especially in remote rural communities in which the institutions necessary for the enforcement of centrally-imposed regulations may be weak or prone to elite capture. In this paper, we explore the propensity for cooperation in the management of local common resources by introducing a variant of a public goods game among remote rural communities in the state of Odisha, in eastern India. We explore various patterns of cooperation, including free riding behavior, unconditional cooperation (altruism), and conditional cooperation, ...
