Small and Mid-Sized Farmer Irrigation Adoption in the Context of Public Provision of Hydric Infrastructure in Latin America and Caribbean

Abstract

According to 2013 statistics from the Economic Commission for Latin America and the Caribbean (EC-LAC 2013), a mere 3.03% of the total agricultural area in ​​the region uses some type of irrigation technology. Thus, there is a high degree of sub-utilization of existing hydric infrastructure given that the supply of irrigation capacity in many countries is greater than the calculated use (see Herrera et al. 2005; IICA 2011; CONAGUA 2014, among others). Nonetheless, there are a limited number of studies that characterize the factors affecting the adoption of irrigation by small and mid-sized farmers in the influence area of irrigation projects. This manuscript presents a novel empirical decision model applicable to irrigation adoption based on exogenous and endogenous factors in the context of LAC countries, which is solved through a binary equation system with latent variables. The main goals are to capture the effect that certain idiosyncratic variables, such as lack of credit access, can have over the decision of irrigation adoption; as well as the costs associated to private goods, financed through credit, which are necessary to access to the benefits of the provision of irrigation as a public good.

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Notes

  1. 1.

    For more details see Cremer & Laffont (2003)

  2. 2.

    This vector is comprised of soil texture, fertility, slope and some climate variables that may influence crop productivity or viability.

  3. 3.

    While observing private investment costs may prove challenging, suitable proxies would be the relative distances described above, which can be constructed by GIS procedures based on land plot maps. The assumption that investment costs across farmers should vary proportionally to the distance to the nearest water source should be suitable for surface irrigation adoption.

  4. 4.

    This could be constructed by a careful combination of data obtained by both geo-referenced survey collection and manipulation of digital maps of land plot characteristics by means of GIS procedures. Section 3 will present an example of such approach.

  5. 5.

    In Ecuador, the smallest administrative-political unit is the parish. In this case study, these are Ricaurte, Catarama and Ventanas.

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Acknowledgements

The authors acknowledge the Prefectura de Los Ríos, Ecuador, and the Japan International Cooperation Agency (JICA) for supporting the data collection phase and for allowing its use. Also, collaboration from Juan Carlos Pindo and Maria Fernanda Loor was paramount for the success of this work.

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Correspondence to Gonzalo Villa-Cox.

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Villa-Cox, G., Herrera, P., Villa-Cox, R. et al. Small and Mid-Sized Farmer Irrigation Adoption in the Context of Public Provision of Hydric Infrastructure in Latin America and Caribbean. Water Resour Manage 31, 4617–4631 (2017). https://doi.org/10.1007/s11269-017-1769-4

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Keywords

  • Irrigation adoption
  • Rural credit and development
  • Recursive bivariate Probit
  • Endogenous linear probability model