Abstract
This chapter examines the effect of new farm technology on the income of poor farmers in Sub-Saharan Africa (SSA) using the case study of NERICA rice in Central and Western Uganda. NERICA has the potential to increase per capita income by $20 (12% of actual per capita income) and to decrease the poverty incidence, measured by the head count ratio, by 5% points. Such a positive effect of NERICA, however, can only be realized when its adoption is combined with the use of appropriate cropping patterns to maintain soil fertility. The study also finds that accessibility to information and experience of non-NERICA rice cultivation increase the probability of adopting NERICA.
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Notes
- 1.
The selected areas are the districts of Masindi, Kibaale, Kamwenge, Hoima, Mbarara, Wakiso, Mpigi, Mubende, Kiboga, and Luwero. In half of the areas, NERICA was newly introduced in 2004. Each area covers about three LC1s.
- 2.
To control for over-sampling of the NERICA households, we calculated the sampling weights from the information collected during the NERICA survey. These weights are used to compute the descriptive statistics and to conduct the regression analyses, where the sampling weight for the NERICA households in area i is calculated by the ratio of the total number of NERICA growing households in area i over the number of sampled NERICA households in that area, and a similar scheme is applied for non-NERICA households.
- 3.
The adoption rate in the sample area is calculated by dividing the number of NERICA adopters by the total number of households in the sample area. We obtained the names of all the NERICA adopted households in our sample areas to draw a stratified random sampling.
- 4.
How income was calculated is explained in Kijima et al. (2008).
- 5.
Even if we use land per adult equivalent measures instead of land size per person, we find a similar relationship between land scarcity and income ranks. This relationship is also observed in the RePEAT survey where the average land size per adult equivalent among poor households is 0.9 ha while that among nonpoor households is 1.8 ha.
- 6.
This is confirmed by recent study on NERICA adoption in Uganda (Kijima et al. 2010).
- 7.
The results of the Heckman model are obtained from Appendix Table 1 of Kijima et al. (2007).
- 8.
If there are many plots in the NERICA parcel, we selected the maize plot. If there is no maize plot, then we picked the legume plot. If there is neither a maize nor a legume plot, we selected a roots/tuber crop plot.
- 9.
In our analyses, the prices are assumed to be constant. Given that rice is imported in Uganda, the domestic price is essentially determined by the international price. Because of this, we think that setting the rice price constant for the simulation is not an unrealistic assumption, even when rice production increases as NERICA becomes widely adopted in Uganda.
- 10.
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Kijima, Y., Otsuka, K., Sserunkuuma, D. (2011). Technology, Soil Fertility, and Poverty: The Case of NERICA Rice in Uganda. In: Yamano, T., Otsuka, K., Place, F. (eds) Emerging Development of Agriculture in East Africa. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-1201-0_10
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