Can information improve investment? effects of site-specific soil recommendations on fertilizer demand
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Date
2018-07
Journal Title
Journal ISSN
Volume Title
Publisher
Sokoine University of Agriculture.
Abstract
This paper studies the effects of providing smallholder farmers with plot-specific soil quality
information and fertilizer recommendations on investment and technology adoption. Low
use of mineral fertilizers by farmers in Sub-Saharan Africa contributes to low crop yields,
high rates of food insecurity, and persistent poverty. A possible explanation as yet
unexplored in the literature for persistently low adoption rates: the presence of hyper-local
variation in soil quality means that blanket fertilizer recommendations set by governments
may be unsuitable for many farmers. We use a randomized control trial to test the effects of
plot-specific recommendations with and without a concomitant easing of farmer liquidity
constraints. We find evidence of agronomically important within-village variation in soil
nutrient deficiencies and we find that government recommendations are not relevant for the
majority of farmers in our sample. Results demonstrate that the combination of liquidity and
information is key to resolving plot-specific soil nutrient limitations; information alone does
not change investment and provision of vouchers without information leads farmers to
purchase the most common fertilizer in the market. Results from a production function
analysis show that application of mineral fertilizer to address plot-specific nutrient
limitations leads to large maize yield increases. Our research suggests that substantive crop
yield increases in the region will require a targeted approach that addresses sub-regional soil
constraints to crop production and makes efficient use of environmental and economic
resources
Description
Journal Article
Keywords
site-specific information, soil quality, fertilizer, RCT