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PurposeFarmers in Colombia have faced economic instability due to a long-lasting armed conflict. An attempt to support the rural community has been through the creation of productive alliances – a strategic association between small-scale producers and anchor companies with the assistance of the private and public sectors. By closely examining the Association of Guarupay Palm Growers (ASOPAY)'s financial cash flows, this study investigates the challenges faced by small-scale agribusinesses in an emerging economy.Design/methodology/approachThis study addresses the situation of ASOPAY, an oil palm productive alliance formed by families displaced by the Colombian armed conflict and relocated in the eastern foothills of the Andes Mountains. By closely examining ASOPAY's financial flows, the article sheds light on the economic incentives enhancing the cohesion of the small-farmers’ association.FindingsA key finding is the critical role played by institutional efforts focused by promoting policies to enhance producers income. In addition, technological transfers made through technical assistance programs may improve the association's profitability by enhancing agronomic practices, while decreasing palm mortality and disease incidence.Research limitations/implicationsThe relatively small sample used in the study might rise concerns regarding the generalization of the outcomes. However, the authors implemented strategies to overcome these limitations by incorporating the inputs from experts on the oil palm supply chain in Colombia and from experts in rural development.Originality/valueTo the authors' knowledge, this is the first study analyzing the financial success of small farmers in post-conflict zones.

A systematic review was conducted to examine expected economic outcomes of rubber-based agroforestry systems during mature rubber stage in comparison with monoculture rubber farming. Twelve studies were identified for a narrative synthesis of economic outcomes of the mature rubber production systems. The review found that whilst monoculture rubber production may produce higher income in some cases, particularly when rubber prices are high, profitable diversified rubber agroforestry systems were reported in all but one study. Rubber agroforestry has the potential to reduce the vulnerability of smallholders to volatile markets for rubber, particularly if the share of income from secondary species is substantial. Shade-tolerant crops with small canopies (e.g. coffee, bamboo and tea) are reported as ideal intercrops for rubber. Economically advantageous systems reported appeared to be rubber combined with species which provide additional income in the medium to long term (e.g. sheep and high value timber) and/or enhance ongoing cash flow with a lengthy productive lifespan and regular harvests (e.g. durian and gnetum). However, these systems are subject to many constraints such as labour availability, investment and management capacity and market conditions for secondary products. The review showed an absence of farm portfolio studies aimed at finding risk reducing enterprise combinations. Future research on economic outcomes of rubber agroforestry systems should firstly distinguish traditional jungle rubber from rubber agroforestry systems which use clonal rubber similar to those used in monoculture rubber, and secondly consider the full value of secondary products even if they are grown for own consumption.

Autonomous equipment for crop production is on the brink of commercialization in the United States but federal, state, and local policies could affect commercial viability and hinder adoption. This article examines the farm-level implications of both a speed restriction and on-site supervisory regulations. The rules reduce the profitability of autonomous machinery, and for some scenarios autonomous machines are no longer an economically viable alternative to conventional machinery. Regulations also increase the optimal number autonomous machines required and influence production practices. Smaller farms have more flexibility in supporting the rules because they have more to gain from the use of autonomous equipment.

Autonomous equipment for crop production is on the verge of technical and economic feasibility, but government regulation may slow its adoption. Key regulatory issues include requirements for on-site human supervision, liability for autonomous machine error, and intellectual property in robotic learning. As an example of the impact of regulation on the economic benefits of autonomous crop equipment, analysis from the United Kingdom suggests that requiring 100% on-site human supervision almost wipes out the economic benefits of autonomous crop equipment for small and medium farms and increases the economies-of-scale advantage of larger farms., Applied Economic Perspectives and Policy, 44 (2), ISSN:2040-5790, ISSN:2040-5804

Analysis methods for landscape-scale site-specific agricultural datasets have been adapted from a wide range of quantitative disciplines. Due to spatial effects expected at landscape scales with respect to yield affecting factors, inference from aspatial analyses may lead to inefficient statistical inference. When spatial correlation exists within a random variable e.g. explanatory variables such as elevation or soil characteristics, spatial statistical methods can provide unbiased and efficient estimates on which to base economic analyses and farm management decisions. Simple continuous terrain variables derived from spatially lagged independent variable transformation of relative terrain position allowed models to be estimated using familiar linear aspatial models without introducing the problems associated with interpolated data in inferential spatial statistics. Using site-specific data from three example fields, cross regressive elevation variables complemented topographic attributes, rather than replacing them in a range of statistical models. Results indicated that cross regressive elevation variables, especially relative elevation, reduced estimation problems due to correlation among independent variables and bias arising from spatially interpolated data in statistical analysis.

This study reviewed research published after 1990 on the economics of agricultural mechatronic automation and robotics, and identified research gaps. A systematic search was conducted from the following databases: ScienceDirect, Business Source Complete, Wiley, Emerald, CAB Abstract, Greenfile, Food Science Source and AgEcon Search. This identified 4817 documents. The screening of abstracts narrowed the range to a dataset of 119 full text documents. After eligibility assessment, 18 studies were subjected to a qualitative analysis, with ten focused on automation of specific horticultural operations and eight related to autonomous agricultural equipment. All of the studies found some scenarios in which automation and robotic technologies were profitable. Most studies employed partial budgeting considering only costs and revenues directly changed by the introduction of automation or robotics and assuming everything else constant. None examined cropping system changes, or regional and national impacts on markets, trade and labour demand. The review identified a need for in-depth research on the economic implications of the technology. Most of the studies reviewed estimated economic implications assuming that technology design parameters were achieved and/or based on data from prototypes. Data are needed on the benefits and problems with using automation and robotics on farm. All of the studies reviewed were in the context of agriculture in developed countries, but many of the world’s most pressing agricultural problems are in the developing world. Economic and social research is needed to understand those developing country problems, and guide the engineers and scientists creating automation and robotic solutions.

In the developing world grain storage losses are high and in humid areas inadequate grain drying is often a source of storage problems. Farmers and traders depend on traditional grain moisture estimation methods which are subject to a wide error margin. Grain storage decisions could be improved if farmers and traders had a low cost grain moisture meter that fit their needs. The goal of this study was to determine the desired grain moisture meter functionality and to estimate the value of grain moisture measurement for small holder farmers and for small-scale grain traders, using Bangladesh as a case study. This study was based on interviews with 140 randomly selected Bangladeshi rice farmers in 2016 and 2017, discussions with millers at 30 rice mills and a voucher based moisture meter sales program. It shows that except for rice kept for seed and home consumption, most Bangladeshi farmers sell their rice shortly after harvest to satisfy cash needs and to eliminate storage risks. They say that they would store more rice on-farm if they had better storage methods including cost-effective grain moisture testing. Survey results show that the average farm storage loss was 52 kg or 563 Taka (US$6.78) annually. Using experimental economics methods, farmers were given the opportunity to purchase a probe type grain moisture meter through vouchers with a range of prices. Twenty three of the 140 of the participants (i.e. 16%) purchased at an average of price of 374 Taka (i.e. US$4.67). No farmer purchased a voucher price over 800 Taka (US$10.00). Those who purchased moisture meters had larger farms and produced more rice than those who did not exercise the voucher. They were also younger on average, have more education and more off farm income than non-purchasers.

CONTEXT This paper assessed the potential for agricultural development in the Colombian Altillanura, a frontier area of a middle-income country with a history of internal conflict. This region is suitable for growing diverse crops ranging from staple crops and livestock to high-valued commodities such as cacay (a nut whose oil is used in the cosmetic industry). OBJECTIVE The model suggested an optimal portfolio of agricultural enterprises for a representative farm that maximizes revenues net of variable costs and returns to resource endowments. Traditional agricultural enterprises were assessed, as well as some others that appear to be promising possibilities for Altillanura. METHODS A linear programming model (LP) was designed to support the assessment of the relative profitability of agricultural enterprises in a post-conflict era as a response for the need to reduce agricultural net imports, satisfy a growing domestic food demand and boost economic and social development. RESULTS and CONCLUSION A major finding was that labor shortages in the region are a key constraint for perennial crops such as oil palm, cacay, and cashew. Inclusion of mechanized crops like rice, corn, and soybean can help to alleviate this limitation, resulting in the preferred farm choice among the conventional farm activities. Integrated (Crop + Hog) operation is the most profitable among promising enterprises, but its operation size would be constrained by access to processing plants and marketing strategies. Cacay and cashew represent a viable option for farms to increase net returns using high-valued perennial crops. SIGNIFICANCE Currently, cattle production on native savannas is the most common agricultural activity in the region, but this model challenged this status quo by identifying other more profitable alternatives that include improved production systems for cattle, hogs, and crops.

In order to facilitate the transformation of African agriculture, Africa’s smallholders will require more and better access to input markets that deliver context-specific and well adapted innovations. This article summarizes the management lessons learned in developing supply chains for Purdue Improved Crop Storage (PICS) bags in West and Central Africa. PICS bags are hermetic grain storage bags that are leading a revolution in the post-harvest handling of grain on smallholder farmers in Africa. The bags have been very popular with farmers, but the major challenge has been developing supply chains to make those bags available for purchase at the village level. This article: (1) describes the PICS supply chain in West and Central Africa; (2) identifies constraints (i.e. financial, structural, social) that impede the development of the PICS supply chain; and (3) analyzes strategies used by businesses to expand distribution channels and increase bag sales.

Genetically modified (GM) crops could increase economic growth and enhance living standards in Africa, but political issues have slowed the use of biotechnology. This is the first study that assesses the potential impact of GM crops in Africa while considering the preferences of producers and consumers towards GMOs as well as the income and price risks they face. The study uses a choice experiment to estimate the ex ante economic impact of a novel technology, Bacillus thuringiensis (Bt) cowpea, on producers and consumers in Benin, Niger and northern Nigeria. The experiment involves the simulation of a market transaction similar to those in open air markets in West Africa. During the market simulation, respondents are informed about the advantages and disadvantages, including health risks, of Bt cowpea. The results from the study suggest that cowpea growers and consumers in Benin and northern Nigeria prefer Bt to conventional cowpea for health safety reasons. The results estimate that social welfare in Benin, Niger and northern Nigeria would increase by at least US$11.82 per capita annually with Bt cowpea, if seed sectors are operating smoothly. With inefficiencies in seed sectors and the potential for cowpea acreage increase, the estimated social welfare increase in the region would be about US$1.26 per capita annually.

The dissemination of triple-layer plastic PICS bags for cowpea storage in thousands of villages across West and Central Africa has raised concerns in governmental and development agencies that farmers would simply discard the bags into the environment when they become no longer fit to store cowpea grain. We conducted a survey in November and December 2011 in the Maradi and Zinder regions in Niger to assess the reuse and recycling of PICS bags. Among the respondents, 48% were farmers who had volunteered to test PICS bags during village activities. Some 91% of respondents reused their bags at least once. More than 76% of farmers and 70% of cowpea merchants reused their bags at least twice. Slightly damaged PICS bags with only a few holes were typically repaired with tape and continued to be used to store cowpea grain. When PICS bags could no longer be used to store cowpea, they were recycled to store other crops or used for roofing, tarps, and diaper covers. Respondents reported that PICS bags performed well in storing cowpea grain during consecutive years of use: 100% (year one), 97.3% (year two), 79.0% (year three), and 15.4% (year four). For grain storage purposes, PICS bags may have to be replaced after three or four years of use. There was no evidence that PICS bags are discarded into the environment; rather, they are used for other purposes when they are no longer fit to hermetically store cowpea grain.

An alternative approach to traditional consumer behaviour and demand theory is characteristics theory, which assumes that a consumer’s utility function is generated by the characteristics, or attributes, that goods and services possess. Instead of a utility being a function of a product, it becomes a function of the attributes provided by these products. In this paper a hedonic pricing model is used to investigate the influence of sucrose level and cooking time on cowpea prices in Senegal. Cooking time has a significant impact on price only at Tilene market in Dakar, while the sucrose contents tend to provide a premium throughout. Further investigation shows that the local varieties, AW, Matam and Ndiassiw have higher sucrose contents than the other cowpea varieties.

When cowpea bruchid-infested cowpea grain was stored for four-plus months in Purdue Improved Cowpea Storage (PICS™) bags or in commercially-available GrainPro SuperGrain™ bags, preservation of the grain was equally good in both types of bags. In both bag types oxygen (O2) levels dropped rapidly during the first 24 h after closure, eventually reaching levels of 1–3 percent by volume (v/v). With both types of bag there was an initial rise in temperature during the first 24 h, followed by a decline, in time reaching ambient. Over the four-plus months of the experiment damage levels did not significantly increase in either type of bag while control grain kept in a conventional woven plastic bag suffered severe damage. Most of the insects found in both GrainPro and PICS bags at the end of the experiment were dead. The single layer SuperGrain™ bags showed more bruchid holes than did triple-layer PICS bags, which had no holes penetrating through both of the inner high density polyethylene (HDPE) layers, meaning that an intact O2 barrier remained in place even after the inner HDPE layer was holed. Farmers who wish to store their cowpea grain with either technology can choose between the two types of bags, taking into account price, availability and durability.

Micro-entrepreneurship in the informal sector plays a vital role in generating employment and income in West Africa. In this article, the authors examine business success factors for micro-entrepreneurs involved in the production and sale of street foods in Niger, drawing on the resource-based view theory. Business success was measured by size of firm and vendor's perception of enterprise growth. Their results indicate that business experience is an important success factor, while the need for cash is a constraint for business success. A rare resource, limited access to financial assets translates into limited opportunities for growth of these informal micro-enterprises into viable businesses.

There is an urgent need to quantify which extension methods are most effective in Africa. The objective of this study was to determine the impact of alternative extension methods on adoption of the triple bagging cowpea storage technology in Niger and Burkina Faso. This study was designed as a quasi-experiment with two alternative extension methods studied: village demonstrations and demonstrations reinforced by radio broadcasts. Interview data was collected on triple-bag adoption in villages with the two types of extension programmes and control villages with no storage extension. Binary logit regression analysis was used to identify factors which influenced triple-bag adoption. Storage demonstrations boosted adoption of triple-bag storage by statistically significant marginal probabilities of 34% in Niger and 13% in Burkina Faso, compared to villages with no demonstrations or radio messages. Reinforcement of the demonstration experience with radio broadcasts increased adoption by statistically ...

Researchers from the Bean/Cowpea Collaborative Research Support Program (CRSP), a program supported by the USAID, developed several non-chemical cowpea grain storage technologies in the 1980s. These included hermetic storage in airtight containers, improved ash storage, and the solar heater. Impact studies conducted at the country level showed that the research program was economically a good investment. As the CRSP new storage technologies spread throughout West and Central Africa, a regional assessment including spillover effects became necessary to fully comprehend the impact and guide future research investments. Therefore, this study sought to measure the economic impact of the new CRSP cowpea storage technologies at a regional level. Surveys in seven countries were used to estimate storage technology adoption. Economic surplus was used to estimate annual benefits and internal rate of return (IRR), and net present value (NPV) were calculated to summarize the net benefits. From the perspective of recipients' countries the project was a good investment. The IRR, is found to be much greater than the cost of capital. The regional IRR was found to be about 29%, much higher than the real interest rate on government bonds in West Africa at the time. For example the real interest rate on bonds issued by the government of Ghana in 2004 and 2005 was 8.9% and 5.4% respectively. The IRR is also higher than the private bank real lending rates in West Africa. From the perspective of the principal donor, the US government, the project was a good investment given that the average real interest rate on US government’s bonds was 4.8% during the period. The net present value of the investment amounts to more than 295 million US dollars which yields an annualized value of about 17 million.

The objective of this study is to determine the impact of bean grain quality characteristics on market price. The data were collected from retail markets in Tanzania. Hedonic pricing provides a statistical estimate of premiums and discounts. Implications for the development of bean markets include the following: (a) extension agents should identify cost-effective ways to educate producers on targeting urban market niches based on consumer preferences for varieties, (b) breeding for bruchid-resistant beans and use of appropriate storage technologies would alleviate the problems of storage damage, and (c) a portfolio of grain quality characteristics to fit consumer preferences in local markets should be required.

Women entrepreneurship in the informal sector, such as street food vending, is important for poverty alleviation in West Africa. The street food sector provides employment for women and inexpensive and nutritious food for the urban poor. In this paper, we determine the importance of the cowpea street food sector, evaluate the determinants of successful enterprises and ascertain the impact of economic, cultural, religious and geographic differentials between enterprises in Niamey, Niger and Kumasi, Ghana. Data were collected through in-person interviews with 114 and 122 women street food entrepreneurs in both countries in 2009. Results revealed that women entrepreneurs engaged in the cowpea street food sector can earn incomes 4 times and 16 times higher than the minimum legal wage in Niamey and Kumasi, respectively. Incomes earned from these entrepreneurial activities contribute directly to health, education and needs of their families. OLS regression results indicate that lack of financial resources, stable business locations and religious beliefs are important entrepreneurial success factors. Cross-country comparisons revealed enterprises in Kumasi are larger and more successful than those in Niamey.

The response of maize (Zea mays) to banded variable-rate nitrogen (N) application over a period of 3 years (2002/3–2004/5) is analyzed. The experimental design alternated variable-rate (VR) and single-rate (SR) applications of N. The yield monitor data were spatially autocorrelated and therefore were analyzed with spatial regression methods. The baseline spatial regression model defined in this study showed that the VR treatment, treatment by year and treatment by management zone were statistically significant. Sensitivity tests were applied; the first showed that VR treatment had a yield advantage when soil depth was greater than the field average of 174 cm. The second test showed that the VR N rates applied were close to those that would maximize profit. Partial budgeting indicates that benefits from VR vary from year to year, but in this test VR was slightly more profitable than uniform rate application. Economic sensitivity testing indicates that farm size and the price of maize are the key factors in the profitability of VR N.

Cowpea (known as black-eyed peas in America) is the most important indigenous African grain legume for both home use and as a cash crop. Because of its tolerance to drought, it is especially important for the Sahel. Genetic transformation of cowpea with Bacillus thuringiensis (Bt) genes to control pod-boring insects has many advantages, but little is known of the potential consumer response. This article analyzes and reports the results of a survey of 200 consumers in northern Nigeria concerning consumer awareness of and acceptance of biotechnology. Ninety percent of the respondents were aware of genetically modified (GM) products. Those respondents who were most concerned about the ethics of genetic transformation were likely to disapprove of such products, while those individuals who identified international radio as an information source were more likely to approve of GM technology.

Variable-rate (VR) application of inputs in South African cash crop production is mainly concerned with fertilizer and lime, and this indicates the importance of these inputs in cash crop production. However, the profitability of VR application of inputs has not yet been investigated under South African conditions. This paper studies the maize yield response to variable-rate application of phosphorus (P) and the profitability thereof in South Africa, on the basis of data collected on a 104-hectare experimental field on a farm in the Bothaville district. The strip-plot design of 180 strips was used for this on-farm research experiment. This design involved treatments that run in the same direction across the field as planting and harvesting. The objective is to determine the maize crop response functions under different P rates and to estimate the profitability of VR relative to the single-rate (SR) application of P. The methodology involves modelling maize yield response functions for P under VR and SR treatments, and for different management zones. A spatial quadratic regression model is developed, according to which yield is estimated as a function of applied P, the treatment and management zones. The results indicate that yield response to P varies between VR and the SR application methods, as well as between management zones. Variable-rate treatment results in higher profits than the SR treatment.

We present a review of the last few years' literature on the economic feasibility of variable rate technology in agriculture. Much of the research on this topic has involved the estimation of site-specific yield response functions. Data used for such estimations most often inherently lend themselves to spatial analysis. We discuss the different types of spatial analyses that may be appropriate in estimating various types yield response functions. Then, we present a taxonomy for the discussion of the economics of precision agriculture technology and information. We argue that precision agriculture technology and information must be studied together since they are by nature economic complements. We contend that longer-term, multi-location agronomic experiments are needed for the estimation of ex ante optimal variable input rates and the expected profitability of variable rate technology and information gathering. We use our taxonomy to review the literature and its results with consistency and rigor.

This study evaluates the impact of a long-term research collaboration between the Senegalese Institute for Agriculture Research (ISRA), and the Bean/Cowpea Collaborative Research Support Program (CRSP) funded by the U.S. Agency for International Development (USAID). Adoption of the primary outputs from this collaboration, a nonchemical cowpea storage method and two short-season cowpea varieties, were tracked through a series of farmer interviews in 1996, 1997, and 2004 in the main cowpea growing area of Senegal. Combined with information from an impact assessment in the late 1980s, this study draws on ex-post adoption data from most of the product life cycle for the storage technology. The 2004 survey found that 60.4% of cowpea production in the main cowpea growing area of Senegal is stored in metal drums and that 69% of households use this storage technology; ISRA/CRSP improved short season varieties were determined to account for 3.6% of cowpea production. Baseline economic analysis of the most recent survey data, which includes benefits and costs of the storage technology and improved varieties, reveal an IRR to donor funding of 13%. The benefits of these technologies appear to be evenly distributed in the rural population on the basis of gender and ethnic background. Comparison of the rates of technology adoption over time, however, reveals that use of the storage technology may be decreasing; inclusion of this technology disadoption trend reduces the IRR by only 0.4% from the baseline estimate. Overall, estimated returns reveal that this collaboration has been a good investment for the U.S. and Senegalese governments, and other donors.

This analysis works out the economic implications for variable rate seeding of the corn population response curves estimated by Pioneer Hi-Bred agronomists. Examples are developed for various mixes of low, medium and high yield potential soil, as well as for a range of seed costs and variable rate equipment costs. The strategies analyzed were: variable rate planting using agronomic recommendations for each yield potential zone, variable rate planting using an economic decision rule for each yield potential zone, an information strategy which sets the uniform planting rate at the highest population indicated by agronomic recommendations for any part of the field and a second information strategy which uses an economic decision rule for the whole field based on potential in each yield zone. The economic decision rule sets the value of additional yield produced by adding a few more plants equal to the cost of planting a few extra seeds. Major assumptions of the analysis include: only corn is considered for variable rate planting, 1000 acres of corn are planted annually, the yield potential zones are small, irregularly shaped and interspersed so that changing population by field is ineffective, the zones are accurately mapped and corn price at harvest is $3/bu. The analysis does not include risk, alternative uses for low yield potential soil or the benefits of variable rate planting other than seed cost savings and matching population to the yield potential of the soil. The general conclusion is that variable rate seeding has profit potential only for farmers with some low yield potential land (

Interactions among environmental factors, management decisions, and field characteristics cause temporal and spatial variability in corn (Zea mays L.) and soybean [Glycine max (L.) Merr.] yields. The objectives of this paper are (i) to test whether yield response of corn to N and P and of soybean to P are spatially and temporally stable, and (ii) to evaluate the profitability of a variable rate (VR) N and P fertility management strategy over a 5-yr, corn–soybean rotation using this response information. A field near Windom, MN, USA, was cropped with corn (1997, 1999, and 2001) and soybean (1998, 2000). Three replications of 13 N and P treatments were established in a split-plot arrangement of a randomized complete block design. Treatments were applied at constant rates in strips across the entire field. Fertilizer N treatments were 0, 67, 112, 157, and 202 kg ha 21 and P treatments were 0, 56, and 112 kg P2O5 ha 21 . The field was partitioned into sub-blocks for spatial analysis of yield response. Corn and soybean response to these inputs was estimated for each block, each year. Results indicate that spatial variation of crop response to these inputs is significant, and that response of corn and soybean to P is temporally stable in some parts of the field, but not others. Response to N was not temporally stable. Results of an ex post profitability analysis found that average returnsoverthe5-yrperiodfromtheVRNandPmanagementstrategy were $28 ha 21 higher than returns from a uniform application strategy.

Member countries of the Economic Community of West African States (ECOWAS) are expected to form a West African Monetary Zone (WAMZ) by December 2009, whereby members would use a common currency in an attempt to promote regional integration. Evidence suggests that reduction in transaction cost as a result of a decrease (or elimination) of nontariff barriers (NTBs) and real interest rates in response to elimination of exchange rate differentials positively influence trade. The objective of this study is to quantify the effects of (a) a 7% real interest rate on capital and (b) zero NTBs within ECOWAS countries, on cowpea (Vigna unguiculata (L.) Walp) trade to provide a measure of the potential impacts of the WAMZ on grain trade. The study applies a spatial and temporal price equilibrium model formulated in a mixed complementary programming (MCP) framework and solved using GAMS/PATH. The focus is on the Nigerian cowpea grainshed (NCG) comprising Benin, Burkina Faso, Cote d'Ivoire, Ghana, Mali, Niger, Nigeria, and Togo in ECOWAS, and Cameroon, Chad, and Gabon in the Central African Economic and Monetary Community (CAEMC). The results show that if WAMZ results in reduced real interest rates within ECOWAS, the larger of the two monetary unions, consumers in the relatively larger coastal economies and producers in the smaller Sahelian economies would benefit while all others lose. However, net social welfare would increase by 0.19% over the base case of 6.3 billion US$ (bUS$). Removing NTBs among countries in the larger trading bloc may alter the pattern of cowpea flows with total trade volume increasing by 3%, but inter-bloc trade decreasing by about 8%. The net total regional social welfare would increase by 0.14%, or 15 million US$ (mUS$), benefiting only consumers in importing countries and producers in exporting countries. The results emphasize the importance of specialization based on regional comparative advantage, but also draw attention to the need to devise ways to ensure acceptable welfare distribution among producers and consumers in line with policy objectives of the individual countries within the proposed WAMZ. Finally, this article contributes to the literature on the application of spatial and temporal models incorporating both ad valorem tariffs and differential interest rates in developing economies.

Due to rapid loss of soil fertility in traditional cropping systems and subsequent yield decline, plantain fields in Southeastern Nigeria are usually reverted to fallow after three years. This study investigates the potential of mulch-based systems for long term plantain production: alley cropping with Dactyladenia barteri and natural bush, and a cut-and-carry technique with Pennisetum purpureum. Model results simulate yields decline observed under traditional cropping systems due to a decrease in soil fertility. The adoption of mulch-based technologies is conditioned by capital availability. However, when adequate capital is available, mulch-based systems are quite profitable. Under baseline conditions, the alley cropping system with natural bush outperforms the other two improved technologies with a 154% and 72% increase in net returns over continuous and shifting traditional systems, respectively. The traditional system had the worst performance without fertilizer use. A sensitivity analysis shows that the increase in net return due to fertilizer in the alley cropping and traditional systems is at least 25%. This analysis indicates that credit programs that reach small farmers and land reform that gives them secure title are essential to widespread adoption of mulch-based plantain systems.

Risk efficiency of rice grain yield and returns to farm operators' household resources generated from an improved short-duration cover crop fallow system were compared with (traditional) natural bush fallow, and continuous rice-cropping systems. The improved fallow system involved maintaining Calopogonium mucunoides, seeded into a natural bush fallow for 2 years before planting to rice. With no chemical fertilizer application, which reflects farmers' practice in the area, average grain yield for continuous rice (1,185 kg/ha) and the cropping sequence incorporating a natural bush fallow (1,175 kg/ha) did not differ, but were higher for the improved fallow system (1,304 kg/ha). This suggests that nutrient contribution from the leguminous cover crop made up for critical crop N requirements in the improved fallow. Stochastic dominance of grain yield distributions from the improved fallow system, relative to the other two cropping systems, was more dramatic with no N fertilizer application compared to treatments with 30 kg/ha N. Average returns were highest for the improved fallow system, followed by the natural bush fallow-cropping system, and then continuous rice, under the no N fertilizer treatment regime. With 30 kg/ha N fertilizer, income risk efficiency was less clear (compared to treatments with no N fertilizer), especially between continuous rice and the improved fallow treatment, because of faster N mineralization effects on continuous rice. In contrast, the improved cover crop fallow system completely dominated the natural bush fallow treatment under both fertilizer regimes. Rice production systems that incorporated the leguminous cover crop fallow were superior to the natural bush fallow system, based on both grain yield and average farm income risk-efficiency considerations.

The gap between data analysis and site-specific recommendations has been identified as one of the key constraints on widespread adoption of precision agriculture technology. This disparity is in part due to the fact that analytical techniques available to understand crop GIS layers have lagged behind development of data gathering and storage technologies. Yield monitor, sensor and other spatially dense agronomic data is often autocorrelated, and this dependence among neighboring observations violates the assumptions of classical statistical analysis. Consequently, reliability of estimates may be compromised. Spatial regression analysis is one way to more fully exploit the information contained in spatially dense data. Spatial regression techniques can also adjust for bias and inefficiency caused by spatial autocorrelation. The objective of this paper is to compare four spatial regression methods that explicitly incorporate spatial correlation in the economic analysis of variable rate technology: (1) a regression approach adopted from the spatial econometric literature; (2) a polynomial trend regression approach; (3) a classical nearest neighbor analysis; and (4) a geostatistical approach. The data used in the analysis is from a variable rate nitrogen trial in the Cordoba Province, Argentina, 1999. The spatial regression approaches offered stronger statistical evidence of spatial heterogeneity of corn yield response to nitrogen than ordinary least squares. The spatial econometric analysis can be implemented on relatively small data sets that do not have enough observations for estimation of the semivariogram required by geostatistics. The nearest neighbor and polynomial trend analyses can be implemented with ordinary least squares routines that are available in GIS software. The main result of this study is that conclusions drawn from marginal analyses of this variable rate nitrogen trial were similar for each of the spatial regression models, although the assumptions about spatial process in each model are quite different.

In examining demand for a product it is useful to think of consumers not as purchasing the product, but as purchasing its characteristics that provide utility. Consequently, it is important to measure the specific characteristics that consumers perceive as providing them with utility. In this article a hedonic pricing model is used to investigate the influence of different cowpea characteristics on cowpea prices in Senegal. The results provide valuable information for research institutions, producers, and traders. Cowpea plant breeders should emphasise large grain size as the main characteristic since buyers are willing to pay a premium for this characteristic. This should translate into higher returns on R&D. There exist differences between markets in terms of consumer preferences for testa colour and texture. The result is that sorting and grading of cowpeas according to these characteristics should increase profits, as there would be fewer discounts for undesired characteristics. The importance of adequate storage is also emphasized to protect seeds against insect damage. Finally, it appears that prices in different markets are not equally responsive to changes in the supply of cowpeas. Higher returns could hence be realized through more efficient sequencing of sales.

Precision Agriculture (PA) can help in managing crop production inputs in an environmentally friendly way. By using site-specific knowledge, PA can target rates of fertilizer, seed and chemicals for soil and other conditions. PA substitutes information and knowledge for physical inputs. A literature review indicates PA can contribute in many ways to long-term sustainability of production agriculture, confirming the intuitive idea that PA should reduce environmental loading by applying fertilizers and pesticides only where they are needed, and when they are needed. Precision agriculture benefits to the environment come from more targeted use of inputs that reduce losses from excess applications and from reduction of losses due to nutrient imbalances, weed escapes, insect damage, etc. Other benefits include a reduction in pesticide resistance development. One limitation of the papers reviewed is that only a few actually measured directly environmental indices, such as leaching with the use of soil sensors. Most of them estimated indirectly the environmental benefits by measuring the reduced chemical loading. Results from an on-farm trial in Argentina provide an example of how site-specific information and variable rate application could be used in maintaining profitability while reducing N applications. Results of the sensitivity analysis show that PA is a modestly more profitable alternative than whole field management, for a wide range of restrictions on N application levels. These restrictions might be government regulations or the landowner's understanding of environmental stewardship. In the example, variable rate of N maintains farm profitability even when nitrogen is restricted to less than half of the recommended uniform rate.

Consumer preference information is essential to targeting research. This paper reports an effort of a multi-disciplinary team to measure the market value of cowpea characteristics. Five samples were purchased once per month in seven markets in Ghana and Cameroon starting in September 1996. In the market, price and vendor characteristics were noted. In the laboratory, size of grains, testa color, testa texture, eye color and damage levels were recorded. A hedonic pricing regression model was used. Results indicate that grain size is the most important characteristic. Consumers seem more sensitive to bruchid (Callosobruchus maculates) damage than hypothesized. Cowpeas with white testa command a clear premium only in one of the Ghanaian markets. In Ghana, black eyes sell at a premium, but in Cameroon black eyes are discounted. In general, this study indicates that quality characteristics are very important in West African food markets. Even low income consumers are willing to pay a premium for products that match their preferences, and they are vigilant in identifying products that do not meet their standards. Purchasing samples on a regular basis and hedonic pricing offers a practical way for biological scientists and economists to work together to measure these consumer preferences.

The purpose of this study was to determine the utility of on-farm precipitation measurement for nitrogen management decisions on an Indiana farm. Site-specific farming has led some producers to measure on-farm precipitation at multiple sites, but the profitability of such intense sampling for non-irrigated agriculture is not clear. The CERES-Maize model in Decision Support System for Agrotechnology Transfer (DSSAT) version 3.5 was used to simulate corn yield for a farm in east-central Indiana for 20years of weather data from three precipitation data sources—an on-farm station, the nearest non-urban National Weather Service (NWS) station, and the weighted mean of the three nearest such stations. Stochastic dominance and descriptive statistics were used to compare simulated yield and profitability for four nitrogen strategies: variable-rate versus whole-field fertilizer application and split application (starter urea-ammonium nitrate mixture at planting and sidedressed ammonia 37days later) versus sidedress application only. Off-farm data never led to a different choice of nitrogen strategy than on-farm data, but the ability to categorize a choice as risk averse or risk neutral depended on the precipitation data source used. This suggested that although on-farm precipitation measurement could be useful for risk management decisionmaking, it might not be profitable on average. The nearest NWS station would be the most profitable source of precipitation data, if it leads to the same management strategy as on-farm data.

Core soil sampling followed by laboratory analysis is the traditional method used to map soil pH prior to variable rate application (VRA) of lime on cropland. A recently developed automated soil sampling system capable of measuring soil pH on-the-go has significantly increased sampling resolution. However, adoption of such systems must be justified economically. This paper presents a method for assessing the economic benefit from automated mapping of soil pH prior to variable rate lime application. In this work, geostatistical, agronomic, and economic methods were used to generate a comprehensive numerical model for quantitative assessment of the net return over cost of liming for different lime management strategies. The strategies included: automated pH mapping, manual grid soil sampling, and whole field sampling used in combination with either variable or fixed rate liming. The model was demonstrated using a simulated field with known average pH and semivariogram model. The analysis showed the largest benefit ($6.13ha−1year−1) from using VRA with automated soil pH mapping versus VRA based on 1ha (2.5acres) manual grid point sampling for the selected simulated field conditions. A sensitivity analysis demonstrated that for a wide range of field conditions and crop prices, VRA plus automated mapping promises higher relative benefits than VRA based on either manual grid point or grid cell sampling.

Cowpea ( Vigna unguiculata (L.) Walp) is the most economically important indigenous African legume crop. Production, marketing and trade information on cowpea are necessary to promote trade, and guide research and policy. Using data from the FAO, national statistics and the Bean/Cowpea Collaborative Research Support Program (CRSP), this paper consolidates information on cowpea production, marketing and trade in West and Central Africa and examines the effects of grain characteristics on prices. In the 1990s, West and Central Africa annually produced about 2.6 million tonnes of cowpea on 7.8 million hectares, accounting for 69% of the world’s production and 80% of area. Niger, Burkina Faso, Benin, Mali, Cameroon, Chad and Senegal are net exporters; Nigeria, Ghana, Togo, Cote d’Ivoire, and Mauritania are net importers. Official sources show at least 285,000 t of cowpeas were shipped between regions in 1998. Tarriffs, fees, high transport costs and other factors constitute constraints to cowpea trade. Seasonal supply, size, color and the level of insect damage of the grains explain between 63 and 97% of price variability in selected markets in Cameroon, Ghana, Senegal and Nigeria. Consumers are willing to pay premiums ranging from 0.67 to 2.0% of the average price for each gram increase in 100 grain weight. Purchasers discount from the first bruchid hole observed. In Ghana, consumers pay a premium for black-eyed beans while those in Cameroon discount black eyes. Crop production research should focus on developing a portfolio of varieties that reflect the diversity of regional preferences for cowpea grain characteristics.

The general objective of this study was to trace the intensification process on sandy soils in the Birni N’Konni area of south central Niger and to identify the role of traditional and modern inputs. The primary hypothesis is that farmers intensify first using traditional inputs, such as traditional varieties, labor and manure, and turn to modern inputs, like inorganic fertilizer, improved varieties and pesticides, only when they have exhausted the potential of their traditional methods. The main reason hypothesized for the initial use of traditional inputs is their low capital requirement. The methodology uses a representative farm linear programming model with solutions at various land, labor and capital levels. The results indicate that intensification is a continuum, starting from traditional low plant density, extensive farming to using higher planting density and manure, and eventually to inorganic fertilizer, improved seed and pesticide. One implication of this research is that extension and development eAorts should start with intensification of traditional inputs, instead of promoting use of modern inputs as the first step in intensification. # 2000 Elsevier Science Ltd. All rights reserved.

In Indiana, variable rate application (VRA) of lime is often considered a good place to start site-specific management (SSM). This is because soil pH is one of the most variable of manageable soil characteristics in the state, the availability of essential nutrients is closely related to soil pH, and because spreaders can be retrofitted relatively inexpensively to do VRA. The objective of this study is to evaluate the profitability of VRA for lime as a stand-alone activity. The methodology involves a spreadsheet model using corn and soybean pH response functions estimated with small plot data. The overall results indicate increased annual returns to corn and soybean production with site-specific pH management strategies. On average, SSM with agronomic recommendations provides an increased annual return of $7.24 per hectare (ha) (+1.78%). SSM with the economic decision rule provides an average increase in annual return of $19.55 ha−1 (+4.82%). Information strategy, which uses site-specific information to determine the economically optimal uniform rate of lime, provides an average increase in annual return of $14.38 ha−1 (+3.54%).

The objective of this analysis was to compare the production cost, average profitability, and risk of corn (Zea mays L.) in 30 in, rows with rows of approximately 20 in. Baseline yield advantage estimates were made by pooling publicly available research data. A narrow row yield data set from Pioneer Hi-Bred International (Pioneer) was used to test the sensitivity of results. For the producer who currently uses a 30 in, row planter for corn only, narrow row corn would increase long term equipment costs by about $6.50/acre per yr. Much of the narrow row cost discussion has focused on equipment, but for many producers increased corn rootworm (Diabrotica spp.) insecticide costs would be more important. This analysis indicated that narrow row corn has potential economic advantages in the northern Corn Belt Some benefits and costs of narrow row corn could not be quantified in this analysis. These included use of narrow row planters for both corn and soybeans, potential for reduced herbicide use, increased stalk breakage, increased starter fertilizer, and business risks related to use of custom operators and resale value of equipment.

Initial ideas on risk management uses of precision agricultural technology focused on site-specific treatment of problem areas to reduce the probability of low yields and returns. Recent discussions deal with sensor and remote-sensing information to improve marketing and “as applied maps” as trace-back mechanisms to manage liability. A theoretical model is presented that suggests that there are plausible circumstances under which precision farming can reduce temporal yield variability. Empirical evidence from an on-farm trial of site-specific P&K management in the Eastern Cornbelt supports the hypothesis that precision farming can have risk-reducing benefits.

The objective of this study was to provide an economic assessment of site specific management (SSM) of P and K. The data were collected from 1993 to 1995 in farmer managed on-farm trials coordinated by Purdue University and DeKalb-Agra, a Waterloo, IN, agricultural input supply and marketing cooperative. Whole field management (WFM) was compared with SSM using either three acre grids or soil type for soil sampling and fertilizer recommendations. The data indicate that site specific P and K application on corn (Zea mays L.), soybean [Glycine max (L.) Merr.], and wheat (Triticum aestivum L.) did not reliably increase net returns. The main effect of the site specific P and K applications on physical quantities of fertilizer was to redistribute the nutrient applications within fields. Both grid and soil type treatments had lower net return standard deviations than WFM. Both mean-variance and stochastic dominance (SD) analyses indicate that the soil type approach dominated the WFM for risk averse decision makers.

Site-specific farming (SSF) practices are being adopted at an accelerating rate, but evidence of their profitability has been mixed or missing. This contribution evaluates the profitability of SSF practices by synthesizing quantitative and qualitative research results within the context of the economics of information technology. The profitability results from nine published field research studies on variable rate (VR) fertilizer application are reviewed using partial budgets adjusted to include minimum costs and grid cell areas for each study. Profitability results correlated closely with the gross revenue earning potential of the crop, so VR fertilizer application was unprofitable on wheat (Triticum aestivum L.) and barley (Hordeum vulgare L.), sometimes profitable on corn (Zea mays L.), and profitable on sugarbeet (Beta vulgaris subsp. L. vulgaris). Although the formal published literature has ignored the profitability of yield mapping, production economics and farmer interviews suggest that yield mapping is profitable when it reveals yield patterns that can be managed at acceptable cost and when the information has compensating off-field value. Manageable yield variability includes not only VR input management, but also whole-field improvements such as field drainage, land leveling, windbreaks, and fencing. Off-field value can come from cheaper on-farm experimentation and greater negotiating power with landlords. Farmers and agribusinesses committed to field crop production for the long term should develop SSF capabilities. But because SSF practices are site-specific, their profitability potential too is site-specific. This site specificity extends beyond the farm field to the crop rotation, and the capabilities and opportunities available to the farm or agribusiness manager.