The new normal? Cluster farming and smallholder commercialization in Ethiopia

Cluster farming is increasingly recognized as a viable means of improving smallholder economic integration and commercialization in many developing countries. However, little is known about its impact on smallholder welfare and livelihoods. We examine the relationship between cluster farming and sma...

Descripción completa

Detalles Bibliográficos
Autores principales: Dureti, Guyo Godana, Tabe-Ojong, Martin Paul Jr., Owusu-Sekyere, Enoch
Formato: Journal Article
Lenguaje:Inglés
Publicado: Wiley 2023
Materias:
Acceso en línea:https://hdl.handle.net/10568/131783
_version_ 1855526322884837376
author Dureti, Guyo Godana
Tabe-Ojong, Martin Paul Jr.
Owusu-Sekyere, Enoch
author_browse Dureti, Guyo Godana
Owusu-Sekyere, Enoch
Tabe-Ojong, Martin Paul Jr.
author_facet Dureti, Guyo Godana
Tabe-Ojong, Martin Paul Jr.
Owusu-Sekyere, Enoch
author_sort Dureti, Guyo Godana
collection Repository of Agricultural Research Outputs (CGSpace)
description Cluster farming is increasingly recognized as a viable means of improving smallholder economic integration and commercialization in many developing countries. However, little is known about its impact on smallholder welfare and livelihoods. We examine the relationship between cluster farming and smallholder commercialization using a large-scale survey of 3969 farm households in Ethiopia cultivating high-acreage crops such as teff, wheat, maize, barley, and sesame. Using switching regressions and instrumental variable estimators, we show that cluster farming is associated with commercialization measured as commercialization index, market surplus value, and market price. To further deal with endogeneity concerns, we also employ some pseudo-panel models where we observe similar insights. Beyond this, we account for heterogeneities by disaggregating households based on farm scales and crops cultivated. Our findings show that cluster farming is positively associated with commercialization for all farms and crop types despite this disaggregation. However, the related gains are higher among medium and large farms and vary per crop type. These findings imply that cluster farming is crucial in improving smallholder commercialization and may be a critical entry and leveraging point for policy. We thus lend support to initiatives and plans that seek to upscale cluster farming as they can potentially improve smallholder commercialization with ensuing impacts on rural livelihoods and welfare.
format Journal Article
id CGSpace131783
institution CGIAR Consortium
language Inglés
publishDate 2023
publishDateRange 2023
publishDateSort 2023
publisher Wiley
publisherStr Wiley
record_format dspace
spelling CGSpace1317832024-11-07T09:49:25Z The new normal? Cluster farming and smallholder commercialization in Ethiopia Dureti, Guyo Godana Tabe-Ojong, Martin Paul Jr. Owusu-Sekyere, Enoch farming smallholders commercialization developing countries livelihoods crops markets welfare cluster farming Cluster farming is increasingly recognized as a viable means of improving smallholder economic integration and commercialization in many developing countries. However, little is known about its impact on smallholder welfare and livelihoods. We examine the relationship between cluster farming and smallholder commercialization using a large-scale survey of 3969 farm households in Ethiopia cultivating high-acreage crops such as teff, wheat, maize, barley, and sesame. Using switching regressions and instrumental variable estimators, we show that cluster farming is associated with commercialization measured as commercialization index, market surplus value, and market price. To further deal with endogeneity concerns, we also employ some pseudo-panel models where we observe similar insights. Beyond this, we account for heterogeneities by disaggregating households based on farm scales and crops cultivated. Our findings show that cluster farming is positively associated with commercialization for all farms and crop types despite this disaggregation. However, the related gains are higher among medium and large farms and vary per crop type. These findings imply that cluster farming is crucial in improving smallholder commercialization and may be a critical entry and leveraging point for policy. We thus lend support to initiatives and plans that seek to upscale cluster farming as they can potentially improve smallholder commercialization with ensuing impacts on rural livelihoods and welfare. 2023-11 2023-09-06T13:57:26Z 2023-09-06T13:57:26Z Journal Article https://hdl.handle.net/10568/131783 en Open Access Wiley Dureti, Guyo Godana; Tabe-Ojong, Martin Paul Jr.; and Owusu-Sekyere, Enoch. 2023. The new normal? Cluster farming and smallholder commercialization in Ethiopia. Agricultural Economics 54(6): 900-920. https://doi.org/10.1111/agec.12790
spellingShingle farming
smallholders
commercialization
developing countries
livelihoods
crops
markets
welfare
cluster farming
Dureti, Guyo Godana
Tabe-Ojong, Martin Paul Jr.
Owusu-Sekyere, Enoch
The new normal? Cluster farming and smallholder commercialization in Ethiopia
title The new normal? Cluster farming and smallholder commercialization in Ethiopia
title_full The new normal? Cluster farming and smallholder commercialization in Ethiopia
title_fullStr The new normal? Cluster farming and smallholder commercialization in Ethiopia
title_full_unstemmed The new normal? Cluster farming and smallholder commercialization in Ethiopia
title_short The new normal? Cluster farming and smallholder commercialization in Ethiopia
title_sort new normal cluster farming and smallholder commercialization in ethiopia
topic farming
smallholders
commercialization
developing countries
livelihoods
crops
markets
welfare
cluster farming
url https://hdl.handle.net/10568/131783
work_keys_str_mv AT duretiguyogodana thenewnormalclusterfarmingandsmallholdercommercializationinethiopia
AT tabeojongmartinpauljr thenewnormalclusterfarmingandsmallholdercommercializationinethiopia
AT owususekyereenoch thenewnormalclusterfarmingandsmallholdercommercializationinethiopia
AT duretiguyogodana newnormalclusterfarmingandsmallholdercommercializationinethiopia
AT tabeojongmartinpauljr newnormalclusterfarmingandsmallholdercommercializationinethiopia
AT owususekyereenoch newnormalclusterfarmingandsmallholdercommercializationinethiopia