How does ownership of farm implements affect investment in other farm implements when farmers' liquidity constraint is relaxed? Insights from Nigeria

Mechanization is a key to agricultural productivity growth in developing countries. Farm implements, ranging from hand tools to draft animals to milling machines to power tillers and tractors, often play complementary roles with each other, and supporting adoption of certain farm implements may also...

Full description

Bibliographic Details
Main Authors: Takeshima, Hiroyuki, Salau, Sheu
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2011
Subjects:
Online Access:https://hdl.handle.net/10568/154498
_version_ 1855513685324201984
author Takeshima, Hiroyuki
Salau, Sheu
author_browse Salau, Sheu
Takeshima, Hiroyuki
author_facet Takeshima, Hiroyuki
Salau, Sheu
author_sort Takeshima, Hiroyuki
collection Repository of Agricultural Research Outputs (CGSpace)
description Mechanization is a key to agricultural productivity growth in developing countries. Farm implements, ranging from hand tools to draft animals to milling machines to power tillers and tractors, often play complementary roles with each other, and supporting adoption of certain farm implements may also speed up adoption of others. In the absence of credit, insurance, or information, however, such complementarity may be reduced. This study analyzes how the ownership of particular farm implements by Nigerian farmers affected their investment in other farm implements under a project that provided matching grants for the acquisition of various types of farm implements. We found that ownership of certain farm implements increased farmers' investment in the same implements but reduced their investment in other, potentially complementary, implements. We argue that these effects may be partly explained by high operating and maintenance costs associated with the use of farm equipment in these countries. Ownership of farm equipment may provide a good indicator of farmers' potential willingness to invest in the same of different farm equipment. At the same time, a public project supporting farmers' investment in farm equipment should provide financial support not only for the acquisition of farm implements but also for their operation and maintenance.
format Artículo preliminar
id CGSpace154498
institution CGIAR Consortium
language Inglés
publishDate 2011
publishDateRange 2011
publishDateSort 2011
publisher International Food Policy Research Institute
publisherStr International Food Policy Research Institute
record_format dspace
spelling CGSpace1544982025-11-06T05:04:21Z How does ownership of farm implements affect investment in other farm implements when farmers' liquidity constraint is relaxed? Insights from Nigeria Takeshima, Hiroyuki Salau, Sheu agricultural mechanization liquidity operating costs finance Mechanization is a key to agricultural productivity growth in developing countries. Farm implements, ranging from hand tools to draft animals to milling machines to power tillers and tractors, often play complementary roles with each other, and supporting adoption of certain farm implements may also speed up adoption of others. In the absence of credit, insurance, or information, however, such complementarity may be reduced. This study analyzes how the ownership of particular farm implements by Nigerian farmers affected their investment in other farm implements under a project that provided matching grants for the acquisition of various types of farm implements. We found that ownership of certain farm implements increased farmers' investment in the same implements but reduced their investment in other, potentially complementary, implements. We argue that these effects may be partly explained by high operating and maintenance costs associated with the use of farm equipment in these countries. Ownership of farm equipment may provide a good indicator of farmers' potential willingness to invest in the same of different farm equipment. At the same time, a public project supporting farmers' investment in farm equipment should provide financial support not only for the acquisition of farm implements but also for their operation and maintenance. 2011 2024-10-01T14:01:54Z 2024-10-01T14:01:54Z Working Paper https://hdl.handle.net/10568/154498 en https://hdl.handle.net/10568/154236 https://doi.org/10.2499/978089629179 Open Access application/pdf International Food Policy Research Institute Takeshima, Hiroyuki; and Salau, Sheu. 2011. How does ownership of farm implements affect investment in other farm implements when farmers' liquidity constraint is relaxed? Insights from Nigeria. IFPRI Discussion Paper 1133. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/154498
spellingShingle agricultural mechanization
liquidity
operating costs
finance
Takeshima, Hiroyuki
Salau, Sheu
How does ownership of farm implements affect investment in other farm implements when farmers' liquidity constraint is relaxed? Insights from Nigeria
title How does ownership of farm implements affect investment in other farm implements when farmers' liquidity constraint is relaxed? Insights from Nigeria
title_full How does ownership of farm implements affect investment in other farm implements when farmers' liquidity constraint is relaxed? Insights from Nigeria
title_fullStr How does ownership of farm implements affect investment in other farm implements when farmers' liquidity constraint is relaxed? Insights from Nigeria
title_full_unstemmed How does ownership of farm implements affect investment in other farm implements when farmers' liquidity constraint is relaxed? Insights from Nigeria
title_short How does ownership of farm implements affect investment in other farm implements when farmers' liquidity constraint is relaxed? Insights from Nigeria
title_sort how does ownership of farm implements affect investment in other farm implements when farmers liquidity constraint is relaxed insights from nigeria
topic agricultural mechanization
liquidity
operating costs
finance
url https://hdl.handle.net/10568/154498
work_keys_str_mv AT takeshimahiroyuki howdoesownershipoffarmimplementsaffectinvestmentinotherfarmimplementswhenfarmersliquidityconstraintisrelaxedinsightsfromnigeria
AT salausheu howdoesownershipoffarmimplementsaffectinvestmentinotherfarmimplementswhenfarmersliquidityconstraintisrelaxedinsightsfromnigeria