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Agriculture and Rural Development

Inorganic fertilizer use in Africa: Not too low but not too profitable -- Evidence from Nigeria

Saweda Liverpool-Tasie's picture

Inorganic fertilizer use is claimed to be low in sub-Saharan Africa, but it is unclear whether using higher rates of fertilizer would be profitable. My coauthors and I sought to explore the effect of nitrogen on maize in farms across Nigeria to find out.  To do this, we took advantage of the recently available Living Standards Measurement Study - Integrated Surveys on Agriculture, or LSMS-ISA, a household survey project working to collect up to date agricultural data for the same household over time.
What did we find?   

Low yield response and high transport costs reduce fertilizer profitability 
We found that little extra maize production is expected from adding more nitrogen at the margin; that is, the marginal physical product (MPP) of applied nitrogen for maize production in Nigeria is quite low at 8kg.  Though within the range found in peer-reviewed published works, often between 7 and 14 kg, it is much lower than the potential yield response from plots on which research management protocols are being followed. These range between 14 to 50 kg maize per kg nitrogen (N) and even higher in some cases (Snapp et al, 2014).  This low yield response to nitrogen in Nigeria extends to other cereals such as rice (See figure 1).

Commodities (mostly) continue to tumble

John Baffes's picture

We just published our Commodity Market Outlook for the third quarter of 2015, and report that most prices declined in the second quarter of 2015 due to ample supplies and weak demand, especially in industrial commodities (see figure below).
 

 
Energy prices rose 12 percent in the quarter, with the surge in oil offset by declines in natural gas (down 13 percent) and coal prices (down 4 percent). However, energy prices fell on average to 39 percent below 2014 levels. Natural gas prices are projected to decline across all three main markets—U.S., Europe, and Asia—and coal prices to fall 17 percent. Excluding energy, our report notes a 2 percent decline in prices for the quarter, and forecasts that non-energy prices will average 12 percent below 2014 levels this year. Iran’s new nuclear agreement with the US and other leading governments, if ratified, will ease sanctions, including restrictions on oil exports from the Islamic Republic of Iran. Downside risks to the forecast include higher-than-expected non-OPEC production (supported by falling production costs) and continuing gains in OPEC output. Possible (less likely) upside pressures may come from closure of high-cost operations—the number of operational oil rigs in the US is down 60 percent since its November high, for example—and geopolitical tensions. 

Domestic factors drive maize price volatility in Burkina Faso, not external ones

Moctar NDiaye's picture

Food price volatility remains a pressing challenge for many African countries (FAO, IMF, and UNCTAD, 2011).  The vast majority of Africa’s population still derives a substantial share of their income from agriculture and low-income households allocate a large share of their budget to food (often more than 60 percent). As a result, large and unexpected swings in food prices cause substantial losses in welfare, and when adequate coping strategies are absent, it may even trap households permanently into poverty. It should thus not surprise that food price shocks still feature highly among the reported shocks by households in Sub-Saharan (Nikoloski, Christiaensen, Hill, 2015).

Among African policymakers, the main reasons for high food price volatility in the domestic markets is often thought to be external, i.e. “imported” from the world food markets. However, the sources may also be domestic, for example when markets are poorly integrated internally. Under the “Agriculture in Africa – Telling Facts from Myths project, data collected by the Société Nationale de Gestion du Stock Alimentaire (SONAGESS) on maize prices in 28 markets from Burkina Faso during the 2000s (July 2004-Nov 2013) were analyzed to tease out the extent to which maize price volatility is driven by domestic rather than external factors. Over the past decades, maize has become the most marketed and exported cereal in Burkina Faso. It now accounts for 31% of grain production, against only 7% three decades ago, and represents the second source of income for farmers, after cotton.

Can land registration institutions be reformed in deeply entrenched bureaucracies?

Wael Zakout's picture
Turkey has radically transformed its land title registration system, and decreased the turnaround time for recording property transactions to just two hours.
Turkey has radically transformed its land title registration system, and decreased the turnaround time for recording property transactions to just two hours.
I just returned from Turkey where I visited the Turkish Tabu Cadastre Agency (Land Registration Agency of Turkey). The agency had changed so much that I did not recognize it.
 
I remember my first visit to the agency in 2007. The agency is heavily staffed (15,000), has more than 100 branches and its main headquarters had once almost fallen apart. In my first visit, the head of the agency gave me a nice surprise: he showed me a land book that dated back to the 18th century, and included a record of my great-great-grandfather’s land title in Palestine.
 
The head of the agency had great plans to transform the agency by improving land records, introducing computerization and integrating the system into the overall e-government program, and setting a time limit of one day to register land transactions. Based on that an ambitious reform agenda, we worked together over a few months’ ‘time to prepare the cadastre modernization project. The Bank partly financed this reform through a $100 million loan, while the Turkish government funded the rest of the program. The project started in 2007, and I moved on to other positions later that year.
 
This time I had a second surprise. The institution is completely transformed. The main office has been completely and beautifully renovated. It now resembles any other government office in the US or Europe. The agency presented its achievements. It was amazing to see what had been accomplished in 8 years. The government is about to complete the renovation of the cadastre and the computerization of all land records, including historical records from Ottoman times. Service delivery has improved dramatically, with property transactions now being registered within 2 hours. They also integrated cadastre registration into the overall e-government program, which allows any Turkish citizen to access the record of their land/property online. Above all, customer satisfaction has reached 97% — something unheard of for land agencies, often known to be among the most corrupt agencies in many countries.

A slogan for sustainable agriculture: 'Mot Phai, Nam Giam' rice production

Chris Jackson's picture
A woman measures greenhouse gas emissions on a rice farm in Vietnam.
A woman measures greenhouse gas emissions on a rice farm in Vietnam.


Successful slogans can make a world of difference. In Vietnam, a catchphrase for a climate-smart way to produce rice has shown small farmers how they can boost rice profitability, while also reducing greenhouse gas emissions.

The World Bank discovered this through an Agriculture Competitiveness Project in Vietnam, which championed an alternate wetting and drying rice production technique that uses less water, reduction in application of fertilizers and management of crop residues to reduce the level of methane and nitrous oxide emissions from the rice fields. Adopting this climate-smart practice required the systematic engagement of the entire community committed to draining the rice fields multiple times over a matter of weeks, something traditionally rarely done. Adopting this alternate wetting and drying technique not only helps strengthen plant roots but also reduces flooding periods which translates into reduced methane production.

Lighting up the future in Bangladesh

Yann Doignon's picture

Children using a computer powered by solar energy

Night falls in Dhaka. Commercial streets glow with lights and the neon-lit stores and restaurants are abuzz with shoppers enjoying a break from Ramadan. This is a great visual spectacle punctuated by the incessant honking of colorful rickshaws.

But the reality is different right outside the capital. Sunset brings life to a halt in rural areas as about 60 percent of rural households do not have access to grid electricity. Kerosene lamps and battery-powered torches are widespread yet limited alternatives, their dim light offering limited options for cooking, reading or doing homework.  

It is a sweltering hot day when our team sets out to visit a household of 14 in the village of Pachua, a two-hour drive from Dhaka. Around 80% of the villagers have benefited from the solar panel systems to access electricity. The Rural Electrification and Renewable Energy Development Project (RERED), supports installation of solar home systems and aims to increase access to clean energy in rural Bangladesh.
 
We’re accompanied by Nazmul Haque Faisal from IDCOL, a government-owned financing institution, which implements the program. “This is the fastest-growing solar home system in the world,” Faisal says enthusiastically, “and with 40,000-50,000 new installations per month, the project is in high demand.”

We’ve now reached our destination and Monjil Mian welcomes us to his house, which he shares with 13 other members of his family, including his brothers, two of them currently away for extended work stints in Saudi Arabia.

Why putting money into Tunisian roads matters even more now

Vickram Cuttaree's picture
Highway Tunis-Béja - By DrFO.Jr.Tn l Wikimedia Commons

People familiar with Tunisia know that the country is polarized—with really two Tunisias, one poor, the other richer. The city of Sousse, for example, is among the country’s main economic centers on the coast; Kairouan by contrast, in the Center-West region, has 15% unemployment, a poverty rate of 32% (according to 2013 figures) and has witnessed frequent demonstrations of popular frustration. 

Increasing Prosperity for the Poorest using Social Networks: Guest post by Kathryn Vasilaky

Social networks affect all of our lives; the people we know influence what we're exposed to and the actions we take. Gaining weight? Blame your network. Got a job promotion? Thank your network. In the developed world, the term "social networks" often illicits thoughts of Facebook, LinkedIn, Twitter, Instagram and many, many more. In the rural developing world, networks still depend, for the most part, on offline interactions. Access to information is by word of mouth, and a few central individuals often disseminate information from the top down to the remainder of a village.

Natural resource booms are a mixed blessing for local communities, too*

Punam Chuhan-Pole's picture

The impact of natural resource wealth on macroeconomic outcomes is well researched, with the debate centered on whether resources are bad for development (i.e., the phenomenon of the resource curse). However, relatively little attention has been given to examining the effect on communities where those resources are located. 

But interest in the local impact of resource abundance is growing, underpinning a nascent literature.  The focus of this research is on exploring whether extractive activities improve or harm welfare in adjoining regions, and how the benefits or costs are transmitted to the local population.  The answers to these questions can inform policy, leading to better outcomes, and may also help us understand the sources of regional and social tensions associated with extractive industries. 

Counting Africa’s Rural Entrepreneurs

In recent years there has been a growing interest in small rural business development and entrepreneurship as conduits for accelerating job opportunities – for the youth and for poverty reduction. This holds particularly in Africa, where the youth bulge is challenging policymakers to generate jobs for an additional 170 million people who are expected to enter the labor force between 2010 and 2020 (Fox at al., 2013).

Among them, 38 percent are projected to work in household enterprises, amounting to around 65 million people. Studies show that jobs generated in the sectors where the poor work and places where the poor live, i.e. in the rural areas, are more effective at lifting them out of poverty.

But is this justified? If only small numbers of rural inhabitants are entrepreneurs, if they predominantly engage in low productive activities, or if they do not make significant contributions to household income, we need to be more skeptical with regard to the role of entrepreneurship. Or at least, we must more critically reconsider whether current supporting policies are appropriate or supportive enough.
 

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