IDEAS home Printed from https://ideas.repec.org/a/ags/agreko/348132.html
   My bibliography  Save this article

Crop mix portfolio response to climate risks: evidence from smallholder farmers in Kisumu County, Kenya

Author

Listed:
  • Awiti, Hezbon Akelo
  • Gido, Eric Obedy
  • Obare, Gideon Aiko

Abstract

Farm households respond to market uncertainties and household demand for food commodities by diversifying their farm-level crop portfolio. However, it is unclear if farmers’ crop mix also responds to unpredictable climate variability. We use primary data from 267 randomly selected respondents and apply a multinomial logit model to test the hypothesis that crop portfolio choice is an ex-ante mechanism to manage climate risks in the absence of crop insurance. The results suggest that access to information on climate variability does influence the mix of maize, cassava, sweet potato, and sorghum, which smallholder farmers in Kisumu County, Kenya grow in various combinations. Access to credit services, farm size, gender of household head, farming experience, and distance to nearest market also influence the farm-level crop mixture. These findings imply that policies geared towards incentivizing a better crop choice portfolio at the smallholder farm level should address climate variability awareness. In addition, encouraging crop-variety mixes that are tolerant to climate risks would enhance resilience in food systems among these smallholder farmers.

Suggested Citation

  • Awiti, Hezbon Akelo & Gido, Eric Obedy & Obare, Gideon Aiko, 2022. "Crop mix portfolio response to climate risks: evidence from smallholder farmers in Kisumu County, Kenya," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 61(2), February.
  • Handle: RePEc:ags:agreko:348132
    DOI: 10.22004/ag.econ.348132
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/348132/files/Crop%20mix%20portfolio%20response%20to%20climate%20risks%20%20evidence%20from%20smallholder%20farmers%20in%20Kisumu%20County%20%20Kenya.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.348132?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. J. Tobin, 1958. "Liquidity Preference as Behavior Towards Risk," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 25(2), pages 65-86.
    2. Francis M. Mwaura & Annet Adong, 2016. "Determinants of Households’ Land Allocation for Crop Production in Uganda," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 9(5), pages 229-229, September.
    3. Mulwa, Chalmers K. & Visser, Martine, 2020. "Farm diversification as an adaptation strategy to climatic shocks and implications for food security in northern Namibia," World Development, Elsevier, vol. 129(C).
    4. Rose A. Nyikal & Willis O. Kosura, 2005. "Risk preference and optimal enterprise combinations in Kahuro division of Murang'a district, Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 32(2), pages 131-140, March.
    5. Mintewab Bezabih & Mare Sarr, 2012. "Risk Preferences and Environmental Uncertainty: Implications for Crop Diversification Decisions in Ethiopia," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(4), pages 483-505, December.
    6. Machiweyi Kunzekweguta & Karl M. Rich & Michael C. Lyne, 2017. "Factors affecting adoption and intensity of conservation agriculture techniques applied by smallholders in Masvingo district, Zimbabwe," Agrekon, Taylor & Francis Journals, vol. 56(4), pages 330-346, October.
    7. John N. Ng’ombe & Thomson H. Kalinda & Gelson Tembo, 2017. "Does adoption of conservation farming practices result in increased crop revenue? Evidence from Zambia," Agrekon, Taylor & Francis Journals, vol. 56(2), pages 205-221, April.
    8. Birthal, Pratap S. & Hazrana, Jaweriah, 2019. "Crop diversification and resilience of agriculture to climatic shocks: Evidence from India," Agricultural Systems, Elsevier, vol. 173(C), pages 345-354.
    9. Nordhagen, Stella & Pascual, Unai & Drucker, Adam G., 2021. "Gendered differences in crop diversity choices: A case study from Papua New Guinea," World Development, Elsevier, vol. 137(C).
    10. Mintewab Bezabih & Muyeye Chambwera & Jesper Stage, 2011. "Climate change and total factor productivity in the Tanzanian economy," Climate Policy, Taylor & Francis Journals, vol. 11(6), pages 1289-1302, November.
    11. Khonje, Makaiko & Mkandawire, Petros & Manda, Julius & Alene, Arega, 2015. "Analysis of adoption and impacts of improved cassava varieties," 2015 Conference, August 9-14, 2015, Milan, Italy 211842, International Association of Agricultural Economists.
    12. Clifton Makate & Rongchang Wang & Marshall Makate & Nelson Mango, 2017. "Impact of drought tolerant maize adoption on maize productivity, sales and consumption in rural Zimbabwe," Agrekon, Taylor & Francis Journals, vol. 56(1), pages 67-81, January.
    13. repec:ags:ijag24:347291 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sankhulani, Linda, 2021. "Impact evaluation of conservation agriculture on smallholder farmers’ livelihood in Zambia and Tanzania," Research Theses 334762, Collaborative Masters Program in Agricultural and Applied Economics.
    2. Antonelli, Chiara & Coromaldi, Manuela & Pallante, Giacomo, 2022. "Crop and income diversification for rural adaptation: Insights from Ugandan panel data," Ecological Economics, Elsevier, vol. 195(C).
    3. Goundan, Anatole & Faye, Amy & Henning, Christian H. C. A. & Collins-Sowah, Peron A., 2020. "Investing in risky inputs in Senegal: Implications for farm profit and food production," Working Papers of Agricultural Policy WP2020-07, University of Kiel, Department of Agricultural Economics, Chair of Agricultural Policy.
    4. Lu, Wencong & Addai, Kwabena Nyarko & Ng’ombe, John N., 2021. "Does the use of multiple agricultural technologies affect household welfare? Evidence from Northern Ghana," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 60(4), November.
    5. Fukase,Emiko & Kim,Yeon Soo & Chiarella,Cristina Andrea, 2022. "Exploring the Sources of the Agricultural Productivity Gender Gap : Evidence from Sri Lanka," Policy Research Working Paper Series 10025, The World Bank.
    6. Ally Sithole & Oluwasogo David Olorunfemi, 2024. "Sustainable Agricultural Practices in Sub-Saharan Africa: A Review of Adoption Trends, Impacts, and Challenges Among Smallholder Farmers," Sustainability, MDPI, vol. 16(22), pages 1-22, November.
    7. Rand Kwong Yew Low, 2018. "Vine copulas: modelling systemic risk and enhancing higher‐moment portfolio optimisation," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 58(S1), pages 423-463, November.
    8. Alan J. Auerbach, 1981. "Evaluating the Taxation of Risky Assets," NBER Working Papers 0806, National Bureau of Economic Research, Inc.
    9. Tae-Hwy Lee & Ekaterina Seregina, 2024. "Optimal Portfolio Using Factor Graphical Lasso," Journal of Financial Econometrics, Oxford University Press, vol. 22(3), pages 670-695.
    10. Hong, Claire Yurong & Lu, Xiaomeng & Pan, Jun, 2021. "FinTech adoption and household risk-taking," BOFIT Discussion Papers 14/2021, Bank of Finland Institute for Emerging Economies (BOFIT).
    11. Castro, Luciano de & Galvao, Antonio F. & Kim, Jeong Yeol & Montes-Rojas, Gabriel & Olmo, Jose, 2022. "Experiments on portfolio selection: A comparison between quantile preferences and expected utility decision models," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 97(C).
    12. Felix Chopra & Ingar Haaland, 2023. "Conducting qualitative interviews with AI," CEBI working paper series 23-06, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    13. Konrad, Kai A., 1989. "Kapitaleinkommensteuern und beschleunigte Abschreibungen bei Unsicherheit," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 47(3), pages 404-427.
    14. Al-Jarhi, Mabid, 2002. "Macroeconomics: an Islamic Perspective," MPRA Paper 66938, University Library of Munich, Germany, revised 2004.
    15. Christian Walter, 2005. "La gestion indicielle et la théorie des moyennes," Revue d'Économie Financière, Programme National Persée, vol. 79(2), pages 113-136.
    16. Dipankar Mondal & N. Selvaraju, 2022. "Convexity, two-fund separation and asset ranking in a mean-LPM portfolio selection framework," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(1), pages 225-248, March.
    17. Anders Johansson, 2009. "An analysis of dynamic risk in the Greater China equity markets," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 7(3), pages 299-320.
    18. Lloyd, S. P., 2017. "Unconventional Monetary Policy and the Interest Rate Channel: Signalling and Portfolio Rebalancing," Cambridge Working Papers in Economics 1735, Faculty of Economics, University of Cambridge.
    19. Toritseju Begho & Kelvin Balcombe, 2023. "Attitudes to Risk and Uncertainty: New Insights From an Experiment Using Interval Prospects," SAGE Open, , vol. 13(3), pages 21582440231, July.
    20. Chia-Lin Chang & Jukka Ilomäki & Hannu Laurila & Michael McAleer, 2018. "Long Run Returns Predictability and Volatility with Moving Averages," Risks, MDPI, vol. 6(4), pages 1-18, September.

    More about this item

    Keywords

    Climate Change; Crop Production/Industries;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:agreko:348132. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aeasaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.