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An economic risk analysis of fertiliser microdosing and rainwater harvesting in a semi-arid farming system in Tanzania

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  • Lutengano Mwinuka
  • Khamaldin Daud Mutabazi
  • Stefan Sieber
  • Jeremia Makindara
  • Jean-Claude Bizimana

Abstract

This paper attempts to relate farm-level technologies in a semi-arid area with economic viability, taking risk analysis into consideration. Data gathered from various sources, such as a household baseline survey, farm trials, agricultural experts and government agencies, were used. Crop yields, crop prices, and prices for key production inputs, mainly fertiliser and rainwater harvesting through tied-ridges, were simulated for the net economic return distributions, e.g., pearl millet, groundnuts, and sunflower under different farm-technologies scenarios using a farm simulation model. The results indicate that an intercrop of pearl millet and groundnuts is the most economically viable farming system compared with other alternative scenarios if supplemented with rainwater harvesting technology. Risk neutral and risk-averse farmers both prefer this approach. If these technologies are geographically considered and synthesised, they may be cost-effective for farmers with implications for the current and future livelihood and productivity of crops in rural semi-arid areas.

Suggested Citation

  • Lutengano Mwinuka & Khamaldin Daud Mutabazi & Stefan Sieber & Jeremia Makindara & Jean-Claude Bizimana, 2017. "An economic risk analysis of fertiliser microdosing and rainwater harvesting in a semi-arid farming system in Tanzania," Agrekon, Taylor & Francis Journals, vol. 56(3), pages 274-289, July.
    • Handle: RePEc:taf:ragrxx:v:56:y:2017:i:3:p:274-289
    DOI: 10.1080/03031853.2017.1343154
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    References listed on IDEAS

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    1. Magda Fontana, 2006. "Computer simulations, mathematics and economics," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 53(1), pages 96-123, March.
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    1. Kadigi, Ibrahim L. & Richardson, James W. & Mutabazi, Khamaldin D. & Philip, Damas & Mourice, Sixbert K. & Mbungu, Winfred & Bizimana, Jean-Claude & Sieber, Stefan, 2020. "The effect of nitrogen-fertilizer and optimal plant population on the profitability of maize plots in the Wami River sub-basin, Tanzania: A bio-economic simulation approach," Agricultural Systems, Elsevier, vol. 185(C).
    2. Andrew, Rogers & Makindara, Jeremia & Mbaga, Said H. & Alphonce, Roselyne, 2019. "Economic viability of newly introduced chicken strains at village level in Tanzania: FARMSIM model simulation approach," Agricultural Systems, Elsevier, vol. 176(C).
    3. Ibrahim L. Kadigi & Khamaldin D. Mutabazi & Damas Philip & James W. Richardson & Jean-Claude Bizimana & Winfred Mbungu & Henry F. Mahoo & Stefan Sieber, 2020. "An Economic Comparison between Alternative Rice Farming Systems in Tanzania Using a Monte Carlo Simulation Approach," Sustainability, MDPI, vol. 12(16), pages 1-22, August.
    4. Saidia, Paul S. & Asch, Folkard & Kimaro, Anthony A. & Germer, Jorn & Kahimba, Frederick C. & Graef, Frieder & Semoka, Johnson M.R. & Rweyemamu, Cornel L., 2019. "Soil moisture management and fertilizer micro-dosing on yield and land utilization efficiency of inter-cropping maize-pigeon-pea in sub humid Tanzania," Agricultural Water Management, Elsevier, vol. 223(C), pages 1-1.

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