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Impacts of improved maize varieties in Nigeria: ex-post assessment of productivity and welfare outcomes

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Abstract

Investment in agricultural research and development is an important intervention for improving crop productivity and household welfare in most developing countries where agriculture is the main source of livelihoods. This paper uses nationally representative plot- and household-level data from the major maize producing regions of Nigeria to assess the impacts of adoption of improved maize varieties on maize yield and household welfare outcomes. The paper employed an endogenous switching regression approach to control for both observed and unobserved sources of heterogeneity between adopters and non-adopters. Adoption of improved maize varieties increased maize grain yield by 574 kg/ha and per-capita total expenditure by US$ 77 (US$ 0.21/day). We found that the incidence of poverty among adopters would have been higher by 6% without adoption of the improved varieties. These findings underscore that investments and policy measures to increase and sustain the adoption of improved maize cultivars are critical for improving the productivity of maize in Nigeria and reducing poverty.

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Notes

  1. In this paper productivity is defined as maize output per unit of land. Hence productivity and maize yield are used interchangeably. Adoption here refers to the use of improved maize varieties, not areas under improved maize varieties

  2. This value is based on the World Bank’s US$1.25 per day per capita.

  3. Note that improved maize varieties refer to OPVs, hybrids and drought tolerant varieties, while unimproved varieties are considered ‘landraces’

  4. Note that these results are associations or correlations, and not necessarily causal effects.

  5. Adoption in these states is low as the farmers there have less access to improved seed. On average they are located about 25 km away from the nearest seed dealer. This is high compared to the average distance, which is about 18 km.

  6. The counterfactual analysis shows the level of outcome (e.g., the maize yield) had the farmer that uses improved maize varieties chosen not to adopt improved maize varieties. In Table 3, the average yield of farmers who adopted improved maize varieties was 2337 kg/ha. If these farmers were non-adopters, their average maize yield would have been 1763 kg/ha (this is the counterfactual outcome). The difference between the two values is interpreted as the effect of adoption on maize yield.

  7. First stage estimates for net-returns are available from the authors upon request. Net-returns are calculated as maize income (revenue) minus production cost incurred for producing maize per ha.

  8. We also estimated effects by measuring adoption based on maize area under improved maize varieties (the intensification rate). For each farmer, intensification rate is calculated by estimating area under improved maize varieties. Since maize area was self-reported, we opted to use binary adoption rate in our main analysis. Using two-stage least square, we found that maize intensification decision affects productivity positively, the effect size being about 33%, which was significant at the 1% significance level.

  9. Incidence of poverty and poverty headcount ratio are used interchangeably

  10. Note that both PSM and IPWRA controls only for observed heterogeneity between adopters and non-adopters.

  11. This argument is based on the literature on “learning by doing”. Farmers learn through self-experimentation. The more they experiment, the better would be their knowledge about expected yield. Since new varieties require advanced and new knowledge, expectations about yield would be more precise with local varieties, where farmers have conducted sufficient self-experimentation.

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Acknowledgment

This work was partly funded through the CGIAR Research Program on Maize (Maize-CRP) and a CIMMYT and IITA project, Drought Tolerant Maize for Africa (DTMA).

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Correspondence to Tesfamicheal Wossen.

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Abdoulaye, T., Wossen, T. & Awotide, B. Impacts of improved maize varieties in Nigeria: ex-post assessment of productivity and welfare outcomes. Food Sec. 10, 369–379 (2018). https://doi.org/10.1007/s12571-018-0772-9

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