Returns to Production of Common Bean, Soybean, and Groundnut in Rwanda

Abstract

Common bean and soybean are among the key crops for which specific actions are planned in the Plan for Agricultural Transformation in Rwanda (SPAT). Legume-based systems provide high-quality food, cash to farmers, and contribute to sustainable agricultural production systems. The aim of this study was to evaluate and compare the profitability of common bean, soybean, and groundnut cropping systems and examine the change in soybean profitability in response to variation in market price and yield. Data was collected through focus group discussions (FGDs), interviews with key informants, and formal questionnaire survey. The data were organized and analyzed using the enterprise gross margins approach. Results showed that soybean sole cropping systems were associated with low to high profitability both in terms of returns to land and returns to labor, low returns being predominant. The sensitivity analysis results led to two important conclusions. First, the increase in producer price will mostly benefit farmers who can achieve higher yields while having limited impact on the profitability of those lagging behind in soybean yield. Second, a price increase, although essential in the process of boosting soybean profitability, is not the best solution in the presence of low yield levels, if the necessary conditions are not present to permit a subsequent increase in yields. Common bean cropping systems were also characterized by low to high returns to land and labor with moderate returns being more frequent. Although climbing bean cropping systems had higher yields compared to bush beans, the two types of common bean had comparable returns to land due to high extra costs on labor and stakes associated with climbing bean.