Do rainfall shocks prompt commercial input purchases amongst smallholder farmers in diverse regions and environments in Malawi?

The ability of farmers to acquire inputs through purchase from available markets empowers them with the autonomy and capacity to diversify inputs, consequently enhancing the resilience of their cropping activities to various shocks. This paper investigates whether climate shocks, particularly rainfa...

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Main Authors: Makate, Clifton, Makate, Marshall
Format: Journal Article
Published: MDPI AG 2022
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/89586
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author Makate, Clifton
Makate, Marshall
author_facet Makate, Clifton
Makate, Marshall
author_sort Makate, Clifton
building Curtin Institutional Repository
collection Online Access
description The ability of farmers to acquire inputs through purchase from available markets empowers them with the autonomy and capacity to diversify inputs, consequently enhancing the resilience of their cropping activities to various shocks. This paper investigates whether climate shocks, particularly rainfall shocks, influence commercial input purchase decisions by smallholder farmers in contrasting geographic regions in Malawi, with a particular emphasis on fertilizer, agrochemicals, seed, and labor. The empirical approach integrates historical weather information, climate shock perceptions with a longitudinal household survey data set to model commercial input purchasing decisions using appropriate latent variable models. The findings suggest that exposure to recent rainfall shocks, especially droughts, stimulates commercial input purchasing across regions, especially in drier central and southern regions of Malawi. This result holds true for general input purchase decisions and for specific inputs such as agrochemicals, fertilizer, seed, and labor. Although drought shocks considerably increase the probability of acquiring inputs through purchase, they occasionally diminish the intensity of purchases. Both objective and subjective measures of lagged rainfall shocks are revealed as significant determinants of commercial input purchases across regions in Malawi. In addition to regional heterogeneity findings, further analysis shows that the relatively wealthier, male-headed families and those with access to information are more likely to invest in purchased inputs in response to drought shocks. Scaling up policies that remove demand- and supply-side barriers to smallholder farmers’ access to commercial inputs from available markets is necessary for adaptation to rainfall shocks.
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spelling curtin-20.500.11937-895862023-01-19T06:15:51Z Do rainfall shocks prompt commercial input purchases amongst smallholder farmers in diverse regions and environments in Malawi? Makate, Clifton Makate, Marshall 3801 - Applied economics The ability of farmers to acquire inputs through purchase from available markets empowers them with the autonomy and capacity to diversify inputs, consequently enhancing the resilience of their cropping activities to various shocks. This paper investigates whether climate shocks, particularly rainfall shocks, influence commercial input purchase decisions by smallholder farmers in contrasting geographic regions in Malawi, with a particular emphasis on fertilizer, agrochemicals, seed, and labor. The empirical approach integrates historical weather information, climate shock perceptions with a longitudinal household survey data set to model commercial input purchasing decisions using appropriate latent variable models. The findings suggest that exposure to recent rainfall shocks, especially droughts, stimulates commercial input purchasing across regions, especially in drier central and southern regions of Malawi. This result holds true for general input purchase decisions and for specific inputs such as agrochemicals, fertilizer, seed, and labor. Although drought shocks considerably increase the probability of acquiring inputs through purchase, they occasionally diminish the intensity of purchases. Both objective and subjective measures of lagged rainfall shocks are revealed as significant determinants of commercial input purchases across regions in Malawi. In addition to regional heterogeneity findings, further analysis shows that the relatively wealthier, male-headed families and those with access to information are more likely to invest in purchased inputs in response to drought shocks. Scaling up policies that remove demand- and supply-side barriers to smallholder farmers’ access to commercial inputs from available markets is necessary for adaptation to rainfall shocks. 2022 Journal Article http://hdl.handle.net/20.500.11937/89586 10.3390/su142214904 http://creativecommons.org/licenses/by/4.0/ MDPI AG fulltext
spellingShingle 3801 - Applied economics
Makate, Clifton
Makate, Marshall
Do rainfall shocks prompt commercial input purchases amongst smallholder farmers in diverse regions and environments in Malawi?
title Do rainfall shocks prompt commercial input purchases amongst smallholder farmers in diverse regions and environments in Malawi?
title_full Do rainfall shocks prompt commercial input purchases amongst smallholder farmers in diverse regions and environments in Malawi?
title_fullStr Do rainfall shocks prompt commercial input purchases amongst smallholder farmers in diverse regions and environments in Malawi?
title_full_unstemmed Do rainfall shocks prompt commercial input purchases amongst smallholder farmers in diverse regions and environments in Malawi?
title_short Do rainfall shocks prompt commercial input purchases amongst smallholder farmers in diverse regions and environments in Malawi?
title_sort do rainfall shocks prompt commercial input purchases amongst smallholder farmers in diverse regions and environments in malawi?
topic 3801 - Applied economics
url http://hdl.handle.net/20.500.11937/89586