| dc.description.abstract | Earlier studies on the performance of rainfed low
density settlement schemes revealed that agricultural
production was not as high as had been expected. Farm
profit showed a lot of disparities and some resources were
underutilized. Following these observations, a comparative
study was undertaken in vrqer to look into the current
performance of two of the earliest low - density schemes:
Ainabkoi East and West. Two objectives were persued:
(1) To study the performance of the existing firming
systems and compare with sample average data. I
(2) To compare the patterns of production and resource
use 'under the existing and optimum farm organizations.
A random sample of farms was selected from each
settlement scheme. These samples provided the required
primary data. Relevant secondary data were obtained from
the local Co-operative Society and the Settlement Office,
Eldoret. All the collected data referred to the 1979 - 80
crop year. Residual accounting and gross margin analysis
were used to identify and compare farm profits in the
samples. Profit maximizing linear programming models
were used to study resource use for defined average farm
situations.
Residual accounting showed that on the whole most
farmers in the two samples obtained less than their
respective average net farm incomes as a result of low
levels of production.Although the average situations
indicated that there wererpo sd.tLve returns to management,
there were nevertheless, several individuals in each
sample who showed negative returns to their management
activity (excluding their manual labour).
A comparison of the average farm situations in the
two samples studied indicated that Ainabkoi West had more
total farm receipts but less total farm expenses than
that of Ainabkoi East. Therefore, on average the former
showed more net farm income than the latter.
Gross margin analysis showed that livestock contributed
the bulk of total farm gross margins in both average
farm situations. Potatoes and maize were the next most
important contributors and pyrethrum contributed the least
in Ainabkoi West. In Ainabkoi East this situation changed
vlithpyrethrum contributing more than maize but less 'thari"
potatoes. On a per hectare basis, the gross margins were
higher for all the enterprises in Ainabkoi West than in
the East, except for pyrethrum. Gross margins per man-hour
were also higher in Ainabkoi \Vestfor dairying and crop
activities except in the case of pyrethrum.
The results of the linear programming models revealed
that family labour during certain peak periods was an
important limiting constraint. RoV/ever, cash also became
a limiting factor whenever labour wa s allowed to be hired
for all farm enterprises. Furthermore, the available land
was only exhausted in Ainabkoi West when hired labour was
used specifically for livestock and no cash credit was
available. Cash credit was shown to be able to improve
farm performance in both settlement areas. Nevertheless,
programmes using credit, where a minimum maize activity
level was specified, did not result in better-performance
than programmes using credit where all activity levels
were unconstrained. Optimum enterprise combinations and
resource - use patterns resulted in higher total gross
margins in Ainabkoi West than in Ainabkoi East for all
model comparisons.
In conclusion, the study showed that there was
scope for improvement in farm profit in the Ainabkoi
East and West samples. On average, the production and
resource - use patterns were sub - optimal and better
results could have been obtained by supplying credit
and improving on labour utilization. Consequently,
there is need to introduce improved crop and animal
husbandry technfques which can use the available re-
sources more,sufficient ly.
Finally, it is suggested that immediate benefits
could be derived by farmers in the area studied from
provision of adequate market information. This would
include prices and market opportunities for all types
of farm produce, especially potatoes which are handled
outside the Co-operative Society in the settlement area.
Comprehensive market information from Government sources
would act as an incentive to achieve the best combinations
of enterprise and resources under changing economic
condi tions. | en |
