| dc.description.abstract | The present study is concerned with the
analysis of resource utilization in maize and
cotton production on small-scale farms in Mbiuni
Location (Machakos) and Lower Abothuguchi Location
(Meru). The two locations are under the Integrated
Agricultural Development Programme (IADP).
The principal objectives of the study were:
J (a) to determine the productivity of the resources
used in maize and cotton production, and (b) to
determine the efficiency of resource. utilization
within and between maize and cotton enterprises.
The methodology utilized consists cf fitting
Cobb-Douglas 3ingle equation production functions
to a cr.ess-section sample of 30 farmers in Lower
Abothuguchi, and 32 farmers in Mbiuni. The data used
in this study were ccllected during the IADP Farm
Survey for the 1977 long rains season. This survey
is a,continuous one and consists of monthly visits to
each farmer, as well as the collection of data at the
beginning and end of each production season.
The efficiency of resource utilization within
the maize or cotton enterprises is determined by
comparing the marginal value productivities of the
resources wlth their marginal factor costs.
Efficient allocation of resources between the maize
and cotton enterprises is determined by comparing the
marginal value productivities of the resources
that are common to the two enterprises.
Empirical analysis indicates that (a) except
for the few.significant inefficiencies, Mbiuni and
Lower Abothuguchi farmers utilized their resources
efficiently~ The marginal value productivities of
the resources did not differ significantly from the
marginal factor costs. This finding confirms
Schultz's 'poor but e£ficient' hypothesis.
(b) Mbiuni and Lower Abothuguchi farmers were
relatively efficient in the allocation of resources
between maize and cotton enterprises. The marginal
value productivities of resources common to the two
enterprises did not differ significantly. This result
is in agreement with Wolgin's finding.
Since the analysis implies that there is little
scope for increasing maize and cotton output through
a re-allocation of existing resources, the solution
would be to improve the rate of adoption of the
technology that already exists in Mbiuni and Lower
Abothuguchi. The IADP has introduced technology in
these areas in form of new varieties of seed, fertilizers,
pesticides, and tractors. However, not many farmers
have adopted this technology.
It is also suggested that maize and cotton
output could be increased by introducing economic
incentives to the farmers. These would include:
(a) Raising the prices of maize and cotton.
(b) Introducing a subsidy on purchased farm inputs.
(c) Introducing the Guaranteed Minimum Returns
Scheme to small-scale farmers. This scheme has been
discontinued for larger-scale farmers due to repayment
problems. However, it is advocated for small-scale
farmers because they face higher risks than
large-scale farmers.
It is hoped that policy makers will take
note of these suggestions in their efforts to
increase maize and cotton output. | en |
