| dc.description.abstract | Information asymmetry has traditionally constrained smallholder farmers' access to markets. Past studies indicate that it contributes to low adoption of modem agricultural technologies that , have the capacity to enhance the productivity of smallholder farms. Low use of inputs results in low farm productivity, which curtails the transformation from subsistence to commercial agriculture, hence perpetuating the detention of smallholder farmers in the low equilibrium poverty trap. In Kenya, information and communication technology (lCT) based projects have been introduced as part of the strategies to overcome the low farm productivity among
smallholder farm households. Such projects include: DrumNet, Kenya Agricultural Commodity Exchange (KACE), Regional Agricultural Trade Intelligence Network (RATIN), National Livestock Market Information System (NLMIS), M-farm and Arid Lands Information Network (ALIN). Theoretically, these projects are expected to improve the performance of the targeted farmers.
Specifically, it is expected that farmers who participate in such projects will tend to use the technical information acquired through them to adopt superior techniques of production, hence realize higher outputs. However, there is still a dearth of empirical evidence of the -impact of such interventions on farm input use and productivity in Kenya. This study evaluated the impact of participation in ICT-based MIS projects on the use of purchased farm inputs, labour and land
productivity in Kirinyaga, Migori and Bungoma districts in Kenya. The study focused on the DrumNet project which sought to reduce agricultural information
asymmetries by linking smallholder farmers to interlinked credit scheme, agro-input dealers, and produce buyers in order to improve their productivity. The DrumNet project's transactions were mainly performed via an ICT-based platform. The study employed Propensity Score-Matching (PSM) technique on cross-sectional data collected from 375 farmers to evaluate the impact of participation in the DrumNet project on smallholder farm input use and on land and labour productivity.
The study found that participation in the ICT-based market information service (MIS) project had a positive and significant effect on the usage farm inputs such as seed and fertilizer. Participation in the ICT -based MIS project also increased labour productivity and land productivity. Conversely, participation in the ICT -based MIS project had a negative and significant impact on the usage of hired, family and total labour. The study concluded that participation in ICT -based projects improves the use of non-labour inputs such as seed and fertilizer, but reduces the use of hired, family and total labour. Furthermore, it concluded that participation in ICT -based projects increases both labour and land productivity. The implication of these findings is that there is need to expand the coverage of ICT -based MIS
projects in rural areas, since they enhance smallholder farmers' participation in agricultural input markets, subsequently improving their labour and land productivity. Moreover, programs aiming to improve food security and farm incomes should consider the promotion of yield-augmenting agricultural technologies as well as improved access to ICT -based MIS. The study findings also suggest the need for expansion of mobile phone network coverage in farming areas where mobile
phone network is still poor, since mobile phone usage was crucial in delivering the benefits. Key words: Impact evaluation, ICT-based projects, propensity-score matching, smallholder farmers, productivity, Kenya. | en_US |
