Production risk and farm technology adoption in rain-fed semi-arid lands of Kenya

This study examined the role of production risk on adoption of soil conserving and conditioning inputs in selected semi-arid districts of Kenya. The paper demonstrates that production risk factors (both yield variance and down side risk) are important determinants of farm technology adoption decisions in rural Kenya. <br /><br />The paper finds that variability of maize output reduces the probability of manure use and intensity of fertiliser application. On contrary, predicted mean yield increases the probability of fertiliser and manure application by farmers. <br /><br />On the other hand, higher probability of crop failure (downside risk) encourages farmers to apply manure more intensively but lowers possibility and intensity of fertiliser use. Accordingly, the paper concludes that use of fertiliser is meant to enhance output while manure input is meant to maintain the level of yield or to restore severely degraded soils that no longer promise good yields. The paper deems that farmers view manure application as mechanisms for reducing downside risk. <br /><br />The paper presents several policy implications: <br /> policies must be put in place to hedge against the potential production risk associated with the introduction of the technology with missing insurance market, de facto insurance is perhaps possible through the introduction of safety nets to cover against down side risk policies should be customised to different technologies in different environments it is necessary for the government not only to issue lands titles but also make citizens have faith in the sanctity of such titles, which will stimulate long term investment in land and help farmers break the poverty trap social capital and networks need also be encouraged for up scaling successful modern technologies' adoption in areas where info and labour scarcity are binding.